First Majestic Silver Corp. · TSX:AG

First Majestic Silver — Investor Presentation (April 2016)

34 slides from First Majestic Silver's investor presentation, April 2016

  1. Slide 1: First Majestic Silver Corp.

    FIRST MAJESTIC SILVER CORP. TSX: FR | NYSE: AG | FWB: FMV | BMV:AG

  2. Slide 2: Forward-looking statements

    2 Certain statements contained herein regarding First Majestic Silver Corp. (the “Company”) and its operations constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. All statemen

  3. Slide 3: Pure silver producer in Mexico

    3 Pure Silver Producer 69% Ag in 2015 (12% Au, 13% Pb, 6% Zn) One Country: Mexico World’s largest silver producing country Multi-Asset Producer Six producing silver mines; 100% owned Future Growth Two advanced stage silver projects Goal Achieve annual production of 20M+ Ag oz

  4. Slide 4: Corporate snapshot and production ounces

    4 Market Capitalization: US$1.2B Shares Outstanding: 155.7M (FD 168.9M) Avg. Daily Volume: 4.6M shares ~ US$20M in daily liquidity (NYSE & TSX) Cash & Cash Equiv1: US$51.0M Production Ounces (Millions) 1) As of Dec 31, 2015

  5. Slide 5: Broad depth of people

    5 BROAD DEPTH OF PEOPLE • 100% Mexican operating talent - No Expats • Internally design, develop and construct 100% of our silver projects • ~ 4,000 direct employees • Awarded ‘Socially Responsible Company’ for seven consecutive years, 2008 to 2014, from the Centro Mexicano para la Filantropia (CEME

  6. Slide 6: Q4 and full year 2015 results

    6 Q/Q Y/Y Full Year (All shown in $USD) Q4 2015 Q3 2015 Q4 2014 2015 Revenue 66.0M 44.7M 72.5M 219.4M Mine Operating Earnings 3.9M (3.6M) 5.8M 8.7M Net Earnings after taxes (103.0M) (1.8M) (64.6M) (108.4M) Earnings per share - Adjusted1 (0.02) (0.06) 0.04 (0.11) Operating Cash Flows, before movement

  7. Slide 7: Mines and projects in Mexico

    7 IN PRODUCTION 1 La Encantada 2 La Parrilla 6 3 San Martin 1 4 La Guitarra 5 Del Toro 9 6 Santa Elena 2 7 5 8 PROJECTS 3 7 Plomosas 4 8 La Luz EXPLORATION 9 La Joya

  8. Slide 8: Silver ounces produced, silver price and grade

    8 Silver Ounces (M) Silver Price Avg. Ag Grade 223 163 166 174 167 161 (g/t): Also produced 55.5M oz of silver over this period

  9. Slide 9: Strong production growth

    NYSE: AG FWB: FMV. BMV: AG TRONG PRODUCTION GROWTH —=— Silver Eqv. Ounces (M) @ La Luz* @ Plomosas @ Santa Elena ~ La Guitarra Del Toro _ = wn oa r=) i—J Ss °o = a 2 77) La Encantada @ La Parrilla San Martin *Pending permits jm FIRST MAJESTIC SILVER CORP, 2006 2007 2008 2009 2010 2011 2012 2013 2014

  10. Slide 10: Percent of total production by mine

    FWB: EMV % OF TOTAL PRODUCTION - BY MINE PER SILVER EQUIVALENT OUNCE 2015 2016E l@ Santa Elena @ La Parrilla ™ Del Toro La Encantada San Martin “La Guitarra 16.1M 17.8M - 19.8M jm FIRST MAJESTIC

  11. Slide 11: 2016 production, cash cost and AISC guidance

    11 Mine Silver Oz (M) Silver Eqv Oz (M) Cash Costs ($) AISC ($) Santa Elena 2.0 – 2.3 4.6 – 5.1 3.12 – 3.72 9.26 – 10.55 La Encantada 2.7 – 3.0 2.7 – 3.0 10.13 – 10.46 11.98 – 12.52 La Parrilla 2.6 – 2.9 3.9 – 4.3 6.25 – 6.68 9.58 – 10.38 Del Toro 1.9 – 2.1 3.1 – 3.5 8.39 – 8.99 11.12 – 12.03 San Ma

  12. Slide 12: Q1 2016 production

    12 Mine Silver Oz (M) Silver Eqv Oz (M) Cash Costs ($) AISC ($) Santa Elena 0.7 1.7 TBA TBA La Encantada 0.8 0.8 TBA TBA La Parrilla 0.6 1.0 TBA TBA Del Toro 0.3 0.6 TBA TBA San Martin 0.5 0.6 TBA TBA La Guitarra 0.2 0.4 TBA TBA Totals: 3.1 5.1 TBA TBA 24% 27% as a % of 2016 Guidance Metal price ass

  13. Slide 13: 2016E AISC excluding non-cash items

    13 Excluding non-cash items: 2016E AISC $11.82 - $12.84 1) AISC is a non-GAAP measure and was calculated based on guidance provided by the World Gold Council (“WGC”)

  14. Slide 14: 2016E capex

    14 Includes $15M at Santa Elena (latest acquisition) $19M Expansionary $45M Sustaining $35M - U/G Development 2016E CAPEX include: $10M - Exploration $17M - PP&E $2M - Corporate Projects

  15. Slide 15: Other assumptions

    15 Other assumptions: 17:1 MEX:USD, Lead $0.80 /lb, Zinc $0.80 / lb

  16. Slide 16: First Majestic

    16 FIRST MAJESTIC

  17. Slide 17: Santa Elena

    17 Plant Operations Mill Throughput: 3,000 tpd 2016E Production: 2.0M – 2.3M Ag oz (4.6M – 5.1M AgEq oz) 2016E AISC: $9.26 - $10.55 Reserves & Resources Proven & Probable: 13.5M Ag + 210K Au oz Measured & Indicated: 14.3M Ag + 226K Au oz Inferred: 0.8M Ag + 13K Au oz *M&I Resources are inclusive of

  18. Slide 18: Del Toro

    18 Plant Operations Mill Throughput: 1,000 tpd 2016E Production: 1.9M – 2.1M Ag oz (3.1M – 3.5M AgEq oz) 2016E AISC: $11.12 - $12.03 Reserves & Resources Proven & Probable: 17.4M Ag oz Measured & Indicated: 20.9M Ag oz Inferred: 29.9M Ag oz *M&I Resources are inclusive of Reserves Quarter End • Conn

  19. Slide 19: La Encantada

    19 Plant Operations Mill Throughput: 3,000 tpd 2016E Production: 2.7M – 3.0M Ag oz 2016E AISC: $11.98 – $12.52 Reserves & Resources Proven & Probable: 30.6M Ag oz Measured & Indicated: 31.4M Ag oz Inferred: 7.2M Ag oz *M&I Resources are inclusive of Reserves Quarter End • New 12’ X 14’ ball mill ins

  20. Slide 20: La Parrilla

    20 Plant Operations Mill Throughput: 1,700 tpd 2016E Production: 2.6M – 2.9M Ag oz (3.9M – 4.3M AgEq oz) 2016E AISC: $9.58 – $10.38 Reserves & Resources Proven & Probable: 16.2M Ag oz Measured & Indicated: 18.6M Ag oz Inferred: 52.5M Ag oz *M&I Resources are inclusive of Reserves • Connecting the mi

  21. Slide 21: San Martin

    21 Plant Operations Mill Throughput: 1,300 tpd 2016E Production: 1.7M – 1.8M Ag oz (1.9M – 2.1M AgEq oz) 2016E AISC: $10.76 - $11.59 Reserves & Resources Proven & Probable: 14.8M Ag oz Measured & Indicated: 20.2M Ag oz Inferred: 35.5M Ag oz *M&I Resources are inclusive of Reserves • 100% Silver/Gold

  22. Slide 22: La Guitarra

    22 Plant Operations Mill Throughput: 500 tpd 2016E Production: 1.1M – 1.2M Ag oz (1.6M – 1.7M AgEq oz) 2016E AISC: $10.37 - $11.52 Reserves & Resources Proven & Probable: 8.0M Ag oz Measured & Indicated: 9.8M Ag oz Inferred: 7.4M Ag oz *M&I Resources are inclusive of Reserves Quarter End Full Year Q

  23. Slide 23: Revenue forecasts

    23 1) Revenue forecasts calculated using metal price assumptions of $1,175/oz gold, $14.69/oz silver, $2.00/lb copper, $0.75/lb lead and $0.80/lb zinc. 2) Source: BMO

  24. Slide 24: Share performance: 1, 5 and 10 year

    24 1 Year 5 Year 10 Year Source: Bloomberg (as of April 13, 2016)

  25. Slide 25: 2016 catalysts and growth opportunities

    25  Further cost reduction at La Encantada following expansion to 3,000 tpd and installation of liquid natural gas generators  Expansion decision pending at La Guitarra which could increase production capacity to 1,000 tpd  Completion of underground haulage system at La Parrilla aimed to further

  26. Slide 26: Our Strategy

    26 Our Strategy… One Metal One Country Continue to Acquire the Best Talent in Mexico Build through Development and Acquisitions Become a 20+ Million Ounce Producer

  27. Slide 27: As we become more reliant on technology, we become more reliant on silver

    “AS WE BECOME MORE RELIANT ON TECHNOLOGY... WE BECOME MORE RELIANT ON SILVER’

  28. Slide 28: Appendix

    NYSE: AG FWB: FMV. BMV: AG APPENDIX jm FIRST MAJESTIC SILVER CORP,

  29. Slide 29: Research coverage and major shareholders

    29 Research Coverage Institution % S/O Bank of Montreal - Jessica Fung Van Eck (GDXJ) 7.8% Cormark - Graeme Jennings Van Eck (GDX) 5.6% Desjardins - Mike Parkin Resolute Funds 4.9% National Bank Financial - Greg Doyle M&G Investments 2.9% Raymond James - Chris Thompson Vanguard Group 1.2% Rodman & R

  30. Slide 30: Performance versus silver peers

    30 1 Year 3 Years 5 Years First Majestic 2.03 1.54 1.13 Silver Standard 2.10 1.68 1.12 Spot Silver 1.00 1.00 1.00 Coeur 2.10 1.40 1.00 Silver Wheaton 1.40 1.21 0.94 Hecla 1.61 1.14 0.89 Fresnillo 0.92 1.05 0.84 GDX ETF 1.61 1.13 0.78 Pan American 1.46 1.15 0.79 Spot Gold 0.57 0.56 0.44 Source: Bloom

  31. Slide 31: Proven and probable mineral reserves

    31 PROVEN AND PROBABLE MINERAL RESERVES WITH AN EFFECTIVE DATE OF DECEMBER 31, 2015 Mine Category Mineral Type k tonnes Ag (g/t) Au (g/t) Pb (%) Zn (%) Ag-Eq (g/t) Ag (k Oz) Ag-Eq (k Oz) Proven (UG) Oxides 251 247 - - - 247 1,991 1,991 Probable (UG) Oxides 1,473 214 - - - 214 10,120 10,120 LA ENCANT

  32. Slide 32: Measured and indicated mineral resources

    32 Measured and Indicated Mineral Resources are reported inclusive of Mineral Reserves) Mine / Project Category Mineral Type k tonnes Ag (g/t) Au (g/t) Pb (%) Zn (%) Cu (%) Ag-Eq (g/t) Ag (k Oz) Ag-Eq (k Oz) Measured (UG) Oxides 283 267 - - - - 267 2,433 2,433 Indicated (UG) Oxides 854 299 - - - - 2

  33. Slide 33: Inferred mineral resources

    33 Mine / Project Category Mineral Type k tonnes Ag (g/t) Au (g/t) Pb (%) Zn (%) Cu (%) Ag-Eq (g/t) Ag (k Oz) Ag-Eq (k Oz) Inferred Total (UG) Oxides 905 246 - 0.03 - - 246 7,154 7,169 LA ENCANTADA Inferred (UG) Sulphides Inferred Total (UG) Oxides + Sulphides 905 246 - 0.03 - - 246 7,154 7,169 Infe

  34. Slide 34: Plomosas and La Luz historical estimates

    34 Plomosas Historical Estimates (1) Plomosas historical resources figures are taken from Grupo Mexico’s estimates prepared in 2001 (2) Tonnage is expressed in thousands of tonnes, metal content is expressed in thousands of ounces. (3) A qualified person has not done sufficient work to classify the

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