FR Frankfurt – FMV First Majestic Temporarily Suspends Mining Activities at Jerritt Canyon
FIRST MAJESTIC SILVER CORP.
Suite 1800 – 925 West Georgia Street
Vancouver, B.C., Canada V6C 3L2
Telephone: (604) 688-3033 Fax: (604) 639-8873
Toll Free: 1-866-529-2807
Web site: www.firstmajestic.com; E-mail: [email protected]
NEWS RELEASE
New York – AG March 20, 2023
Toronto – FR
Frankfurt – FMV
First Majestic Temporarily Suspends Mining Activities at Jerritt Canyon
FIRST MAJESTIC SILVER CORP. (AG: NYSE; FR: TSX) (the "Company" or “First Majestic”) announces today it is taking
action to reduce overall costs by reducing investments, temporarily suspending all mining activities and reducing
its workforce at Jerritt Canyon effective immediately.
Over the past 22 months since the acquisition of the Jerritt Canyon Gold Mine in Nevada, the Company has been
focused on increasing underground mining rates in order to sustainably feed the processing plant at a minimum of
3,000 tpd in order to generate free cash flow as our plan s suggested. Despite these efforts, mining rates have
remained below this threshold and cash costs per ounce have remained higher than anticipated primarily due to
ongoing challenges such as contractor inefficiencies and high costs, inflationary cost pressures, lower than expected
head grades and multiple extreme weather events affecting northern Nevada, which have compounded conditions
and caused material headwinds for the operation.
“The decision to temporarily suspend mining activities at Jerritt Canyon, which represented approximately 21% of
the Company’s 2022 revenue, was driven by our goal to pr oduce profitable ounces ac ross the Company,” stated
Keith Neumeyer, President and CEO. “Since the acquisition in 2021, we have invested heavily at Jerritt Canyon and
have been successful in executing several key projects. We rehabilitated and reopened the West Generator and
Saval II underground mines and have successfully upgraded and modified the roaster and refinery off-gas handling
systems to insure we remain fully compliant with all stat e and federal air quality standards. The team at Jerritt
Canyon has helped the Company achieve significant milestones and we are thankful for their service. While mining
activities have temporarily stopped, processing of the remaining surface stockpiles will occur for the next couple of
months. The Company will continue exploring both near-mine and prospective regional greenfield targets to grow
Jerritt Canyon’s resources, which we believe will signif icantly enhance the economics for the eventual restart of
operations.”
During the suspension, the Company intends to proce ss approximately 45,000 tonnes of aboveground stockpiles
through the plant. Exploration activities are expected to also continue throughout 2023 with additional plans to:
Explore for new regional discoveries and expand current known reserves and resources.
Analyze the opƟmizaƟon of bulk mining and cost-effecƟve mining methods.
Conversion of inferred and indicated resources into measured resources.
Reduce mining costs through adopƟng self-perform mining and improve contractor rates and terms.
ConƟnue modernizing the processing plant to be able to beƩer withstand severe weather condiƟons.
As a result of the suspension, the Company’s previous production and cost guidance for Jerritt Canyon can no longer
be relied upon. Guidance for the Company’s Mexican op erations remain current and a revised consolidated
production and cost guidance, including capital investments, are expected to be published in July.
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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 1.866.52.2807.
FIRST MAJESTIC SILVER CORP.
“signed”
Keith Neumeyer, President & CEO
Cautionary Note Regarding Forward Looking Statements
This press release contains “for ward-looking information” and "forward-looking st atements” under applicable Canadian and U.S. s ecurities 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, esti mates of amounts not yet determinable and a ssumptions of management made in light of management's experience
and perception of historical tr ends, current conditions and expected future deve lopments. Forward-looking statements include, b ut are not limited to,
statements with respect to: commercial mining operations; capital projects; cash flow; costs; the timing and amount of estimated future production; exploration
activities; success of finding new orebodies, throughput capacity; upgrading resources; ore feed and grades, 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 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. 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;
general economic conditions including inflat ion risks related to the integration of ac quisitions; actual results of exploration activities; conclusions of economic
evaluations; changes in project parameters as plans continue to be refined; commodity prices; va riations 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 legisl ation or application thereof; delays in obtaining approvals or fi nancing or in the completion of
development or construction activities; exch ange rate fluctuations; requi rements for additional capita l; government regulation; environmental risks;
reclamation expenses; outcomes of pending litigation; limitations on insurance covera ge; conditions in the market for the Compa ny’s shares and the equity
markets in general; as well as those factors discussed in the se ction 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 St ates Securities and Exchange Commission i n Washington,
D.C. Although First Majestic has attempted to identify importan t 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 antici pated, estimated or intended. The Company notes that changes in climate
conditions could adversely affect the busine ss and operations through shifting weather patterns, environmental incidents, and e xtreme 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 site s, damaging facilities and equipment, disr upting energy and water supply, creating la bor and material shortages and
can cause supply chain interruptions. There is no assurance that the Company will be able to successfully anticipate, respond to or manage risks associated with
severe climate conditions. Any such disruptions 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 reasonable, but no assurance can b e given that these
expectations will prove to be co rrect and such forward-looking statements include d herein should not be unduly relied upon. The se 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.