FR Frankfurt – FMV First Majestic Reports Second Quarter Financial Results and Quarterly Dividend Payment
New York – AG August 16, 2021
Toronto – FR
Frankfurt – FMV
First Majestic Reports Second Quarter Financial Results
and Quarterly Dividend Payment
Vancouver, BC, Canada – First Majestic Silver Corp. (AG: NYSE; FR: TSX) (the "Company" or “First Majestic”) is
pleased to announce the unaudited interim consolidated financial results of the Company for the second quarter
ended June 30, 2021. The full version of the financial statements and the management discussion and analysis
can be viewed on the Company's website 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.
SECOND QUARTER 2021 HIGHLIGHTS
Revenues reached a new Company record of $154.1 million following the inclusion of approximately two
months of production from the Jerritt Canyon mine in Nevada and robust production from the Mexican
operations
Average realized silver price per ounce of $27.32, a 1% increase compared to Q1 2021
Cash costs increased to $13.89 per AgEq ounce, compared to $12.61 in Q1 2021, primarily due to higher ore
development and the addition of the Jerritt Canyon operation
AISC were relatively unchanged at $19.42 per AgEq ounce, compared to $19.35 in Q1 2021
Mine operating earnings of $29.4 million, compared to $28.1 million in Q1 2021
Net earnings of $15.6 million (EPS of $0.06), compared to $1.9 million (EPS of $0.01) in Q1 2021
Adjusted EPS of $0.05 after excluding non‐cash and non‐recurring items, compared to $0.03 in Q1 2021
(non‐GAAP)
Cash flow per share was $0.21 per share (non‐GAAP), compared to $0.14 per share in Q1 2021
Cash and cash equivalents as of June 30, 2021 was $227.1 million. In addition, the Company has a strong
working capital position of $276.3 million and total available liquidity of $316.3 million, including $40.0
million of available undrawn revolving credit facility
Declared a cash dividend payment of $0.006 per common share for the second quarter of 2021 for
shareholders of record as of the close of business on August 26, 2021, and will be distributed on or about
September 16, 2021
“Improved production rates and higher metal prices during the quarter generated record revenues for
the business,” stated Keith Neumeyer, President & CEO. “As a result of the higher revenues, our
quarterly dividend increased by approximately 33% when compared to the prior quarterly payment.
The mining units generated $29.4 million in mine operating earnings due to strong production and
higher realized metal prices. At Jerritt Canyon, operational improvements are being achieved although
AISC are expected to be higher than normal in the third quarter due to a $12.3 million lift on the tailing
impoundment that is currently being constructed. Once completed, costs at Jerritt Canyon are expected
to return to normal levels.”
OPERATIONAL AND FINANCIAL HIGHLIGHTS
Key Performance Metrics
2021‐Q2
2021‐Q1
Change
Q2 vs Q1
2020‐Q2
Change
Q2 vs Q2
Operational
Ore Processed / Tonnes Milled 826,213 614,245 35 % 333,559 148 %
Silver Ounces Produced 3,274,026 2,908,024 13 % 1,834,575 78 %
Silver Equivalent Ounces Produced 6,435,023 4,540,296 42 % 3,505,376 84 %
Cash Costs per Silver Equivalent Ounce (1) $13.89 $12.61 10 % $7.76 79 %
All‐in Sustaining Cost per Silver Equivalent
Ounce (1)
$19.42
$19.35 0 %
$13.95 39 %
Total Production Cost per Tonne (1) $104.94 $90.03 17 % $78.78 33 %
Average Realized Silver Price per Ounce (1)
$27.32
$27.13 1 %
$17.33 58 %
Financial (in $millions)
Revenues $154.1 $100.5 53 % $34.9 NM
Mine Operating Earnings (Loss) $29.4 $28.1 5 % ($7.8) NM
Net Earnings (Loss) $15.6 $1.9 NM ($10.0) NM
Operating Cash Flows before Movements
in Working Capital and Taxes
$51.2
$31.1 64 %
($16.4) NM
Cash and Cash Equivalents $227.1 $201.7 13 % $95.2 139 %
Working Capital (1) $276.3 $232.8 19 % $114.2 142 %
Shareholders
Earnings (Loss) per Share ("EPS") ‐ Basic $0.06 $0.01 NM ($0.05) NM
Adjusted EPS (1) $0.05 $0.03 74 % ($0.10) 153 %
Cash Flow per Share (1) $0.21 $0.14 51 % ($0.08) NM
NM – Not meaningful
(1) The Company reports non‐GAAP measures which include cash costs per silver equivalent ounce produced, all‐in sustaining cost per silver equivalent ounce produced, total
production cost per tonne, average realized silver price per ounce sold, working capital, adjusted EPS and cash flow per share. These measures are widely used in the mining
industry as a benchmark for performance, but do not have a standardized meaning and the methods used by the Company to calculate such measures may differ from
methods used by other companies with similar descriptions. See “Non‐GAAP Measures” in the MD&A for a reconciliation of non‐GAAP to GAAP measures.
Q2 2021 FINANCIAL RESULTS
The Company realized an average silver price of $27.32 per ounce during the second quarter of 2021, representing
a 58% increase compared to the second quarter of 2020 and a 1% increase compared to the prior quarter.
Revenues generated in the second quarter totaled $154.1 million compared to $34.9 million in the second quarter
of 2020, primarily due to a 199% increase in payable silver equivalent ounces sold due to a temporary suspension
of operations mandated by the Mexican government in response to COVID‐19 in the second quarter of 2020.
The Company reported mine operating earnings of $29.4 million compared to ($7.8) million in the second quarter
of 2020. The increase in mine operating earnings is primarily attributed to higher ounces sold and higher metal
prices.
The Company reported net earnings of $15.6 million (EPS of $0.06) compared to ($10.0) million (EPS of ($0.05))
in the second quarter of 2020. The increase in net earnings was primarily attributed to higher metal prices,
temporary suspension of operating activities in the second quarter of 2020 in response to the COVID‐19 pandemic,
as well as a $10.3 million loss in the second quarter of 2020 related to mark‐to‐market adjustments on the
Company’s foreign currency derivatives.
Adjusted net earnings for the quarter was $12.7 million (adjusted EPS of $0.05) compared to ($20.7) million
(adjusted EPS of ($0.10)) in the second quarter of 2020, after excluding non‐cash and non‐recurring items.
Cash flow from operations before movements in working capital and income taxes in the quarter was $51.2 million
($0.21 per share) compared to ($16.4) million (($0.08) per share) in the second quarter of 2020.
Cash and cash equivalents as of June 30, 2021 was $227.1 million. In addition, the Company had strong working
capital of $276.3 million and total available liquidity of $316.3 million, including $40.0 million of available undrawn
revolving credit facility.
OPERATIONAL HIGHLIGHTS
The table below represents the quarterly operating and cost parameters at each of the Company’s four producing
mines during the quarter.
Second Quarter Production Summary San Dimas Santa Elena La Encantada Jerritt Canyon Consolidated
Ore Processed / Tonnes Milled 202,382 234,381 242,839 146,611 826,213
Silver Ounces Produced 1,868,031 565,453 840,541 — 3,274,026
Gold Ounces Produced 19,227 8,453 102 18,762 46,544
Silver Equivalent Ounces Produced 3,176,725 1,140,398 847,502 1,270,398 6,435,023
Cash Costs per Silver Equivalent Ounce $10.17 $16.70 $13.66 N/A $13.89
All‐in Sustaining Cost per Silver Equivalent Ounce $14.22 $21.31 $15.97 N/A $19.42
Cash cost per AuEq Ounce N/A N/A N/A $1,407 N/A
All‐In sustaining costs per AuEq Ounce N/A N/A N/A $1,679 N/A
Total Production Cost per Tonne $153.43 $79.17 $45.71 $177.30 $104.94
Total production in the second quarter was 6.4 million silver equivalent ounces, consisting of 3.3 million ounces
of silver and 46,544 ounces of gold, representing an increase of 13% and 95%, respectively, compared to the
previous quarter primarily due to a 14% increase in silver equivalent production from the three operating
Mexican mines and the inclusion of production from the Jerritt Canyon mine effective April 30, 2021.
COSTS AND CAPITAL EXPENDITURES
Cash cost for the quarter was $13.89 per silver equivalent ounce, compared to $12.61 per ounce in the previous
quarter. The increase in cash cost was due to higher ore development and the addition of the Jerritt Canyon
mine which was producing at a higher cash cost in the first few months since the acquisition. The Company has
identified numerous projects that will be implemented over the next 12 to 24 months at Jerritt Canyon to
improve production and reduce costs at the mine and processing plant. The increase in cash costs were partially
offset by lower cash costs at Santa Elena and La Encantada due to higher production.
AISC in the second quarter was $19.42 per ounce and in‐line when compared to $19.35 per ounce with the
previous quarter. The slight increase in AISC was primarily attributed to an increase in cash cost per AgEq ounce
due to the addition of Jerritt Canyon which was mostly offset by a decrease in sustaining costs in total mine
development in Mexico.
Total capital expenditures in the second quarter were $58.3 million, primarily consisting of $15.5 million at San
Dimas, $17.2 million at Santa Elena (including $8.4 million towards the Ermitaño project), $2.8 million at La
Encantada, $8.1 million at Jerritt Canyon and $14.4 million for strategic projects.
Q2 2021 DIVIDEND ANNOUNCEMENT
The Company is pleased to announce that its Board of Directors has declared a cash dividend payment in the
amount of $0.006 per common share for the second quarter of 2021, representing a 33% increase compared to
the prior quarterly payment as a result of higher generated revenues. The second quarter cash dividend will be
paid to holders of record of First Majestic’s common shares as of the close of business on August 26, 2021 and
will be distributed on or about September 16, 2021.
Under the Company’s dividend policy, the quarterly dividend per common share is targeted to equal
approximately 1% of the Company’s net quarterly revenues divided by the Company’s then outstanding
common shares on the record date.
The amount and distribution dates of future dividends remain at the discretion of the Board of Directors. This
dividend qualifies as an ‘eligible dividend’ for Canadian income tax purposes. Dividends paid to shareholders
outside Canada (non‐resident investors) may be subject to Canadian non‐resident withholding taxes.
ABOUT THE COMPANY
First Majestic is a publicly traded mining company focused on silver and gold production in Mexico and the
United States 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 and the Jerritt Canyon Gold Mine.
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
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 future developments. Forward‐looking statements include, but are not
limited to, statements with respect to: the Company’s business strategy; future planning processes; commercial mining operations; cash flow; budgets; mine
plans and mine life; costs of production; costs and timing of development at the Company's projects; capital projects and exploration activities and the
possible results thereof; and payment of dividends. 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 plans, 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 reserves 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
property is developed, and in the 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 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”, “estimate”, “expect”, “may”, “will”, “project”, “predict”, “forecast”, “potential”, “target”, “intend”, “could”,
“might”, “should”, “believe” and similar expressions) are not statements 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:
the duration and effects of the coronavirus and COVID‐19, and any other pandemics on our operations and workforce, and the effects on global economies
and society, risks related to the integration of acquisitions; 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; requirements for additional capital; government regulation; environmental risks; reclamation expenses;
outcomes of pending litigation; limitations on insurance coverage as well as those factors discussed in the section entitled "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 be as anticipated, estimated or intended.
The Company believes that the expectations reflected in these forward‐looking statements are reasonable, but no assurance can be 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 not assume any obligation, to update these forward‐looking statements, except as required
by applicable laws.