FR Frankfurt – FMV First Majestic Reports First Quarter Financial Results and Quarterly Dividend Payment
New York – AG May 12, 2022
Toronto – FR
Frankfurt – FMV
First Majestic Reports First Quarter Financial Results
and Quarterly Dividend Payment
Vancouver, BC, Canada – F irst 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 first quarter
ended March 31, 2022. 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.
FIRST QUARTER 2022 HIGHLIGHTS
• Silver equivalent production totalled 7.2 million ounces , up 59% compared to Q1 2021. Total production
consisted of 2.6 million ounces of silver and 58,891 ounces of gold
• Quarterly revenues totalled $156.8 million, or an increase of 56% compared to Q1 2021
• Mine operating earnings of $15.1 million, or a decrease of 46% compared to Q1 2021
• Operating cash flows before movements in working capital and taxes totalled $35.3 million, an increase of
14% compared to Q1 2021
• Cash costs were $14.94 per AgEq ounce
• All-in sustaining costs (“AISC”) (see “Non-GAAP Measures”, below) were $20.87 per AgEq ounce
• Net earnings of $7.3 million (EPS of $0.03) or adjusted net earnings of ($6.2) million (adjusted EPS of ($0.02))
(see “Non-GAAP Measures”, below) after excluding non-cash and non-recurring items
• Sold a record 156,200 ounces of silver bullion, or approximately 6.0% of the quarterly silver production, on
First Majestic’s bullion store at an average price of $27.86 per ounce for total proceeds of $4.4 million
• Cash and cash equivalents as of March 31, 2022 was $192.8 million. In addition, the Company has a strong
working capital position of $194.4 million and total available liquidity of $294.4 million
• Declared a cash dividend payment of $0.006 per common share for the first quarter of 2022 for shareholders
of record as of the close of business on May 25, 2022, which will be distributed on or about June 10, 2022
“In the first quarter , we faced a number of obstacles and challenges that were outside of our usual control,”
stated Keith Neumeyer, President & CEO. “Not only was Mexico hit hard with the Omicron COVID-19 variant
which significantly reduced personnel and production rates across our operations, we experienced increasing
inflationary cost pressure across the operating portfolio for reagents and consumable s such as diesel, cyanide
and grinding media. Cost -cutting measures are underway across the Company to improve profitability
and help reduce further impacts to the business. In addition, efforts to improve efficiencies at Jerritt
Canyon remain a key focus . As we reached the one-year anniversary of the acquisition, our team has
made significant investments and operating improvements within the mines and at the processing plant. As
production comes online at the West Generator and Saval II mines in the coming months, we anticipate
improved production rates to drive costs lower.”
OPERATIONAL AND FINANCIAL HIGHLIGHTS
Key Performance Metrics
2022-Q1
2021-Q4
Change
Q1 vs Q4
2021-Q1
Change
Q1 vs Q1
Operational
Ore Processed / Tonnes Milled 877,118 955,810 (8%) 614,245
43%
Silver Ounces Produced 2,613,327 3,358,809 (22%) 2,908,024
(10%)
Silver Equivalent Ounces Produced 7,222,002 8,561,023 (16%) 4,540,296
59%
Cash Costs per Silver Equivalent Ounce (1) $14.94 $12.32 21% $12.61
18%
All-in Sustaining Cost per Silver Equivalent Ounce (1) $20.87 $17.26 21% $19.35
8%
Total Production Cost per Tonne (1) $118.51 $105.37 12% $90.03
32%
Average Realized Silver Equivalent Price per Ounce (1) $26.68 $24.18 10% $27.13
(2%)
Financial (in $millions)
Revenues $156.8 $204.9 (23%) $100.5
56%
Mine Operating Earnings $15.1 $40.4 (63%) $28.1
(46%)
Net Earnings (Loss) $7.3 ($4.0) NM $1.9
NM
Operating Cash Flows before Movements in Working Capital and
$35.3 $71.8 (51%) $31.1
14%
Cash and Cash Equivalents $192.8 $237.9 (19%) $201.7
(4%)
Working Capital (1) $ 194.4 $224.4 (13%) $232.8
(16%)
Free cash flow (1) ($40.4 ) $66.4 NM ($7.7
NM
Shareholders
(Loss) Earnings per Share ("EPS") - Basic $0.03 ($0.02) NM $0.01
NM
Adjusted EPS (1) ($0.02)
$0.02 (218%) $0.03
(175%)
NM – Not meaningful
(1) The Company reports certain non-GAAP financial measures which do not have a standardized meaning under GAAP (see “Non -GAAP Measures”, below).
Q1 2022 FINANCIAL RESULTS
The Company realized an average silver price of $ 26.68 per silver equivalent ounce during the first quarter of
2022, representing a 2% decrease compared to the first quarter of 2021 and a 10% increase compared to the
prior quarter.
Revenues generated in the first quarter totaled $156.8 million compared to $100.5 million in the first quarter of
2021, representing a 56% increase primarily due to acquisition of the Jerritt Canyon mine and initial production
from the Ermitaño mine at Santa Elena.
The Company reported mine operating earnings of $15.1 million compared to $28.1 million in the first quarter
of 20 21. The decrease in mine operating earnings is primarily attributed to an increase in cost of sales and
depreciation and depletion attributed to the addition of Jerritt Canyon, and these costs were partially offset by
an increase in silver and gold ounces sold.
The Company reported net earnings of $7.3 million (EPS of $0.03) compared to $1.9 million (EPS of $0.01) in the
first quarter of 2021. The increase in net earnings was primarily attributed to a net income tax recovery of $11.7
million.
Adjusted net earnings for the quarter was ($ 6.2) million (adjusted EPS of ($0.02)) compared to $7 .0 million
(adjusted EPS of $0.03) in the first quarter of 2021, after excluding non-cash and non-recurring items.
Cash flow from operations before movements in working capital and income taxes in the quarter was $ 35.3
million compared to $31.1 million in the first quarter of 2021.
Cash and cash equivalents as of March 31, 2022, was $192.8 million. T he Company had strong working capital
of $194.4 million and total available liquidity of $294.4 million, including $100.0 million of available undrawn
revolving credit facility. In addition, the Company completed its previous ly announced at-the-market equity
offering throughout March and April with the sale of 2.3 million shares of common stock at an average price of
$13.53 per share for gross proceeds of $31.4 million.
OPERATIONAL HIGHLIGHTS
The table below represents the quarterly operating and cost parameters at each of the Company’s four
producing mines during the quarter.
First Quarter Production Summary San Dimas Santa Elena La Encantada Jerritt Canyon Consolidated
Ore Processed / Tonnes Milled 195,300 201,911 249,906 230,001 877,118
Silver Ounces Produced 1,632,117 337,201 644,009 — 2,613,327
Gold Ounces Produced 18,528 19,556 100 20,707 58,891
Silver Equivalent Ounces Produced 3,080,940 1,868,787 651,875 1,620,400 7,222,002
Cash Costs per Silver Equivalent Ounce $9.41 $12.96 $16.41 $27.12 $14.94
All-in Sustaining Cost per Silver Equivalent Ounce $12.98 $16.31 $19.63 $31.83 $20.87
Cash Cost per Gold Equivalent Ounce N/A N/A N/A $2,120 N/A
All-In Sustaining Costs per Gold Equivalent Ounce N/A N/A N/A $2,488 N/A
Total Production Cost per Tonne $143.66 $111.36 $41.43 $187.15 $118.51
(1) The Company reports certain non-GAAP financial measures which do not have a standardized meaning under GAAP (see “Non- GAAP Measures”, below).
The Company produced 7.2 million silver equivalent ounces consisting of 2.6 million ounces of silver and 58,891
ounces of gold. Total production increased 59% when compared to the first quarter of 2021 primarily due to the
acquisition of Jerritt Canyon. However, compared to a record breaking fourth quarter of 2021 , production
decreased by 16%, primarily due to high absenteeism related to an increase in COVID -19 cases in January and
February which resulted in lower processed tonnes across all Mexican operating units.
COSTS AND CAPITAL EXPENDITURES
Cash cost for the quarter was $ 14.94 per AgEq ounce, compared to $ 12.32 AgEq per ounce in the previous
quarter. The increase in cash cost was primarily due to a 16% decrease in production, as well as Company wide
inflationary cost pressures. The decrease in production was primarily due to higher absenteeism on the account
of an increase in COVID-19 cases across the Mexican operating units and extreme weather conditions at Jerritt
Canyon which caused a reduction in overall gold production.
Consolidated AISC in the first quarter was $20.87 per AgEq ounce , compared to $17.26 AgEq per ounce in the
previous quarter. The increase in AISC per AgEq ounce was primarily attributed to higher cash costs due to
decreased production and inflationary cost pressures along with an increase in general and administrative costs.
To help with the inflationary cost pressures, management has developed a series of cost reduction initiatives
across the organization which are expected to improve efficiencies, lower production costs, capital spending,
care and maintenance holding costs and corporate costs. In addition, the Company has prioritized several
projects at Jerritt Canyon that are expected to be implemented over the next several quarters aimed at reducing
costs at the mine and processing plant while improving overall production.
Total capital expenditures in the first quarter were $ 46.9 million, primarily consisting of $ 12.9 million at San
Dimas, $10.1 million at Santa Elena, $16.1 million at Jerritt Canyon, $2.2 million at La Encantada, and $5.6 million
for strategic projects.
Q1 2022 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 first quarter of 2022. The first quarter cash dividend will be paid to
holders of record of First Majestic ’s common shares as of the close of business on May 25, 2022 and will be
distributed on or about June 10, 2022.
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.
ENVIRONMENTAL, SOCIAL, HEALTH & SAFETY COMMITTEE
Management is pleased to report that the Board of Directors has agreed to create an environmental, social,
health and safety committee of the board (the “ESHS Committee”).
Subsequent to the Annual General & Special Meeting on May 26, 2022 and the election of the slated directors,
the ESHS Committee will be formed and the board intends to appoint Jean des Rivières as Chair, and Marjorie Co
and Raymond Polman as ESHS Committee members. For clarity, Mr. Polman, as former Chief Financial Officer,
will not serve on the Compensation Committee, Audit Committee or Corporate Governance and Nominating
Committee for so long as he is considered a non-independent director.
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 San Dimas Silver/Gold Mine, the Jerritt Canyon Gold Mine,
the Santa Elena Silver/Gold Mine and the La Encantada Silver Mine.
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 possible premiums.
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 Measures
The Company reports non-GAAP financial 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, average realized gold price per ounce sold, working capital,
adjusted EPS and free cash flow. These measures are widely used in the mining industry as a benchmark for performance, but do not have a standardized
meaning under GAAP and the methods used by the Company to calculate such measures may dif fer from methods used by other companies with similar
descriptions. For a complete description of how the Company calculates such measures and a reconciliation of certain measures to GAAP terms please see
the applicable description in the Company's management discussion and analysis for the quarter ended March 31, 2022, filed on SEDAR at www.sedar.com
and EDGAR at www.sec.gov.
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 lig ht 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; the
timing and amount of estimated future production; ore grades; recovery rates; mine plans and mine life; integration of operations; future sales; the future
price of silver and other metals; 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 pr obable 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”, “pre dict”, “forecast”, “potential”,
“target”, “intend”, “could”, “might”, “should”, “believe” and similar expressions) a re 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 evaluatio ns; 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; chan ges in national or local
governments; changes in a pplicable 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.
T
he Company believes that the expectations reflected in these forward -look
ing statements are reasonable, but no assurance can be given that these
expectations will prove to be correct and such forward-l
ooking 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.