FR Frankfurt – FMV First Majestic Reports Second Quarter Financial Results and Quarterly Dividend Payment
New York – AG August 3, 2023
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, 2023. The full version of the financial st atements and the management discussion and analysis
can be viewed on the Company's website at www.firstmajestic.com or on SEDAR+ at www.sedarplus.ca and on
EDGAR at www.sec.gov. All amounts are in U.S. dollars unless stated otherwise.
Q2 2023 HIGHLIGHTS
• Production of 6.3 million silver equivalent (“AgEq”) ounces, consisting of 2.6 million silver ounces and 45,022
gold ounces, or a decrease of 17% compared to the previous quarter.
• Quarterly revenues totalled $146.7 million, a decrease of 7% compared to the previous quarter.
• Operating cash flows before non-cash working capital and taxes totalled $26.9 million, up 23% compared to
$21.9 million in the previous quarter.
• Consolidated cash costs were $15.58 per AgEq ounce and All-In Sustai ning Costs (“AISC”) (see “Non-GAAP
Financial Measures”, below) were $21.52 per AgEq ounce. Excluding Jerritt Canyon, cash costs for the three
Mexican operations were $13.44 per AgEq ounce compared to $11.85 in the previous quarter.
• Adjusted net earnings of ($5.5) million (adjusted EP S of ($0.02)) (See “Non-GAAP Financial Measures”,
below) after excluding non-cash and non-recurring items.
• Sold 87,657 ounces of silver bullion, or approximately 3.3% of the Company’s silver production, on First
Majestic’s online bullion store at an average silver price of $27.30 per ounce for total proceeds of $2.4
million.
• At the end of the quarter, the Company had a cash a nd restricted cash balance of $306.3 million consisting
of $160.2 million of cash and cash equivalents and $146.1 million of restricted cash.
• Declared a cash dividend payment of $0.0051 per common share for the second quarter of 2023 for
shareholders of record as of the close of business on August 16, 2023, which will be distributed on or about
August 31, 2023.
OPERATIONAL AND FINANCIAL HIGHLIGHTS
Key Performance Metrics
2023-Q2
2023-Q1
Change
Q2 vs Q1
2022-Q2
Change Q2 vs
Q2
Operational
Ore Processed / Tonnes Milled 733,170 845,868 (13%) 903,791 (19%)
Silver Ounces Produced 2,633,411 2,543,059 4% 2,775,928 (5%)
Gold Ounces Produced 45,022 60,594 (26%) 59,391 (24%)
Silver Equivalent Ounces Produced 6,320,971 7,627,105 (17%) 7,705,935 (18%)
Cash Costs per Silver Equivalent Ounce (1) $15.58 $15.16 3% $14.12 10%
All-in Sustaining Cost per Silver Equivalent
Ounce (1)
$21.52 $20.90 3%
$19.91 8%
Total Production Cost per Tonne(1) $128.21 $130.71 (2%) $114.55 12%
Average Realized Silver Price per Silver
Equivalent Ounce (1)
$24.95 $21.98 14%
$23.93 4%
Financial (in $millions)
Revenues $146.7 $157.0 (7) % $159.4 (8%)
Mine Operating Earnings (Loss) $1.1 ($6.4) 118% $11.6 (91%)
Net Loss ($17.5) ($100.7) 83% ($84.1) 79%
Operating Cash Flows before Non-Cash
Working Capital and Taxes
$26.9 $21.9 23%
$33.0 (18%)
Cash and Cash Equivalents $160.2 $104.8 53% $117.7 36%
Working Capital (1) $237.2 $184.6 28% $199.8 19%
Free Cash Flow (1) $7.4 ($26.7) 128% ($37.5) 120%
Shareholders
(Loss) Earnings per Share ("EPS") - Basic ($0.06) ($0.37) 84% ($0.32) 81%
Adjusted EPS (1) ($0.02) $0.00 (100%) ($0.02) 0%
NM – Not meaningful
(1) The Company reports non-GAAP measures which include cash costs pe r silver equivalent ounce produced, cash costs per gold ounce produced, all-in sustaining cost per
silver equivalent ounce produced, all-in sustaining cost per gold ounce produced, total production cost per tonne, average realized silver price per silver equivalent ounce
sold, average realized gold price per ounce sold, working capital, adjusted EPS and free cash flow. These measures are widely u sed in the mining industry as a benchmark
for performance, but do not have a standardized meaning under the Company's financial reporting framework 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” below for further details of these measures.
Q2 2023 FINANCIAL RESULTS
The Company realized an average s ilver price of $24.95 per AgEq ounce during the second quarter of 2023,
representing an 4% increase compared to the second quarter of 2022 and a 14% increase compared to the prior
quarter.
Revenues generated in the second quarter totaled $146.7 million compared to $159.4 million in the second
quarter of 2022. The decrease in revenues was primarily due to the temporary suspension of Jerritt Canyon
which processed the majority of its remaining stockp iles and work in process (“WIP”) inventory during the
quarter.
Cash flow from operations before movements in work ing capital and income taxes in the quarter was $26.9
million, representing an 18% decrease compared to the second quarter of 2022 and a 23% increase compared
to the prior quarter.
The Company reported mine operating earnings of $1.1 million compared to $11.6 million in the second quarter
of 2022. The decrease in mine operating earnings was pr imarily attributed to a st ronger Mexican Peso against
the U.S. dollar which has increased production costs. As of July 2023, the Peso reached a new 7-year high
compared to the U.S. Dollar. The Company continues to implement cost saving programs and review efficiency
improvement opportunities to offset the foreign exchange impact.
The Company reported net earnings of ($17.5) million (EPS of ($0.06)) co mpared to ($84.1) million (EPS of
($0.32)) in the second quarter of 2022. During the quarter, the Company incurre d one-time severance and
operational suspension payments at Jerritt Canyon in the amount of $8.4 million, compared to $5.1 million in
the previous quarter.
Adjusted net earnings for the quarter , normalized for non-cash or non-recurring items such as share-based
payments, unrealized losses on marketable securities and non-recurring write-downs on mineral inventory for
the quarter was ($5.5) million (adjusted EPS of ($0.02)) co mpared to ($5.7) million (a djusted EPS of ($0.02)) in
the second quarter of 2022.
Cash flow from operations before movements in work ing capital and income taxes in the quarter was $26.9
million compared to $33.0 million in the second quarter of 2022.
As of June 30, 2023, the Company had a cash and restricted cash balance of $306.3 million consisting of $160.2
million of cash and cash equivalents and $146.1 million of restricted cash. The Company also had working capital
of $237.2 million.
On June 29, 2023, the Company entered into an agreement to extend the ma turity date on its senior secured
revolving credit facility from March 21, 2025, to June 29, 2026, and increased the credit limit from $100.0 million
to $175.0 million.
OPERATIONAL HIGHLIGHTS
The table below represents the quarterly operating an d 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 (1) Consolidated
Ore Processed / Tonnes Milled 227,065 213,878 260,986 31,240 733,170
Silver Ounces Produced 1,690,831 142,037 800,543 — 2,633,411
Gold Ounces Produced 20,509 20,073 76 4,364 45,022
Silver Equivalent Ounces Produced 3,372,418 1,788,596 806,789 353,168 6,320,971
Cash Costs per Silver Equivalent Ounce (2) $12.07 $14.45 $16.90 $51.66 $15.58
All-in Sustaining Cost per Silver Equivalent Ounce $15.89 $18.00 $19.83 $51.96 $21.52
Cash Cost per Gold Ounce (2) N/A N/A N/A $4,181 N/A
All-In Sustaining Costs per Gold Ounce (2) N/A N/A N/A $4,205 N/A
Total Production Cost per Tonne (2) $173.62 $109.88 $49.91 $577.83 $128.21
(1) Jerritt Canyon production during the second quarter comprised of processing most of its remaining ore stockpiles and WIP inventory throughout April and May.
(2) See “Non-GAAP Financial Measures”, below for further details of these measures.
The Company produced 6.3 million AgEq ounces consisting of 2.6 million ounces of silver and 45,022 ounces of
gold. Silver production increased by 4% over the prior quarter primarily due to higher tonnes processed at San
Dimas combined with slightly higher silver grades and re cord metallurgical recoveries of Ermitaño’s ore. Gold
production was 26% lower compared to the previous quarter primarily due to the temporary suspension of
mining activities at Jerritt Canyon, which was previously announced on March 20, 2023.
Cash cost for the quarter was $15.58 per AgEq ounce, compared to $15.16 AgEq per ounce in the previous
quarter. The increase in cash costs pe r AgEq ounce was primarily attributable to lower production at Jerritt
Canyon which was temporarily suspended as well as a strong Mexican Peso compared to the US dollar which
averaged 5% higher compared to the previous quarter. Excluding Jerritt Canyon, cash costs at the three Mexican
operations were $13.44 per AgEq ounce compared to $11.85 in the previous quarter. The Company has
implemented a series of cost saving initiatives in an effort to help offset the strong Peso’s impact, which include
lowering production costs, capital spending, care an d maintenance holding costs, G&A costs, while also
increasing silver and gold production. In the second ha lf of 2023, the Company expect s cash costs to decrease
and be within the range of $12.23 to $12.89 per AgEq ounce.
AISC in the second quarter was $21.52 per AgEq ounce, compared to $20.90 per AgEq ounce in the previous
quarter. The increase in AISC was primarily attributed to the strong Mexican Peso which resulted in higher cash
costs as well as an increase in worker participation co sts during the quarter. In the second half of 2023, the
Company anticipates AISC to be within a range of $17.69 to $18.92 per AgEq ounce following the temporary
suspension of Jerritt Canyon which had significantly higher AISC.
Total capital expenditures in the se cond quarter were $30.5 million, cons isting of $10.4 million at San Dimas,
$13.4 million at Santa Elena, $2.0 million at La Encantada, $4.0 million at Je rritt Canyon, and $0.7 million for
strategic projects.
Q2 2023 DIVIDEND ANNOUNCEMENT
The Company is pleased to announce that its Board of Directors has declared a cash dividend payment in the
amount of $0.0051 per common share for the second quarter of 2023. 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 16, 2023, and
will be distributed on or about August 31, 2023.
Under the Company’s dividend policy, the quarterly dividend per common share is targeted to equal
approximately 1% of the Company’s net quarterly re venues 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. 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 po rtfolio 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 equivalent ounce produced, cash costs
per gold ounce produced, AISC per gold ounce produced, total production cost per tonne, average realized silver price per ounce sold, average realized gold
price per ounce sold, working capital, adjusted net earnings and EPS and free cash flow. The Company believes that these measures, together with measures
determined in accordance with IFRS, provid e investors with an improved ability to ev aluate the underlying performance of the Company. These measures
are widely used in the mining industry as a benchmark for performance but do not have any standardized meaning prescribed under IFRS, and therefore
they may not be comparable to si milar measures disclosed by other companies. The data is intended to provide additional informa tion and should not be
considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. For a complete descrip tion of how the Company
calculates such measures and a reconciliation of certain measures to GAAP terms please see "Non -GAAP Measures" in the Company's most recent
management discussion and analysis filed on SEDAR+ at www.sedarplus.ca 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 hi storical trends, current conditions and expected future developments. Fo rward-looking statements include, but are not
limited to, statements with respect to: comm ercial mining operations; cash flow; anti cipated costs; and payment of dividends, i f any. 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 guid ance and forward-looking statements as th ere 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-look ing statements. Any
statements that express or involve discussions with respect to predictions, expectations, beliefs , plans, projections, objectiv es 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. 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 on our operations and workforce, and the effects on global economies
and society; general economic conditions in cluding inflation risks ; the inherent risks involved in the mining, exploration and development of mineral
properties; 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 expe ctations; accidents; labo ur relations; relation s with local communities;
uninsured risks; defects in title; climate change events including, but not limited to, drought conditions, changes in national or local governments; changes
in applicable legislation or application th ereof, including, but not limited to, Mexica n mining reforms; delays in obtaining ap provals or financing or in the
completion of development or co nstruction activities; exchange rate fluctuatio ns; requirements for additional capital; governme nt regulation;
environmental risks; reclamation expenses; outcomes of pending litigatio n; conditions in the market for the Company’s shares an d the equity markets in
general; as well as those factors discussed in the section entitled "Description of th e Business - Risk Factors" in the Company 's most recent Annual
Information Form, available on www.sedar.com, and Form 40-F on f ile with the United States Secu rities and Exchange Commission i n 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 factor s that cause results not to be as antici pated, estimated or intended. The Company notes that changes in
climate conditions could adversely affect th e business and operations through shifting weather patterns, environmental incident s, and extreme weather
events. This can include changes in snow and precipitation levels, extreme temperatures, changing sea levels and other weather events which can result in
frozen conditions, flooding, droughts, or fi res. Such conditions could directly or i ndirectly impact our operations by affecting the safety of our staff and the
communities in which we operate, disrupting safe access to sites, damaging facilities and equipment, disrupting energy and water supply, creating labor and
material shortages and can cause supply chain interruptions. There is no assurance that the Compan y will be able to successfull y anticipate, respond to or
manage risks associated with severe climat e conditions. Any such disrup tions could have an adverse effect on the Company’s oper ations, production, and
financial results.
The Company believes that the expectations reflected in these fo rward-looking statements are reas onable, 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. The se 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.