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, 2023. The full version of the financial statements and the management discussion and analysis can be viewed on the company's website or on SEDAR+ and on EDGAR. All amounts are in United States dollars unless stated otherwise.

Q2 2023 highlights

• Production of 6.3 million silver equivalent (AgEq) ounces, consisting of 2.6 million silver ounces and 45,022 gold ounces, or a decrease of 17 per cent compared with the previous quarter.
• Quarterly revenues totalled $146.7-million, a decrease of 7 per cent compared with the previous quarter.
• Operating cash flows before non-cash working capital and taxes totalled $26.9-million, up 23 per cent compared with $21.9-million in the previous quarter.
• Consolidated cash costs were $15.58 per AgEq ounce and all-in sustaining costs (AISC) were $21.52 per AgEq ounce. Excluding Jerritt Canyon, cash costs for the three Mexican operations were $13.44 per AgEq ounce compared with $11.85 in the previous quarter.
• Adjusted net earnings of ($5.5)-million (adjusted EPS (earnings per share) of (two cents)) after excluding non-cash and non-recurring items.
• Sold 87,657 ounces of silver bullion, or approximately 3.3 per cent of the company's silver production, on First Majestic's online bullion store at an average silver price of $27.30 per ounce for total proceeds of $2.4-million.
• At the end of the quarter, the company had a cash and restricted cash balance of $306.3-million consisting of $160.2-million of cash and cash equivalents, and $146.1-million of restricted cash.
• Declared a cash dividend payment of 0.51 cent per common share for the second quarter of 2023 for shareholders of record as of the close of business on Aug. 16, 2023, which will be distributed on or about Aug. 31, 2023.

Q2 2023 financial results

The company realized an average silver price of $24.95 per AgEq ounce during the second quarter of 2023, representing a 4-per-cent increase compared with the second quarter of 2022 and a 14-per-cent increase compared with the prior quarter.

Revenues generated in the second quarter totalled $146.7-million compared with $159.4-million in the second quarter of 2022. The decrease in revenues was primarily due to the temporary suspension of Jerritt Canyon which processed the majority of its remaining stockpiles and work in process (WIP) inventory during the quarter.

Cash flow from operations before movements in working capital and income taxes in the quarter was $26.9-million, representing an 18-per-cent decrease compared with the second quarter of 2022 and a 23-per-cent increase compared with the prior quarter.

The company reported mine operating earnings of $1.1-million compared with $11.6-million in the second quarter of 2022. The decrease in mine operating earnings was primarily attributed to a stronger Mexican peso against the United States dollar which has increased production costs. As of July, 2023, the peso reached a new seven-year high compared with the U.S. dollar. The company continues to implement cost saving programs and review efficiency improvement opportunities to offset the foreign exchange impact.

The company reported net earnings of ($17.5)-million (EPS of (six cents)) compared with ($84.1)-million (EPS of (32 cents)) in the second quarter of 2022. During the quarter, the company incurred one-time severance and operational suspension payments at Jerritt Canyon in the amount of $8.4-million, compared with $5.1-million in the previous quarter.

Adjusted net earnings for the quarter, normalized for non-cash or non-recurring items such as share-based payments, unrealized losses on marketable securities and non-recurring writedowns on mineral inventory for the quarter was ($5.5)-million (adjusted EPS of (two cents)) compared with ($5.7)-million (adjusted EPS of (two cents)) in the second quarter of 2022.

Cash flow from operations before movements in working capital and income taxes in the quarter was $26.9-million compared with $33.0-million in the second quarter of 2022.

As of June 30, 2023, the company had a cash and restricted cash balance of $306.3-million consisting of $160.2-million of cash and cash equivalents, and $146.1-million of restricted cash. The company also had working capital of $237.2-million.

On June 29, 2023, the company entered into an agreement to extend the maturity date on its senior secured revolving credit facility from March 21, 2025, to June 29, 2026, and increased the credit limit from $100.0-million to $175.0-million.

The company produced 6.3 million AgEq ounces consisting of 2.6 million ounces of silver and 45,022 ounces of gold. Silver production increased by 4 per cent over the prior quarter primarily due to higher tonnes processed at San Dimas combined with slightly higher silver grades and record metallurgical recoveries of Ermitano's ore. Gold production was 26 per cent lower compared with the previous quarter primarily due to the temporary suspension of mining activities at Jerritt Canyon, which was previously announced on March 20, 2023.

Cash cost for the quarter was $15.58 per AgEq ounce, compared with $15.16 AgEq per ounce in the previous quarter. The increase in cash costs per AgEq ounce was primarily attributable to lower production at Jerritt Canyon which was temporarily suspended as well as a strong Mexican peso compared with the U.S. dollar which averaged 5 per cent higher compared with the previous quarter. Excluding Jerritt Canyon, cash costs at the three Mexican operations were $13.44 per AgEq ounce compared with $11.85 in the previous quarter. The company has implemented a series of cost saving initiatives in an effort to help offset the strong peso's impact, which include lowering production costs, capital spending, care and maintenance holding costs, G&A (general and administrative) costs, while also increasing silver and gold production. In the second half of 2023, the company expects cash costs to decrease and be within the range of $12.23 to $12.89 per AgEq ounce.

AISC in the second quarter was $21.52 per AgEq ounce, compared with $20.90 per AgEq ounce in the previous quarter. The increase in AISC was primarily attributed to the strong Mexican peso which resulted in higher cash costs as well as an increase in worker participation costs during the quarter. In the second half of 2023, the company anticipates AISC to be within a range of $17.69 to $18.92 per AgEq ounce following the temporary suspension of Jerritt Canyon which had significantly higher AISC.

Total capital expenditures in the second quarter were $30.5-million, consisting of $10.4-million at San Dimas, $13.4-million at Santa Elena, $2.0-million at La Encantada, $4.0-million at Jerritt Canyon and $700,000 for strategic projects.

Q2 2023 dividend announcement

The company is pleased to announce that its board of directors has declared a cash dividend payment in the amount of 0.51 cent per common share for the second quarter of 2023. 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. 16, 2023, and will be distributed on or about Aug. 31, 2023.

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 Silver is a publicly traded mining company focused on silver and gold production in Mexico and the United States. The company presently owns and operates the San Dimas silver/gold mine, the Santa Elena silver/gold mine and the La Encantada silver mine as well as a portfolio of development and exploration assets, including the Jerritt Canyon gold project located in northeastern Nevada.

First Majestic is proud to offer a portion of its silver production for sale to the public. Bars, ingots, coins and medallions are available for purchase on-line at its bullion store at some of the lowest possible premiums.

We seek Safe Harbor.