First Majestic Silver Corp. · TSX:AG

First Majestic Silver — Investor Presentation (January 2015)

33 slides from First Majestic Silver's investor presentation, January 2015

  1. Slide 1: First Majestic Silver Corp. – One Metal, One Country

    FIRST MAJESTIC SILVER CORP. TSX: FR | NYSE: AG | FWB: FMV | BMV:AG ONE METAL, ONE COUNTRY... Fi

  2. 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

  3. Slide 3: Market emotion cycle

    EUPHORIA ANXIETY THRILL DENIAL EXCITEMENT FEAR OPTIMISM OPTIMISM RELIEF DESPERATION HOPE PANIC DEPRESSION DESPONDENCY

  4. Slide 4: Pure silver producer in Mexico

    Pure Silver Producer 77% Ag in 2014 (5% Au, 13% Pb, 5% Zn) One Country: Mexico World’s largest silver producing country Five producing silver mines; 100% owned Multi-Asset Producer Projecting 11.8M – 13.2M Ag oz in 2015 Future Growth Two advanced stage silver projects Goal Achieve annual production

  5. Slide 5: Market capitalization and liquidity

    Market Capitalization: US$775M Shares Outstanding: 117.5M (FD 119.9M w/ in the money options) Avg. Daily Volume: 3.9M shares ~ US$23M in daily liquidity Cash & Cash Equiv: US$34.7M (plus $16.1M from the sale of silver inventory) 3

  6. Slide 6: Broad depth of people

    BROAD DEPTH OF PEOPLE • 100% Mexican operating talent - No Expats • Internally design, develop and construct 100% of our silver projects • ~ 3,800 employees • Awarded ‘Socially Responsible Company’ for six consecutive years, 2008 to 2013, from the Centro Mexicano para la Filantropia (CEMEFI) 4

  7. Slide 7: Quarterly financial results

    Quarter End Full Year (All shown in $USD) Q3 2014 Q2 2014 Q3 2013 2013 Revenue 40.8M 66.9M 76.9M 251.3M Mine Operating Earnings (1.8M) 9.5M 29.2M 92.3M Net Earnings after taxes (10.5M) 7.6M 16.3M (38.2M) Earnings per share - Adjusted(1) (0.04) 0.02 0.22 0.56 Operating Cash Flows, before movements in

  8. Slide 8: Mine locations in Mexico

    IN PRODUCTION 1 La Encantada 2 La Parrilla 1 3 San Martin 4 La Guitarra 5 Del Toro 2 6 5 7 3 PERMITTING 4 6 Plomosas 7 La Luz 6 7

  9. Slide 9: Q4'14 production and costs

    Q4'14 Production: % Q/Q Ag Oz. 3,074,567 15% Ag Eqv. Oz. 4,247,527 21% Cash Cash Total Ag Oz AISC/Oz Mine Costs/Oz Costs/Tonne Produced ($USD)* ($USD)* ($USD)** La Encantada 806,055 $11.39 $17.32 $50.82 La Parrilla 705,928 $5.87 $11.77 $44.48 Del Toro 495,714 $15.94 $25.39 $66.95 The connection of D

  10. Slide 10: 2014 production and costs by mine

    Cash Cash Total Ag Oz AISC/Oz Mine Costs/Oz Costs/Tonne Produced ($USD)* ($USD)* ($USD)** La Encantada 2,923,264 $9.41 $14.90 $47.59 75% of total La Parrilla 2,230,169 $5.97 $11.74 $43.78 silver production has a weighted Del Toro 1,872,963 $15.65 $22.54 $68.59 average AISC of San Martin 1,240,920 $1

  11. Slide 11: Strong production growth

    Silver Ounces (M) FIRST MAJESTIC SILVER CORP. TSX: FR | NYSE: AG | FWB: FMV | BMV: AG STRONG PRODUCTION GROWTH 25 20 bh wu my o ass HAUL Production Target @ Plomosas* mLaLuz* @ La Guitarra ™ Del Toro 4 La Encantada m@ La Parrilla @ San Martin *Pending permits 2010 2011 2012 2013 2014 2015 201?

  12. Slide 12: Reserves and resources growth

     Silver price reduced to $24/oz for 2013 Reserve calculations  From 2007 to 2013, Reserves have increased by over 370% due to drill bit activity  Completed over 250,000 metres in exploration drilling since 2011 which will result in updated NI 43-101 technical reports in 2015 300 300.0 Proven & Pr

  13. Slide 13: 2015E AISC guidance

    Excluding non-cash items: 2015E AISC $13.50 - $14.96 1) AISC is a non-GAAP measure and was calculated based on guidance provided by the World Gold Council (“WGC”) in June 2013 10

  14. Slide 14: Mine overview

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

  15. Slide 15: Del Toro

    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: 25.8M Ag oz Measured & Indicated: 11.7M Ag oz Inferred: 38.1M Ag oz • Connected to National Power Grid in Quarter End September 2014 Full Year Q3 2014 Q2 2014

  16. Slide 16: La Encantada

    Plant Operations Mill Throughput: 2,100 tpd 2015E Production: 4.0 – 4.5M Ag oz Reserves & Resources Proven & Probable: 37.2M Ag oz Measured & Indicated: 21.9M Ag oz Inferred: 21.8M Ag oz • Significant cash flow generator and Quarter End Full Year consistent low cost operation 2013 Q3 2014 Q2 2014 Q3

  17. Slide 17: La Parrilla

    Plant Operations Mill Throughput: 2,000 tpd 2015E Production: 2.6 – 2.9M Ag oz (4.3 – 4.8M Ag Eq oz) Reserves & Resources Proven & Probable: 23.1M Ag oz Measured & Indicated: 7.9M Ag oz Inferred: 73.4M Ag oz • Connecting the mines with a 5 kilometre Quarter End Full Year modern underground ore haula

  18. Slide 18: San Martin

    Plant Operations Mill Throughput: 1,300 tpd 2015E Production: 1.8 – 2.0M Ag oz (2.1 – 2.3M Ag Eq oz) Reserves & Resources Proven & Probable: 22.4M Ag oz Measured & Indicated: 3.8M Ag oz Inferred: 57.0M Ag oz • Increasing silver production and reducing Quarter End Full Year costs following recent pla

  19. Slide 19: La Guitarra

    Plant Operations Mill Throughput: 500 tpd 2015E Production: 0.5 – 0.9M Ag oz (1.2 – 1.3M Ag Eq oz) Reserves & Resources Proven & Probable: Measured & Indicated: Under Review Inferred: Quarter End Full Year Q3 2014 Q2 2014 Q3 2013 2013 Silver production (oz) 163,696 128,912 166,635 709,002 Silver eqv

  20. Slide 20: First Majestic 5 year chart

    FIRST MAJESTIC (AG) (5 year chart) AG SLV GDX Source: Yahoo 17

  21. Slide 21: Share performance 1, 3 and 5 year

    1 Year 3 Year 5 Year Source: Bloomberg (as of January 12, 2015) 18

  22. Slide 22: Silver has underperformed all commodities

    Silver has underperformed all commodities causing pain for silver companies Source: Bloomberg 19

  23. Slide 23: Attractive value relative to peer group

    P / CF 2015E EV / EBITDA 2015E Attractive value relative to peer group Source: Bloomberg analyst consensus (as of January 12, 2015) 20

  24. Slide 24: 2015 catalysts

     Del Toro connection to National Power Grid in September – expected to reduce power costs by ~50%  Crushing/grinding upgrade at La Encantada expected to be completed by mid-2015 – production rates anticipated to increase > 30%  Updated technical reports for La Guitarra and La Encantada expected i

  25. Slide 25: 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

  26. Slide 26: 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’ FIRST MAJESTIC SILVER CORP. NYSE: AG | TSX: FR

  27. Slide 27: Appendix

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

  28. Slide 28: Research coverage and institutional holders

    Research Coverage Institution % S/O David Forster - Bank of America Van Eck (GDXJ ETF) 8.6% Andrew Kaip - Bank of Montreal Van Eck (GDX ETF) 6.1% Graeme Jennings - Cormark Resolute Funds 4.3% Matthew O'Keefe - Dundee Sprott Asset Mgmt 3.4% Adam Graf - Cowen M&G Investment Mgmt 3.3% Mike Parkin - Des

  29. Slide 29: Beta comparison versus peers

    1 Year 3 Years 5 Years First Majestic 1.64 1.32 1.25 Silver Standard 1.64 1.33 1.01 Coeur 1.27 1.05 0.99 Silver Wheaton 1.21 1.11 1.01 Pan American 1.17 0.88 0.75 Fresnillo 1.06 0.97 0.83 GDX ETF 1.05 0.94 0.73 Hecla 0.93 0.91 0.94 Spot Silver 0.53 0.53 0.41 Spot Gold 1.64 1.32 1.25 Source: Bloomber

  30. Slide 30: Shown as % of total cash costs

    Shown as % of Total Cash Costs 27

  31. Slide 31: Proven and probable reserves

    Mine/ProjectCategory Mineral type Tonnes Ag (g/t) Au (g/t) Pb (%) Zn (%) Ag (Oz) AgEq (Oz) Proven (UG) Oxides 1,023,409 316 - 2.9 1.6 10,410,996 10,410,996 Proven (tailings) Oxides 5,304,946 105 - 0.6 0.2 17,903,993 17,903,993 LA ENCANTADA Probable (UG) Oxides 1,030,341 269 - 2.6 1.2 8,916,063 8,916

  32. Slide 32: Measured and indicated resources

    Mine/projectCategory Mineral type Tonnes Ag (g/t) Au (g/t) Pb (%) Zn (%) Ag (Oz) AgEq (Oz) in situ Measured (UG) Oxides 1,380,065 199 - 1.6 3.3 8,830,896 8,830,896 LA ENCANTADA Indicated (UG) Oxides 1,805,358 225 - 1.6 5.3 13,032,801 13,032,801 Total Measured & Indicated (UG) Oxides 3,185,423 213 -

  33. Slide 33: Inferred resources

    Mine/Project Category Mineral type Tonnes Ag (g/t) Au (g/t) Pb (%) Zn (%) Ag (Oz) AgEq (Oz) in situ LA ENCANTADA Total Inferred (UG) Oxides + Sulphides 4,348,724 156 - 1.1 1.5 21,822,446 21,822,446 Inferred (UG) Oxides 4,928,449 178 0.06 0.4 0.3 28,251,697 28,795,192 LA PARRILLA Inferred (UG) Sulphi

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