First Majestic Silver Corp. · TSX:AG
First Majestic Silver — Investor Presentation (September 2023)
38 slides from First Majestic Silver's investor presentation, September 2023
Slide 1: Corporate Presentation September 2023
Corporate Presentation September 2023 TSX | FR NYSE | AG FSE | FMV
Slide 2: Cautionary Disclaimer
CAUTIONARY DISCLAIMER Certain statements contained herein regarding First Majestic Silver Corp. (the “Company”) and and mining (including environmental hazards, industrial accidents, unusual or unexpected its operations constitute “forward-looking statements” within the meaning of the United formati
Slide 3: Silver
Annual silver 82% of annual silver Mine Production consumption is ~1,240M ounces supply is sourced from Moz compared to annual mining, 18% is sourced mine production of from recycling ~ 820M ounces 48% of silver Silver is one of the consumption is from Silver world’s most industrial applications ref
Slide 4: Silver Automotive Demand
Wireless Electronic Electronic Climate Windows Sunroof Charging Control (HVAC) Silver Automotive Demand Automatic Trunk Infotainment 100 Electric Mirrors Silver Ounces (Millions) Augmented Reality 80 Heads-Up-Display (HUD) Fuel Pump 60 Wiper Systems Battery 40 Management Electronic Parking Brake 20
Slide 5: Growing Demand from Solar
GROWING DEMAND FROM SOLAR Annual Silver Demand for Solar Panels • Solar carports are one of the most viable options for refueling EV’s Represents ~20% of global • Currently in use at a number of Walmarts, Federal & State offices and silver mine supply colleges across the United States • US Departmen
Slide 6: First Majestic Everyday Silver Applications
FIRST MAJESTIC EVERYDAY SILVER APPLICATIONS
Slide 7: Gold / Silver Ratio
GOLD / SILVER RATIO Long Term Average 7 TSX | FR NYSE | AG FSE | FMV
Slide 8: About the Company
ABOUT THE COMPANY Multi Leverage Asset Goal to Silver Producer ~51% of revenue from Three doré-producing Become the World’s largest Silver (49% Gold) mines in Mexico primary silver producer North Large American Land Assets Package Mexico and Nevada – Over 380,000 hectares Two premier mining of minin
Slide 9: Leadership, employees and sustainability
• Top 16 members of our Senior Leadership Team have over 410 years of mining and management experience • Over 4,100 direct employees (+25,000 indirect) • Our Mexican operations have been recognized for the 15th consecutive year as Socially Responsible by Centro Mexicano Para La Filantropia and Empre
Slide 10: Q2 Production by Asset
Q2 PRODUCTION BY ASSET IN PRODUCTION 6% San Dimas 13% Santa Elena Nevada - USA Elko La Encantada 53% PROJECTS Durango 28% San Martin Las Vegas Del Toro Mexico City Jerritt Canyon Mexico San Dimas Santa Elena La Encantada Jerritt Canyon TSX | FR NYSE | AG FSE | FMV
Slide 11: 2023E Production and Cost Guidance
Silver Oz (M) Gold Oz (k) Silver Eqv Oz (M) Cash Cost AISC Silver: ($ per AgEq oz) ($ per AgEq oz) San Dimas, Mexico 6.4 – 6.8 78 – 83 12.9 – 13.7 11.06 – 11.41 14.79 – 15.19 Santa Elena, Mexico 0.9 – 1.0 91 – 97 8.5 – 9.1 12.51 – 12.92 15.62 – 16.06 La Encantada, Mexico 3.1 – 3.3 – 3.1 – 3.3 17.01
Slide 12: Bullion Store Silver Ounces Sold
Represents 4.2% of the Company’s silver production 700,000 $30.00 600,000 $25.00 500,000 Silver Ounces Silver Price $20.00 400,000 $15.00 300,000 $10.00 200,000 100,000 $5.00 0 $- 2019 2020 2021 2022* 2023E* 2024E Oz Sold Bullion Store Price Spot Price *Constraint By Supply 12 TSX | FR NYSE | AG FSE
Slide 13: Silver Minting Operations
• Located in Nevada, United States Mine Production • Production led by industry veterans with over 20 years experience working at two of the largest mints in North America • Capacity of minting approximately >3 million ounces of silver per year • Eliminating the middleman by vertically integrating t
Slide 14: Cash and Liquidity
• Cash of $160.2M & Restricted Cash of $146.1M = $306.3M • Marketable Securities in the amount of $52.1M. Including an $124.6M 8.5% interest in Metalla Royalty & Revolving $185.1M Streaming and a 48% interest in Credit Available Working Sierra Madre Minerals Facility Liquidity Capital Undrawn • Revo
Slide 15: Expansionary Capital Expenditures
$250 $230 $220 2023E Capex Breakdown Budget $200 U/G Development $74M Exploration $29M Capital Expenditures $150 (Millions $USD) $139 PP&E $30M $124 $125 Expansionary $107 Corporate Projects $6M $75M $100 $81 + $50 Sustaining $64 $0 2017 2018 2019 2020 2021 2022 2023E 15 TSX | FR NYSE | AG FSE | FMV
Slide 16: Our Lowest Cost and Largest Producing Mine
OUR LOWEST COST AND LARGEST PRODUCING MINE 2023E Operational Guidance Mill Throughput: 2,200 tpd 12.9M – 13.7M AgEq oz 2023E Production: (6.4M – 6.8M Ag oz + 78K – 83K Au oz) 2023E AISC: $14.79 – $15.19 Produces: 100% Doré QUARTER END Full Year 2022 Q2 2023 Q1 2023 Q2 2022 Silver production (oz) 1,6
Slide 17: San Dimas District
• First reported mining in the • Considered to be one of the San Dimas district in 1757 – most significant precious over 250 years ago metal mining districts in Mexico • Historic district production estimated at 11.1M Au oz & • Land package of mining 756M Ag oz claims covering 71,867 hectares • Over
Slide 18: Santa Elena 2023E Operational Guidance
2023E Operational Guidance Mill Throughput: 2,500 tpd 8.5M – 9.1M AgEq oz 2023E Production: (0.9M – 1.0M Ag oz + 91K - 97K Au oz ) 2023E AISC: $15.62 – $16.06 Produces: 100% Doré QUARTER END Full Year 2022 Q2 2023 Q1 2023 Q2 2022 Silver production (oz) 142,037 104,129 384,953 1,229,612 • Latin Ameri
Slide 19: Exploration Upside
Exploration Upside • Large land package of • Currently drilling multiple mining claims covering prospective veins within a Las Chispas 102,244 hectares 5Km radius of the processing plant • New discovery made at P&P: 38.2M AgEq oz @ 468 g/t AgEq Ermitaño in late 2016 M&I: 52.0M AgEq oz @ 564g/t AgEq
Slide 20: Drilling ~20,000 Metres in 2023
DRILLING ~20,000 METRES IN 2023 TO INCREASE THE CONFIDENCE IN THE RESOURCE Splay Ermitaño Central Ermitaño Ermitaño-Luna Drill Hole Au g/t/Ag g/t (length m) g/t AgEq EW-23-336 2.46/45(1.88m) 243 g/t AgEq EW-23-327 8.09/348(3.34m) 996 g/t AgEq LEGEND OPEN 2022 Resources 2023 Holes EW-23-330 Measured
Slide 21: Reserves & Resources as of Dec 31, 2022
Santa Elena’s Dual Circuit & New 3,000 tpd Filter Press Inaugural doré pour from Ermitaño - Nov 2021 East & West Portals Reserves & Resources as of Dec 31, 2022 Ag Au Ag-Eq Category Tonnes (k) Ag (g/t) Au (g/t) Ag-Eq (g/t) (M oz) (k oz) (M oz) Proven 2,539 56 3.36 468 4.6 274 38.2 & Probable Measure
Slide 22: La Encantada Operational Guidance
2023E Operational Guidance Mill Throughput: 2,800 tpd 2023E Production: 3.1M – 3.3 Ag oz 2023E AISC: $19.85 – $20.44 Produces: 100% Doré QUARTER END Full Year 2022 Q2 2023 Q1 2023 Q2 2022 • Natural gas generators currently supplying 90% of power requirements Silver production (oz) 800,543 836,448 86
Slide 23: Jerritt Canyon
• Located in Elko County, NV • Underground mining operations temporarily suspended in March 2023 • Currently exploring for new regional discoveries across the large 30,821 hectare (119 square miles) land package • Expand current known resources • Analyzing the optimization of bulk mining and cost-ef
Slide 24: Future Exploration Will Focus Below the Upper Plate
FUTURE EXPLORATION WILL FOCUS BELOW THE Jn UPPER PLATE anStMapesric Geologic map All drilling >3gpt Drill collars * Detailed surface E a Poa Fe a mapping and rock chip ie sampling (2023) * Geophysics * Seismic 2023 * Induced Polarization 2024 N * Drilling (2024) a 5Km ES |) Upper Plate i) Lower Plat
Slide 25: Key Catalysts
• Production ramp-up at Santa Elena’s Ermitaño Mine in 2023 to 2,500 tpd • Continued Resource expansion potential at the Ermitaño Mine – Luna & Soledad • Higher silver grades from the Ermitaño Mine in H2 2023 • Ongoing exploration activities, mine plan optimization and processing plant improvements
Slide 26: Capital Structure, Research Coverage, Top Shareholders
Capital Structure Research Coverage Market Capitalization: $1.7B USD / $2.2B CDN Bank of Montreal Scotiabank Shares Outstanding: 287M (FD 301M) Cormark Securities Toronto Dominion 3M Avg. Daily Volume (NYSE&TSX): 6.0M Shares ~$42M daily liquidity H.C. Wainwright Stansberry Research Share Price: $5.7
Slide 27: Dividend Policy
Under the Company’s dividend policy, the quarterly dividend per common share is targeted to equal approximately 1% of the Company’s revenues. The Q2 2023 cash dividend of $0.0051 per share will be paid to holders of record of First Majestic as of the close of business on August 16, 2023, and will be
Slide 28: Reasons to Own Silver
1. Silver is real money 6. Silver inventories are falling 2. Physical silver is a hard asset 7. Industrial use is growing 3. Silver is relatively inexpensive 8. New supply is falling 4. Silver isn’t just cheaper to buy, but it can be more practical when you need 9. World demand is growing to sell, t
Slide 29: Del Toro and San Martin Silver Mines
Del Toro Silver Mine San Martin Silver Mine • Located in Zacatecas, Mexico • Located in Jalisco, Mexico • Property consists of 70 mining claims • 100% Silver/Gold doré producer covering 2,159 hectares • Property consists of 33 mining claims • 1,000 tpd flotation circuit capable of within 38,512 hect
Slide 30: San Dimas Legal Updates
• Primero Mining Corp. (“PEM”), now a subsidiary of First Majestic, acquired the San Dimas mine in 2010 and at the time had a Silver Purchase Agreement that required PEM to sell 100% of the silver produced to Wheaton Precious Metals Corp., up to 6 million ounces and 50% of silver produced thereafter
Slide 31: Springpole Silver Stream
• In June 2020, entered into a silver stream agreement to purchase 50% of the silver produced from the Springpole Project, located in Ontario, Canada • Ongoing cash payments of 33% of the silver spot price per ounce, up to a maximum of $7.50 per ounce • Total consideration of $22.5 million in cash a
Slide 32: Proven and Probable Mineral Reserve Estimates
(1) Mineral Reserves have been classified in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) Definition Standards on Mineral Resources and Mineral Reserves, whose definitions are PROVEN AND PROBABLE MINERAL RESERVE ESTIMATES WITH AN EFFECTIVE DATE OF DECEMBER 31, 2
Slide 33: Measured and Indicated Mineral Resource Estimates, Material Properties
MEASURED AND INDICATED MINERAL RESOURCE ESTIMATES FOR THE MATERIAL PROPERTIES, WITH AN EFFECTIVE OF DECEMBER 31, 2022 FOR SAN DIMAS, SANTA ELENA, AND LA ENCANTADA MINES, AND MARCH 31, 2023 FOR THE JERRITT CANYON MINE Mine / Project Mineral Tonnage Grades Metal Content (1) Mineral Resource estimates
Slide 34: Inferred Mineral Resource Estimates, Material Properties
INFERRED MINERAL RESOURCE ESTIMATES FOR THE MATERIAL PROPERTIES, WITH AN EFFECTIVE OF DECEMBER 31, 2022 FOR SAN DIMAS, SANTA ELENA, AND LA ENCANTADA MINES, AND MARCH 31, 2023 FOR THE JERRITT CANYON MINE Mine / Project Mineral Tonnage Grades Metal Content (1) Mineral Resource estimates have been clas
Slide 35: Measured and Indicated Resources, Non-Material Properties
MEASURED AND INDICATED MINERAL RESOURCE ESTIMATES FOR THE NON-MATERIAL PROPERTIES WITH AN EFFECTIVE DATE OF DECEMBER 31, 2020 (1) Mineral Resource estimates have been Mine / Project Mineral Type Tonnage Grades Metal Content classified in accordance with the 2014 Canadian Institute of Mining, Metallu
Slide 36: Inferred Resources, Non-Material Properties
INFERRED MINERAL RESOURCE ESTIMATES FOR THE NON-MATERIAL PROPERTIES WITH AN EFFECTIVE DATE OF DECEMBER 31, 2020 Mine / Project Mineral Tonnage Grades Metal Content Category / Area Type k tonnes Ag (g/t) Au (g/t) Pb (%) Zn (%) Ag-Eq (g/t) Ag (k Oz) Au (k Oz) Pb (M lb) Zn (M lb) Ag-Eq (k Oz) NON-MATER
Slide 37: Appendix A – Ermitaño Select Significant Intercept Table
APPENDIX A – ERMITAÑO SELECT SIGNIFICANT INTERCEPT TABLE • Gold intercepts at Ermitaño are Intercept calculated using weighted averages, Drillhole Drill type uncapped sample assays, a 140 g/t True length From (m) To (m) Length (m) Au (g/t) Ag (g/t) AgEq (g/t) AgEq cut-off grade and a minimum (m) len
Slide 38: First Majestic Silver Corp.
First Majestic Silver Corp. 1800 - 925 West Georgia Street Vancouver, British Columbia, Canada V6C3L2 Email: info@firstmajestic.com Tel: 604.688.3033 Fax: 604.639.8873 North American Toll-Free: 1.866.529.2807 Bullion Sales Email: customersupport@firstmajestic.com
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