First Majestic Silver (AG) investor relations material

Market outlook and industry trends

• Silver and gold prices are near record highs, with silver approaching $50 and gold at $4,000, creating a favorable environment for miners.

• The silver-to-gold ratio is considered unsustainable, with silver production in deficit for five consecutive years.

• Global silver mining output has been flat for a decade, and new mine development faces long lead times due to permitting and regulatory hurdles.

• Electrification and nuclear energy trends are driving increased industrial demand for silver, with deficits expected to persist until prices rise further.

• 60% of silver produced is consumed by industry, and demand has grown substantially since 2022.

Operational performance and growth

• Production reached a record high in Q3, with 32 million silver-equivalent ounces expected for the year, 55% silver and 35% gold.

• The Los Gatos acquisition in January 2024 added a fourth mine, increasing output by about 30% and boosting CapEx.

• Ongoing mill expansions at Santa Elena and Los Gatos aim to increase throughput, with CapEx for 2026 to be detailed in January.

• Four producing mines in Mexico provide operational synergies, cost savings, and flexibility in resource allocation.

• Exploration efforts are focused on replacing mined ounces, with 30 drill rigs active and several recent discoveries.

Financial highlights and strategy

• Cash balance exceeded $510 million as of June 30, with Q3 results showing continued growth.

• Revenues for 2025 are projected to surpass $1 billion, a significant milestone.

• Dividend policy is tied to 1% of total revenues, with $10 million in dividends expected this year and potential for increases.

• The company is highly liquid, with strong institutional and ETF support, and recent analyst upgrades.

• Acquisition strategy remains central, with ongoing evaluation of M&A opportunities to drive future growth.