First Majestic Silver Corp. Q2 FY2025 earnings call

• Financial Results: Record quarterly revenue, EBITDA, cash flows, and cash position. Silver production and silver equivalent production saw significant year-over-year growth.
• Exploration and Development: Record spending on exploration with 255,000 meters expected to be drilled this year, 20 active rigs, and exciting drilling at Jerritt Canyon. Notable exploration successes at Navidad, Santo Niño, and Santa Elena.
• Integration and Operations: Smooth integration of Cerro Los Gatos, implementation of SAP at Gatos, and plans to self-haul at La Encantada to reduce operating expenses.
• Balance Sheet: Strong balance sheet with $510 million in cash, paying dividends (1% of revenue), and convertible debt viewed as equity.

Silver production was 3.7 million ounces, up 76% year-over-year, with silver equivalent production at 7.9 million ounces, up 48% year-over-year. Record quarterly revenue was $268 million, up 94% year-over-year. EBITDA was a record $120 million, with significant cash flows of about $115 million and a record cash position of $510 million. First Majestic is the purest silver company at 55% silver equivalent revenue contribution, compared to competitors like Hecla (44%), Coeur (34%), and Pan American (24%).

Revised guidance in July remains within production and cost expectations. Budgeted $255 million for exploration drilling in 2025. Aiming for $1 billion in revenue for 2025. No changes to current budget, with investments in 2026 to be discussed later.

Volatility in silver and gold prices, potential misinterpretation of financial metrics by news sources, uncertainties in exploration and development timelines, and market/economic uncertainties affecting business performance.

Q: Walk through synergies of Gatos integration and details on sustaining 4,000 tonnes per day at Gatos A: COO Steve Holmes discussed accelerating mining rigs/ramp development at Cerro Los Gatos, reconciliation processes, leveraging exploration contractors and consumable contracts for savings Q: Sequencing and advancement of Santa Elena, Navidad, Santo Niño veins A: Keith Neumeyer mentioned ongoing engineering work to get ore bodies into mill, plans to disclose details by end of year/Q1 Q: Total debt outstanding, interest paid, and future debt expectations A: CFO David Soares said last quarter interest paid ~$3M, balance sheet strong, no immediate plans to increase debt, converts viewed as equity with low carrying costs Q: First Mint capacity A: Keith Neumeyer said First Mint is a profit center, not at full capacity yet, aiming to reach 10% of company production