FR Frankfurt – FMV First Majestic Produces 6.3 million AgEq Oz in Q2 2023 Consisting of 2.6 million Silver Ounces and 45,022 Gold Ounces; Announces Updated 2023 Guidance and Management Update
NEWS RELEASE
New York – AG July 20, 2023
Toronto – FR
Frankfurt – FMV
First Majestic Produces 6.3 million AgEq Oz in Q2 2023 Consisting of 2.6 million Silver
Ounces and 45,022 Gold Ounces; Announces Updated 2023 Guidance and
Management Update
Vancouver, BC, Canada - First Majestic Silver Corp. ("Fi rst Majestic" or the "Company") is pleased to announce
that total production in the second quarter of 2023 reached 6.3 million silver equivalent (“AgEq”) ounces,
consisting of 2.6 million silver ounces and 45,022 gold o unces. Approximately 94% of total production, or 6.0
million AgEq ounces, was produced from the Company’s three Mexican operations, the San Dimas, Santa Elena
and La Encantada mines. The Company’s fourth operation, the Jerritt Canyon mine in Nevada, USA, processed
most of its remaining ore stockpiles and work in pr ocess (“WIP”) inventory thro ughout April and May and
produced 4,364 ounces of gold during its partial quarter.
In the first half of 2023, the Company produced 5.2 million silver ounces and 105,616 gold ounces, or
approximately 14.0 million AgEq ounces . In the second half of 2023, the Company is expecting to produce
between 5.3 to 5.9 million silver ounces and 86,000 to 95,000 gold ounces, or approximately 12.4 to 13.8 million
AgEq ounces, at an all-in sustaining cost (“AISC”) range of $17.69 to $18.92 per AqEq ounce.
As of April 24, 2023, all activities at the Jerritt Cany on processing plant were discontinued following the
Company’s previously announced temporary suspension of mining operations on March 20, 2023.
Q2 2023 HIGHLIGHTS
• Higher Q2 Silver Production from Mexican Operations: The Company’s Mexican operations produced
2.6 million silver ounces and 40,658 gold ounces, or approximately 6.0 millio n AqEq ounces in the
quarter. Silver production increased 4% over the prior quarter primarily due to higher tonnes processed
at San Dimas and slightly higher silver grades and recoveries at Santa Elena.
• Santa Elena’s Dual-Circuit Plant Achieves Record Quarterly Recovery Rates: Metallurgical recoveries of
Ermitaño’s ore achieved record quarterly rates as a re sult of strong operational performance of the
recently commissioned dual-circuit plant. Gold and silver recoveries averaged 94% and 52%,
respectively, in the second quarter.
• 19 Drill Rigs Active: The Company completed a total of 42,285 me tres of drilling across all sites in the
second quarter, representing a 15% increase over th e prior quarter. Throughout the quarter, up to 19
drill rigs were active consisting of eight rigs at San Dimas, six rigs at Santa Elena, two rigs at La Encantada,
and three rigs at Jerritt Canyon.
• Safety: In Q2 2023, the consolidated Total Reportable Incident Frequency Rate (TRIFR) was 1.07 and the
Lost Time Incident Frequency Rate (LTIFR) was 0.36.
“During the quarter, silver production from our Mexican op erations improved as a result of higher processed
tonnes and grades,” said Keith Neumeyer, President & CEO. “San Dimas and La Encantada have been steady
producers in the first half of 2023 and Santa Elena is now well positioned for significant production growth in the
second half of 2023 as we traverse back into a higher grade area of the Ermitaño mine. At Jerritt Canyon, all
contractors are now offsite and processing activities hav e been suspended. We plan to continue advancing our
exploration efforts at Jerritt Canyon following the recent drill results which demonstrates the robust exploration
potential of this project.”
Production Table:
Q2 Q2 Y/Y Q1 Q/Q
2023 2022 Change 2023 Change
Ore processed/tonnes milled 733,170 903,791 -19% 845,868 -13%
Silver ounces produced 2,633,411 2,775,928 -5% 2,543,059 4%
Gold ounces produced 45,022 59,391 -24% 60,594 -26%
Silver equivalent ounces produced 6,320,971 7,705,935 -18% 7,627,105 -17%
Quarterly Mine by Mine Production Table:
Mine
Ore
Processed
Tonnes
per Day
Ag
Grade
(g/t)
Au
Grade
(g/t)
Ag
Recovery
Au
Recovery
Ag Oz
Produced
Au Oz
Produced
AgEq Oz
Produced
San Dimas 227,065 2,495 245 2.92 95% 96% 1,690,831 20,509 3,372,418
Santa Elena 213,878 2,350 39 3.12 52% 94% 142,037 20,073 1,788,596
La Encantada 260,986 2,868 127 0.01 75% 90% 800,543 76 806,789
Jerritt Canyon* 31,240 n/a - 4.90 - 89% - 4,364 353,168
*Partial quarter at Jerritt Canyon following the suspension of mining activities on March 20, 2023.
-Certain amounts shown may not add exactly to the total amount due to rounding differences.
-The following prices were used in the calculation of silver equivalent ounces: Silver: $24.13 per ounce; Gold: $1,976 per ounce.
At the San Dimas Silver/Gold Mine:
• San Dimas produced 3,372,418 AgEq ounces during the quarter consisting of 1,690,831 ounces of silver
and 20,509 ounces of gold. Silver and gold production increased 6% and 2%, respectively, compared to
the prior quarter primarily due to a 4% increase in tonnes processed.
• The mill processed a total of 227,065 tonnes of ore wi th average silver and gold grades of 245 g/t and
2.92 g/t, respectively.
• Silver and gold recoveries during the quarter averaged 95% and 96%, respectively.
• The Central Block and Sinaloa Graben areas contri buted approximately 75% a nd 25%, respectively, of
the total production during the quarter.
• During the quarter, up to eight underground drill rigs completed a to tal of 16,588 metres of drilling on
the property.
At the Santa Elena Silver/Gold Mine:
• Santa Elena produced 1,788,596 AgEq ounces during th e quarter consisting of 142,037 ounces of silver
and 20,073 ounces of gold. Total production decrea sed 15% primarily due to processing lower gold
grades at the Santa Elena plant when compared to the prior quarter.
• The mill processed a total of 213,878 tonnes of ore fr om Ermitaño containing average silver and gold
head grades of 39 g/t and 3.12 g/t, respectively.
• Silver and gold recoveries from Ermitaño reac hed new quarterly records averaging 52% and 94%,
respectively, during the quarter. The increased reco veries are the result of the robust operational
performance of the new 3,000 tpd filter press and dual-circuit plant.
• During the quarter, up to six drill rigs consisting of four surface rigs and two underground rigs, completed
16,373 metres of drilling on the property.
At the La Encantada Silver Mine:
• During the quarter, La Encantada produced 800,543 ounces of silver, representing a 4% decrease
compared to the prior quarter. The lower production was mostly due to drought conditions in the area
which limited water availability and reduced the utili zation of the ball mills. The Company has hired a
geophysical consultant to help determine pilot well dr ill targets in an effort to locate additional water
sources.
• The mill processed a total of 260,986 tonnes of ore with an average silver grade and recovery of 127 g/t
and 75%, respectively. Stope production from the new Beca Zone began in the quarter and contributed
46,849 tonnes with average silver grades of 166 g/t.
• During the quarter, up to two underground rigs completed 1,950 metres of drilling on the property.
At the Jerritt Canyon Gold Mine:
• During its partial quarter, Jerritt Ca nyon produced 4,364 ounces of go ld by processing most of its
remaining ore stockpiles and WIP inventory throughout April and May. As of April 24, 2023, all activities
at the Jerritt Canyon processing plant were suspen ded following the Company’s previously announced
temporary suspension of mining activities on March 20, 2023.
• The mill processed a total of 31,240 tonnes of ore with an average gold grade and recovery of 4.90 g/t
and 89%, respectively.
• During the quarter, up to three underground drill rigs completed 7,375 metres of drilling on the property.
OUTLOOK
The Company is revising its full year 2023 guidance to reflect changes due to prod uction variances including
improved milling efficiencies at Santa Elena’s dual-circu it plant, improved silver and gold grades from the
Ermitaño mine, the exclusion of gold production at Je rritt Canyon as a result of the previously announced
temporary suspension, as well as incorporating changes to metal price assumptions, foreign exchange rates, and
production impacts from the first half of 2023. Details of the changes and their expected impacts are presented
below:
1. Higher production in the second half of 2023 is ex pected at Santa Elena due to strong recovery
performance of the dual-circuit plant and processing higher silver and gold grades from the Ermitaño
mine. Total production is expected to increase to between 4.7 to 5.2 million AgEq ounces in the second
half of 2023, or 27% higher based on the guidance midpoint compared to the first half of 2023.
2. As a result of the previously announced temporar y suspension at Jerritt Canyon, the Company has
assumed there will be no gold production from Jerritt Canyon in the second half of 2023.
3. Increased silver and gold price assumptions in the second half of 2023 to $23.50/oz and $1,950/oz,
respectively, which reduces the silver to gold ratio to 83:1.
4. As a result of the continued strength of the Mexican Peso, the Company is now assuming a 17:1
(MXN:USD) ratio in the second half of 2023 compared to the original guidance of 20:1.
As a result of these adjustments, the Company’s estima te for 2023 full year silver production has increased
slightly to an estimated range of 10.5 to 11.2 million o unces compared to prior guidance of 10.0 to 11.1 million
ounces. Additionally, 2023 gold production is no w estimated to range betw een 190,000 to 201,000 ounces
compared to the prior guidance of 277,000 to 310,000 ounces. As a result, total 2023 production is estimated to
range between 26.2 to 27.8 million AgEq ounces compar ed to the prior guidance of 33.2 to 37.1 million AgEq
ounces.
The Company is also providing guidance below on a mine-by-mine basis for the second half of 2023.
GUIDANCE FOR SECOND HALF 2023
Silver Oz (M) Gold Oz (K) Silver Eqv Oz (M) Cash Cost AISC
($ per AgEq oz) ($ per AgEq oz)
San Dimas, Mexico 3.1 – 3.5 38 – 42 6.3 – 7.0 11.03 – 11.64 14.77 – 15.46
Santa Elena, Mexico 0.7 – 0.8 48 – 53 4.7 – 5.2 12.04 – 12.66 14.78 – 15.44
La Encantada, Mexico 1.5 – 1.7 – 1.5 – 1.7 17.78 – 18.77 20.76 – 21.92
Total Production 5.3 – 5.9 86 - 95 12.4 – 13.8 12.23 – 12.89 17.69 – 18.92
* Certain amounts shown may not add exactly to the total amount due to rounding differences.
* Consolidated AISC includes general and administrative cost estimates and non-cash costs of $2.04 to $2.28 per AgEq ounce.
* Cash Costs and AISC are non-GAAP measures and are not standardized financial measur es under the Company's financial reporting
framework. These measures have been calculated on a basis consistent wi th historical periods. See "Non-GAAP Financial Measures"
below.
In the first half of 2023, the Company produced a tota l of 14.0 million AgEq ounces consisting of 5.2 million
ounces of silver and 105,616 ounces of gold. In the se cond half of 2023, the Company expects to produce 12.4
to 13.8 million AgEq ounces. Silver pr oduction is expected to range betw een 5.3 to 5.9 million ounces, or 8%
higher based on the guidance midpoint when compared to the first half of the year due to anticipated higher
silver grades and recoveries at Santa Elena. Additiona lly, gold production is now expected to range between
86,000 to 95,000 ounces, or 14% lower based on the guidance midpoint when compared to the first half of 2023.
The decrease in gold production is primarily due to the suspension of Jerritt Canyon partially offset by higher
gold production at both San Dimas and Santa Elena.
Cash costs in the second half of 2023 are expected to be within the rang e of $12.23 to $12.89 per AgEq ounce.
In addition, AISC are expected to be within a range of $17.69 to $18.92 per AgEq ounce in the second half of
2023. The stronger than normal Mexican Peso has increased operating costs in Mexico. The Company continues
to implement cost savings initiatives that are expected to partially offset the exchange rate impact. As of July
2023, the Peso reached a new 7-year high compared to the US Dollar.
A mine-by-mine breakdown of the revised full year 2023 production guidance is included in the table below and
assumes the prices for calculating AgEq ounces are the same as previously stated above.
GUIDANCE FOR FULL YEAR 2023
Silver Oz (M) Gold Oz (k) Silver Eqv Oz (M) Cash Cost AISC
Silver: ($ per AgEq oz) ($ per AgEq oz)
San Dimas, Mexico 6.4 – 6.8 78 – 83 12.9 – 13.7 11.06 – 11.41 14.79 – 15.19
Santa Elena, Mexico 0.9 – 1.0 91 – 97 8.5 – 9.1 12.51 – 12.92 15.62 – 16.06
La Encantada, Mexico 3.1 – 3.3 – 3.1 – 3.3 17.01 – 17.52 19.85 – 20.44
Mexico Consolidated: 10.5 – 11.2 169 – 180 24.5 – 26.1 12.33 – 12.72 17.23 – 17.66
Gold: ($ per AuEq oz) ($ per AuEq oz)
Jerritt Canyon, USA – 21 1.7 2,881 3,267
Total Production
($ per AgEq oz) ($ per AgEq oz)
Consolidated 10.5 – 11.2 190 – 201 26.2 – 27.8 13.63 – 14.07 19.37 – 20.15
* Certain amounts shown may not add exactly to the total amount due to rounding differences.
* Consolidated AISC includes general and administrative cost estimates and non-cash costs of $2.15 to $2.28 per AgEq ounce.
* Cash Costs and AISC are non-GAAP measures and are not standardized financial measur es under the Company's financial reporting
framework. These measures have been calculated on a basis consistent wi th historical periods. See "Non-GAAP Financial Measures"
below.
REVISED CAPITAL BUDGET
In an effort to maintain its strong balance sheet and manage inflationary pressures, the Company has updated
its annual 2023 capital budget to include the reallocation of development and exploration expenditures across
its operations and investments in projects. As a re sult, the Company has reduced its planned 2023 capital
investments by 26% to $139.7 million consisting of $64.3 million of sustaining investments and $75.4 million of
expansionary investments.
The revised 2023 annual budget includes total capi tal investments of $74.4 million on underground
development, $29.7 million towards property, plant a nd equipment, $29.2 million on exploration and $6.5
million towards efficiency and corporate projects.
Revised 2023 Capital Budget ($millions) Sustaining Expa nsionary Total
Underground Development 39.9 34.5 74.4
Exploration 0.0 29.2 29.2
Property, Plant and Equipment 22.9 6.7 29.7
Corporate Projects 1.5 5.0 6.5
Total $64.3 $75.4 $139.7
*Certain amounts shown may not add exactly to the total amount due to rounding differences.
In the first half of 2023, the Company completed 19,649 metres of underground development and 78,973 metres
of exploration drilling. Under the revised 2023 budget, th e Company is now planning to complete a total of
approximately 34,400 metres of underground development in 2023, representing a 15% decrease compared to
the original guidance. In addition, the Company is now planning to comp lete a total of approximately 162,300
metres of exploration drilling in 2023, representing a 34% decrease compared to the original guidance.
Q2 2023 EARNINGS AND DIVIDEND ANNOUNCEMENT
The Company is planning to release its second quarter 2023 unaudited financial results, and to announce the
second quarter dividend payment, and shareholder record and payable dates on August 3, 2023.
MANAGEMENT CHANGES
In support of the reorganization and future growth of the Company, the Corporate Secretary and General
Counsel positions have been combined into a single position under the leadership of Keith Neumeyer. Samir
Patel, LL.B., a securities lawyer with over 14 years of po st-call experience in securities and corporate law, has
been appointed as the Company’s General Counsel & Corp orate Secretary. Prior to joining First Majestic, Mr.
Patel was General Counsel and Corporate Secretary of Fi rst Mining Gold Corp., a Canadian gold development
company, where he spent over seven years as one of the founding members of First Mining’s management
team. During his tenure at First Mining, Mr. Patel wa s key to the successful comp letion of numerous equity
financings, mergers and acquisitions and project transactions. He commenced his legal career as an associate in
the Securities and Capital Markets group of a leading Canadian law firm. As a result of the reorganization, Connie
Lillico has left the Company after 16 years of service and we thank Connie for her dedication over the years. In
addition, Sophie Hsia has also left the Company and we thank her for her efforts over the past four years.
ABOUT THE COMPANY
First Majestic is a publicly traded mining company focused on silver and gold production in Mexico and the United
States. The Company presently owns and operates the Sa n Dimas Silver/Gold Mine, the Santa Elena Silver/Gold
Mine, and the La Encantada Silver Mine as well as a portfolio of development and exploration assets, including
the Jerritt Canyon Gold project located in northeastern Nevada.
First Majestic is proud to offer a portion of its silver production for sale to the public. Bars, ingots, coins and
medallions are available for purchase online at its Bullion Store at some of the lowest premiums available.
FOR FURTHER INFORMATION contact [email protected], visit our website at www.firstmajestic.com or call
our toll-free number 1.866.529.2807.
FIRST MAJESTIC SILVER CORP.
"signed”
Keith Neumeyer, President & CEO
Non-GAAP Financial Measures
This press release includes reference to certain financial measures which are not standardized measures under the Company's financial reporting framework.
These measures include cash costs per silver equivalent ounce produced, all-in sustaini ng cost (or “AISC”) per silver equivalen t ounce produced, total
production cost per tonne, average realized silver price per o unce sold, working capital, adjusted EPS and cash flow per share. The Company believes that
these measures, together with measures determined in accordance with IFRS, provide investors with an improved ability to evalua te the underlying
performance of the Company. Thes e measures are widely used in the mining industr y as a benchmark for performance but do not hav e any standardized
meaning prescribed under IFRS, and therefore they may not be compar able to similar measures disclo sed by other companies. The d ata is intended to
provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.
For a complete description of how the Compan y calculates such measures and a reconciliati on of certain measures to GAAP terms p lease see "Non-GAAP
Measures" in the Company's most recent management discussion and analysis filed on SEDAR at www.sedar.com and EDGAR at www.sec.gov and which is
incorporated by reference herein.
Cautionary Note Regarding Forward Looking Statements
This press release contains “forward-looking information” and "forward-looking statements” under applicable Canadian and U.S. securities laws (collectively,
“forward-looking statements”). These statements relate to future events or the Company's future performance, business prospects or opportunities that
are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management made in light of management's
experience and perception of historical trends, current conditions and expected futu re developments. Forward-looking statements include, but are not
limited to, statements with respect to: release of the Compan y’s financial statements; dividends; the Company’s business strate gy; future planning
processes; commercial mining operations; the timing and amount of estimated future production; ore feed and grades; recovery rates; mine plans and mine
life; costs and timing of development at the Company's projects; capital projects a nd exploration activiti es and the possible r esults thereof. Assumptions
may prove to be incorrect and actual results may differ materially from those anticipated. Consequently, guidance cannot be guaranteed. As such, investors
are cautioned not to place undue reliance upon guidance and forward-looking statements as there can be no assurance that the pl ans, assumptions or
expectations upon which they are placed will occur. All statements other than statements of historical fact may be forward-looking statements. Statements
concerning proven and probable mineral rese rves and mineral resource estimates may also be deemed to constitute forward-looking statements to the
extent that they involve estimates of the mineralization that will be encountered as and if the pr operty is developed, and in t he case of measured and
indicated mineral resources or proven and probable mineral reserves, such statements reflect the conclusion based on certain assumptions that the mineral
deposit can be economically exploited. Any statements that express or involve discussi ons with respect to predictions, expectat ions, beliefs, plans,
projections, objectives or future events or performance (often , but not always, using words or phrases such as “seek”, “anticip ate”, “plan”, “continue”,
“estimate”, “expect”, “may”, “will”, “project”, “predict”, “forec ast”, “potential”, “target”, “int end”, “could”, “might”, “shou ld”, “believe” and similar
expressions) are not statements of historical fact and may be “forward-looking statements”.
Actual results may vary from forward-looking statements. Forwar d-looking statements are subject to known and unknown risks, unc ertainties and other
factors that may cause actual results to materially differ from those expressed or implied by such forward-looking statements, including but not limited to:
the duration and effects of the coronavirus and COVID-19, and any other pandemics or epidemics on our operations and workforce, and the effects on global
economies and society; general economic co nditions including inflation risks; actual results of exploration activities; conclusions of economic evaluations;
changes in project parameters as plans continue to be refined; commodity prices; variations in ore reserves, grade or recovery rates; actual performance of
plant, equipment or processes relative to specifications and expectations; accidents; labour relations; relations with local communities; changes in national
or local governments; changes in applicable legislation or application thereof; delays in obtaining approvals or financing or in the completion of development
or construction activities; exchange rate fluctuations; requireme nts for additional capital; gove rnment regulation; environment al risks; reclamation
expenses; outcomes of pending litigation; lim itations on insurance coverage as well as those factors discussed in the section e ntitled "Description of the
Business - Risk Factors" in the Company's most recent Annual Information Form, available on www.sedar.com, and Form 40-F on file with the United States
Securities and Exchange Commission in Washington, D.C. Although First Majestic has attempted to identify important factors that could cause actual results
to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to b e as anticipated, estimated
or intended.
The Company believes that the expectations reflected in these forward-looking statemen ts are reasonable, but no assurance can b e given that these
expectations will prove to be correct and such forward-looking statements included herein should not be unduly relied upon. These statements speak only
as of the date hereof. The Company does not intend, and does no t assume any obligation, to update these forward-looking statements, except as required
by applicable laws.