First Majestic Silver Delivers Solid Q2 2024 Results, Declares Dividend

Vancouver, British Columbia – First Majestic Silver Corp. (NYSE: AG) (TSX: AG) (FSE: FMV), a leading silver and gold producer, has announced its unaudited condensed interim consolidated financial results for the second quarter ended June 30, 2024. The company's performance showcases its resilience and commitment to operational excellence, even amidst industry challenges.

Unlocking Value Through Operational Efficiency and Strategic Initiatives

Robust Production and Revenue Performance

First Majestic Silver's second-quarter production reached 5.3 million silver equivalent ounces, a 2% increase compared to the previous quarter. This was driven by a 7% rise in silver ounces produced and a 9% increase in gold ounces. The company's operational agility and focus on optimizing production processes have enabled it to navigate market volatility and deliver consistent results.Despite a 7% decrease in quarterly revenues compared to the same period in 2023, the company's financial performance remains strong. The decline in revenue was primarily attributed to a 15% drop in the total number of payable silver equivalent ounces sold, which was partially offset by a 17% increase in the average realized silver price.

Strengthening the Balance Sheet and Rewarding Shareholders

First Majestic Silver's financial position remains robust, with a cash and restricted cash balance of 9.7 million as of June 30, 2024. This includes 2.2 million in cash and cash equivalents and 7.5 million in restricted cash. The company's strong liquidity provides it with the flexibility to pursue strategic initiatives and weather market uncertainties.Demonstrating its commitment to shareholder value, the company has declared a cash dividend of {{royaItemContent}}.0046 per common share for the second quarter of 2024. This dividend, which will be paid on or about August 30, 2024, to shareholders of record as of August 16, 2024, aligns with the company's policy of distributing a portion of its quarterly revenues to its investors.

Operational Highlights and Cost Management

First Majestic Silver's three producing mines – Santa Elena, San Dimas, and La Encantada – delivered solid operational results during the quarter. Cash costs per silver equivalent ounce improved by 2% compared to the previous quarter, reaching .29, while all-in sustaining costs (AISC) remained relatively stable at .64 per silver equivalent ounce.The company's focus on cost optimization and operational efficiency has been a key driver of its performance. Management continues to implement a series of cost reduction initiatives across the organization, aimed at improving productivity, lowering production costs, and enhancing overall financial discipline.

Advancing Strategic Initiatives and Diversifying Revenue Streams

During the quarter, First Majestic Silver made significant progress in its strategic initiatives, including the ramp-up of activities at its First Mint facility. The company has received new coin presses and laser-engraving equipment, which are expected to increase minting throughput by over 50% and provide new sales channels with an anticipated increase in retail sales.These advancements at First Mint will not only diversify the company's revenue streams but also strengthen its position as a vertically integrated precious metals producer. By offering a range of high-quality silver products directly to consumers, First Majestic Silver is positioning itself to capture a larger share of the growing retail precious metals market.

Navigating Challenges and Maintaining Operational Resilience

The company's performance during the quarter was not without its challenges. Production at the San Dimas mine was impacted by the transition from the Jessica and Victoria veins into the Roberta, Robertita, and Elias vein systems, which are slightly narrower in nature. Additionally, ore flow and processing rates were affected by union worker slowdowns during ongoing negotiations with the National Union.Despite these headwinds, First Majestic Silver's management team remains confident in the company's ability to navigate these challenges and deliver improved production and efficiencies in the second half of 2024. The company's updated 2024 guidance plan reflects its commitment to addressing these operational hurdles and maintaining its position as a leading silver and gold producer.