First Majestic Silver Corp. Q4 FY2024 earnings call

• Record cash flow of $68 million in Q4 2024.
• Met 2024 guidance: 21.7 million ounces of silver equivalent production at an all-in sustaining cost of $21.11.
• Santa Elena had record production, exceeding 10 million ounces.
• Ended 2024 with a strong cash balance of $308 million and $364 million in liquidity.
• Share buyback program continued, with purchases in December, January, and February expected to continue.
• Exploration programs ongoing at Santa Elena, Los Gatos, and San Dimas; Santa Elena has ongoing discoveries.
• Mint had over $9 million in revenue in Q4 2024, a growing part of the business.
• 2025 guidance includes a silver equivalent production midpoint of around 29 million, using a peso rate of 19.5-1 and accounting for 4-4.5% inflation.
• Significant exploration program planned for 2025 with 270,000 meters of drilling.
• Integrating Gatos, moving from 4,100 to 5,300 employees, with focus on synergies and cost reduction.

In Q4 2024, First Majestic Silver had record cash flow of $68 million. Santa Elena achieved record production, breaking through 10 million ounces for the first time. The Mint had over $9 million in revenue in Q4. For 2025, the company is guiding around 29 million silver equivalent ounces, with approximately 53% being silver, 30% gold, and the rest lead and zinc. The all-in sustaining cost is expected to improve, and there's a significant exploration program planned with 270,000 meters of drilling.

• 2025 guidance: Silver equivalent production midpoint around 29 million, using a peso exchange rate of 19.5-1 and accounting for 4-4.5% general inflation.
• Exploration program planned for 2025 with 270,000 meters of drilling.
• Sustaining capital guidance for 2025 is $61 million, using a peso rate of 19.5-1.

• Currency fluctuations, particularly the peso, which can impact financial results due to foreign exchange revaluations.
• Political uncertainties in Mexico affecting operations, permitting, and potential tax or regulatory changes.
• Volatility in silver and gold prices, which can impact revenue and profitability.

Q: How does the peso exchange rate and inflation factor into the 2025 guidance?

A: Steve Holmes stated the guidance uses a 19.5 to 1 peso ratio and accounts for a 4 to 4.5% general inflation rate, with efforts to offset these impacts.

Q: Can you provide color on longer-term margin expectations for the Mint?

A: Keith Neumeyer mentioned the Mint is a young business, with capital spending ongoing until late 2024, and aiming to have 10% of total production through the Mint in 2025, growing year over year.

Q: How do you expect production and CapEx to shake out in H1 and H2 2025?

A: Keith Neumeyer said it'll be relatively consistent, with exploration programs potentially slowing in Q4, but generally Q over Q consistent.

Q: What's your strategy on M&A moving forward?

A: Keith Neumeyer mentioned the team is focused on integrating Gatos first, but the team is always analyzing potential M&A opportunities, with eyes open for suitable deals.

Q: What silver price is needed for positive per share earnings and thoughts on dividends?

A: Keith Neumeyer mentioned the company pays a dividend, and while earnings are affected by currency fluctuations, the trend is positive, with continuous improvement expected quarter over quarter.

Q: Thoughts on political landscape in Mexico influencing operations?

A: Keith Neumeyer noted previous negative political climate in Mexico, but current government seems more business-oriented, with permits being granted, and the Gatos acquisition was made in part due to positive outlook on Mexico's future.