Summary of First Majestic Silver Q2 2025 Earnings Call

1Key Financial Results and Metrics

Silver Production: 3.7 million ounces, up 76% year-over-year; silver equivalent production of 7.9 million ounces, up 48%.

Revenue: Record quarterly revenue of $268 million, a 94% increase year-over-year; on track for $1 billion in revenue for 2025.

EBITDA: Record EBITDA of $120 million.

Cash Flow: Significant cash flows of approximately $115 million; cash position of $510 million.

Dividends: 1% of revenue paid as dividends, increasing with revenue growth.

Exploration Spending: Record spending with 255,000 meters expected to be drilled this year.

2Strategic Updates and Business Highlights

Integration of Gatos: Smooth integration with operational improvements noted; synergies identified in exploration and operational practices.

Exploration Success: Notable discoveries at Navidad, Santo Niño, and Santa Elena; ongoing engineering work to expedite ore body development.

Operational Enhancements: Implementation of SAP at Gatos for better operational control; plans for self-haulage at La Encantada to reduce operational costs.

Safety Performance: Strong safety metrics reported.

3Forward Guidance and Outlook

Production Guidance: On track to meet production guidance of 30-32 million silver equivalent ounces for the year.

Cost Management: Costs are within guidance, with expectations for improvements in the coming quarters as inflationary pressures stabilize.

Capital Expenditures: Increased exploration and development budgets to support growth; no changes to current guidance or budget expected for the remainder of the year.

4Bad News, Challenges, or Points of Concern

Market Volatility: Silver and gold prices experienced a downturn, impacting stock performance.

Cost Increases: Noted inflationary pressures affecting operational costs, particularly in Q2 due to union bonuses and tax payments.

Integration Costs: Some one-time integration costs at Los Gatos noted, although overall integration has been smooth.

5Notable Q&A Insights

Synergies from Gatos Integration: Management discussed operational synergies, including improved reconciliation processes and cost savings from exploration contracts.

Future Ore Body Development: Questions regarding the timeline for new discoveries and their integration into production were addressed, with management indicating ongoing engineering work to expedite this process.

Debt Management: Clarification on the company's debt structure, with a focus on convertible debt viewed as equity; low carrying costs highlighted.

First Mint Capacity: Current production at First Mint is below full capacity due to labor constraints, with plans to increase output in the future. Overall, First Majestic Silver reported a strong quarter with record financial metrics and strategic advancements, despite facing some market and operational challenges. The company remains optimistic about its growth trajectory and operational efficiencies moving forward.