First Majestic Silver Corp. · TSX:AG
First Majestic Silver — Investor Presentation (November 2011)
21 slides from First Majestic Silver's investor presentation, November 2011
Slide 1: The World's Purest Silver Company
THE WORLD’S PUREST SILVER COMPANY TSX: FR | NYSE: AG | FRANKFURT: FMV www.firstmajestic.com
Slide 2: Cautionary Disclaimer: Forward Looking Statement
TSX: FR | NYSE: AG | FRANKFURT: FMV CAUTIONARY DISCLAIMER FORWARD LOOKING STATEMENT 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 Litigati
Slide 3: Why First Majestic: Investor Highlights
TSX: FR | NYSE: AG | FRANKFURT: FMV FIRST MAJESTIC SILVER CORP. WHY FIRST MAJESTIC INVESTOR HIGHLIGHTS • Pure, un-hedged Silver producer focused in Mexico OVER • Three producing mines – 100% owned and operated • Fourth mine undergoing construction and development 90% • Fifth mine in exploration and
Slide 4: People: Senior Management Team
TSX: FR | NYSE: AG | FRANKFURT: FMV FIRST MAJESTIC SILVER CORP. PEOPLE SENIOR MANAGEMENT TEAM Keith Neumeyer Ramon Davila Ing Raymond Polman CA President & CEO, Director Chief Operating Officer, Director Chief Financial Officer 25+ years corporate (mining) & 35+ years mining industry CA with over 25
Slide 5: People & Social Responsibility
TSX: FR | NYSE: AG | FRANKFURT: FMV FIRST MAJESTIC SILVER CORP. PEOPLE & SOCIAL RESPONSIBILITY BROAD DEPTH OF MANAGEMENT • Top 40 Senior Management have over 600 years of mining and management experience • 100% Mexican operating talent / No Expats • Awarded ‘Socially Responsible Company’ award for 3
Slide 6: Core Assets
TSX: FR | NYSE: AG | FRANKFURT: FMV FIRST MAJESTIC SILVER CORP. CORE ASSETS IN PRODUCTION La Encantada Silver Mine La Parrilla Silver Mine San Martin Silver Mine DEVELOPMENT 2011E Ag Production by Mine Del Toro Silver Mine San Martin 14% EXPLORATION La Encantada 62% La Parrilla La Luz Silver Project
Slide 7: La Encantada Silver Mine
TSX: FR | NYSE: AG | FRANKFURT: FMV FIRST MAJESTIC SILVER CORP. LA ENCANTADA SILVER MINE • 4,000 tpd cyanidation mill - 100% silver doré producer • Currently testing new process to increase metallurgical recoveries • Substantial exploration potential defined within the 4000 hectare property
Slide 8: La Parrilla Silver Mine
TSX: FR | NYSE: AG | FRANKFURT: FMV FIRST MAJESTIC SILVER CORP. LA PARRILLA SILVER MINE • Dual Cyanidation / Flotation mill currently undergoing major expansion to 2,000 tpd and estimated to produce over 3.0 million ounces silver annually • Awarded ‘Safest Underground Mine’ in Mexico in 2007 • Clean
Slide 9: San Martin Silver Mine
TSX: FR | NYSE: AG | FRANKFURT: FMV FIRST MAJESTIC SILVER CORP. SAN MARTIN SILVER MINE • 950 tpd Cyanidation mill - 100% silver doré producer • Mill undergoing modernization program to improve efficiencies and reduce costs • Developing 500 metre ramp into the Esperanza Vein for potential resource up
Slide 10: Del Toro Silver Mine
TSX: FR | NYSE: AG | FRANKFURT: FMV FIRST MAJESTIC SILVER CORP. DEL TORO SILVER MINE Our Next Silver Mine • Ground breaking work began in April 2011 on Mill site • Fully permitted for 1,000 tpd Flotation Mill – further planning to increase to 2,000 tpd (Dual Cyan/Flotation circuits) • Major undergro
Slide 11: Silver (Eqv.) Production
TSX: FR | NYSE: AG | FRANKFURT: FMV FIRST MAJESTIC SILVER CORP. SILVER (Eqv.) PRODUCTION *Assuming production starts at Del Toro in 3Q 2012 *La Luz Silver Project currently not considered in model
Slide 12: Growth in Production
TSX: FR | NYSE: AG | FRANKFURT: FMV FIRST MAJESTIC SILVER CORP. GROWTH IN PRODUCTION Silver Production (Ounces per 100 Shares) 25 PAAS 20 15 10 SSRI 5.0 4.9 6.7 AG 5 4.1 HL 2.4 SVM CDE* 0 2006 2007 2008 2009 2010 Source: Company Annual Reports *adjusted for 10-1 reverse split
Slide 13: Resource Growth (NI 43-101 Compliant)
TSX: FR | NYSE: AG | FRANKFURT: FMV FIRST MAJESTIC SILVER CORP. RESOURCE GROWTH (NI 43-101 COMPLIANT)
Slide 14: Increasing Cash Margins
TSX: FR | NYSE: AG | FRANKFURT: FMV FIRST MAJESTIC SILVER CORP. INCREASING CASH MARGINS Realized Silver Price per Oz ($US) *The average COMEX silver price YTD is $35.61/oz
Slide 15: Solid Financial Results
TSX: FR | NYSE: AG | FRANKFURT: FMV FIRST MAJESTIC SILVER CORP. SOLID FINANCIAL RESULTS Net Earnings Cash Flow from Revenue After Taxes Operations Millions ($US) * All information is prepared and reported in accordance to IFRS standards
Slide 16: Substantial Cash Generation
TSX: FR | NYSE: AG | FRANKFURT: FMV FIRST MAJESTIC SILVER CORP. SUBSTANTIAL CASH GENERATION Cash & Cash Equivalents
Slide 17: Peer Group (>5M Oz) Correlation
TSX: FR | NYSE: AG | FRANKFURT: FMV FIRST MAJESTIC SILVER CORP. PEER GROUP (> 5M Oz) CORRELATION Correlation to the Price of Silver (Sept ‘08 – Sept ‘11)
Slide 18: Price Leverage to Silver
TSX: FR | NYSE: AG | FRANKFURT: FMV FIRST MAJESTIC SILVER CORP. PRICE LEVERAGE TO SILVER FIRST MAJESTIC VS SLV (1 year chart) Chart as of Nov. 14th, 2011 shares Source: Market-Q Share Price ($): $ 17.00 Shares O/S (MM): 104.93 Options(MM): 4.32 Fully Diluted O/S (MM): 109.25 Market Capitalization ($
Slide 19: The Silver Lining
TSX: FR | NYSE: AG | FRANKFURT: FMV FIRST MAJESTIC SILVER CORP. THE SILVER LINING Leveraged exposure to higher silver prices • 93% of revenue from Ag in 2010; 97% YTD 2011 Significant organic growth potential • Estimated to reach 16M ounces by 2014 w/o any potential acquisitions Proven to grow resou
Slide 20: There Is No Substitute for Silver
THERE IS NO SUBSTITUTE FOR SILVER
Slide 21: Reserves & Resources
Resource estimates from 43-101 reports on La Encantada, La Parrilla and San Martin from September 2008; Del Toro mine on July 2008; and Real TSX: FR | NYSE: AG | FRANKFURT: FMV FIRST MAJESTIC SILVER CORP. Reserves & Resources* Provable & Probable Tonnes Ag g/t Pure Ag Ag Eq. La Encantada 5,195,677 2
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