FR Frankfurt – FMV First Majestic Reports First Quarter Financial Results
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NEWS RELEASE
New York - AG May 9, 2019
Toronto – FR
Frankfurt – FMV
First Majestic Reports First Quarter Financial Results
FIRST MAJESTIC SILVER CORP . (AG: NYSE; FR: TSX) (the "Company" or “First Majestic”) is ple ased to announce the unaudited
interim consolidated financial results of the Company for the first quarter ended March 31, 2019. The full version of the financial
statements and the management discussion and analysis can be vi ewed on the Company's web site at www.firstmajestic.com
or on SEDAR at www.sedar .com and on EDGAR at www.sec.gov. All amounts are in U.S. dollars unless stated otherwise.
FIRST QUARTER 2019 HIGHLIGHTS
Silver equivalent production of 6.3 million ounces, down 3% compared to Q4 2018
Pure silver production of 3.3 million ounces, up 2% compared to Q4 2018
Revenues for the quarter was $86.8 million, up 17% compared to Q4 2018
Mine operating earnings of $10.3 million, up 214% compared to Q4 2018
Cash flow per share was $0.12 per share (non-GAAP)
Cash costs were $6.34 per payable silver ounce (net of by-product credits)
All-in sustaining costs (“AISC”) were $12.91 per payable silver ounce
Net earnings of $2.9 million (EPS share of $0.01)
Realized average silver price of $15.73 per ounce
Strong balance sheet with $91.5 million in cash and cash equivalents
“In the first quarter, higher silver production along with improved silver prices generated increased revenues, earnings and cash
flows compared to the prior quarter,” stated Keith Neumeyer, President and CEO of First Majestic. “Strong gold production from
our San Dimas and Santa Elena mines helped to record better than expected consolidated cash costs and AISC per ounce. Costs
a r e e x p e c t e d t o c o n t i n u e t o t r e n d l o w e r i n t h e s e c o n d h a l f o f 2019 due to higher production levels at various operations
including the commercialization of several cost saving projects which are expected to further increase margins and profitability.
We continue to prudently manage the business in a very challenging silver price environment by balancing capital investments
with expected cash flows and ensuring we maximize returns on invested capital.”
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OPERATIONAL AND FINANCIAL HIGHLIGHTS
Key Performance Metrics 2019‐Q1 2018‐Q4
Change
Q1 vs Q4 2018‐Q1
Change
Q1 vs Q1
Operational
Ore Processed / Tonnes Milled 812,654 850,272 (4%) 809,775 —%
Silver Ounces Produced 3,331,388 3,250,816 2% 2,167,030 54%
Silver Equivalent Ounces Produced 6,273,677 6,485,761 (3%) 3,879,678 62%
Cash Costs per Ounce (1) $6.34 $6.06 5% $7.83 (19%)
All-in Sustaining Cost per Ounce (1) $12.91 $12.83 1% $16.01 (19%)
Total Production Cost per Tonne (1) $66.65 $65.31 2% $46.88 42%
Average Realized Silver Price per Ounce (1) $15.73 $14.47 9% $16.76 (6%)
Financial (in $millions)
Revenues $86.8 $74.1 17% $58.6 48%
Mine Operating Earnings (Loss) $10.3 ($9.0) 214% ($0.4) 2,524%
Net Earnings (Loss) $2.9 ($164.4) 102% ($5.6) 152%
Operating Cash Flows before Working Capital and Taxes $23.7 $11.0 115% $15.6 52%
Cash and Cash Equivalents $91.5 $57.0 61% $249.2 (63%)
Working Capital (1) $130.9 $108.1 21% $235.6 (44%)
Shareholders
Earnings (Loss) per Share ("EPS") - Basic $0.01 ($0.85) 102% ($0.03) 144%
Adjusted EPS (1) ($0.01) ($0.05) 70% ($0.06) 75%
Cash Flow per Share (1) $0.12 $0.06 113% $0.09 28%
(1) The Company reports non-GAAP measures which include cash costs per ounce, all-in sustaining cost per ounce, total production cost per
ounce, total production cost per tonne, average realized silver price per ounce, working capital, adjusted EPS and cash flow p er share.
These measures are widely used in the mining industry as a benc hmark for performance, but do not have a standardized meaning a nd
may differ from methods used by other companies with similar descriptions.
Q1 2019 FINANCIAL RESULTS
The Company realized an average silver price of $15.73 per ounce during the first quarter of 2019, representing a 6% decrease
compared with the first quarter of 2018 and a 9% increase compared to $14.47 in the prior quarter .
Revenues generated in the first quarter totaled $86.8 million, an increase of 48% compared to $58.6 million in the first quarter
of 2018 primarily due to the acquisition of the San Dimas mine in the second quarter of 2018, which resulted in a 60% increase
in silver equivalent ounces sold, partially offset by a 6% decrease in average realized silver price compared to the same quarter
of the prior year .
The Company reported mine operating earnings of $10.3 million c ompared to ($0.4) million in the first quarter of 2018. The
increase in mine operating earnings in the quarter was attribut ed to the San Dimas and Santa Elena mines, which generated
mine operating earnings of $11.2 million and $5.1 million, respectively, primarily offset by losses at the Del Toro and La Parrilla
mines due to reduced production levels.
Cash flow from operations before movements in working capital and income taxes in the quarter was $23.7 million ($0.12 per
share) compared to $15.6 million ($0.09 per share) in the first quarter of 2018.
The Company generated net earnings of $2.9 million (EPS of $0.01) compared to ($5.6) million (EPS of $(0.03)) in the first quarter
of 2018. Adjusted net earnings f or the quarter was ($2.9) milli on (adjusted EPS of $(0.01)), after excluding non-cash and non-
recurring items.
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Cash and cash equivalents at March 31, 2019 was $91.5 million, an increase of $34.5 million compared to the previous quarter,
while working capital increased to $130.9 million. The increase in cash and cash equivalents was primarily attributed to the sale
of 5,250,000 common shares of the Company through its “at-the-market distribution” program at an average price of US$6.34
per share for gross proceeds of $33.6 million, or net proceeds of $32.5 million after costs.
OPERATIONAL HIGHLIGHTS
The table below represents the quarterly operating and cost parameters at each of the Company’s six producing silver mines.
First Quarter
Production Summary San Dimas Santa Elena La Encantada San Martin La Parrilla Del To ro Consolidated
Ore Processed / T onnes Milled 163,264 219,941 269,611 62,148 72,551 25,138 812,654
Silver Ounces Produced 1,404,454 587,195 720,959 331,539 219,485 67,757 3,331,388
Silver Equivalent Ounces Produced 3,172,270 1,403,364 723,699 421,091 441,095 112,158 6,273,677
Cash Costs per Ounce $0.93 $2.81 $12.60 $11.35 $16.58 $27.20 $6.34
All-in Sustaining Cost per Ounce $5.65 $6.37 $13.72 $15.67 $25.62 $35.89 $12.91
Total Production Cost per Tonne $122.17 $56.53 $32.71 $80.39 $76.78 $95.06 $66.65
Total production in the first quarter reached 6,273,677 silver equivalents ounces, consisting of 3,331,388 million ounces of silver,
32,037 ounces of gold, 2,661,088 pounds lead and 1,265,438 pounds of zinc. Compared to the previous quarter, total production
decreased slightly by 3% due to lo wer throughput and production at the Del Toro and La Parrilla mines, partially offset by an
increase in production from the La Encantada mine. Pure silver production increased 2% as a result of higher grades at the San
Dimas and La Encantada mines.
COSTS AND CAPITAL EXPENDITURES
Cash cost per ounce in the quarter was $6.34, an increase of 5% or $0.28 per ounce compared to the previous quarter . The
increase in cash cost per ounce was primarily attributed to a decrease in by-product credits which was partially offset by lower
mining contractor costs corresponding to planned reduction in t hroughputs at La Parrilla and Del Toro. Costs are expected to
trend lower in the second half of 2019 due to higher production levels at various operations.
All-in sustaining cost per ounce in the first quarter was $12.91, comparable to $12.83 per ounce in the previous quarter .
Total capital expenditures in the first quarter were $28.7 million, primarily consisting of $8.2 million at San Dimas, $4.8 million
at Santa Elena, $2.9 million at La Encantada, $2.4 million at San Martin, $2.8 million at La Parrilla, $1.0 million at Del Toro and
$6.6 million for strategic projects which includes approximately $6.0 million for the purchase of two HIG mills.
ABOUT FIRST MAJESTIC
First Majestic is a publicly traded mining company focused on silver production in Mexico and is aggressively pursuing the
development of its existing mineral property assets. The Company presently owns and operates the San Dimas Silver/Gold Mine,
the Santa Elena Silver/Gold Mine, the La Encantada Silver Mine, the La Parrilla Silver Mine, the San Martin Silver Mine and the
Del Toro Silver Mine. Production from these mines are projected to be between 14.2 to 15.8 million silver ounces or 24.7 to
27.5 million silver equivalent ounces in 2019.
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FOR FURTHER INFORMATION contact [email protected], visit o ur website at www.firstmajestic.com or call our toll free
number 1.866.529.2807.
FIRST MAJESTIC SILVER CORP .
“signed”
Keith Neumeyer, President & CEO
SPECIAL NOTE REGARDING FORWARD-LOOKING INFORMATION
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 futur e events or the Company's future performance, business prospect s 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 future developments. Forward-looking statements include, b u t a r e n o t l i m i t e d t o ,
statements with respect to: the Company’s business strategy; fu ture planning processes; commercia l mining operations; cash flo w; budgets; the timing and
amount of estimated future produc tion; recovery rates; mine pla ns and mine life; the future pr ice of silver and other metals; costs of production; costs and
timing of the development of new deposits; capital projects and exploration activities and the possible results thereof. Assumptions may prove to be incorrect
and actual results may differ ma terially from those anticipated . Consequently, guidance cannot be guaranteed. As such, investo rs are cautioned not to place
undue reliance upon guidance and forward-looking statements as there can be no assurance that the plans, assumptions or expectations upon which they are
placed will occur. All statements other than statements of hist orical fact may be forward-lookin g statements. Statements conce rning proven and probable
mineral reserves and mineral resource estimates may also be dee med to constitute forward-lookin g statements to the extent that they involve estimates of
the mineralization that will be e ncountered as and if the prope rty is developed, and in the cas e of measured and indicated min eral resources or proven and
probable mineral reserves, such statements reflect the conclusi on based on certain assumptions that the mineral deposit can be economically exploited. Any
statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives or future events or performance
(often, but not always, using words or phrases such as “seek”, “anticipate”, “plan”, “continue”, “ e s t i m a t e ” , “ e x p e c t ” , “ m a y ” , “will”, “project”, “predict”,
“forecast”, “potential”, “target”, “intend”, “could”, “might”, “should”, “believe” and similar e x p r e s s i o n s ) a r e n o t s t a t e m e n t s of historical fact and may be
“forward-looking statements”.
Actual results may vary from forward-looking statements. Forward-looking statements are subject to known and unknown risks, uncertainties 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: risks related
to the integration of acquisitions; actual results of exploration activities; conclusions of economic evaluations; changes in project parameters as plans continue
t o b e r e f i n e d ; c o m m o d i t y p r i c e s ; v a r i a t i o n s i n o r e r e s e r v e s , g rade 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 approva ls or financing or in the completion of development or construc tion activities; exchange rate
fluctuations; requirements for a dditional capital; government r egulation; environmental risks; reclamation expenses; outcomes of pending litigation;
limitations on insurance coverage as well as those factors disc ussed in the section entitled "Description of the Business - Ri sk Factors" in the Company's most
recent Annual Information Form, available on www.sedar.com, and F o r m 4 0 - F o n f i l e w i t h t h e U n i t e d S t a t e s S e c u r i t i e s a n d E x c h a nge 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 be as anticipated, estimated or intended.
The Company believes that the expectations reflected in these forward-looking statements are reasonable, but no assurance can b e g i v e n t h a t t h e s e
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 not a ssume any obligation, to update these forward-looking statement s, except as required by
applicable laws.