First Majestic Silver (AG) Nordic Funds & Mines Conference 2025 summary

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.

• Silver demand is expected to rise due to electrification and nuclear energy trends, with supply unable to keep pace.

• The sector faces long lead times for new mine development, often 15–20 years from exploration to production.

• Higher silver prices are seen as the only solution to incentivize new mine development.

Operational performance and growth

• Production reached a record quarter, with 32 million silver-equivalent ounces expected this year, 55% silver and 35% gold.

• The Los Gatos acquisition in January increased production by about 30%, adding a fourth mine and boosting CapEx.

• Mill expansions are underway at Santa Elena and Los Gatos, targeting higher throughput in 2026.

• Exploration is active, with 30 drill rigs across operations and a focus on replacing mined ounces annually.

• Santa Elena and San Dimas mines have seen significant discoveries and production increases, with new deposits set to extend mine life.

Financial strength and strategy

• Cash balance exceeds $510 million, with revenues in 2025 projected to surpass $1 billion.

• The business benefits from operational synergies, cost savings, and strong liquidity, with 6,000 employees mainly in Mexico.

• Dividend policy is tied to revenue, currently at 1%, with potential for increases as financial performance improves.

• The stock is highly liquid and favored by institutions and ETFs, with recent analyst upgrades and increased target prices.

• Ongoing focus on cost control, technology adoption, and M&A opportunities to drive future growth.