AG

• Financial Results & Capital Position

  • Delivered a strong second quarter with significant year-over-year growth in revenue and net income
  • Ended Q2 2026 with a $1.25 billion cash treasury, with continued positive cash generation building liquidity
  • Increased the annual dividend by 270% year-over-year, after a January 2026 upgrade
  • Repurchased 1.2 million shares for $22 million in Q2 2026, the largest quarterly share buyback in company history

• Operational Progress

  • Completed 94,000 meters of exploration drilling across the portfolio in Q2 2026, totaling 160,000 meters for H1 2026
  • Received required permits for the Santo Nino and Navidad projects at Santa Elena in Mexico; development at San Domingo started recently, with first blasting expected imminently
  • San Domingo development is over 12 months ahead of the original schedule
  • Jarrett Canyon restart is on track and within budget, with key equipment ordered and production targeted for 2027
  • Inflation and workforce bonus costs (tied to silver prices) have not caused material cost overruns, and per-ton costs remain in line with multi-year averages
  • The company remains fully unhedged against precious metals prices, per shareholder preference

• Strategic Priorities

  • Exploration and resource expansion are core priorities, with ongoing resource updates planned across the portfolio
  • Focused on building cash to prepare for future growth and planned capital expenditures
  • Maintains supportive minority investments in junior mining companies including Silverstorm and Sierra Madre, with plans to hold positions for long-term value creation

• Full-year 2026 silver production guidance was revised upward by 10% in July 2026 from the original January 2026 guidance, with H1 2026 production already reaching 50% of the revised full-year target
  • Jarrett Canyon is on track to launch production in 2027, with current total 2026 capital spending guidance remaining at the $75 million outlined in February 2026
  • First ore from San Domingo is expected to feed the mill by the end of 2027, with first ore from Navidad expected approximately 18 months after San Domingo
  • Sustained 3,500 tons per day throughput is targeted for Santa Elena in H2 2026
  • A 43-101 technical report for Los Gatos is expected to be released in the next quarter, with a Santa Elena 43-101 report planned for late 2026 or early 2027
  • Updated 2027 capital spending guidance for Jarrett Canyon will be released in January 2027

No segmented financial performance broken out by individual product segments is provided in the transcript. Overall company-level results for Q2 2026 are: total revenue of $416 million, representing a 53% year-over-year increase; silver production of 3.8 million ounces, bringing H1 2026 total production to 7.3 million ounces; net income of $152 million, a 110% year-over-year increase; operating cash flow of $248 million; free cash flow of $195 million; and ending cash balance of $1.25 billion. Individual operating mine performance is as follows: 1) Atlas Gatos: Exceeded its 4,000 tons per day throughput target, hitting a record 4,070 tons per day in June 2026, and is performing above budget. 2) Santa Elena: Is approaching 3,500 tons per day throughput, with a target of sustained 3,500 tons per day in H2 2026, and is performing above budget. 3) San Dimas: Had a solid quarter despite historical common labor disruptions; the addition of an in-house ore transport truck fleet is driving record throughput levels, and workforce development rates have improved significantly. 4) Jarrett Canyon: Underground development and rehabilitation are underway, with ongoing drilling to finalize the mine plan, and the project remains on schedule and on budget.

• Precious metals price volatility directly impacts revenue, cash flow, and workforce bonus costs; the company's fully unhedged position leaves it fully exposed to price drops
  • San Domingo development is slightly behind schedule, though the delay is not material
  • The company faces a pending large tax settlement in Mexico related to Primero and DEMIS, which remains unresolved as of Q2 2026 and represents a major planned future capital outlay
  • Historical labor disruptions have occurred at San Dimas, though labor relations are currently stable

Q: What is the baseline for finished silver inventory, and how will inventory levels change going forward? / A: The base inventory required to support the mint business is 400,000 ounces. The Q2 ending inventory of over 1 million ounces built up because management chose to hold product rather than sell into the recent sharp drop in silver prices to the low $50 range. Management expects inventory levels will decline in Q3 as silver prices recover. (219 characters)

Q: What is the current staffing and capital spending outlook for the Jarrett Canyon restart? / A: 80% of the 45 new required positions have been filled, joining 40 existing care and maintenance staff. Total 2026 capital spending remains on track to hit the previously guided $75 million, with most spending back-loaded to H2 2026. No changes to the total budget are currently expected, and updated 2027 spending guidance will be released in January 2027. (287 characters)

Q: What is the sequencing and critical path for Santo Nino and Navidad development at Santa Elena, and what metallurgical recovery is expected? / A: Permits are in place, and the mine plan is being revised to speed up ore access. All required ground control equipment has been ordered, with no outstanding issues expected. Metallurgical testing shows 95%+ recovery for both gold and silver, with higher silver grades than existing operations at Santa Elena. First ore from Santo Nino is expected by end of 2027, with Navidad following 18 months later. (332 characters)

Q: What is the company's capital allocation strategy for its growing cash balance, particularly for M&A, dividends and buybacks? / A: Share buybacks and dividend increases remain priorities after the Q2 buyback and year-over-year dividend hike, but management intends to resolve the pending Mexican tax settlement and complete Jarrett Canyon spending before committing to additional large capital returns. A $1.25 billion cash balance provides ample flexibility for future allocation decisions after these two large outlays are completed. (319 characters)

Q: What are the company's plans for its minority investments in junior miners like Silverstorm and Sierra Madre? / A: The company intends to hold its positions to support the juniors' growth and generate long-term profits from these investments. Sierra Madre recently repaid its outstanding loan to First Majestic in full in Q2, and First Majestic just issued a $5 million loan to Silverstorm on the same favorable terms. The company remains a supportive, active shareholder for both firms. (291 characters)