First Majestic Silver Corp. · TSX:AG
First Majestic Silver — Investor Presentation (June 2012)
22 slides from First Majestic Silver's investor presentation, June 2012
Slide 1: First Majestic Silver Corp. - June 2012
WWW.FIRSTMAJESTIC.COM THE WORLD'S as < a eee 2 JUNE 2012 IRST MAJESTIC TSX: FR | NYSE: AG | FRANKFURT: FMV ao
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: Purest Silver Producer in Mexico
Purest Silver Producer 96% Ag in 2011; (4% Au, Pb and Zn) One Country: Mexico World’s largest silver producing country Three producing silver mines; 100% owned Production Produced 7.2M oz Ag in 2011; +11% from 2010 Growth Two advanced stage silver projects in pipeline Goal Achieve annual production
Slide 4: Market cap, cash and growth in revenue and earnings
• Market cap: US$1.6 Billion • Cash position: US$90 Million • Shares Outstanding: 105.9M (FD 111M) Revenue Earnings/Share Cash Flow/Share +108% +163% +146% Millions ($US) 3 * All information is prepared and reported in accordance to IFRS standards
Slide 5: Broad depth of management
BROAD DEPTH OF MANAGEMENT • Top 40 Senior Management have over 650 years of mining and management experience • 100% Mexican operating talent / No Expats • Awarded ‘Socially Responsible Company’ award for four consecutive years, 2008 to 2011, from the Centro Mexicano para la Filantropia award (CEMEFI
Slide 6: Mines in production, construction and permitting
IN PRODUCTION 1 La Encantada Silver Mine 2 La Parrilla Silver Mine 1 3 San Martin Silver Mine 2 IN CONSTRUCTION 4 5 3 4 Del Toro Silver Mine PERMITTING 5 La Luz Silver Project 5
Slide 7: La Encantada Silver Mine
• 4,000 tpd Cyanidation Mill Produces 100% Silver Doré bars • Currently testing new process to increase metallurgical recoveries • Substantial exploration potential defined within the 4,000 hectare property 6
Slide 8: La Parrilla Silver Mine
• 2,000 tpd Dual Cyanidation / Flotation mill – Produces Silver Doré, Lead and Zinc concentrates • Awarded ‘Safest Underground Mine’ in Mexico in 2007 • Clean Industry Certified (PROFEPA) since 2008 • Recently expanded land holdings to 69,440 hectares covering several old mines 7
Slide 9: San Martin Silver Mine
• 950 tpd Cyanidation Mill Produces 100% Silver Doré bars • Mill undergoing modernization program to improve efficiencies and reduce costs • Currently developing La Esperanza, Rosarios and Huichola areas in preparation for increasing head grades and resource estimates 8
Slide 10: Our Next Silver Mine: Del Toro
Our Next Silver Mine • Ground breaking work began in April 2011 on Mill site • Fully permitted for 1,000 tpd Flotation Mill – permitting underway for 4,000 tpd (Dual Cyan/Flotation circuits) • Major underground drilling and development underway in anticipation of initial production in Q4 2012 9
Slide 11: Silver production growth forecast
*Assuming production starts at Del Toro in 4Q 2012 *La Luz Silver Project currently not considered in model 10
Slide 12: Primary silver producers: rate of production growth
TSX: FR | NYSE: AG | FRANKFURT: FMV FIRST MAJESTIC SILVER CORP. PRIMARY SILVER PRODUCERS Rate of Production Growth (2011-2013E) 100% @ Silver (Pure) @ Silver Equiv. 75% 50% 25% 0% -25% Source: BMO Capital Markets ual
Slide 13: Reserve & resource growth
FIRST MAJESTIC SILVER CORP. RESERVE & RESOURCE GROWTH Ounces of Silver Eq. (M) 500 400 300 200 100 | —Diamond Drilling me M&l Ml Inferred 298.9 2007 2008 2009 2011 2012 Note: Due to numerous market factors, the Company's NI 43-101 technical reports were not updated in 2010; however a total of 17,320
Slide 14: Realized silver price per oz
Realized Silver Price per Oz ($US) 13
Slide 15: Substantial cash generation
TSX: FR | NYSE: AG | FRANKFURT: FMV FIRST MAJESTIC SILVER CORP. SUBSTANTIAL CASH GENERATION Cash & Cash Equivalents $100 $90 $80 $70 $60 $91.2 $50 $40 $30 $40.9 $20 2009 2010 2011 Millions ($US) 14
Slide 16: Correlation to the price of silver
Correlation to the Price of Silver Source: Yahoo historical prices (as of Dec. 30th, 2011) 15
Slide 17: First Majestic vs SLV (one-year chart)
FIRST MAJESTIC VS SLV (one-year chart) Chart as of May 3rd, 2012 Source: Market-Q 16
Slide 18: Shareholder breakdown
SHAREHOLDER BREAKDOWN TOP INSTITUTIONAL INVESTORS Name % outstanding Greystone Asset 4.6% Sprott Asset Management 4.2% Van Eck 4.0% Blackrock (Consolidated) 2.3% Oppenheimer Funds 2.3% Alberta Investment Mgmt 1.5% CPP Investment Board 1.4% Connor, Clark & Lunn 1.3% Polar Securities 1.3% 17
Slide 19: Investment highlights
Leveraged exposure to higher silver prices • 96% of revenue from silver in 2011 – Purest Silver Producer in the World Significant organic growth potential • Estimated to reach 16M ounces by 2014 w/o any potential acquisitions Proven to grow resources • Updating all NI 43-101 Reserve/Resource technic
Slide 20: There is no substitute for silver
THERE IS NO SUBSTITUTE FOR SILVER
Slide 21: Reserves and resources table
Mine Classification Tonnes Silver Lead Zn Silver only Silver Equivalent (oz) R&R g/t % % oz In Situ (Pb-Zn) In Situ La Encantada Proven + Probable 8,080,830 149 1.51 0.75 38,734,800 38,734,800 La Parrilla Proven + Probable 7,203,371 170 0.92 1.15 39,387,461 51,767,462 San Martín Proven + Probable 1,
Slide 22: 2012E cash flow sensitivity
FIRST MAJESTIC SILVER CORP. 2012E CASH FLOW SENSITIVITY Millions $350 $300 $250 $200 $150 $100 TSX: FR | NYSE: AG | FRANKFURT: FMV $30 $35 $40 Average Silver Price $45 $50 Other Assumptions: Gold =$1,600 Lead = $0.90 Zinc = $0.90
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