Mr. Keith Neumeyer reports

FIRST MAJESTIC REPORTS SECOND QUARTER FINANCIAL RESULTS AND QUARTERLY DIVIDEND PAYMENT

First Majestic Silver Corp. has released the unaudited interim consolidated financial results of the company for the second quarter ended June 30, 2021. All amounts are in United States dollars unless stated otherwise.

Second quarter 2021 highlights:

• Revenues reached a new company record of $154.1-million following the inclusion of approximately two months of production from the Jerritt Canyon mine in Nevada and robust production from the Mexican operations;
• Average realized silver price per ounce of $27.32, a 1-per-cent increase compared with Q1 2021;
• Cash costs increased to $13.89 per silver equivalent (AgEq) ounce, compared with $12.61 in Q1 2021, primarily due to higher ore development and the addition of the Jerritt Canyon operation;
• All-in sustaining cost (AISC) were relatively unchanged at $19.42 per AgEq ounce, compared with $19.35 in Q1 2021;
• Mine operating earnings of $29.4-million compared with $28.1-million in Q1 2021;
• Net earnings of $15.6-million (earnings per share (EPS) of six cents) compared with $1.9-million (EPS of one cent) in Q1 2021;
• Adjusted EPS of five cents, after excluding non-cash and non-recurring items, compared with three cents in Q1 2021 (non-generally accepted accounting principle (GAAP));
• Cash flow per share was 21 cents per share (non-GAAP), compared with 14 cents per share in Q1 2021;
• Cash and cash equivalents as of June 30, 2021, was $227.1-million. In addition, the company has a strong working capital position of $276.3-million and total available liquidity of $316.3-million, including $40-million of available undrawn revolving credit facility;
• Declared a cash dividend payment of 0.6 cent per common share for the second quarter of 2021 for shareholders of record as of the close of business on Aug. 26, 2021, and will be distributed on or about Sept. 16, 2021.

"Improved production rates and higher metal prices during the quarter generated record revenues for the business," stated Keith Neumeyer, president and chief executive officer. "As a result of the higher revenues, our quarterly dividend increased by approximately 33 per cent when compared to the prior quarterly payment. The mining units generated $29.4-million in mine operating earnings due to strong production and higher realized metal prices. At Jerritt Canyon, operational improvements are being achieved although AISC are expected to be higher than normal in the third quarter due to a $12.3-million lift on the tailing impoundment that is currently being constructed. Once completed, costs at Jerritt Canyon are expected to return to normal levels."

Q2 2021 financial results

The company realized an average silver price of $27.32 per ounce during the second quarter of 2021, representing a 58-per-cent increase compared with the second quarter of 2020 and a 1-per-cent increase compared with the prior quarter.

Revenues generated in the second quarter totalled $154.1-million, compared with $34.9-million in the second quarter of 2020, primarily due to a 199-per-cent increase in payable silver equivalent ounces sold due to a temporary suspension of operations mandated by the Mexican government in response to COVID-19 in the second quarter of 2020.

The company reported mine operating earnings of $29.4-million, compared with negative $7.8-million in the second quarter of 2020. The increase in mine operating earnings is primarily attributed to higher ounces sold and higher metal prices.

The company reported net earnings of $15.6-million (EPS of six cents), compared with negative $10-million (EPS of negative five cents) in the second quarter of 2020. The increase in net earnings was primarily attributed to higher metal prices and temporary suspension of operating activities in the second quarter of 2020 in response to the COVID-19 pandemic, as well as a $10.3-million loss in the second quarter of 2020 related to mark-to-market adjustments on the company's foreign currency derivatives.

Adjusted net earnings for the quarter was $12.7-million (adjusted EPS of five cents), compared with negative $20.7-million (adjusted EPS of negative 10 cents) in the second quarter of 2020, after excluding non-cash and non-recurring items.

Cash flow from operations before movements in working capital and income taxes in the quarter was $51.2-million (21 cents per share), compared with negative $16.4-million (negative eight cents per share) in the second quarter of 2020.

Cash and cash equivalents as of June 30, 2021, was $227.1-million. In addition, the company had strong working capital of $276.3-million and total available liquidity of $316.3-million, including $40-million of available undrawn revolving credit facility.

Total production in the second quarter was 6.4 million silver equivalent ounces, consisting of 3.3 million ounces of silver and 46,544 ounces of gold, representing an increase of 13 per cent and 95 per cent, respectively, compared with the previous quarter primarily due to a 14-per-cent increase in silver equivalent production from the three operating Mexican mines and the inclusion of production from the Jerritt Canyon mine, effective April 30, 2021.

Costs and capital expenditures

Cash cost for the quarter was $13.89 per silver equivalent ounce, compared with $12.61 per ounce in the previous quarter. The increase in cash cost was due to higher ore development and the addition of the Jerritt Canyon mine which was producing at a higher cash cost in the first few months since the acquisition. The company has identified numerous projects that will be implemented over the next 12 to 24 months at Jerritt Canyon to improve production and reduce costs at the mine and processing plant. The increase in cash costs were partially offset by lower cash costs at Santa Elena and La Encantada due to higher production.

AISC in the second quarter was $19.42 per ounce and in line when compared with $19.35 per ounce with the previous quarter. The slight increase in AISC was primarily attributed to an increase in cash cost per AgEq ounce due to the addition of Jerritt Canyon which was mostly offset by a decrease in sustaining costs in total mine development in Mexico.

Total capital expenditures in the second quarter were $58.3-million, primarily consisting of $15.5-million at San Dimas, $17.2-million at Santa Elena (including $8.4-million toward the Ermitano project), $2.8-million at La Encantada, $8.1-million at Jerritt Canyon and $14.4-million for strategic projects.

Q2 2021 dividend announcement

The company is pleased to announce that its board of directors has declared a cash dividend payment in the amount of 0.6 cent per common share for the second quarter of 2021, representing a 33-per-cent increase compared with the prior quarterly payment as a result of higher generated revenues. The second quarter cash dividend will be paid to holders of record of First Majestic's common shares as of the close of business on Aug. 26, 2021, and will be distributed on or about Sept. 16, 2021.

Under the company's dividend policy, the quarterly dividend per common share is targeted to equal approximately 1 per cent of the company's net quarterly revenues divided by the company's then-outstanding common shares on the record date.

The amount and distribution dates of future dividends remain at the discretion of the board of directors. This dividend qualifies as an eligible dividend for Canadian income tax purposes. Dividends paid to shareholders outside Canada (non-resident investors) may be subject to Canadian non-resident withholding taxes.

About First Majestic Silver Corp.

First Majestic is a publicly traded mining company focused on silver and gold production in Mexico and the United States and is aggressively pursuing the development of its existing mineral property assets. The company presently owns and operates the San Dimas silver/gold mine, the Santa Elena silver/gold mine, the La Encantada silver mine and the Jerritt Canyon gold mine.

We seek Safe Harbor.