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 approximately 31 million ounces.
• Revenue: The company reported revenues of nearly $1.3 billion for 2025, driven by higher silver prices, with a Q4 average realized price of just under $59 per ounce and an annual average of $41.52.
• Cash Flow: Record cash flows were noted, with unrestricted and restricted cash totaling approximately $940 million and working capital at $733 million.
• Dividends: The dividend policy was doubled from 1% to 2% of revenue, effective for Q1 2026.

2. Strategic Updates and Business Highlights

• Exploration: The company conducted over 250 kilometers of drilling, with plans for 266,000 meters in 2026. The focus remains on maintaining high silver purity, which was over 60% in Q4.
• Acquisitions: The integration of the Gatos asset was completed successfully, enhancing operational capabilities.
• Mint Operations: The Mint generated nearly $23 million in revenue and $24 million in profit for the year, with plans for expansion.
• Operational Improvements: Significant advancements were made at the Santa Elena mine, including plant expansion and exploration successes.

3. Forward Guidance and Outlook

• 2026 Production Targets: The company 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 of 75:1 to stabilize silver equivalent calculations.
• Continued Investment: Plans for capital allocation include further investments in exploration and plant expansions, particularly at Santa Elena and Gatos.

4. Bad News, Challenges, or Points of Concern

• Cost Management: There was a noted miss on all-in sustaining costs due to a collapse in the silver equivalent ratio, which impacted production and costs.
• Market Volatility: The volatility in metal prices and issues with refineries suspending financing could pose challenges for smaller producers, although First Majestic is not directly affected.
• Regulatory Risks: Ongoing discussions regarding a tax issue related to Jerritt Canyon could impact future cash flows.

5. Notable Q&A Insights

• Market Conditions: CEO Keith Neumeyer discussed the impact of refinery financing issues on smaller producers but emphasized that First Majestic remains unaffected.
• Cash Utilization: There are considerations for additional capital returns to investors, including potential share buybacks, but the focus remains on maintaining a strong balance sheet.
• Jerritt Canyon Update: Management is prioritizing plans for Jerritt Canyon and expects to provide updates by the end of the quarter, following the integration of Gatos.
• Hedging Strategy: The company does not hedge its metal prices, maintaining full exposure to market fluctuations, which aligns with shareholder interests.

Overall, First Majestic Silver reported strong financial performance in Q4 2025, with significant production and revenue growth, while also navigating challenges related to costs and market volatility. The outlook for 2026 remains positive with ambitious production targets and strategic investments planned.