First Majestic Silver Corp. · TSX:AG
First Majestic Silver — Merger or Acquisition (July 2015)
20 slides from First Majestic Silver's merger presentation, July 2015
Slide 1: First Majestic SilverCrest
Jn + & FIRST MAJESTIC SILVERCREST SILVER CORP. TSX:FR | NYSE:AG | FWB:FMV | BMV:AG
Slide 2: Forward-looking statements
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 statements
Slide 3: Proposed Transaction
Proposed • Offer by First Majestic to acquire all of the issued and outstanding shares of SilverCrest through Transaction: a plan of arrangement • SilverCrest shareholders will receive 0.2769 First Majestic shares and C$0.0001 per SilverCrest share held Consideration: • Implied premium of 35% based
Slide 4: A New Industry Leader
A New • The Transaction brings together 2 Mexican focused silver producers to create a new Industry leader in the space Leader Peer Leading • Expected pro forma production of 20-25 MM oz AgEq from six mines in Mexico Production • Further long term growth through Plomosas, La Luz and La Joya Profile
Slide 5: Strong Pro Forma Balance Sheet and Cash Position
(approximate values as of close Units First Majestic SilverCrest Pro Forma July 24, 2015) Share Price (C$) $4.68 $0.96 $4.68 Basic Shares outstanding (MM) 122 119 155 Market Capitalization (C$MM) $572 $115 $727 Cash & Short Term Investments Pre-Transaction (C$MM) $49 $47 $96 Expenses Debt (C$MM) $85
Slide 6: Silver Production Growth
• First Majestic remains focused on growth through development and acquisitions Production Growth (MM oz Ag) Reserve Growth La Joya Plomosas La Luz Proven & Probable Reserves (SilverCrest) Santa Elena Del Toro La Guitarra Proven & Probable Reserves (First Majestic) Silver Price Assumption (US$/oz) L
Slide 7: Market Capitalization and 2016E Production vs Peers
Market Capitalization (C$MM) $1,272 $1,049 $841 $727 $625 $585 $451 $190 $185 $23 PAA HL CDE FR' MAG SSO FVI EDR SVM EXN 2016E Production (MM oz Ag) 25.7 16.6 15.8 10.5 9.0 7.7 7.3 7.3 1.4 PAA FR' CDE HL SSO SVM FVI EDR EXN Source: Cormark Securities Inc. (as at July [•], 2015) Companies: SSO – Silv
Slide 8: Attractive Value Relative to Peer Group
Price / 2016E Cash Flow EV / 2016E EBITDA 6.7x 6.5x 5.7x 5.6x 6.9x 6.8x 4.7x Avg: 4.8x 4.2x 5.1x 3.6x 4.4x Avg: 4.5x 3.5x 3.8x 3.9x 2.7x 2.8x 2.2x PAA SSO FVI HL SVM CDE FR EDR EXN HL CDE SSO PAA FVI FR EDR SVM Attractive Value Relative to Peer Group Significant Re-Rating Opportunity to Top Quartile
Slide 9: Executive Team and Board of Directors
Executive Team Board of Directors • Keith Neumeyer, President and CEO • Douglas Penrose, Chairman • Raymond Polman, Chief Financial Officer • Ramon Davila • Salvador Garcia, Chief Operating Officer • Robert McCallum • Martin Palacios, Chief Information Officer • David A. Shaw • Connie Lillico, Corpo
Slide 10: Industry Leading Consolidation Platform for Mexican Silver Assets
Industry Leading Consolidation Platform for Mexican Silver Assets 6 • Producing Assets 1 1– La Encantada 2– La Parrilla 3– San Martin 4– La Guitarra 9 2 5– Del Toro 5 8 7 6– Santa Elena 3 • Assets in Permitting 7– Plomosas 4 8– La Luz • Exploration Assets 9– La Joya 10
Slide 11: Santa Elena Silver Mine — Asset Overview
Plant Operations Mill Throughput: 3,000 tpd 2015E Production: 1.7 – 1.9 M Ag oz (4.7 – 5.1 M Ag Eq oz) Reserves & Resources Proven & Probable: 18.8M Ag + 295K Au oz Measured & Indicated: 3.2M Ag + 50K Au oz Inferred: 1.9M Ag + 31K Au oz • Open pit heap leach and Quarter End Full Year underground pro
Slide 12: Del Toro Silver Mine — Asset Overview
DEL TORO SILVER MINE — ASSET OVERVIEW Plant Operations Mill Throughput: 2,000 tpd 2015E Production: 2.6 — 2.9M Ag oz (3.7 — 4.2M Ag Eq oz) Reserves & Resources Proven & Probable: 24.7M Ag oz Measured & Indicated: 27.4M Ag oz Inferred: 32.5M Ag oz *M&l Resources are inclusive of Reserves : yay, Quart
Slide 13: La Encantada Silver Mine — Asset Overview
FIRST MAJESTIC LA ENCANTADA SILVER MINE — ASSET OVERVIEW Plant Operatio Mill Throughp 2015E Production: Reserves & Resources Proven & Probable: Measured & Indicated: Inferred: 3,000 tpd 4.0 — 4.5M Ag oz 28.4M Ag oz 33.5M Ag oz 30.6M Ag oz *M&l Resources are inclusive of Reserves New 12’ X 14’ ball m
Slide 14: La Parrilla Silver Mine — Asset Overview
LA PARRILLA SILVER MINE — ASSET OVERVIEW Plant Operatio: Mill Throughput: 2,000 tpd 2015E Production: 2.6 — 2.9M Ag oz (4.3 — 4.8M Ag Eq oz) Reserves & Resources Proven & Probable: 20.4M Ag oz Measured & Indicated: 23.9M Ag oz Inferred: 64.2M Ag oz *M&l Resources are inclusive of Reserves * Connecti
Slide 15: San Martin Silver Mine — Asset Overview
SAN MARTIN SILVER MINE — ASSET OVERVIEW Plant Operations Mill Throughput: 2015E Production: 1,300 tpd 1.8 —2.0M Ag oz (2.1 —2.3M Ag Eq oz) & Reserves & Resources Proven & Probable: Measured & Indicated: Inferred: *M&l Resources are inclusive of Reserves * Increasing silver production and reducing co
Slide 16: La Guitarra Silver Mine — Asset Overview
LA GUITARRA SILVER MINE — ASSET OVERVIEW t Plant Operations F 3 5 } Mill Throughput: 500 tpd ; f eh! 4 2015E Production: 0.8 — 0.9M Ag oz a LNAI ; ae (1.2 — 1.3M Ag Eq oz) . ; - Reserves & Resources Proven & Probable: 9.4M Ag oz Measured & Indicated: 11.7M Ag oz Inferred: 4.7M Ag oz *M&l Resources a
Slide 17: Plomosas, La Luz and La Joya Projects
PLOMOSAS SILVER PROJECT • Two historic mining operations, Rosario and San Juan mines, located within the historic Plomosas mining district • Existing infrastructure and underground development to allow accelerated development and potential cost savings LA LUZ SILVER PROJECT • Located in the northern
Slide 18: Upcoming catalysts and milestones
Updated NI 43-101Technical Report for La Encantada expected in Q4 2015 Expansion decision pending at La Guitarra which could increase production capacity to 1,000 tpd in 2015 Completion of underground haulage system at La Parrilla aimed to further reduce costs Exploration discovery potential
Slide 19: Our Strategy
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 19
Slide 20: Contact
+ TSX: FR | NYSE: AG | FWB: FMV | BMV:AG First Majestic Contact: SilverCrest Mines Contact: #1805 - 925 West Georgia Street #501 - 570 Granville Street Vancouver, British Columbia Vancouver, British Columbia Canada, V6C 3L2 Canada, V6C 3P1
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