AG — First Majestic Silver Corp.

Summary of First Majestic Silver Q4 2025 Earnings Call

1. Key Financial Results and Metrics

• Production: Q4 production reached 4.2 million pure silver ounces, totaling over 15 million ounces for the year. Silver equivalent production was over 31 million ounces, exceeding revised guidance.
• Revenue: Revenues for 2025 were approximately $1.2 billion, marking a significant milestone for the company.
• Realized Price: The average realized silver price for Q4 was just under $59, with an annual average of $41.52.
• Cash Flow: Record cash flows were reported, contributing to a strong cash position of nearly $940 million.
• Dividends: The company announced a doubling of its dividend policy effective 2026, increasing from 1% to 2% of top-line revenue.

2. Strategic Updates and Business Highlights

• Mint Operations: The Mint had a record year, generating nearly $23 million in revenue and $24 million in profitability.
• Exploration: The company executed an aggressive exploration program with over 250 kilometers of drilling, leading to significant discoveries, particularly at the Santa Elena mine.
• Acquisitions: The integration of Gatos was completed smoothly, enhancing operational capabilities and resource potential.
• Operational Efficiency: The company is focusing on plant expansions and cost reductions across its operations, particularly at Santa Elena and Gatos.

3. Forward Guidance and Outlook

• 2026 Production Targets: First Majestic aims to produce 13 to 14 million pure silver ounces and 110,000 to 130,000 ounces of gold, with a locked-in conversion ratio to stabilize silver equivalent calculations.
• Continued Investment: The company plans to invest in exploration and operational expansions, anticipating strong free cash flow in 2026.

4. Bad News, Challenges, or Points of Concern

• Cost Management: There was a noted increase in all-in sustaining costs due to a collapse in the silver equivalent ratio, impacting production metrics.
• Market Volatility: The volatility in metal prices and tightness in the market have led to challenges for smaller producers, although First Majestic remains unaffected due to its operational model.
• Regulatory Issues: Ongoing discussions regarding tax provisions related to Jerritt Canyon may pose uncertainties for future operations.

5. Notable Q&A Insights

• Market Conditions: CEO Keith Neumeyer highlighted that refineries have suspended financing, impacting smaller producers but not First Majestic, which does not rely on such financing.
• Cash Utilization: There are discussions about potential capital returns to investors, including share buybacks, but the company is cautious and focused on maintaining a strong cash position.
• Jerritt Canyon Update: A standalone update on Jerritt Canyon is expected soon, with management focusing on plans for its restart following the integration of Gatos.
• Hedging Strategy: The company does not hedge its metal prices, emphasizing its commitment to being fully exposed to market conditions.

Overall, First Majestic Silver reported strong financial results for Q4 2025, with strategic initiatives focused on growth and operational efficiency, while also navigating challenges related to market volatility and regulatory issues.