First Majestic Silver Corp. · TSX:AG
First Majestic Silver — Investor Presentation (June 2016)
34 slides from First Majestic Silver's investor presentation, June 2016
Slide 1: First Majestic Silver Corp.
FIRST MAJESTIC SILVER CORP. TSX: FR | NYSE: AG | FWB: FMV | BMV:AG ONE METAL, ONE COUNTRY...
Slide 2: Forward-looking statements
2 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 statemen
Slide 3: Pure silver producer in Mexico
3 Pure Silver Producer 69% Ag in 2015 (12% Au, 13% Pb, 6% Zn) One Country: Mexico World’s largest silver producing country Multi-Asset Producer Six producing silver mines; 100% owned Future Growth Two advanced stage silver projects Goal Achieve annual production of 20M+ Ag oz
Slide 4: Corporate snapshot and production ounces
4 Market Capitalization: US$1.9B Shares Outstanding: 162.2M (FD 174.0M) Avg. Daily Volume: 7.8M shares ~ US$95M in daily liquidity (NYSE & TSX) Cash & Cash Equiv1: US$61.7M Production Ounces (Millions) 1) As of Dec 31, 2015
Slide 5: Broad depth of people
5 BROAD DEPTH OF PEOPLE • 100% Mexican operating talent - No Expats • Internally design, develop and construct 100% of our silver projects • ~ 4,000 direct employees • Awarded ‘Socially Responsible Company’ for eight consecutive years, 2008 to 2015, from the Centro Mexicano para la Filantropia (CEME
Slide 6: Q1 2016 financial highlights
6 Q/Q Y/Y Full Year (All shown in $USD) Q1 2016 Q4 2015 Q1 2015 2015 Revenue 66.5M 66.0M 54.6M 219.4M Mine Operating Earnings 9.4M 3.9M 5.0M 8.7M Net Earnings after taxes (7.4M) (103.0M) (1.1M) (108.4M) Earnings per share - Adjusted1 0.03 (0.02) 0.00 (0.11) Operating Cash Flows, before movements in
Slide 7: Mines and projects in Mexico
7 IN PRODUCTION 1 La Encantada 2 La Parrilla 6 3 San Martin 1 4 La Guitarra 5 Del Toro 9 6 Santa Elena 2 7 5 8 PROJECTS 3 7 Plomosas 4 8 La Luz EXPLORATION 9 La Joya
Slide 8: Silver ounces produced and silver price
8 Silver Ounces (M) Silver Price Avg. Ag Grade 223 163 166 174 167 161 (g/t): Also produced 55.5M oz of silver over this period
Slide 9: Strong production growth
NYSE: AG FWB: FMV. BMV: AG STRONG PRODUCTION GROWTH 25 —— Silver Eqv. Ounces (M) @ La Luz* | Plomosas @ Santa Elena ~ La Guitarra Del Toro _ = wn oa r=) i—J Ss °o = a 2 77) La Encantada w La Parrilla San Martin *Pending permits jm FIRST MAJESTIC SILVER CORP, 0 T 2006 2007 2008 2009 2010 2011 2012 20
Slide 10: Percent of total production by mine
FWB: EMV % OF TOTAL PRODUCTION - BY MINE PER SILVER EQUIVALENT OUNCE 2015 2016E l@ Santa Elena @ La Parrilla Del Toro La Encantada San Martin La Guitarra jm FIRST MAJESTIC
Slide 11: 2016 production and cost guidance
11 Mine Silver Oz (M) Silver Eqv Oz (M) Cash Costs ($) AISC ($) Santa Elena 2.0 – 2.3 4.6 – 5.1 3.12 – 3.72 9.26 – 10.55 La Encantada 2.7 – 3.0 2.7 – 3.0 10.13 – 10.46 11.98 – 12.52 La Parrilla 2.6 – 2.9 3.9 – 4.3 6.25 – 6.68 9.58 – 10.38 Del Toro 1.9 – 2.1 3.1 – 3.5 8.39 – 8.99 11.12 – 12.03 San Ma
Slide 12: Q1 2016 results versus guidance
12 Mine Silver Oz (M) Silver Eqv Oz (M) Cash Costs ($) AISC ($) Santa Elena 0.7 1.7 (3.34) 1.68 La Encantada 0.8 0.8 8.49 9.33 La Parrilla 0.6 1.0 5.39 7.06 Del Toro 0.3 0.6 9.52 10.76 San Martin 0.5 0.6 5.83 7.52 La Guitarra 0.2 0.4 8.27 12.91 Totals: 3.1 5.1 $5.00 $8.97 24% 27% as a % of 2016 Guid
Slide 13: 2016E AISC excluding non-cash items
13 Excluding non-cash items: 2016E AISC $11.82 - $12.84 1) AISC is a non-GAAP measure and was calculated based on guidance provided by the World Gold Council (“WGC”)
Slide 14: 2016E capex
14 Includes $15M at Santa Elena (latest acquisition) $19M Expansionary $45M Sustaining $35M - U/G Development 2016E CAPEX include: $10M - Exploration $17M - PP&E $2M - Corporate Projects
Slide 15: Other assumptions
15 Other assumptions: 17:1 MEX:USD, Lead $0.80 /lb, Zinc $0.80 / lb
Slide 16: First Majestic
16 FIRST MAJESTIC
Slide 17: Santa Elena
17 Plant Operations Mill Throughput: 3,000 tpd 2016E Production: 2.0M – 2.3M Ag oz (4.6M – 5.1M AgEq oz) 2016E AISC: $9.26 - $10.55 Reserves & Resources Proven & Probable: 13.5M Ag + 210K Au oz Measured & Indicated: 14.3M Ag + 226K Au oz Inferred: 0.8M Ag + 13K Au oz *M&I Resources are inclusive of
Slide 18: La Encantada
18 Plant Operations Mill Throughput: 3,000 tpd 2016E Production: 2.7M – 3.0M Ag oz 2016E AISC: $11.98 – $12.52 Reserves & Resources Proven & Probable: 30.6M Ag oz Measured & Indicated: 31.4M Ag oz Inferred: 7.2M Ag oz *M&I Resources are inclusive of Reserves Quarter End • New 12’ X 14’ ball mill ins
Slide 19: La Parrilla
19 Plant Operations Mill Throughput: 1,700 tpd 2016E Production: 2.6M – 2.9M Ag oz (3.9M – 4.3M AgEq oz) 2016E AISC: $9.58 – $10.38 Reserves & Resources Proven & Probable: 16.2M Ag oz Measured & Indicated: 18.6M Ag oz Inferred: 52.5M Ag oz *M&I Resources are inclusive of Reserves • Connecting the mi
Slide 20: Del Toro
20 Plant Operations Mill Throughput: 1,000 tpd 2016E Production: 1.9M – 2.1M Ag oz (3.1M – 3.5M AgEq oz) 2016E AISC: $11.12 - $12.03 Reserves & Resources Proven & Probable: 17.4M Ag oz Measured & Indicated: 20.9M Ag oz Inferred: 29.9M Ag oz *M&I Resources are inclusive of Reserves Quarter End • Conn
Slide 21: San Martin
21 Plant Operations Mill Throughput: 1,300 tpd 2016E Production: 1.7M – 1.8M Ag oz (1.9M – 2.1M AgEq oz) 2016E AISC: $10.76 - $11.59 Reserves & Resources Proven & Probable: 14.8M Ag oz Measured & Indicated: 20.2M Ag oz Inferred: 35.5M Ag oz *M&I Resources are inclusive of Reserves • 100% Silver/Gold
Slide 22: La Guitarra
22 Plant Operations Mill Throughput: 500 tpd 2016E Production: 1.1M – 1.2M Ag oz (1.6M – 1.7M AgEq oz) 2016E AISC: $10.37 - $11.52 Reserves & Resources Proven & Probable: 8.0M Ag oz Measured & Indicated: 9.8M Ag oz Inferred: 7.4M Ag oz *M&I Resources are inclusive of Reserves Quarter End Full Year Q
Slide 23: Revenue forecasts
23 1) Revenue forecasts calculated using metal price assumptions of $1,175/oz gold, $14.69/oz silver, $2.00/lb copper, $0.75/lb lead and $0.80/lb zinc. 2) Source: BMO
Slide 24: Share price performance
24 1 Year 5 Year 10 Year Source: Bloomberg (as of June 8, 2016)
Slide 25: Cost reduction and growth catalysts
25 Further cost reduction at La Encantada following expansion to 3,000 tpd and installation of liquid natural gas (LNG) generators Installation of LNG plant at Santa Elena to further reduce operating costs Expansion decision pending at La Guitarra which could increase production capacity to 1,
Slide 26: Our Strategy
26 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
Slide 27: Reliance on technology and silver
“AS WE BECOME MORE RELIANT ON TECHNOLOGY... WE BECOME MORE RELIANT ON SILVER’
Slide 28: Appendix
NYSE: AG FWB: FMV. BMV: AG APPENDIX jm FIRST MAJESTIC SILVER CORP,
Slide 29: Research coverage and institutional holders
29 Research Coverage Institution % S/O Bank of Montreal - Jessica Fung Van Eck (GDXJ) 9.2% Cormark - Graeme Jennings Van Eck (GDX) 5.6% Desjardins - Mike Parkin Connor Clark & Lunn 4.0% National Bank Financial - Greg Doyle Resolute Funds 3.9% Raymond James - Chris Thompson M&G Investments 2.8% Rodma
Slide 30: Performance versus silver peers
30 1 Year 3 Years 5 Years First Majestic 2.03 1.54 1.13 Silver Standard 2.10 1.68 1.12 Spot Silver 1.00 1.00 1.00 Coeur 2.10 1.40 1.00 Silver Wheaton 1.40 1.21 0.94 Hecla 1.61 1.14 0.89 Fresnillo 0.92 1.05 0.84 GDX ETF 1.61 1.13 0.78 Pan American 1.46 1.15 0.79 Spot Gold 0.57 0.56 0.44 Source: Bloom
Slide 31: Proven and probable mineral reserves
31 PROVEN AND PROBABLE MINERAL RESERVES WITH AN EFFECTIVE DATE OF DECEMBER 31, 2015 Mine Category Mineral Type k tonnes Ag (g/t) Au (g/t) Pb (%) Zn (%) Ag-Eq (g/t) Ag (k Oz) Ag-Eq (k Oz) Proven (UG) Oxides 251 247 - - - 247 1,991 1,991 Probable (UG) Oxides 1,473 214 - - - 214 10,120 10,120 LA ENCANT
Slide 32: Measured and indicated mineral resources
32 Measured and Indicated Mineral Resources are reported inclusive of Mineral Reserves) Mine / Project Category Mineral Type k tonnes Ag (g/t) Au (g/t) Pb (%) Zn (%) Cu (%) Ag-Eq (g/t) Ag (k Oz) Ag-Eq (k Oz) Measured (UG) Oxides 283 267 - - - - 267 2,433 2,433 Indicated (UG) Oxides 854 299 - - - - 2
Slide 33: Inferred mineral resources
33 Mine / Project Category Mineral Type k tonnes Ag (g/t) Au (g/t) Pb (%) Zn (%) Cu (%) Ag-Eq (g/t) Ag (k Oz) Ag-Eq (k Oz) Inferred Total (UG) Oxides 905 246 - 0.03 - - 246 7,154 7,169 LA ENCANTADA Inferred (UG) Sulphides Inferred Total (UG) Oxides + Sulphides 905 246 - 0.03 - - 246 7,154 7,169 Infe
Slide 34: Plomosas and La Luz historical estimates
34 Plomosas Historical Estimates (1) Plomosas historical resources figures are taken from Grupo Mexico’s estimates prepared in 2001 (2) Tonnage is expressed in thousands of tonnes, metal content is expressed in thousands of ounces. (3) A qualified person has not done sufficient work to classify the
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