First Majestic Silver Corp. · TSX:AG
First Majestic Silver — Investor Presentation (November 2020)
37 slides from First Majestic Silver's investor presentation, November 2020
Slide 1: First Majestic
FIRST MAJESTIC SL LAVEEYR ee OR Ps: TSX | FR NYSE | AG FSE | FMV
Slide 2: Cautionary Disclaimer
Cautionary Disclaimer ] FORWARD LOOKING STATEMENT ites 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 app
Slide 3: Silver supply and demand fundamentals
• Annual silver consumption is ~1.0B ounces • 80% sourced from mining, 20% sourced from recycling and hedging • Over past 10 years, the silver industry has been in a 500M ounce physical deficit • Silver is one of the world’s most reflective and best conductors of electricity • 55% of silver consumpt
Slide 4: Silver Use In The Auto Sector
Silver Use In The Auto Sector Source: CPM Group Silver Yearbook 2020 3
Slide 5: Silver demand for solar and EV carports
• Solar carports are one of the most viable options for refueling EV’s • Currently in use at a number of Walmart’s, Federal & State offices and colleges Annual Silver Demand for Photovoltaic Solar Panels across the United States Million Ounces Million Ounces • US Department of Energy’s National Rene
Slide 6: Everyday Silver Applications
EVERYDAY SILVER APPLICATIONS Jn, 1 YouTube =F i) FIRSTMAJESTIC.COM TSX|FR NYSE|AG FSE| FMV
Slide 7: Gold/Silver Ratio
Gold/Silver Ratio The Gold to Silver Ratio Hit an All-Time High of 124:1 on March 18, 2020! 6
Slide 8: About The Company
About The Company The Right Country… Primary Ag Producer ~60% of revenue from Silver (40% Au) One Country: Mexico World’s largest silver producing country Multi-Asset Producer Three producing silver mines; 4,500 direct employees Large Land Package Over 350,000 hectares of mining claims in eight stat
Slide 9: Capital Structure and Top Shareholders
Capital Structure: Top Shareholders: % S/O Market Capitalization: $2.3B Van Eck (GDXJ & GDX) 9.5% Wheaton Precious Metals 8.6% Shares Outstanding: 221M (FD 228) The Vanguard Group 2.5% 3M Avg. Daily Volume (NYSE &TSX): 10.0M Shares ~ $116M Eric Sprott 2.3% Merian Global 2.0% Cash: $232.4M Susquehann
Slide 10: Mines and projects in Mexico
IN PRODUCTION 1 San Dimas 2 Santa Elena 2 Hermosillo 3 La Encantada 3 TEMP SUSPENDED Durango 4 San Martin 1 5 PROJECTS 6 8 4 5 La Parrilla 6 Del Toro Mexico City 7 7 La Guitarra 8 La Luz 9
Slide 11: 2020E Guidance reflects production decrease due to COVID-19
2020E Guidance reflects 30 production decrease Silver Ounces Only due to COVID-19 25 Silver Eqv. Ounces (M) 20 15 10 5 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020E 10
Slide 12: 2020 production and cost guidance by mine
Mine Silver (Moz) Gold (Koz) Silver Eqv (Moz) Cash Costs ($) AISC ($) San Dimas 6.0 – 6.4 75 – 80 13.5 – 14.4 0.75 – 1.49 7.09 – 8.22 Santa Elena 1.9 – 2.0 31 – 33 4.8 – 5.2 3.60 – 4.38 8.33 – 9.43 La Encantada 3.1 – 3.3 –– 3.1 – 3.3 10.42 – 10.77 12.59 – 13.07 Totals: 11.0 – 11.7 106 – 113 21.4 – 2
Slide 13: 2020 CAPEX
2020 CAPEX Include: $54M – U/G Development $21M – Exploration $27M – PP&E $29M – Corporate Projects Expansionary $86M + Sustaining $46M 12
Slide 14: Drill rigs currently active across the Company
26 Drill rigs currently active across the Company Avg. Grade (AgEq 179 215 240 217 204 208 306 320 g/t): 13
Slide 15: San Dimas 2020E Operational Highlights
2020E Operational Highlights Our lowest cost and Mill Throughput: 2,000 tpd largest producing mine 2020E Production: 6.0M – 6.4M Ag oz (13.5M – 14.4M AgEq oz) 2020E AISC: $7.09 – $8.22 Produces: 100% Doré Quarter End Full Year Q3 2020 Q2 2020 Q3 2019 2019 Silver production (oz) 1,678,075 1,102,931 1
Slide 16: San Dimas district history
• First reported mining in the San Dimas district in 1757 – over 250 years ago • Considered to be one of the most significant Restarted the precious metal mining districts in Mexico Tayoltita mine in June 2020 • Historic production estimated at 11M Au oz & Current 580M Ag oz mining areas • Over 500
Slide 17: San Dimas infrastructure
Current Infrastructure 2020 - 2021 Project Infrastructure Crushing circuit Ore bins Las Truchas Hydro Electric Dam Cyanidation Plant Autogenous mill HIG Installation Control Room at Las Truchas Hydro Electric Dam 16
Slide 18: La Encantada 2020E Operational Highlights
2020E Operational Highlights Mill Throughput: 3,000 tpd 2020E Production: 3.1M – 3.3M Ag oz 2020E AISC: $12.59 – $13.07 Produces: 100% Doré Quarter End Full Year Q3 2020 Q2 2020 Q3 2019 2019 Silver production (oz) 978,416 509,544 885,627 3,083,410 • Natural gas generators currently supplying 90% of
Slide 19: Santa Elena 2020E Operational Highlights
2020E Operational Highlights Mill Throughput: 3,000 tpd 2020E Production: 1.9M – 2.0M Ag oz (4.8M – 5.2M AgEq oz) 2020E AISC: $8.33 – $9.43 Produces: 100% Doré Quarter End Full Year Q3 2020 Q2 2020 Q3 2019 2019 Silver production (oz) 502,375 222,100 632,216 2,435,604 Silver eqv. production (oz) 1,09
Slide 20: Exploration Upside
Las Chispas Santa Elena Silver/Gold Mine 36M AqEq oz Vein Outcropping at the Ermitaño Project Exploration Upside Ermitaño Project 68M AqEq oz • Large land package of mining claims covering 102,244 hectares • New discovery made at Ermitaño in late 2016 • Currently have eight rigs drilling in the regi
Slide 21: Ermitaño Project
• Hole 16-04: 9.9 metres grading 1,209 g/t AgEq • Hole 18-47: 13.0 metres grading 547 g/t AgEq • Hole 19-91: 13.0 metres grading 1,003 g/t AgEq • 4km away from our Santa Elena mill • Pre-Feasibility study expected in Q1 2021 • Not subject to Sandstorm stream • Initial production expected in mid-2021
Slide 22: Fine grinding technology
With recent advances in science and technology, we are now able to design processes that can grind and treat particles the size of a human red blood cell ~ 5 microns The smaller the particle size, typically more metal can be recovered which increases production and reduces unit costs Pilot HIG Mill
Slide 23: HIG Mill
HIG Mill • Uses rotating grinding disks with ceramic beads to grind ore as fine as 20 microns which has shown to significantly increase recoveries • Low cost energy consumption • Low maintenance compared to standard ball mill • Three 3,000 tpd mills already bought and delivered to (1) Santa Elena, (
Slide 24: HIG Results: Santa Elena Recoveries
= ee ” — HIG RESULTS: SANTA ELENA RECOVERIES - FIRST MAJESTIC FIRSTMAJESTIC.COM 4 Ag Recovery 100 100 95 95 o 90 90 85 85 HIG Start-up 80 80 Saeegnaeees2egeeeae3gea a8 a Gon ocCdosgcCcCdoHOGgGS o 8 a s a R o o o ot o a o 3 o So 24 TSX|FR NYSE|AG FSE| FMV
Slide 25: Every 1% increase in recoveries adds ~125K oz
Microbubbles pH Cyanide Mill & Grind Oxygen Lime feed & monitoring consumption optimization Injection Fine Grinding Every 1% increase in recoveries adds ~125K oz to annual silver production Microbubble Testing at La Parrilla 25
Slide 26: Upcoming catalysts and operational priorities
• Higher silver recoveries expected at San Dimas following the installation of high-intensity grinding (HIG) mill and autogenous (AG) mill in the second half of 2021 • Converting Santa Elena from diesel to LNG in early 2021 to reduce energy costs and carbon footprint • Ramping production at the Tayo
Slide 27: BMO SilverPages peer comparison
Source: BMO SilverPages Report – October 2,2020 2020 metal price assumptions: silver: $21.30/oz, gold: $1,783/oz, lead: $0.83lb, zinc: $1.02/lb, copper: $2.77/lb 27
Slide 28: Production by Metal / Production Mine by Mine
Production by Metal Production Mine by Mine 28
Slide 29: Share Performance vs Peers
Share Performance vs Peers 1 Year 5 Year 10 Year Source: Bloomberg (as of December 31, 2019) 29
Slide 30: Reported short interest
Source: Bloomberg (NYSE & TSX reported short interest) 30
Slide 31: Our Strategy
Our Strategy… > Continue to Acquire the Best Talent > Build through Development and Acquisitions > Continued Investments in R&D > Industry Leader in Innovation and Processing Technologies > Become World’s Largest Primary Silver Producer 31
Slide 32: La Parrilla, Del Toro and San Martin Silver Mines
La Parrilla Del Toro San Martin Silver Mine Silver Mine Silver Mine • Ongoing testing of new microbubble flotation columns in 2020 • Property consists of 70 mining claims covering 2,159 hectares • 100% Silver/Gold doré producer • Dual-circuit processing facility consisting of a 1,000 tpd • 1,000 tpd
Slide 33: Springpole silver stream agreement
• 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 34: Proven and Probable Mineral Reserves, December 31, 2019
Proven and Probable Mineral Reserves with an Effective Date of December 31, 2019 (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 incor
Slide 35: Measured and indicated mineral resources, December 31, 2019
Measured and indicated mineral resources with an effective date of December 31, 2019 35
Slide 36: Inferred mineral resources, December 31, 2019
Inferred mineral resources with an effective date of December 31, 2019 (1) Mineral Resources 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 incorporated b
Slide 37: First Majestic Silver Corp. contact details
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: sales@firstmajestic.com
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