Core Insights - First Majestic Silver Corp reported adjusted earnings per share of 4 cents for Q2 2025, missing the Zacks Consensus Estimate of 6 cents, but showing improvement from a loss of 7 cents per share in the same quarter last year [1][8] - The company's revenues surged 94% year over year to a record $264 million, driven by higher silver prices and increased sales volumes [2][8] - Production reached 7.9 million silver-equivalent ounces, a 48% increase year over year, primarily due to a 76% rise in silver production from key mines [5][8] Financial Performance - First Majestic's cash costs per AgEq ounce were $15.08, down 1% from the previous year, while all-in-sustaining costs were $21.02 per AgEq ounce, a 3% decrease [3] - The mine-operating profit for the quarter was $49 million, significantly up from $15.5 million in the prior year [4] - Adjusted EBITDA for Q2 2025 was $125 million, a substantial increase from $26 million reported in the same quarter last year [4] Production Details - The production included 3.7 million silver ounces and 33,865 gold ounces, with the increase attributed to enhanced output from the San Dimas and La Encantada mines, along with contributions from the Cerro Los Gatos mine [5] - The average realized silver price was $34.62 per payable silver equivalent ounce, reflecting a 24% year-over-year increase [2] Financial Position - At the end of Q2 2025, First Majestic had $385 million in cash, with operating cash flow before working capital and taxes amounting to $115 million, compared to $25 million in the prior year [6] Stock Performance - Over the past year, First Majestic's shares have increased by 53.2%, outperforming the industry average growth of 36.4% [7]

Core Insights - First Majestic Silver Corp. announced positive exploration results from its ongoing drilling program at the San Dimas Silver/Gold Mine in Durango, Mexico, highlighting the potential for new mineral resource discoveries [1][2] - The exploration program aims to discover new veins, expand mineral resources, and upgrade inferred mineral resources to indicated mineral resources [1][2] Drilling Highlights - Significant gold and silver mineralization was intersected in multiple veins, including the Sinaloa-Elia, Roberta, Santa Teresa, and Coronado veins [3][4] - Notable drill hole intersections include: - ELI25X-1: 3.57 m at 15.93 g/t Au and 1,112 g/t Ag - SIN25X-5: 5.17 m at 7.66 g/t Au and 495 g/t Ag - ELI25X-17: 1.06 m at 23.70 g/t Au and 578 g/t Ag - STE25X-20: 2.53 m at 9.65 g/t Au and 121 g/t Ag - ROT25X-10: 1.52 m at 6.40 g/t Au and 472 g/t Ag - COR25X-2: 2.12 m at 2.59 g/t Au and 327 g/t Ag [3][7][11] Resource Conversion and Expansion - Drilling at the Sinaloa-Elia veins confirmed the presence of mineralization below historically mined areas and successfully converted inferred mineral resources to indicated mineral resources [4][5] - The Roberta vein's expansionary drilling explored untested up-dip mineralization continuity outside current inferred mineral resources [5][6] - The Coronado vein represents a significant new target for gold and silver, with early drilling intersecting high-grade mineralization and remaining open for approximately 1 kilometer to the west [9][11] Company Overview - First Majestic operates four producing underground mines in Mexico, including the San Dimas Silver/Gold Mine, and has a portfolio of development and exploration assets [24]

Financial Data and Key Metrics Changes - Record silver production of 3,700,000 ounces, up 76% year over year [11] - Silver equivalent production reached 7,900,000 ounces, a 48% increase year over year [12] - Record quarterly revenue of $268 million, up 94% year over year, with a target of $1 billion in revenue for 2025 [12] - Record EBITDA of $120 million and cash flows of approximately $115 million [13] - Strong cash position with $510 million in the bank, indicating financial stability [13][39] Business Line Data and Key Metrics Changes - Exploration spending is at a record level with 255,000 meters expected to be drilled this year [15] - The company remains the purest silver producer with 55% silver content in its production [17] - Production guidance is on track to meet expectations of 31,000 to 32 million silver equivalent ounces for the year [18][22] Market Data and Key Metrics Changes - The company is experiencing volatility in silver and gold prices, impacting market perception [7] - The integration of Cerro Los Gatos is noted to be smooth, contributing positively to operational efficiency [36] Company Strategy and Development Direction - The company is focused on increasing exploration and development budgets to support growth [24] - Plans to enhance production capacity at Santa Elena and Navidad, with ongoing engineering work to optimize ore body access [26][57] - Emphasis on maintaining a strong balance sheet while exploring potential investments for 2026 [40] Management's Comments on Operating Environment and Future Outlook - Management acknowledges inflationary pressures affecting costs but expects normalization in the coming quarters [20][21] - Positive comments on the integration of Gatos and the operational improvements across the portfolio [36] - Continuous improvement in ESG scores reflects the company's commitment to sustainability [35] Other Important Information - The company is paying dividends at 1% of revenue, which will increase as revenues grow [14] - The integration of SAP at Cerro Los Gatos is expected to enhance operational controls [38] Q&A Session Summary Question: Can you walk through some of the synergies from the Gatos integration? - The integration has identified synergies such as improved reconciliation processes and lean business improvement practices [47][48] Question: What improvements are needed to sustain 4,000 tonnes per day at Cerro Los Gatos? - The plan involves accelerating mining rates and ramp development to match plant capacity [45] Question: Is First Mint up to full capacity? - Currently not at full capacity, but there are plans to increase production through additional shifts [66]

Financial Data and Key Metrics Changes - Record quarterly revenue of $268 million, up 94% year over year [12] - Silver production reached 3.7 million ounces, an increase of 76% year over year [11] - Record EBITDA of $120 million and cash flows of approximately $115 million [13] - Cash position stands at $510 million, indicating strong financial health [13][40] Business Line Data and Key Metrics Changes - Silver equivalent production totaled 7.9 million ounces, a 48% increase year over year [12] - Exploration spending is projected at 255,000 meters for the year, with 28 active rigs [15] - The company remains the purest silver producer, with 55% of its production being silver [17] Market Data and Key Metrics Changes - The company is experiencing volatility in silver and gold prices, impacting stock performance [7] - The integration of Cerro Los Gatos is noted as smooth, contributing positively to operational improvements [37] Company Strategy and Development Direction - The company is focused on increasing production capacity and exploration efforts, with plans to develop Santa Elena and Navidad [27][41] - Emphasis on maintaining a strong balance sheet while exploring growth opportunities for 2026 [41] - The company aims to enhance operational efficiencies through synergies from the Gatos integration [50] Management's Comments on Operating Environment and Future Outlook - Management acknowledges inflationary pressures affecting costs but expects a reversion in spending patterns in the coming quarters [21][22] - The company is optimistic about its exploration success and the potential of new ore bodies [16][56] - Future guidance will be provided as engineering work progresses on new discoveries [57] Other Important Information - The company has received upgrades in ESG scores, reflecting its commitment to sustainability [36] - Management views convertible debt as equity, emphasizing a strong cash position and low carrying costs [64] Q&A Session Summary Question: Can you walk through some of the synergies from the Gatos integration? - The integration has identified synergies in operational practices and cost savings through contractor consolidation [49][52] Question: What improvements are needed to sustain the 4,000 tonnes per day at Cerro Los Gatos? - The plan includes accelerating mining rates and ramp development to match plant capacity [47] Question: What is the total debt outstanding and expected payments? - Total debt is approximately $230 million, with $3 million paid in the last quarter [62][64] Question: Is First Mint up to full capacity? - Currently not at full capacity, but there are plans to increase production to 10% of the company's total output [66]

[Management's Responsibilities over Financial Reporting](index=2&type=section&id=Management's%20Responsibilities%20over%20Financial%20Reporting) Management is responsible for preparing the financial statements in accordance with IAS 34 and maintaining internal controls - Management is responsible for preparing the condensed interim consolidated financial statements in accordance with International Accounting Standard 34, reflecting best estimates and judgment[3](index=3&type=chunk) - A system of internal controls is maintained to safeguard assets, authorize transactions, and ensure reliable financial information[4](index=4&type=chunk) - The Board of Directors, through the Audit Committee, reviews and approves the financial statements[4](index=4&type=chunk) - The condensed interim consolidated financial statements have not been audited[5](index=5&type=chunk) [Condensed Interim Consolidated Financial Statements](index=4&type=section&id=CONDENSED%20INTERIM%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) This section presents the company's earnings, comprehensive income, cash flows, financial position, and changes in equity [Condensed Interim Consolidated Statements of Earnings (Loss)](index=4&type=section&id=Condensed%20Interim%20Consolidated%20Statements%20of%20Earnings%20(Loss)) The Company reported a significant turnaround to profitability, driven by a substantial increase in revenues and mine operating earnings Key Financial Performance (Six Months Ended June 30) | Metric | 2025 (in thousands USD) | 2024 (in thousands USD) | Change (%) | | :--- | :--- | :--- | :--- | | Revenues | $508,171 | $242,180 | 109.8% | | Mine operating earnings | $113,156 | $15,141 | 647.3% | | Net earnings (loss) for the period | $62,819 | ($61,814) | N/A (swing to profit) | | Basic EPS | $0.12 | ($0.21) | N/A (swing to profit) | Key Financial Performance (Three Months Ended June 30) | Metric | 2025 (in thousands USD) | 2024 (in thousands USD) | Change (%) | | :--- | :--- | :--- | :--- | | Revenues | $264,229 | $136,166 | 94.0% | | Mine operating earnings | $49,351 | $15,462 | 219.2% | | Net earnings (loss) for the period | $56,579 | ($48,251) | N/A (swing to profit) | | Basic EPS | $0.11 | ($0.17) | N/A (swing to profit) | - The acquisition of Gatos Silver Inc. contributed **$193.6 million in revenues** and **$24.1 million in net earnings** for the six months ended June 30, 2025, since January 16, 2025[62](index=62&type=chunk) [Condensed Interim Consolidated Statements of Comprehensive Income (Loss)](index=5&type=section&id=Condensed%20Interim%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) Total comprehensive income increased substantially, driven by net earnings and a significant unrealized gain on marketable securities Comprehensive Income (Six Months Ended June 30) | Metric | 2025 (in thousands USD) | 2024 (in thousands USD) | Change (%) | | :--- | :--- | :--- | :--- | | Net earnings (loss) for the period | $62,819 | ($61,814) | N/A (swing to profit) | | Unrealized gain on fair value of investments in marketable securities, net of tax | $30,150 | $2,487 | 1112.3% | | Total comprehensive income (loss) | $91,087 | ($59,896) | N/A (swing to profit) | Comprehensive Income (Three Months Ended June 30) | Metric | 2025 (in thousands USD) | 2024 (in thousands USD) | Change (%) | | :--- | :--- | :--- | :--- | | Net earnings (loss) for the period | $56,579 | ($48,251) | N/A (swing to profit) | | Unrealized gain on fair value of investments in marketable securities, net of tax | $15,879 | $9,287 | 71.0% | | Total comprehensive income (loss) | $70,570 | ($39,208) | N/A (swing to profit) | [Condensed Interim Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Interim%20Consolidated%20Statements%20of%20Cash%20Flows) The Company saw a significant increase in cash from operations and a positive shift in investing activities due to the Gatos acquisition Cash Flow Summary (Six Months Ended June 30) | Metric | 2025 (in thousands USD) | 2024 (in thousands USD) | Change (%) | | :--- | :--- | :--- | :--- | | Cash generated in operating activities | $145,598 | $29,278 | 397.3% | | Cash (used in) provided by investing activities | $48,158 | ($57,077) | N/A (swing to inflow) | | Cash (used in) provided by financing activities | ($13,371) | $56,208 | -123.8% | | Increase in cash and cash equivalents | $180,385 | $28,409 | 534.9% | | Cash and cash equivalents, end of period | $384,753 | $152,173 | 152.8% | - The acquisition of Gatos Silver Inc. contributed **$159.56 million in cash acquired**, net of cash consideration paid, to investing activities for the six months ended June 30, 2025[13](index=13&type=chunk) [Condensed Interim Consolidated Statements of Financial Position](index=7&type=section&id=Condensed%20Interim%20Consolidated%20Statements%20of%20Financial%20Position) The Company's financial position grew substantially due to the Gatos acquisition, which increased assets, liabilities, and equity Financial Position Highlights (June 30, 2025 vs. December 31, 2024) | Metric | June 30, 2025 (in thousands USD) | December 31, 2024 (in thousands USD) | Change (%) | | :--- | :--- | :--- | :--- | | Total assets | $4,094,036 | $1,979,788 | 106.8% | | Total liabilities | $1,191,616 | $628,717 | 89.5% | | Total equity | $2,902,420 | $1,351,071 | 114.8% | | Cash and cash equivalents | $384,753 | $202,180 | 90.3% | | Mining interests | $2,675,695 | $1,034,522 | 158.6% | | Deferred tax liabilities | $571,027 | $80,094 | 613.0% | - The acquisition of Gatos Silver Inc. significantly increased mining interests and property, plant and equipment, contributing to the overall growth in assets[60](index=60&type=chunk) [Condensed Interim Consolidated Statements of Changes in Equity](index=8&type=section&id=Condensed%20Interim%20Consolidated%20Statements%20of%20Changes%20in%20Equity) Total equity increased significantly due to net earnings, other comprehensive income, and share capital issued for the Gatos acquisition Total Equity (Six Months Ended June 30) | Metric | June 30, 2025 (in thousands USD) | December 31, 2024 (in thousands USD) | Change (%) | | :--- | :--- | :--- | :--- | | Total equity | $2,902,420 | $1,351,071 | 114.8% | | Equity attributable to owners of the Company | $2,497,005 | $1,351,071 | 84.8% | | Non-controlling interest | $405,415 | $0 | N/A (newly recognized) | - The acquisition of Gatos Silver Inc. resulted in the issuance of **179,640,768 shares**, adding **$1,020,359 thousand to share capital** and recognizing **$407,096 thousand in non-controlling interest**[16](index=16&type=chunk) [Notes to Condensed Interim Consolidated Financial Statements](index=10&type=section&id=NOTES%20TO%20CONDENSED%20INTERIM%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) This section provides detailed explanations of the accounting policies and specific items in the financial statements [Note 1. Nature of Operations](index=10&type=section&id=Note%201.%20Nature%20of%20Operations) The Company is a North American mining company focused on silver and gold production with four producing mines in Mexico - First Majestic Silver Corp. is engaged in the production, development, exploration, and acquisition of mineral properties, with a focus on silver and gold in North America[19](index=19&type=chunk) - The Company operates four producing mines in Mexico: **Santa Elena Silver/Gold Mine**, **Los Gatos Silver Mine (70% interest, newly acquired)**, **San Dimas Silver/Gold Mine**, and **La Encantada Silver Mine**[19](index=19&type=chunk) - The **Jerritt Canyon Gold Mine** in Nevada, USA, was placed on temporary suspension on March 20, 2023, to focus on exploration, resource expansion, and operational optimization[19](index=19&type=chunk) - The Company also owns two additional suspended mines in Mexico (San Martin and Del Toro) and operates its own minting facility, First Mint, LLC[19](index=19&type=chunk) [Note 2. Basis of Presentation](index=10&type=section&id=Note%202.%20Basis%20of%20Presentation) The financial statements are prepared in accordance with IAS 34, using consistent accounting policies and presented in thousands of USD - These condensed interim consolidated financial statements are prepared in accordance with **International Accounting Standard (IAS) 34**, 'Interim Financial Reporting' of the IFRS Accounting Standards[21](index=21&type=chunk) - The statements are prepared on a historical cost basis, except for certain items measured at fair value, such as derivative financial instruments and marketable securities[22](index=22&type=chunk) - All dollar amounts are presented in **thousands of United States dollars** unless otherwise specified[22](index=22&type=chunk) - The consolidated financial statements incorporate the accounts of the Company and its controlled subsidiaries, with intercompany balances and transactions eliminated[23](index=23&type=chunk) [Note 3. Material Accounting Policy Information, Estimates and Judgments](index=10&type=section&id=Note%203.%20Material%20Accounting%20Policy%20Information%2C%20Estimates%20and%20Judgments) Management applies significant judgments and estimates, particularly for business combinations, while adopting new IFRS amendments [New and amended IFRS standards that are effective for the current year](index=12&type=section&id=New%20and%20amended%20IFRS%20standards%20that%20are%20effective%20for%20the%20current%20year) - The Company applied amendments to **IAS 21, 'Lack of Exchangeability,'** effective January 1, 2025, which clarify how to assess currency exchangeability and determine spot exchange rates when exchangeability is lacking[27](index=27&type=chunk)[28](index=28&type=chunk) - The adoption of these amendments has **not had any material impact** on the Company's consolidated financial statements[27](index=27&type=chunk)[29](index=29&type=chunk) [Future Changes in Accounting Policies Not Yet Effective in the Current Period](index=12&type=section&id=Future%20Changes%20in%20Accounting%20Policies%20Not%20Yet%20Effective%20in%20the%20Current%20Period) - The IASB released **IFRS 18 'Presentation and Disclosure in Financial Statements'** (effective January 1, 2027), which replaces IAS 1 and introduces new requirements for statement of earnings categories, management-defined performance measures (MPMs), and improved aggregation/disaggregation[31](index=31&type=chunk) - The Company is currently evaluating the impact of IFRS 18 on its consolidated financial statements[32](index=32&type=chunk) - Amendments to **IFRS 9 and IFRS 7** (effective January 1, 2026) provide guidance on derecognition of financial liabilities, classification of financial assets, and new disclosure requirements for FVOCI equity instruments and contingent features[33](index=33&type=chunk)[35](index=35&type=chunk) - The Company is currently evaluating the impact of these amendments to IFRS 9 and IFRS 7[34](index=34&type=chunk) [Critical Judgments and Estimates](index=14&type=section&id=Critical%20Judgments%20and%20Estimates) - Fair value estimates in business combinations, such as the acquisition of Gatos Silver Inc., require management judgments and estimates regarding mineral reserves, future metal prices, operating costs, capital expenditures, and discount rates[36](index=36&type=chunk)[37](index=37&type=chunk) - Provisional amounts recognized at the acquisition date are subject to retrospective adjustment during a measurement period (not exceeding one year) to reflect new information[38](index=38&type=chunk)[39](index=39&type=chunk) - The Company determined it obtained control over the **Los Gatos Joint Venture (LGJV)** as of January 16, 2025, based on its ability to direct activities that most significantly affect the LGJV's returns, leading to consolidation[43](index=43&type=chunk) [New Accounting Policies](index=16&type=section&id=New%20Accounting%20Policies) - Revenue from concentrate sales is recognized when control is transferred, with provisional payments subject to **mark-to-market adjustments** at each reporting date using forward market prices[44](index=44&type=chunk)[51](index=51&type=chunk)[52](index=52&type=chunk) - Revenue from the sale of coins, ingots, and bullion is recorded when products are shipped and funds are received; amounts received prior to shipping are recorded as unearned revenue[53](index=53&type=chunk) - Non-controlling interest represents equity interests in subsidiaries owned by external parties, presented as a component of equity and measured at the proportionate share of the entity's recognized net assets[45](index=45&type=chunk)[46](index=46&type=chunk) [Note 4. Acquisition of Gatos Silver Inc.](index=20&type=section&id=Note%204.%20Acquisition%20of%20Gatos%20Silver%20Inc.) The Company acquired Gatos Silver Inc for $1.05 billion, gaining a 70% interest in the Los Gatos Joint Venture [Consideration and Purchase Price Allocation](index=20&type=section&id=Consideration%20and%20Purchase%20Price%20Allocation) - On January 16, 2025, First Majestic acquired Gatos Silver Inc. for a total consideration of **$1.05 billion**, issuing 177,433,006 common shares, 2,207,762 common shares for DSUs/RSUs, and 8,242,244 options[54](index=54&type=chunk)[56](index=56&type=chunk)[57](index=57&type=chunk) - Gatos holds a **70% interest** in the Los Gatos Joint Venture, which owns the producing Los Gatos underground silver mine in Chihuahua, Mexico, supporting First Majestic's growth strategy[55](index=55&type=chunk) - Since January 16, 2025, the acquisition of Gatos contributed **$193.6 million of revenues** and **$24.1 million of net earnings** to the Company's financial results for the six months ended June 30, 2025[62](index=62&type=chunk) - The fair value of depletable mining interest was determined using discounted cash flow models with a **6.00% discount rate** and average long-term metal prices (e.g., Silver $28.50, Gold $2,200)[64](index=64&type=chunk)[65](index=65&type=chunk) Allocation of Purchase Price (Fair Values at Acquisition Date) | Asset/Liability | Amount (in thousands USD) | | :--- | :--- | | Cash and cash equivalents | $167,401 | | Inventories | $19,107 | | Trade and other receivables | $19,644 | | VAT receivables | $2,026 | | Prepaid expenses and other | $6,505 | | Mining interest | $1,658,689 | | Property, plant and equipment | $185,261 | | Right-of-use assets | $281 | | Trade and other payables | ($65,037) | | Income taxes payable | ($12,717) | | Lease obligations | ($415) | | Decommissioning liabilities | ($8,112) | | Deferred tax liabilities | ($511,314) | | **Net assets acquired** | **$1,461,319** | | Non-controlling interests | ($407,096) | | **Net assets attributable to the Company** | **$1,054,223** | [Note 5. Segmented Information](index=27&type=section&id=Note%205.%20Segmented%20Information) The Company's operating segments include four producing mines in Mexico, the suspended Jerritt Canyon mine, and First Mint LLC - The Company's significant operating segments include four producing mines in Mexico (Santa Elena, Los Gatos, San Dimas, La Encantada), the Jerritt Canyon Gold Mine in Nevada (temporarily suspended), non-producing properties in Mexico, and First Mint LLC[67](index=67&type=chunk) - The Company's chief operating decision maker evaluates segment performance based on **mine operating earnings**[67](index=67&type=chunk) - For the six months ended June 30, 2025, five customers accounted for **97% of sales revenue**, with two major metal brokers contributing **80% of total revenue**[76](index=76&type=chunk) Segment Performance (Six Months Ended June 30) | Segment | 2025 Revenue (in thousands USD) | 2024 Revenue (in thousands USD) | 2025 Mine Operating Earnings (in thousands USD) | 2024 Mine Operating Earnings (in thousands USD) | | :--- | :--- | :--- | :--- | :--- | | Santa Elena | $144,971 | $124,392 | $56,121 | $41,868 | | Los Gatos | $193,578 | $0 | $48,134 | $0 | | San Dimas | $125,012 | $92,327 | $11,091 | ($10,239) | | La Encantada | $39,030 | $25,034 | ($469) | ($10,264) | | Jerritt Canyon | $278 | $1,574 | ($1,100) | ($2,640) | | First Mint | $15,641 | $4,284 | $5,185 | ($323) | Total Assets by Segment (June 30, 2025) | Segment | Total Assets (in thousands USD) | | :--- | :--- | | Santa Elena | $404,194 | | Los Gatos | $2,001,881 | | San Dimas | $561,938 | | La Encantada | $100,250 | | Non-producing Properties | $127,667 | | Jerritt Canyon | $608,797 | | First Mint | $17,547 | | Others | $271,762 | | **Consolidated** | **$4,094,036** | [Note 6. Revenues](index=31&type=section&id=Note%206.%20Revenues) Revenues derive primarily from precious metals sales, with silver and gold being the largest contributors to significant growth - As at June 30, 2025, unearned revenue was **$0.1 million**, down from $0.6 million at December 31, 2024[80](index=80&type=chunk) Revenue Composition (Six Months Ended June 30) | Metal | 2025 Gross Revenue (in thousands USD) | 2025 % of Gross Revenue | 2024 Gross Revenue (in thousands USD) | 2024 % of Gross Revenue | | :--- | :--- | :--- | :--- | :--- | | Silver | $283,124 | 56% | $100,905 | 41% | | Gold | $170,406 | 33% | $142,394 | 59% | | Lead | $19,681 | 4% | $0 | 0% | | Zinc | $36,658 | 7% | $0 | 0% | | Copper | $849 | 0% | $0 | 0% | | **Total Gross Revenue** | **$510,718** | **100%** | **$243,299** | **100%** | | Less: Smelting & Refining Costs | ($2,547) | | ($1,119) | | | **Total Revenues** | **$508,171** | | **$242,180** | | [Gold Stream Agreement with Sandstorm Gold Ltd.](index=31&type=section&id=Gold%20Stream%20Agreement%20with%20Sandstorm%20Gold%20Ltd.) - The Santa Elena mine is subject to a gold streaming agreement requiring the Company to sell **20% of its gold production** to Sandstorm Gold Ltd. at the lesser of market price or **$450 per ounce** (subject to 1% annual inflation)[81](index=81&type=chunk)[105](index=105&type=chunk) - **Zero ounces of gold** were delivered to Sandstorm during the three and six months ended June 30, 2025[81](index=81&type=chunk) [Net Smelter Royalty](index=31&type=section&id=Net%20Smelter%20Royalty) - The Ermitaño mine has a **2% Net Smelter Return (NSR) royalty** agreement with Orogen Royalties Inc. and an underlying 2% NSR royalty with Osisko Gold Royalties Ltd[82](index=82&type=chunk)[106](index=106&type=chunk) - NSR royalty payments for Ermitaño production were **$5.9 million** for the six months ended June 30, 2025 (up from $5.0 million in 2024)[82](index=82&type=chunk)[106](index=106&type=chunk) - The La Encantada property is subject to a **100% gross value royalty** on the first 1,000 ounces of gold produced annually to Metalla Royalty and Streaming Limited, incurring $0.2 million in H1 2025[83](index=83&type=chunk)[112](index=112&type=chunk) - The Los Gatos Silver Mine pays a production royalty to La Cuesta International S.A. de C.V. (**2% NSR until $10 million, then 0.5% NSR**), incurring $0.6 million in H1 2025 (nil in H1 2024)[84](index=84&type=chunk)[85](index=85&type=chunk)[108](index=108&type=chunk)[109](index=109&type=chunk) [Gold Stream Agreement with Wheaton Precious Metals Corporation](index=33&type=section&id=Gold%20Stream%20Agreement%20with%20Wheaton%20Precious%20Metals%20Corporation) - The San Dimas mine has a streaming agreement with Wheaton Precious Metals International (WPMI) for **25% of gold equivalent production** at the lesser of market price or **$600 per ounce** (plus 1% annual inflation)[86](index=86&type=chunk)[111](index=111&type=chunk) - The Company delivered **16,198 ounces of gold** to WPMI for the six months ended June 30, 2025 (up from 14,734 ounces in 2024) at an average price of $638 per ounce[87](index=87&type=chunk) [Note 7. Cost of Sales](index=33&type=section&id=Note%207.%20Cost%20of%20Sales) Cost of sales increased significantly, primarily driven by higher labor costs, consumables, energy, and workers' participation costs - Other costs in 2025 included increased diesel consumption due to weather-related disruptions preventing the use of liquid natural gas[89](index=89&type=chunk) Cost of Sales Components (Six Months Ended June 30) | Component | 2025 (in thousands USD) | 2024 (in thousands USD) | Change (%) | | :--- | :--- | :--- | :--- | | Labour costs | $106,426 | $83,383 | 27.6% | | Consumables and materials | $60,502 | $37,395 | 61.8% | | Energy | $27,207 | $19,303 | 40.9% | | Workers' participation costs | $18,523 | $10,460 | 77.1% | | Environmental duties and royalties | $11,396 | $6,428 | 77.3% | | **Total Cost of Sales** | **$258,856** | **$169,585** | **52.6%** | [Note 8. General and Administrative Expenses](index=35&type=section&id=Note%208.%20General%20and%20Administrative%20Expenses) General and administrative expenses increased due to higher salaries, corporate administration, and professional fees General and Administrative Expenses (Six Months Ended June 30) | Component | 2025 (in thousands USD) | 2024 (in thousands USD) | Change (%) | | :--- | :--- | :--- | :--- | | Corporate administration | $6,547 | $4,590 | 42.6% | | Salaries and benefits | $11,209 | $8,604 | 30.3% | | Audit, legal and professional fees | $5,886 | $4,196 | 40.3% | | **Total G&A Expenses** | **$25,228** | **$18,746** | **34.6%** | [Note 9. Mine Holding Costs](index=35&type=section&id=Note%209.%20Mine%20Holding%20Costs) Mine holding costs for temporarily suspended mines decreased slightly, with Jerritt Canyon remaining the largest component - Mine holding costs are primarily comprised of labour, electricity, security, environmental, and community support costs for mines under temporary suspension[91](index=91&type=chunk) Mine Holding Costs by Mine (Six Months Ended June 30) | Mine | 2025 (in thousands USD) | 2024 (in thousands USD) | Change (%) | | :--- | :--- | :--- | :--- | | Del Toro | $881 | $1,409 | -37.5% | | San Martin | $253 | $287 | -11.8% | | Santa Elena | $1,826 | $1,887 | -3.2% | | Jerritt Canyon | $7,332 | $8,437 | -13.1% | | **Total Mine Holding Costs** | **$10,292** | **$12,020** | **-14.3%** | [Note 10. Investment and Other Income (Loss)](index=35&type=section&id=Note%2010.%20Investment%20and%20Other%20Income%20(Loss)) Investment and other income increased due to higher interest income and a gain from marketable securities Investment and Other Income (Six Months Ended June 30) | Component | 2025 (in thousands USD) | 2024 (in thousands USD) | Change (%) | | :--- | :--- | :--- | :--- | | Gain (loss) from investment in silver futures derivatives | ($1,712) | $252 | N/A (swing to loss) | | Gain from investment in marketable securities | $1,268 | $97 | 1207.2% | | Interest income and other | $7,283 | $3,209 | 127.0% | | **Total Investment and Other Income** | **$6,839** | **$3,558** | **92.2%** | [Note 11. Finance Costs](index=37&type=section&id=Note%2011.%20Finance%20Costs) Finance costs remained relatively stable, primarily consisting of interest and accretion expenses on various liabilities Finance Costs (Six Months Ended June 30) | Component | 2025 (in thousands USD) | 2024 (in thousands USD) | Change (%) | | :--- | :--- | :--- | :--- | | Debt facilities | $6,130 | $6,851 | -10.5% | | Accretion of decommissioning liabilities | $5,530 | $4,805 | 15.1% | | Lease liabilities | $913 | $1,238 | -26.3% | | Interest and other | $2,188 | $1,525 | 43.5% | | **Total Finance Costs** | **$14,761** | **$14,419** | **2.4%** | [Note 12. Earnings or Loss per Share](index=37&type=section&id=Note%2012.%20Earnings%20or%20Loss%20per%20Share) The Company reported a positive shift in earnings per share, moving from a loss to a gain despite an increase in shares outstanding - For the six months ended June 30, 2025, dilutive securities included stock options and restricted/deferred share units, while certain options, warrants, and convertible debentures were anti-dilutive[94](index=94&type=chunk) Earnings Per Share (Six Months Ended June 30) | Metric | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Net earnings (loss) attributable to owners of the Company (in thousands USD) | $54,812 | ($61,814) | N/A (swing to profit) | | Weighted average shares outstanding - basic | 469,163,327 | 289,619,145 | 62.0% | | Basic EPS | $0.12 | ($0.21) | N/A (swing to profit) | | Diluted EPS | $0.12 | ($0.21) | N/A (swing to profit) | [Note 13. Inventories](index=39&type=section&id=Note%2013.%20Inventories) Total inventories increased significantly, driven by a substantial rise in materials, supplies, and stockpile - Inventories are presented at the lower of weighted average cost or net realizable value, and **no write-downs** were included in mineral inventories as of June 30, 2025[95](index=95&type=chunk)[96](index=96&type=chunk) Inventories (June 30, 2025 vs. December 31, 2024) | Component | June 30, 2025 (in thousands USD) | December 31, 2024 (in thousands USD) | Change (%) | | :--- | :--- | :--- | :--- | | Finished goods | $6,706 | $5,036 | 33.2% | | Work-in-process | $4,073 | $4,162 | -2.2% | | Stockpile | $12,492 | $6,580 | 89.8% | | Silver coins and bullion | $5,965 | $8,613 | -30.8% | | Materials and supplies | $53,756 | $38,133 | 41.0% | | **Total Inventories** | **$82,992** | **$62,524** | **32.7%** | [Note 14. Other Financial Assets](index=39&type=section&id=Note%2014.%20Other%20Financial%20Assets) Other financial assets increased significantly due to a substantial rise in marketable securities designated as FVTOCI Other Financial Assets (June 30, 2025 vs. December 31, 2024) | Component | June 30, 2025 (in thousands USD) | December 31, 2024 (in thousands USD) | Change (%) | | :--- | :--- | :--- | :--- | | FVTPL marketable securities | $5,893 | $1,283 | 359.3% | | FVTOCI marketable securities | $75,931 | $48,498 | 56.6% | | **Total Other Financial Assets** | **$81,824** | **$49,781** | **64.4%** | [Fair Value through Profit or Loss ("FVTPL") Marketable Securities](index=39&type=section&id=Fair%20Value%20through%20Profit%20or%20Loss%20(%22FVTPL%22)%20Marketable%20Securities) - Gain on marketable securities designated as FVTPL for the six months ended June 30, 2025, was **$1.3 million** (compared to $0.1 million in 2024) and was recorded through profit or loss[98](index=98&type=chunk) [Fair Value through Other Comprehensive Income ("FVTOCI") Marketable Securities](index=39&type=section&id=Fair%20Value%20through%20Other%20Comprehensive%20Income%20(%22FVTOCI%22)%20Marketable%20Securities) - Changes in fair value of marketable securities designated as FVTOCI for the six months ended June 30, 2025, resulted in a gain of **$28.3 million** (compared to $1.9 million in 2024), net of tax, recorded through other comprehensive income[99](index=99&type=chunk) - These FVTOCI gains will **not be transferred into earnings or loss** upon disposition or impairment[99](index=99&type=chunk) - As of June 30, 2025, the carrying value of all shares designated at FVTOCI was **$75.9 million** (up from $48.5 million in December 2024)[99](index=99&type=chunk) [Note 15. Mining Interests](index=40&type=section&id=Note%2015.%20Mining%20Interests) Mining interests more than doubled due to the Gatos Silver Inc acquisition, which added significant mineral properties - The acquisition of Gatos Silver Inc. significantly increased depletable properties by **$1,122,262 thousand** and non-depletable properties by **$536,427 thousand**[102](index=102&type=chunk)[103](index=103&type=chunk) Mining Interests (June 30, 2025 vs. December 31, 2024) | Component | June 30, 2025 (in thousands USD) | December 31, 2024 (in thousands USD) | Change (%) | | :--- | :--- | :--- | :--- | | Depletable properties | $1,886,847 | $779,890 | 141.9% | | Non-depletable properties (exploration and evaluation costs, exploration potential) | $788,848 | $254,632 | 209.8% | | **Total Mining Interests** | **$2,675,695** | **$1,034,522** | **158.6%** | [Santa Elena Silver/Gold Mine, Sonora State, Mexico](index=42&type=section&id=Santa%20Elena%20Silver/Gold%20Mine%2C%20Sonora%20State%2C%20Mexico) - The Santa Elena Mine is subject to a gold streaming agreement with Sandstorm, requiring the sale of **20% of its life-of-mine gold production** at the lesser of $450 per ounce (subject to annual inflation) or market price[105](index=105&type=chunk) - The Ermitaño mine, part of Santa Elena operations, has a **2% NSR royalty** agreement with Orogen Royalties Inc. and an underlying 2% NSR royalty with Osisko Gold Royalties Ltd., incurring **$5.9 million in H1 2025**[106](index=106&type=chunk) [Los Gatos Silver Mine, Chihuahua State, Mexico](index=42&type=section&id=Los%20Gatos%20Silver%20Mine%2C%20Chihuahua%20State%2C%20Mexico) - Following the acquisition, the Company holds a **70% interest** in the Los Gatos underground mine, which produces zinc and lead concentrates (containing silver and gold)[107](index=107&type=chunk) - Zinc and lead contribute approximately **75% and 25% of total revenues**, respectively, from the Los Gatos Silver Mine[107](index=107&type=chunk) - The Los Gatos Silver Mine is subject to a production royalty to La Cuesta International S.A. de C.V. (**2% NSR until $10 million, then 0.5% NSR**), incurring $0.6 million in H1 2025[108](index=108&type=chunk)[109](index=109&type=chunk) [San Dimas Silver/Gold Mine, Durango State, Mexico](index=44&type=section&id=San%20Dimas%20Silver/Gold%20Mine%2C%20Durango%20State%2C%20Mexico) - The San Dimas Mine is subject to a gold and silver streaming agreement with WPMI, entitling WPMI to **25% of gold equivalent production** (90:1 silver to gold ratio) at a price of the lesser of $600 (plus inflation) or market price[111](index=111&type=chunk) [La Encantada Silver Mine, Coahuila State, Mexico](index=44&type=section&id=La%20Encantada%20Silver%20Mine%2C%20Coahuila%20State%2C%20Mexico) - The Company pays a **100% gross value royalty** on the first 1,000 ounces of gold produced annually from the La Encantada property to Metalla Royalty and Streaming Limited, incurring $0.2 million in H1 2025[112](index=112&type=chunk) [Jerritt Canyon Gold Mine, Nevada, United States](index=44&type=section&id=Jerritt%20Canyon%20Gold%20Mine%2C%20Nevada%2C%20United%20States) - The Jerritt Canyon Mine is subject to a **0.75% NSR royalty** on gold and silver production and additional **2.5% to 5% NSR royalties** within specific mining areas[113](index=113&type=chunk)[114](index=114&type=chunk) - **No royalty payments** from gold production at Jerritt Canyon were incurred for the three and six months ended June 30, 2025[114](index=114&type=chunk) [Springpole Silver Stream, Ontario, Canada](index=44&type=section&id=Springpole%20Silver%20Stream%2C%20Ontario%2C%20Canada) - In July 2020, the Company agreed to purchase **50% of the life-of-mine payable silver** from the Springpole Gold Project, with the final **$5.0 million payment** made in cash in March 2025[115](index=115&type=chunk)[116](index=116&type=chunk) - First Mining has the right to repurchase 50% of the silver stream for **$22.5 million** prior to production, which would reduce First Majestic's stream to 25%[119](index=119&type=chunk) - The expiry date of **30.0 million common share purchase warrants** of First Mining, held by First Majestic, was extended to March 31, 2028, with the exercise price amended to CAD$0.20[117](index=117&type=chunk)[118](index=118&type=chunk) [Note 16. Property, Plant and Equipment](index=47&type=section&id=Note%2016.%20Property%2C%20Plant%20and%20Equipment) Property, plant and equipment increased significantly, primarily due to the acquisition of Gatos Silver Inc - The acquisition of Gatos Silver Inc. added **$185,261 thousand** to Property, Plant and Equipment[122](index=122&type=chunk) - Property, plant and equipment is depreciated using either the **straight-line or units-of-production method** over the shorter of the estimated useful life or the expected life of mine[121](index=121&type=chunk) - Assets under construction include innovation projects such as high-intensity grinding (HIG) mills, plant improvements, and other mine infrastructures[123](index=123&type=chunk) Property, Plant and Equipment Carrying Values (June 30, 2025 vs. December 31, 2024) | Component | June 30, 2025 (in thousands USD) | December 31, 2024 (in thousands USD) | Change (%) | | :--- | :--- | :--- | :--- | | Land and Buildings | $179,646 | $84,899 | 111.6% | | Machinery and Equipment | $304,853 | $240,617 | 26.7% | | Assets under Construction | $63,608 | $43,322 | 46.8% | | Other | $8,980 | $9,792 | -8.4% | | **Total PP&E** | **$557,087** | **$378,630** | **47.1%** | [Note 17. Right-of-Use Assets](index=49&type=section&id=Note%2017.%20Right-of-Use%20Assets) Right-of-use assets decreased due to depreciation, partially offset by new additions and the Gatos acquisition - Right-of-use assets are initially measured at cost and subsequently at cost less accumulated depreciation and impairment losses, with depreciation recorded on a straight-line basis[129](index=129&type=chunk) - The acquisition of Gatos added **$281 thousand** in right-of-use assets[130](index=130&type=chunk) Right-of-Use Assets (June 30, 2025 vs. December 31, 2024) | Component | June 30, 2025 (in thousands USD) | December 31, 2024 (in thousands USD) | Change (%) | | :--- | :--- | :--- | :--- | | Land and Buildings | $5,978 | $7,046 | -15.2% | | Machinery and Equipment | $11,156 | $16,853 | -33.8% | | **Total Right-of-Use Assets** | **$17,134** | **$23,898** | **-28.3%** | [Note 18. Restricted Cash](index=50&type=section&id=Note%2018.%20Restricted%20Cash) Non-current restricted cash increased primarily due to an increase in funds frozen by SAT related to the Primero tax dispute - The **$105.6 million** in restricted cash related to the SAT Primero tax dispute represents VAT refunds due to Primero Empresa Minera (PEM) that were frozen by the Servicio de Admistracion Tributaria (SAT)[132](index=132&type=chunk) Non-Current Restricted Cash (June 30, 2025 vs. December 31, 2024) | Component | June 30, 2025 (in thousands USD) | December 31, 2024 (in thousands USD) | Change (%) | | :--- | :--- | :--- | :--- | | Nevada Division of Environmental Protection | $19,765 | $19,346 | 2.2% | | SAT Primero tax dispute | $105,562 | $86,726 | 21.7% | | **Total Non-Current Restricted Cash** | **$125,327** | **$106,072** | **18.1%** | [Note 19. Trade and Other Payables](index=50&type=section&id=Note%2019.%20Trade%20and%20Other%20Payables) Trade and other payables increased significantly, driven by higher trade payables and trade-related accruals - Trade and other payables primarily consist of amounts outstanding for purchases related to mining operations, exploration, evaluation activities, and corporate expenses, with normal credit periods of **30 to 90 days**[133](index=133&type=chunk) Trade and Other Payables (June 30, 2025 vs. December 31, 2024) | Component | June 30, 2025 (in thousands USD) | December 31, 2024 (in thousands USD) | Change (%) | | :--- | :--- | :--- | :--- | | Trade payables | $58,921 | $35,397 | 66.4% | | Trade related accruals | $59,026 | $23,196 | 154.5% | | Payroll and related benefits | $41,208 | $32,239 | 27.8% | | **Total Trade and Other Payables** | **$176,625** | **$103,895** | **70.0%** | [Note 20. Debt Facilities](index=51&type=section&id=Note%2020.%20Debt%20Facilities) Total debt facilities remained stable, consisting of convertible debentures and a recently amended revolving credit facility Debt Facilities (June 30, 2025 vs. December 31, 2024) | Component | June 30, 2025 (in thousands USD) | December 31, 2024 (in thousands USD) | Change (%) | | :--- | :--- | :--- | :--- | | Convertible Debentures | $214,053 | $209,083 | 2.4% | | Revolving Credit Facility | $340 | $399 | -14.8% | | **Total Debt Facilities** | **$214,393** | **$209,482** | **2.3%** | [Convertible Debentures](index=51&type=section&id=Convertible%20Debentures) - The Company issued **$230 million** of unsecured senior convertible debentures in December 2021, maturing January 15, 2027, with an interest rate of **0.375% per annum**[136](index=136&type=chunk) - The debentures are convertible into common shares at a rate of **60.3865 common shares per $1,000 principal amount**, representing an initial conversion price of **$16.56 per share**[137](index=137&type=chunk) - The debt portion was initially valued at **$180.4 million** and is recorded as a financial liability on an amortized cost basis, while the conversion option is classified as equity at **$42.3 million**[142](index=142&type=chunk)[143](index=143&type=chunk) [Revolving Credit Facility](index=52&type=section&id=Revolving%20Credit%20Facility) - The senior secured revolving credit facility was amended on April 11, 2025, extending its maturity date to **April 11, 2028**, with a credit limit of **$175.0 million** and an accordion feature of **$100 million**[145](index=145&type=chunk) - Gatos Silver Inc. was incorporated into the facility as a material subsidiary and guarantor[145](index=145&type=chunk) - As of June 30, 2025, the Company was in compliance with all financial covenants, including a **net leverage ratio of not more than 3.50 to 1.00** and an **interest coverage ratio of not less than 4.00 to 1.00**[147](index=147&type=chunk) - The undrawn portion of the Revolving Credit Facility, net of letters of credit and drawdowns, was **$139.6 million** as of June 30, 2025[148](index=148&type=chunk) [Note 21. Lease Liabilities](index=54&type=section&id=Note%2021.%20Lease%20Liabilities) Total lease liabilities decreased due to principal repayments, partially offset by new additions and the Gatos acquisition - The acquisition of Gatos Silver Inc. added **$415 thousand** in lease liabilities[151](index=151&type=chunk) Lease Liabilities (June 30, 2025 vs. December 31, 2024) | Component | June 30, 2025 (in thousands USD) | December 31, 2024 (in thousands USD) | Change (%) | | :--- | :--- | :--- | :--- | | Category I leases | $1,526 | $2,662 | -42.7% | | Category II leases | $18,615 | $24,873 | -25.2% | | **Total Lease Liabilities** | **$20,141** | **$27,535** | **-26.9%** | [Category I leases](index=55&type=section&id=Category%20I%20leases) - Category I leases primarily relate to financing arrangements for vehicles and equipment, with remaining lease terms of **one to three years** and incremental borrowing rates ranging from **3.8% to 8.5% per annum**[153](index=153&type=chunk) [Category II leases](index=55&type=section&id=Category%20II%20leases) - Category II leases primarily relate to equipment and building rental contracts, land easement contracts, and service contracts containing embedded leases, with remaining lease terms of **one to seven years** and incremental borrowing rates ranging from **3.4% to 11.8% per annum**[154](index=154&type=chunk) [Note 22. Share Capital](index=56&type=section&id=Note%2022.%20Share%20Capital) Share capital increased significantly due to shares issued for the Gatos acquisition and the exercise of stock options [Authorized and issued capital](index=56&type=section&id=Authorized%20and%20issued%20capital) - The Company has **unlimited authorized common shares** with no par value[156](index=156&type=chunk) - The Company renewed its share repurchase program on September 12, 2024, permitting the repurchase of up to **10,000,000 shares** (3.32% of issued and outstanding shares)[160](index=160&type=chunk) - For the six months ended June 30, 2025, the Company repurchased **768,500 common shares for $4.27 million** as part of the Share Repurchase Program[160](index=160&type=chunk) [Stock options](index=58&type=section&id=Stock%20options) - Under the 2022 Long-Term Incentive Plan (LTIP), the maximum number of common shares reserved for issuance cannot exceed **6% of the Company's issued and outstanding shares**[161](index=161&type=chunk) - The Gatos acquisition resulted in the issuance of **8,242,244 First Majestic options** in exchange for existing Gatos options, with a contractual term of 10 years[162](index=162&type=chunk) - Total share-based payments expense related to Options was **$3.8 million** for the six months ended June 30, 2025[165](index=165&type=chunk) Stock Options Outstanding (June 30, 2025) | Metric | Number of Options | Weighted Average Exercise Price (CAD $/Share) | | :--- | :--- | :--- | | Balance, end of the period | 10,676,624 | 10.41 | [Restricted Share Units](index=61&type=section&id=Restricted%20Share%20Units) - Under the 2022 LTIP, the Company may award non-transferable Restricted Share Units (RSUs) with a graded vesting schedule over **three years**, settled in cash or equity at the Company's discretion[167](index=167&type=chunk) - As of June 30, 2025, there were **1,650,676 equity-settled RSUs** and **381,662 cash-settled RSUs** outstanding, with a total liability of **$1.6 million** for cash-settled RSUs[168](index=168&type=chunk)[169](index=169&type=chunk) - Total share-based payments expense for equity-settled RSUs was **$2.5 million** for the six months ended June 30, 2025[169](index=169&type=chunk) [Performance Share Units](index=63&type=section&id=Performance%20Share%20Units) - Under the 2022 LTIP, Performance Share Units (PSUs) are awarded, with the number of units issued on vesting varying from **0% to 200%** based on the Company's total shareholder return compared to peers over a three-year period[171](index=171&type=chunk) - As of June 30, 2025, there were **1,209,781 equity-settled PSUs** and **57,270 cash-settled PSUs** outstanding, with a total liability of **$0.2 million** for cash-settled PSUs[172](index=172&type=chunk)[173](index=173&type=chunk) - Total share-based payments expense related to equity-settled PSUs was **$1.2 million** for the six months ended June 30, 2025[173](index=173&type=chunk) [Deferred Share Units](index=65&type=section&id=Deferred%20Share%20Units) - Under the 2019 LTIP, Deferred Share Units (DSUs) were awarded, typically vesting immediately and settled in common shares. As of June 30, 2025, **30,161 equity-settled DSUs** were outstanding[174](index=174&type=chunk)[175](index=175&type=chunk) - Under the 2022 DSU Plan, DSUs are cash-settled only. As of June 30, 2025, **164,454 cash-settled DSUs** were outstanding, with a total liability of **$1.4 million**[175](index=175&type=chunk)[176](index=176&type=chunk) - Total share-based payments expense related to DSUs under the 2022 DSU plan was **$0.7 million** for the six months ended June 30, 2025[176](index=176&type=chunk) [Dividends](index=65&type=section&id=Dividends) - The dividend declared on August 13, 2025, was subsequent to the period end and not recognized as a distribution during the period presented[177](index=177&type=chunk) Dividends Declared (Six Months Ended June 30, 2025) | Declaration Date | Record Date | Dividend per Common Share | | :--- | :--- | :--- | | February 19, 2025 | February 28, 2025 | $0.0057 | | May 7, 2025 | May 16, 2025 | $0.0045 | | August 13, 2025 | August 29, 2025 | $0.0048 | [Note 23. Non-Controlling Interests](index=67&type=section&id=Note%2023.%20Non-Controlling%20Interests) Non-controlling interests were recognized due to the Gatos acquisition, representing the 30% interest in the Los Gatos Joint Venture - The acquisition of Gatos on January 16, 2025, resulted in the Company owning **70% of the Los Gatos Joint Venture (LGJV)**, with the remaining **30% presented as non-controlling interest**[179](index=179&type=chunk) LGJV Financial Information (100% Basis, June 30, 2025) | Metric | Amount (in thousands USD) | | :--- | :--- | | Total assets | $1,912,041 | | Total liabilities | $560,658 | | Net assets | $1,351,383 | | Non-controlling interest (30%) | $405,415 | LGJV Performance (Six Months Ended June 30, 2025) | Metric | Amount (in thousands USD) | | :--- | :--- | | Revenue | $193,578 | | Total net income | $26,691 | | Cash flows from operating activities | $104,162 | | Dividends paid to non-controlling interests | ($9,688) | [Note 24. Financial Instruments and Related Risk Management](index=68&type=section&id=Note%2024.%20Financial%20Instruments%20and%20Related%20Risk%20Management) The Company manages various financial risks and monitors its capital structure, reporting compliance with all debt covenants [Fair value and categories of financial instruments](index=68&type=section&id=Fair%20value%20and%20categories%20of%20financial%20instruments) - The Company uses a fair value hierarchy (**Level 1, 2, and 3**) to categorize financial assets and liabilities, with Level 1 for unadjusted quoted prices in active markets and Level 2 for observable inputs[183](index=183&type=chunk)[184](index=184&type=chunk) - Marketable securities (common shares) and silver futures derivatives are valued using **Level 1 inputs**, while marketable securities (stock warrants) and trade receivables from concentrate sales are valued using **Level 2 inputs**[186](index=186&type=chunk) - There were **no transfers between fair value levels** during the six months ended June 30, 2025[185](index=185&type=chunk) [Capital risk management](index=70&type=section&id=Capital%20risk%20management) - The Company's objectives for capital management are to maintain financial flexibility, continue as a going concern, optimize growth, and maximize shareholder returns[187](index=187&type=chunk) - The Company was in **compliance with all debt covenants** as of June 30, 2025[190](index=190&type=chunk) Capital Structure (June 30, 2025 vs. December 31, 2024) | Component | June 30, 2025 (in thousands USD) | December 31, 2024 (in thousands USD) | Change (%) | | :--- | :--- | :--- | :--- | | Equity | $2,902,420 | $1,351,071 | 114.8% | | Debt facilities | $214,393 | $209,482 | 2.3% | | Lease liabilities | $20,141 | $27,535 | -26.9% | | Less: cash and cash equivalents | ($384,753) | ($202,180) | 90.3% | | **Net Capital** | **$2,752,201** | **$1,385,908** | **98.6%** | [Financial risk management](index=71&type=section&id=Financial%20risk%20management) - The Company is exposed to credit risk, liquidity risk, currency risk, commodity price risk, and interest rate risk[192](index=192&type=chunk)[193](index=193&type=chunk)[197](index=197&type=chunk)[201](index=201&type=chunk)[203](index=203&type=chunk)[206](index=206&type=chunk) - As of June 30, 2025, net VAT receivable was **$52.3 million**, and trade receivables are not significant due to timely payments from major customers[194](index=194&type=chunk)[195](index=195&type=chunk) - Total available liquidity at June 30, 2025, was **$583.8 million**, including **$139.6 million** of undrawn revolving credit facility[198](index=198&type=chunk) - A **25 basis points** increase or decrease in the market interest rate would not have a significant impact on net earnings or loss[207](index=207&type=chunk) Currency Risk Sensitivity (June 30, 2025) | Currency | Net Assets (Liabilities) Exposure (in thousands USD) | Effect of +/- 10% Change (in thousands USD) | | :--- | :--- | :--- | | Canadian Dollar | $5,944 | $594 | | Mexican Peso | $112,152 | $11,215 | | **Total** | **$118,096** | **$11,809** | Commodity Price Risk Exposure (June 30, 2025) | Metal | Metals in Inventory (in thousands USD) | Trade Receivable from Concentrate Sales (in thousands USD) | Total (in thousands USD) | | :--- | :--- | :--- | :--- | | Silver | $1,387 | $3,100 | $4,487 | | Gold | $712 | $62 | $774 | | Zinc | $75 | $3,155 | $3,230 | | Lead | $15 | $278 | $293 | | Copper | $1 | $57 | $58 | | **Total** | **$2,190** | **$6,652** | **$8,842** | [Note 25. Supplemental Cash Flow Information](index=75&type=section&id=Note%2025.%20Supplemental%20Cash%20Flow%20Information) This section details non-cash activities, including the Gatos acquisition, and changes in non-cash working capital items - In June 2025, the **$5.0 million loan agreement** to Sierra Madre was amended to extend the repayment date by one year to May 7, 2027, with a **15% annual interest rate**[208](index=208&type=chunk) Non-Cash Investing and Financing Activities (Six Months Ended June 30, 2025) | Activity | Amount (in thousands USD) | | :--- | :--- | | Transfer of share-based payments reserve upon settlement of RSU's, PSU's and DSU's | $3,241 | | Transfer of share-based payments reserve upon exercise of options | $22,210 | | Acquisition of Gatos | $1,453,478 | | **Total** | **$1,478,929** | Net Change in Non-Cash Working Capital Items (Six Months Ended June 30) | Item | 2025 (in thousands USD) | 2024 (in thousands USD) | | :--- | :--- | :--- | | (Increase) decrease in trade and other receivables | ($4,917) | $875 | | (Increase) decrease in value added taxes receivable | ($5,637) | $2,709 | | (Increase) in inventories | ($679) | ($3,372) | | Increase (decrease) in income taxes payable | ($5,063) | ($970) | | Increase (decrease) in trade and other payables | $12,958 | ($423) | | (Increase) decrease in restricted cash | ($19,255) | $8,064 | | **Total Net Change** | **($20,695)** | **$6,860** | [Note 26. Contingencies and Other Matters](index=76&type=section&id=Note%2026.%20Contingencies%20and%20Other%20Matters) The Company faces significant tax reassessments from the Mexican tax authority (SAT) which it is vigorously disputing [Claims and Legal Proceedings Risks](index=76&type=section&id=Claims%20and%20Legal%20Proceedings%20Risks) - The Company is subject to various claims and legal proceedings in the ordinary course of business, with potential material adverse impacts if resolved unfavorably[212](index=212&type=chunk) - Provisions are established for probable and reasonably estimable liabilities, but there is no guarantee of sufficient insurance coverage[212](index=212&type=chunk) [Primero Tax Rulings](index=76&type=section&id=Primero%20Tax%20Rulings) - The SAT issued tax reassessments for 2010-2016 totaling **$974.3 million** against Primero Empresa Minera (PEM) related to silver sales from the San Dimas Mine, disputing the use of the Advance Pricing Agreement (APA)[217](index=217&type=chunk) - The Company is defending the APA in Mexican legal proceedings and pursuing Mutual Agreement Procedure (MAP) under tax treaties, which Mexico has refused[218](index=218&type=chunk)[219](index=219&type=chunk) - A **NAFTA APA Claim** was submitted to ICSID, and the Tribunal partially granted provisional measures, ordering Mexico to permit withdrawal of VAT refunds[224](index=224&type=chunk)[225](index=225&type=chunk)[229](index=229&type=chunk) - A **NAFTA VAT Claim** was filed with ICSID regarding the ongoing denial of access to PEM's VAT refunds; Mexico objected to its discontinuance, so proceedings will continue[233](index=233&type=chunk)[234](index=234&type=chunk) - If the SAT's attempts to nullify the APA are successful, the incremental income tax for 2010-2019 could be **$298.0 million** (before interest/penalties). **No liability has been recognized**[230](index=230&type=chunk)[231](index=231&type=chunk) [La Encantada Tax Re-assessments](index=82&type=section&id=La%20Encantada%20Tax%20Re-assessments) - The SAT issued tax assessments to Minera La Encantada (MLE) for fiscal years 2012-2017 totaling **$298.4 million**, primarily related to a prior forward silver purchase agreement and denial of mine development costs[236](index=236&type=chunk) - The Company is vigorously disputing these assessments and has **not recognized a liability**, based on advice from legal and financial advisors[236](index=236&type=chunk) [San Martin Tax Re-assessments](index=82&type=section&id=San%20Martin%20Tax%20Re-assessments) - The SAT issued tax assessments to Minera El Pilon (MEP) for fiscal years 2014-2017 totaling **$30.1 million**, related to a prior forward silver purchase agreement and denial of mine development costs[237](index=237&type=chunk) - The Company is defending the validity of the agreement and disputing the assessments, with **no liability recognized**[237](index=237&type=chunk) [La Parrilla Tax Re-assessments](index=82&type=section&id=La%20Parrilla%20Tax%20Re-assessments) - The SAT issued tax assessments to First Majestic Plata (FMP) for fiscal years 2014-2017 totaling **$30.8 million**, related to a prior forward silver purchase agreement and denial of mine development costs[238](index=238&type=chunk) - The Company is disputing these assessments and has **not recognized a liability**[238](index=238&type=chunk) [Del Toro Tax Re-assessments](index=84&type=section&id=Del%20Toro%20Tax%20Re-assessments) - The SAT issued tax assessments to First Majestic Del Toro (FMDT) for fiscal years 2015-2016 totaling **$26.7 million**, primarily related to the denial of mine development costs, refining costs, and other expenses[240](index=240&type=chunk) - The Company is defending the validity of the expenses and disputing the assessments, with **no liability recognized**[240](index=240&type=chunk) [CFM Tax Re-assessments](index=84&type=section&id=CFM%20Tax%20Re-assessments) - The SAT issued a tax assessment to Corporacion First Majestic (CFM) for fiscal year 2016 totaling **$78.0 million**, disputing Mexico's right to tax a Canadian-level transaction[241](index=241&type=chunk) - The Company is vigorously disputing this assessment and has **not recognized a liability**[241](index=241&type=chunk) [First Silver Litigation](index=84&type=section&id=First%20Silver%20Litigation) - The Company has an unpaid judgment of **$64.3 million** (CAD$81.5 million) against Hector Davila Santos, recognized by the Mexican Supreme Court in November 2022[242](index=242&type=chunk) - Enforcement efforts are ongoing in Mexico, but **no accrual has been made** for the unrecovered judgment due to uncertainties in collection[242](index=242&type=chunk) [Note 27. Subsequent Events](index=84&type=section&id=Note%2027.%20Subsequent%20Events) Subsequent to the reporting period, the Company declared a quarterly common share dividend of $0.0048 per share - On August 13, 2025, the Company's Board of Directors approved the declaration of a quarterly common share dividend of **$0.0048 per share**[243](index=243&type=chunk) - This dividend is payable on or after September 15, 2025, to common shareholders of record as at the close of business on August 29, 2025[243](index=243&type=chunk) - The dividend was declared subsequent to the quarter-end and has **not been recognized as a distribution** to owners during the period ended June 30, 2025[243](index=243&type=chunk)

Vancouver, British Columbia--(Newsfile Corp. - August 14, 2025) - First Majestic Silver Corp. (NYSE: AG) (TSX: AG) (FSE: FMV) (the "Company" or "First Majestic") is pleased to announce the Company's unaudited condensed interim consolidated financial results for the second quarter ended June 30, 2025. The full version of the financial statements and the accompanying management's discussion and analysis can be viewed on the Company's website at www.firstmajestic.com or on SEDAR+ at www.sedarplus.ca and on EDG ...

Core Points - First Majestic Silver Corp. will host a conference call and webcast on August 14, 2025, at 8:30 a.m. PT to discuss its second quarter production and earnings results along with updated 2025 guidance [1][8] - The second quarter results will be announced before markets open on the same day and will be available on the company's website [2][8] - Participants are encouraged to dial in at least 15 minutes prior to the call to ensure timely participation [2] Company Overview - First Majestic is a publicly traded mining company focused on silver and gold production in Mexico and the United States [5] - The company operates four producing underground mines in Mexico: Los Gatos Silver Mine, Santa Elena Silver/Gold Mine, San Dimas Silver/Gold Mine, and La Encantada Silver Mine [5] - First Majestic also owns a minting facility, First Mint, LLC, offering a portion of its silver production for sale to the public [6]

Group 1 - The Federal Reserve has maintained interest rates unchanged for the fifth consecutive time, impacting market performance [1] - Major U.S. stock indices showed mixed results, with the Dow Jones down 0.38%, the Nasdaq up 0.15%, and the S&P 500 down 0.12% [1] - Popular technology stocks experienced varied movements, with Nvidia rising over 2% and Apple declining more than 1% [1] Group 2 - Precious metals and copper-related stocks faced significant declines, with Freeport-McMoRan Copper & Gold down over 9% and Southern Copper down over 6% [1] - The Nasdaq China Golden Dragon Index fell by 1.82%, with most popular Chinese concept stocks declining, including NIO and New Oriental down over 4% [1] - Other notable declines included Li Auto down over 3%, Pinduoduo and Xpeng down over 2%, and Alibaba and JD down over 1% [1]

Core Viewpoint - First Majestic Silver Corp. has achieved a new 52-week high in stock price, driven by strong silver-equivalent production and rising metal prices [1] Group 1: Production Performance - In Q2 2025, First Majestic reported total production of 7.9 million AgEq ounces, which includes 3.7 million silver ounces and 33,865 gold ounces, marking a 48% year-over-year increase due to a 76% surge in silver production [2][10] - The increase in production was primarily driven by the San Dimas and La Encantada mines, along with contributions from the Cerro Los Gatos mine [3] - The Cerro Los Gatos mine contributed 1.5 million ounces of silver to the Q2 output [6][10] - Following the strong performance, the company raised its full-year production guidance to 30.6-32.6 million AgEq ounces from the previous estimate of 27.8-31.2 million AgEq ounces [6][10] Group 2: Strategic Developments - In January 2025, First Majestic completed the acquisition of Gatos Silver, gaining a 70% interest in the Cerro Los Gatos mine, which is expected to enhance the company's production profile [3][5] - The combined production from Cerro Los Gatos, San Dimas, and Santa Elena mines is projected to reach 30-32 million ounces of silver equivalent annually, including 15-16 million ounces of silver [4] Group 3: Market Trends - Silver prices have increased by 28% this year, while gold prices have risen by 29%, driven by safe-haven demand, geopolitical tensions, and supply deficits [7] - Current silver prices are around $38 per ounce, while gold prices are approximately $3,361 per ounce [7][8] Group 4: Stock Performance - First Majestic's stock has risen by 42.2% over the past year, outperforming the industry average growth of 15.5% [9]

Core Insights - Silver prices have reached a peak of $38 per ounce, marking the highest level in the past decade, with a bull market beginning in early 2024 when prices were around $22 per ounce [1] Group 1: Market Performance - The rise in silver prices occurred in two phases during the first six months of 2024 [1] Group 2: Analyst Background - The analyst, Harrison, has been writing on Seeking Alpha since 2018 and has over a decade of market experience, with a professional background in private equity, real estate, and economic research [1]