FR Frankfurt – FMV First Majestic Reports First Quarter Financial Results and Quarterly Dividend Payment
New York – AG May 4, 2023
Toronto – FR
Frankfurt – FMV
First Majestic Reports First 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 first quarter
ended March 31, 2023. 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 2023 HIGHLIGHTS
Production of 7.6 million silver equivalent (“AgEq”) ounces, consisting of 2.5 million silver ounces and 60,594
gold ounces, up 1% compared to the previous quarter and up 6% compared to Q1 2022.
Quarterly revenues totalled $157.0 m illion; up 6% compared to the previous quarter and unchanged
compared to Q1 2022.
Operating cash flows before non-cash working capi tal and taxes totalled $21.9 million, compared to $35.3
million in Q1 2022.
Consolidated cash costs were $15.16 per AgEq ounce and All-In Sustai ning Costs (“AISC”) (see “Non-GAAP
Financial Measures”, below) were $20.90 per AgEq ounce. Excluding Jerritt Canyon, cash costs for the three
Mexican operations were $11.85 per AgEq ounce and AISC were $15.38 per AgEq ounce.
Adjusted net earnings of $0.9 million (adjusted EPS of $0.00) (See “Non-GAAP Financial Measures”, below)
after excluding non-cash and non-recurring items.
At the end of the quarter, the Company had a cash a nd restricted cash balance of $235.9 million consisting
of $104.8 million of cash and cash equivalents and $131.1 million of restricted cash.
Declared a cash dividend payment of $0.0057 per common share for the first quarter of 2023 for
shareholders of record as of the close of business on May 18, 2023, which will be distributed on or about
June 9, 2023.
OPERATIONAL AND FINANCIAL HIGHLIGHTS
Key Performance Metrics
2023-Q1
2022-Q4
Change
Q1 vs Q4
2022-Q1
Change Q1
vs Q1
Operational
Ore Processed / Tonnes Milled 845,868 851,564 (1%) 877,118 (4%)
Silver Ounces Produced 2,543,059 2,396,696 6% 2,613,327 (3%)
Gold Ounces Produced 60,594 63,039 (4%) 58,891 3%
Silver Equivalent Ounces Produced 7,627,105 7,558,791 1% 7,222,002 6%
Cash Costs per Silver Equivalent Ounce (1) $15.16 $15.36 (1%) $14.94 1%
All-in Sustaining Cost per Silver Equivalent Ounce (1) $20.90 $20.69 1% $20.87 0%
Total Production Cost per Tonne(1) $130.71 $131.41 (1%) $118.51 10%
Average Realized Silver Price per Silver Equivalent Ounce (1) $21.98 $23.24 (5%) $26.68 (18%)
Financial (in $millions)
Revenues $157.0 $148.2 6 % $156.8 0%
Mine Operating (loss) Earnings ($6.4) ($13.3) (52%) $15.1 (143%)
Net (loss) earnings ($100.7) ($16.8) NM $7.3 NM
Operating Cash Flows before Non-Cash Working Capital and Taxes $21.9 $13.4 63% $35.3 (38%)
Cash and Cash Equivalents $104.8 $151.4 (31%) $192.8 (46%)
Working Capital (1) $184.6 $202.9 (9%) $194.4 (5%)
Free Cash Flow (1) ($26.7) ($32.3) (17%) ($40.4) (34%)
Shareholders
Earnings per Share (“EPS”) (loss) - Basic ($0.37) ($0.06) NM $0.03 NM
Adjusted EPS (1) $0.00 ($0.07) (100%) ($0.02) (114%)
NM – Not meaningful
(1) See “Non-GAAP Measures” below for further details of these measures.
Q1 2023 FINANCIAL RESULTS
The Company realized an average silver price of $ 21.98 per AgEq ounce during the first quarter of 2023,
representing an 18% decrease compared to the first quart er of 2022 and a 5% decrease compared to the prior
quarter.
Revenues generated in the first quarter totaled $157.0 million compared to $156.8 million with the first quarter
of 2022.
Cash flow from operations before movements in work ing capital and income taxes in the quarter was $21.9
million compared to $35.3 million in the first quarter of 2022.
The Company reported mine operating earnings of ($6. 4) million compared to $15.1 million in the first quarter
of 2022. The decrease in mine operating earnings is prim arily attributed to lower th an expected production at
Jerritt Canyon resulting in higher production costs per ounce, as well as higher labour, inflation, consumables
and energy costs during the quarter. The Company also incurred $5.1 million in standby costs for winding down
activities at Jerritt Canyon.
The Company reported net earnings of ($100.7) million (EPS of ($0.37)) compared to $7.3 million (EPS of $0.03)
in the first quarter of 2022. The Company recognized an impairment charge of $125.2 million, or $94.0 million
net of tax, on the Jerritt Canyon Gold Mine following the Company’s decision to the temporarily suspend mining
operations and focus on exploration activities to strengthen reserves and resources at the mine.
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 $0.9 million (adjusted EPS of $0.00) compar ed to ($6.2) million (adjusted EPS of ($0.02)) in the
first quarter of 2022.
Cash flow from operations before movements in work ing capital and income taxes in the quarter was $21.9
million compared to $35.3 million in the first quarter of 2022.
As of March 31, 2023, the Company had a cash and restricted cash balance of $235.9 million consisting of $104.8
million of cash and cash equivalents and $131.1 million of restricted cash.
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.
First Quarter Production Summary San Dimas Santa Elena La Encantada Jerritt Canyon Consolidated
Ore Processed / Tonnes Milled 219,367 208,821 271,278 146,403 845,868
Silver Ounces Produced 1,602,483 104,129 836,448 — 2,543,059
Gold Ounces Produced 20,124 24,039 89 16,341 60,594
Silver Equivalent Ounces Produced 3,296,367 2,105,336 843,951 1,381,452 7,627,105
Cash Costs per Silver Equivalent Ounce $10.86 $11.93 $15.48 $30.05 $15.16
All-in Sustaining Cost per Silver Equivalent Ounce $14.67 $15.18 $18.64 $36.14 $20.90
Cash Cost per Gold Equivalent Ounce N/A N/A N/A $2,540 N/A
All-In Sustaining Costs per Gold Equivalent Ounce N/A N/A N/A $3,055 N/A
Total Production Cost per Tonne $157.39 $108.74 $46.27 $278.57 $130.71
(1) See “Non-GAAP Financial Measures”, below for further details of these measures.
The Company produced 7.6 million AgEq ounces consisting of 2.5 million ounces of silver and 60,594 ounces of
gold. Total production increased 6% when compared to the fourth quarter of 2022 primarily due to higher grades
at both San Dimas and La Encantada.
Cash cost for the quarter was $15.16 per AgEq ounce, compared to $15.36 AgEq per ounce in the previous
quarter. The decrease in cash costs pe r AgEq ounce was primarily attributable to an increase in production at
San Dimas and La Encantada driven by a 10% increase of silv er grades at both sites. This was partially offset by
higher costs driven by a stronger Mexican Peso and slight ly lower production at Santa Elena primarily due to
processing lower grade silver and gold ores during the qua rter. Excluding Jerritt Canyon, cash costs at the three
Mexican operations were $11.85 per AgEq ounce.
AISC in the first quarter was $20.90 per AgEq ounce, compared to $20.69 per AgEq ounce in the previous quarter.
The slight increase in AISC was prim arily attributed to additional capital sustaining expenditures for mine
development at Santa Elena an d Jerritt Canyon which was offset by lower cash costs. Excluding Jerritt Canyon,
AISC at the three Mexican operations were $15.38 per AgEq ounce.
Total capital expenditures in the first quarter were $46.6 million, primarily consisting of $11.9 million at San
Dimas, $13.5 million at Santa Elena, $1.9 million at La Encantada, $18.8 million at Jerritt Canyon, and $0.5 million
for strategic projects.
Q1 2023 DIVIDEND ANNOUNCEMENT
The Company is pleased to announce that its Board of Directors has declared a cash dividend payment in the
amount of $0.0057 per common share for the first quarter of 2023. 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 18, 2023, and will be
distributed on or about June 9, 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 rema in 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, the La Encantada Silver Mine and the Jerritt Canyon Gold 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 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.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 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; the ti ming and amount of estimated future prod uction; throughput
capacity; ore feed and grades; and payment of dividends, if 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 guidance and forward-looking
statements as there can be no assurance th at the plans, assumptions or expectations upon which they are placed will occur. All statements other than
s t a t e m e n t s o f h i s t o r i c a l f a c t m a y b e f o r ward-looking statements. Any statements that express or involve discussions with respec t to predictions,
expectations, beliefs, plans, projections, ob jectives or future events or performanc e (often, but not always, using words or ph rases such as “seek”,
“anticipate”, “plan”, “continue”, “estimate”, “expect”, “may”, “w ill”, “project”, “predict”, “for ecast”, “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; changes in national or local governments; changes in applicable legislation or application thereof, including, but not limited
to, Mexican mining reforms; delays in obta ining approvals or financing or in the comp letion of development or construction acti vities; exchange rate
fluctuations; requirements for additional ca pital; government regulation; environmenta l risks; reclamation expenses; outcomes o f pending litigation;
conditions in the market for the Company’s shares and the equity markets in general; 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 co ntained in forward-looking statements, ther e may be other factors that cause results not to be as anticipated,
estimated or intended. The Company notes that changes in climate conditions could adversely affect the business and operations through shifting weather
patterns, environmental incidents, 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 fires. Such conditions could directly or indirectly 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 Company
will be able to successfully anticipate, resp ond to or manage risks associated with se vere climate conditions. Any such disrupt ions could have an adverse
effect on the Company’s operations, 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.