Q4 2025 First Majestic Silver Corp Earnings Call

February 19, 2026

Operator: Thank you for standing by. This is the conference operator. Welcome to the First Majestic Silver 2025 Q4 Financial Results Conference Call. As a reminder, all participants are in a listen-only mode, and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press star, then one on your telephone keypad. If you are participating through the webcast, you can submit a question in writing by using the form in the lower section of the webcast frame on your screen. Should you need assistance during the conference, you may reach an operator by pressing star, then zero. I would now like to turn the conference over to Mr. Keith Neumeyer, Chief Executive Officer of First Majestic Silver. Keith, please go ahead.

Speaker #3: After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press star, then one, on your telephone keypad.

Speaker #3: If you are participating through the webcast, you can submit a question in writing by using the form in the lower section of the webcast frame on your screen.

Speaker #3: Should you need assistance during the conference, you may reach an operator by pressing star, then zero. I would now like to turn the conference over to Mr. Keith Neumeyer, Chief Executive Officer of FIRST MAJESTIC SILVER.

Operator: Should you need assistance during the conference, you may reach an operator by pressing star, then zero. I would now like to turn the conference over to Mr. Keith Neumeyer, Chief Executive Officer of First Majestic Silver. Keith, please go ahead.

Speaker #3: Keith, please go ahead.

Speaker #2: Welcome, welcome, everyone, to an excellent day for the company, and it's nice to see our analysts coming out with some good reports today. It's been an update on silver prices, which is obviously nice to come out with fantastic results on an update in metal.

Keith Neumeyer: Welcome, welcome, everyone, to an excellent day for the company, and nice to see our analysts coming out with some good reports today. It's been an upday in silver prices, which is obviously nice to come out with fantastic results on an upday in metal. So, you know, thanks to everyone for joining us today to discuss our Q4 and our year-end financial statements. I hope that you've all read the news release prior to today's call. We have a full room here in Vancouver. We have Manny Alkhafaji, President and Chief Corporate Development Officer, here with us today. David Soares, our CFO, Steve Holmes, our COO, Samir Patel, our General Counsel and Corporate Secretary. We also have Darren Fernandez, Director of Finance.

Keith Neumeyer: Welcome, everyone, to an excellent day for the company, and nice to see our analysts coming out with some good reports today. It's been an upday in silver prices, which is obviously nice to come out with fantastic results on an upday in metal. So, you know, thanks to everyone for joining us today to discuss our Q4 and our year-end financial statements. I hope that you've all read the news release prior to today's call. We have a full room here in Vancouver.

Speaker #2: So thanks for everyone for joining us today to discuss our fourth quarter. And our year-end financial statements and I hope that you've all read the news release prior to today's call.

Speaker #2: We have a full room here in Vancouver. We have Manuel Cavaggi, President and Chief Corporate Development Officer here with us today. David Soares, our CFO; Steve Holmes, our COO; Samir Patel, our General Counsel and Corporate Secretary; we also have Darren Fernandez, Director of Finance; we also have Dara Ray and Joel Falzinski at Investor Relations of our team here.

Keith Neumeyer: We have Manny Alkhafaji, President and Chief Corporate Development Officer, here with us today. David Soares, our CFO, Steve Holmes, our COO, Samir Patel, our General Counsel and Corporate Secretary. We also have Darren Fernandez, Director of Finance.

Keith Neumeyer: We also have Darryl Ray and Joel Calzinski at investor relations of our team here. So if there are any questions, we will be passing the questions on to the relevant staff that are currently present today in the room. And I'd like to just pass the call over to Samir Patel before we continue.

Speaker #2: So if there are any questions, we will be passing the questions on to the relative staff that are currently present today in the room.

Speaker #2: And I'd like to just pass the call over to Samir Patel, but before we continue,

Speaker #3: Thanks, Keith. Before we begin today's call, I would like to remind you that we will be referring to certain non-IFRS measures and making certain statements regarding FIRST MAJESTIC SILVER and its operations.

Samir Patel: Thanks, Keith. Before we begin today's call, I would like to remind you that we will be referring to certain non-IFRS measures and making certain statements regarding First Majestic Silver and its operations that constitute forward-looking statements in accordance with applicable Canadian and US securities laws. All statements that are not historical facts, such as statements regarding future estimates and plans or expectations of future performance, constitute forward-looking statements that reflect the company's current views with respect to future events. These statements are necessarily based upon a number of assumptions and estimates that, while considered reasonable by the company, are inherently subject to significant business, economic, competitive, political, and social uncertainties and contingencies.

Speaker #3: That constitutes forward-looking statements in accordance with applicable Canadian and U.S. securities laws. All statements that are not historical facts, such as statements regarding future estimates and plans, or expectations of future performance, constitute forward-looking statements.

Speaker #3: That reflects the company's current views with respect to future events. These statements are necessarily based upon a number of assumptions and estimates that, while considered reasonable by the company, are inherently subject to significant business, economic, competitive, political, and social uncertainties and contingencies.

Samir Patel: These statements are necessarily based upon a number of assumptions and estimates that, while considered reasonable by the company, are inherently subject to significant business, economic, competitive, political, and social uncertainties and contingencies.

Speaker #3: We encourage you to refer to the cautionary language included in our news release that was disseminated earlier this morning, and the disclosure on non-IFRS measures in our most recently filed Management's Discussion and Analysis, as well as the risk factors set out in our most recently filed Annual Information Form.

Samir Patel: We encourage you to refer to the cautionary language included in our news release that was disseminated earlier this morning, and the disclosure on non-IFRS measures in our most recently filed management's discussion and analysis, as well as the risk factors set out in our most recently filed annual information form. As a reminder, these documents, along with all of our continuous disclosure documents, are available on SEDAR+ and on EDGAR. Investors are cautioned against attributing undue certainty or reliance on any forward-looking statements made during today's call, and the company does not intend or assume any obligation to update these forward-looking statements or information other than as required by law. With that, I will turn the call back to Keith.

Speaker #3: As a reminder, these documents, along with all of our continuous disclosure documents, are available on SEDAR+ and on EDGAR. Investors are cautioned against attributing undue certainty or reliance on any forward-looking statements made during today's call.

Samir Patel: As a reminder, these documents, along with all of our continuous disclosure documents, are available on SEDAR+ and on EDGAR. Investors are cautioned against attributing undue certainty or reliance on any forward-looking statements made during today's call, and the company does not intend or assume any obligation to update these forward-looking statements or information other than as required by law. With that, I will turn the call back to Keith.

Speaker #3: And the company does not intend, or assume any obligation, to update these forward-looking statements or information, other than as required by law. With that, I will turn the call back to Keith.

Speaker #2: Thanks, Samir. We do have a presentation that's available. It'll be put on our website, but for those online today, you can see it as we go through the presentation.

Keith Neumeyer: Thanks, Samir. We do have a presentation that's available, and it'll be put on our website. But for those online today, you can see it as we go through the presentation. I'm going to pass the call on to Manny, who will be going through the presentation. So take it away.

Keith Neumeyer: Thanks, Samir. We do have a presentation that's available, and it'll be put on our website. But for those online today, you can see it as we go through the presentation. I'm going to pass the call on to Mani, who will be going through the presentation. So take it away.

Speaker #2: I'm going to pass the call on to Manny, who will be going through the presentation. So take over.

Speaker #4: Great. Thanks, Keith. Again, good morning, everyone. Appreciate you guys taking the time to join us. I'm going to start with the highlights the slide with the highlights title.

Mani Alkhafaji: Great. Thanks, Keith. Again, good morning, everyone. Appreciate you guys taking the time to join us. I'm going to start with the highlights, the slide with the highlights title. We did have a wonderful year. You know, 2025 was transformational. We set out some key milestones, stretch targets, and we came with wonderful end to the quarter, end to the year, and a great year overall. We produced 4.2 million pure silver ounces in the quarter, just over 15 million for the year. From an equivalent stance, you know, we came in with just over 31 million silver equivalent ounces. We'll touch on that in the next slide, but that came in higher than our revised guidance, which is great to see.

Speaker #4: We did have a wonderful year. 2025 was transformational. We set out some key milestones stretched targets and we came with wonderful end-to-the-quarter end-to-the-year and a great year overall.

Speaker #4: We produced 4.2 million pure silver ounces in the quarter. 15 just over 15 million for the year. From an equivalent stance, we came in with 31 just over 31 million silver equivalent ounces that's we'll touch on that in the next slide, but that came in higher than our revised guidance, which is great to see.

Mani Alkhafaji: From an equivalent stance, you know, we came in with just over 31 million silver equivalent ounces. We'll touch on that in the next slide, but that came in higher than our revised guidance, which is great to see.

Speaker #4: Revenues big milestones. We broke through 1.2 billion, almost 1.3 billion dollars for this year. That gives us obviously a lot of financial strength that we see that trickling down to the bottom line.

Mani Alkhafaji: Revenues, big milestones, you know, we broke through $1.2 billion, almost $1.3 billion this year. So that's-- that gives us obviously a lot of financial strength, that we see that trickling down to the bottom line. Again, you would have seen that in the news release. Our realized price, we came in, for the quarter, higher than the average, which again, is a big testament to our strategies. Q4 average was just under $59, and for the year was $41.52. Interesting to see as well, our mint, that's our new mint to the business, had record after record quarters throughout the year and ending the year on a wonderful note. We generated just under $23 million from that operation.

Mani Alkhafaji: Revenues, big milestones, you know, we broke through $1.2 billion, almost $1.3 billion this year. So that's that gives us obviously a lot of financial strength, that we see that trickling down to the bottom line. Again, you would have seen that in the news release. Our realized price, we came in, for the quarter, higher than the average, which again, is a big testament to our strategies. Q4 average was just under $59, and for the year was $41.52.

Speaker #4: Again, you would have seen that in the news release. Our realized price, we came in for the quarter higher than the average, which again is a big attestment to our strategies.

Speaker #4: Q4 average was just under $59, and for the year was $41.52. Interesting to see as well, our mint—that's our new avenue to the business—had record after record quarters throughout the year and ended the year on a wonderful note.

Mani Alkhafaji: Interesting to see as well, our mint, that's our new mint to the business, had record after record quarters throughout the year and ending the year on a wonderful note. We generated just under $23 million from that operation.

Speaker #4: We generated just under $23 million from that operation. Cash flows, again, combined with the metal prices and the production, those surprised to see record cash flows coming into the business and hitting on these milestones.

Mani Alkhafaji: Cash flows, again, combined with the metal prices and the production, no surprise to see record cash flows coming into the business and hitting on these milestones. Our exploration program, again, was quite aggressive at the start, and we came in nicely with that, over 250km of drilling. Great results that we've disclosed throughout the year and will be reflected in our annual information form at the end of this quarter. Just a quick second on that bar that you guys see on the slides. That's a very important KPI to First Majestic. We are the purest silver producer among our peers. About 50, you know, for the year, it was 58%, but this number continues to improve, and Q4 was actually north of 60%.

Speaker #4: Our exploration program, again, was quite aggressive at the start, and we came in nicely with that. Over 250 kilometers of drilling—great results that we've disclosed through the year and will be reflected in our annual information form at the end of this quarter.

Speaker #4: Just a quick second on that bar that you guys see on the slides. That's a very important KPI to First Majestic. We are the pure silver producer among our peers.

Mani Alkhafaji: We are the purest silver producer among our peers. About 50, you know, for the year, it was 58%, but this number continues to improve, and Q4 was actually north of 60%.

Speaker #4: About 50 for the year was 58%, but this number continues to improve in Q4 was actually north of 60%. So as silver price continue to improve, our leverage materializes.

Mani Alkhafaji: So as silver price continue to improve, our leverage materializes. Okay, moving on to the next slide. Another big milestone for us is our free cash flow. And you see over the last few quarters, it's been steadily increasing, but in Q4, 2025, was a step change for the company. Again, due to the operational discipline, the metal improvements, and cost containment, we're very, we're very pleased with, with the performance. This gives us a lot of flexibility and obviously, capital allocation, providing, investing back into the business, whether it's exploration, whether it's plant expansion, which we can touch on a bit later. But wonderful trend to see, and we look forward to continuing this. Moving on to the next slide. Our guidance, if you recall, we did update our guidance.

Speaker #4: Okay, moving on to the next slide. Another big milestone for us is our free cash flow. And you see over the last few quarters, it's been steadily increasing, but in Q4 2025 was a step change for the company.

Speaker #4: Again, due to the operational discipline, the metal improvements, and cost containment, we're very pleased with the performance. This gives us a lot of flexibility and, obviously, capital allocation, providing investing back into the business with our exploration, whether it's plant expansion—which we can touch on a bit later.

Mani Alkhafaji: This gives us a lot of flexibility and obviously, capital allocation, providing, investing back into the business, whether it's exploration, whether it's plant expansion, which we can touch on a bit later. But wonderful trend to see, and we look forward to continuing this. Moving on to the next slide. Our guidance, if you recall, we did update our guidance.

Speaker #4: But wonderful trend to see, and we look forward to continuing this. Moving on to the next slide. Our guidance—if you recall, we did update our guidance.

Mani Alkhafaji: You know, we set out the preliminary guidance in January of 2025. Then halfway through the year, we've updated it. We revised it upward. We've increased the production targets and improved cost. Nice to see that we came in pretty much at or better than guidance on both silver and gold. Silver equivalent came in right in the middle. One thing I do want to highlight that's impacted our silver equivalent, as well as our all-in sustaining costs, which, you know, we do recognize that it was a miss on the cost side, but that's purely related to the conversion of byproduct metal to silver. The silver equivalent ratio did collapse towards the end, which is wonderful for silver, telling us that silver outperformed gold and base metal.

Speaker #4: We set out the preliminary guidance in January. Of 2025, then in halfway through the year, we've updated it. We revised it upward. We've increased the production targets and improved cost.

Speaker #4: Nice to see that we came in pretty much at or better than guidance on both silver and gold. Silver equivalent came in right in the middle.

Speaker #4: One thing I do want to highlight that's impacted our silver equivalent as well as our all-in sustaining costs, which we do recognize that it was a miss on the cost side.

Speaker #4: But that's purely related to the conversion of byproduct metal to silver. The silver equivalent ratio did collapse towards the end, which is wonderful for silver, telling us that silver outperformed gold and base metal.

Mani Alkhafaji: The silver equivalent ratio did collapse towards the end, which is wonderful for silver, telling us that silver outperformed gold and base metal.

Speaker #4: But it did have about a to put numbers on it, about a million 1.4 million silver equivalent ounces reduction in our production. As well as about a dollar increase in our all-in sustaining.

Mani Alkhafaji: But it did have about a, you know, to put numbers on it, about 1 million, 1.4 million silver equivalent ounces reduction in our production, as well about a $1 increase in our all-in sustaining. So without that, our all-in sustaining would have been in the $20, which would have been right in the middle of the, towards the lower end of the guidance, had we used the guidance assumptions. Okay, moving on to the next slide, which is our 2026 guidance. So similarly, we are investing heavily, and we're continuing with our robust production for the year. We're targeting about 13 to 14 million pure silver and, you know, just 110 to 130 thousand ounces of gold, and the balance is lead and zinc.

Speaker #4: So without that, our all-in sustaining would have been in the 20, which would have been right in the middle of towards the lower end of the guidance.

Speaker #4: Had we used the guidance assumptions. Moving on to the next slide. Which is our 2026 guidance. So similarly, we are investing heavily and we're continuing with our robust production for the year.

Mani Alkhafaji: Okay, moving on to the next slide, which is our 2026 guidance. So similarly, we are investing heavily, and we're continuing with our robust production for the year. We're targeting about 13-14 million pure silver and, you know, just 110-130 thousand ounces of gold, and the balance is lead and zinc.

Speaker #4: We're targeting about 13 to 14 million ounces of pure silver, and just 110,000 to 130,000 ounces of gold, with the balance being lead and zinc.

Mani Alkhafaji: We did change things a little bit for 2026. We have locked in the conversion ratio to 75 to one, to avoid the noise that we were seeing pretty much in 2025. So that should lock in pretty much the assumption ratios on the metal prices, so we're not susceptible to external factors. The next slide. Some operational highlights. This is obviously throughout the year; we have been providing updates, but it's nice to look back on the accomplishments. Gatos was a key highlight for the business. We did close this transaction in January 2025, and we spent, you know, about half the year integrating this asset, and it could not have gone any better.

Speaker #4: We did change things a little bit for 2026. We have locked in the conversion ratio to 75 to 1. To avoid the noise that we were seeing pretty much in 2025.

Speaker #4: So that should we're going to lock in pretty much the assumption ratios on the metal prices. So we're not susceptible to external factors. The next slide.

Speaker #4: Some operational highlights. This is obviously throughout the year. We have been providing updates, but it's nice to look back on the accomplishments. GATOS was a key highlight for the business.

Speaker #4: We did close this transaction in January. Of 2025. And we spent about half the year integrating this asset. And it could not have gone any better.

Mani Alkhafaji: We did close this transaction in January 2025, and we spent, you know, about half the year integrating this asset, and it could not have gone any better.

Speaker #4: Smooth transition. Smooth integration. And we're pleased to say that it's fully completed at this point. And it's nice to enjoy the dividends that we're getting from this operation.

Mani Alkhafaji: Smooth transition, smooth integration, and we're pleased to say that it's fully completed at this point, and it's nice to enjoy the dividends that we're getting from this operation. Beautiful assets, massive land position, and lots of opportunities. We're still targeting a lot of low-hanging fruits in terms of cost reduction, in terms of near mine reserve and resource growth. So look for more news on that. Santa Elena, it has been the gift that keeps on giving. You know, we say this almost every news release, and every now and then, we still have exciting stuff to talk about here. Obviously, we've had fantastic discoveries in this district. In the 10 years that First Majestic has owned Santa Elena, we've had 4 new discoveries, and these are massive achievements.

Speaker #4: Beautiful assets. Massive land position. And lots of opportunities. We're still targeting a lot of low-hanging fruits in terms of cost reduction. In terms of near mine, reserve and resource growth.

Speaker #4: So look for more news on that. Santa Elena, it has been the gift that keeps on giving. We say this almost every news release and every now and then, we still have exciting stuff to talk about here.

Mani Alkhafaji: You know, we say this almost every news release, and every now and then, we still have exciting stuff to talk about here. Obviously, we've had fantastic discoveries in this district. In the 10 years that First Majestic has owned Santa Elena, we've had four new discoveries, and these are massive achievements.

Speaker #4: Obviously, we've had fantastic discoveries in this district. In the 10 years that First Majestic has owned Santa Elena, we've had four new discoveries. And these are massive achievements.

Speaker #4: The map on the right gives you a sense of what they are. So, we have obviously had the titanium mine that we're currently producing from.

Mani Alkhafaji: The map on the right gives you a sense of, of what they are. So we've obviously had the Ermitaño mine that we're currently producing from. We've had Luna, but the more recent discoveries is Navidad and Santo Niño. We have put out a maiden resource at the end of last year on Navidad. Plenty of drilling and results have come through throughout the year, and that will be reflected in our 2025 annual information form, which will be published before the end of the quarter. We are also investing in plant expansion at Santa Elena. Again, we see a lot of value, a lot of growth opportunities in this operation. It is a massive district, comes with 102,000 hectares, and, again, with the exploration success that we've seen, it gives us confidence in investing.

Speaker #4: We've had Luna. But the more recent discoveries is Navidad and Santo Niño. We have put out a made-in-resource at the end of last year on Navidad.

Speaker #4: Plenty of drilling and results have come through throughout the year. And that will be reflected in our 2025 annual information form, which will be published before the end of the quarter.

Speaker #4: We are also investing in plant expansion at Santa Elena. Again, we see a lot of value, a lot of growth opportunities in this operation.

Mani Alkhafaji: We are also investing in plant expansion at Santa Elena. Again, we see a lot of value, a lot of growth opportunities in this operation. It is a massive district, comes with 102,000 hectares, and, again, with the exploration success that we've seen, it gives us confidence in investing.

Speaker #4: It is a massive district. Comes with 102,000 hectares. And again, with exploration success that we've seen, it gives us confidence in investing. So we're taking the plant from about 31,3200 tons per day to 3,500 at a sustainable level.

Mani Alkhafaji: So we're taking the plant from about 3,100-3,200 tons per day to 3,500 tons per day at a sustainable level. We're expecting to get to this level in H2 of 2026. I did fail to touch on Gatos. We're also expanding the throughputs of this operation. So we have a contractor that's been engaged at the end of last year and continuing, obviously, right now. We're targeting mine throughputs of about 4,000 tons per day at a sustainable level, up from about 3,500. San Dimas, you know, same thing, massive district, plenty of exploration success that we'll be discussing in our annual R&R update. And La Encantada has been, you know, an exciting turnaround for the story or for the portfolio.

Speaker #4: We're expecting to get to this level in H2 of 2026. I did fail to touch on GATOS. We're also expanding the throughputs of this operation.

Speaker #4: So we have a contractor that's been engaged at the end of last year and continuing obviously right now. We're targeting mine throughput to about 4,000 tons per day at a sustainable level.

Speaker #4: Up from about 3,500. San Dimas, same thing. Massive district. Plenty of exploration success that we'll be discussing in our annual R&R update. And Lincoln Tata has been an exciting turnaround for the story, or for the portfolio.

Mani Alkhafaji: San Dimas, you know, same thing, massive district, plenty of exploration success that we'll be discussing in our annual R&R update. And La Encantada has been, you know, an exciting turnaround for the story or for the portfolio.

Speaker #4: It is our smallest mine, but it is our purest silver producer. 100% silver. Came in with a beautiful Q4. Produced about a million ounces, which is nice to see this operation turning around after the water challenges and the haulage issues that we've experienced.

Mani Alkhafaji: It is our smallest mine, but it is our purest silver producer, 100% silver. It came in with a beautiful Q4, produced about 1 million ounces, which is nice to see this operation turning around after the water challenges and the haulage issues that we've experienced. We are internalizing haulage as well over here, so we're anticipating further cost improvements and operational efficiencies. Okay, moving on to the next slide. Just some further consideration. You know, we do obviously focus on safe production, and it's nice to see us coming in with our TRIFR and LTIFR numbers for the year, putting us in really, truly world-class measures. Safe production gives us the production muscles that we're getting, so we're continuing with that.

Speaker #4: We are internalizing haulage as well over here, so we're anticipating further cost improvement and operational efficiencies.

Speaker #2: Okay. Moving on to the next slide. Just some further consideration. We do obviously focus on safe production. And it's nice to see us coming in with our TRIFFER and ALTRIFFER numbers for the year.

Mani Alkhafaji: You know, we do obviously focus on safe production, and it's nice to see us coming in with our TRIFR and LTIFR numbers for the year, putting us in really, truly world-class measures. Safe production gives us the production muscles that we're getting, so we're continuing with that.

Speaker #2: Putting us at really, truly world-class measures. Safe production gives us the production milestones that we're getting, so we're continuing with that. Financials— a couple of things to mind.

Mani Alkhafaji: Financials, you know, a couple of things to mind. We did hold some inventory at the end that wasn't reflected in our revenue. That becomes part of, you know, it's either raw material for the mint or just timing differences that would have gotten flushed out in Q1. The mint, I did touch on that, did have a wonderful year and quarter. For the year, the revenue was just under $50 million, but the profitability was about $24 million for the year. One thing, you know, that we don't—that's not reflected in our income statement, but it's important to recognize, is the marketable securities that we hold. It did have an impressive movement in the year and in the quarter.

Speaker #2: We did hold some inventory at the end that wasn't reflected in our revenue. That becomes part of—it's either raw material for the mint or just timing differences that would have gotten flushed out in Q1.

Speaker #2: The Mint—I did touch on that—did have a wonderful year and quarter. For the year, the revenue was just under $50 million, but the profitability was about $24 million for the year.

Speaker #2: One thing that we don't that's not reflected in our income statements, but it's important to recognize is the marketable securities that we hold. It did have an impressive movement in the year and in the quarter.

Mani Alkhafaji: that's not reflected in our income statement, but it's important to recognize, is the marketable securities that we hold. It did have an impressive movement in the year and in the quarter.

Speaker #2: So for the year, our position has increased by about 140 million dollars. That's not included in our income statements. It is reflected in our balance sheet.

Mani Alkhafaji: So for the year, our position has increased by about $140 million. That's not included in our income statement. It is reflected in our balance sheet, so just keep that in mind. And we did recognize the provision that was disclosed at the end of last Q3 results. We did take a provision on that in the income statement. Important to recognize that this amount has not been paid, as we do continue conversation with SAT, and we're cautiously optimistic about where things are going there. A couple of things we want to highlight, again, nothing new. Being in Mexico, there is obviously some cash payments that will be hitting us in Q1 and delivered in Q2, related to 2025. We obviously had a wonderful year in 2025.

Speaker #2: So just keep that in mind. And we did recognize the provision that was disclosed at the end of last Q3 results. We did take a provision on that in the income statements.

Speaker #2: Important to recognize that this amount has now been paid as we do continue conversation with SAT. And we're cautiously optimistic about where things are going there.

Mani Alkhafaji: A couple of things we want to highlight, again, nothing new. Being in Mexico, there is obviously some cash payments that will be hitting us in Q1 and delivered in Q2, related to 2025. We obviously had a wonderful year in 2025.

Speaker #2: A couple of things we want to highlight. Again, nothing new. Being in Mexico, there is obviously some cash payments that will be hitting us in Q1 and delivered in Q2 related to 2025.

Speaker #2: We obviously had a wonderful year in 2025. We have some cash true-up payments that will be made before the end of the quarter, so that'll be reflected.

Mani Alkhafaji: We have some cash true-up payments that will be made before the end of the quarter, so that'll be reflected. Moving on to the financial strengths. You know, the slide speaks for itself. The cash flow is trickling to the treasury, which is wonderful to see. We're sitting with just under $940 million in the bank between unrestricted and restricted cash position. Our working capital is $733 million. That is including some marketable securities that you see on the slides. Like I said, we've done very well with those, and we're pleased to be shareholders of these companies. We did close, you know, the best terms in the mining industry when it comes to convertible notes. That was done in December.

Speaker #2: Moving on to the financial strengths. The slide speaks for itself. The cash flow is trickling to the treasury, which is wonderful to see. We're sitting with just under $940 million in the bank between unrestricted and restricted cash position.

Speaker #2: Our working capital is 733 million. That is including some marketable securities that you see on the slides. Like I said, we've done very well with those and we're pleased to be shareholders of these companies.

Mani Alkhafaji: Like I said, we've done very well with those, and we're pleased to be shareholders of these companies. We did close, you know, the best terms in the mining industry when it comes to convertible notes. That was done in December.

Speaker #2: We did close the best terms in the mining industry when it comes to convertible notes. That was done in December. The coupon rate on this is 1/8, which is wonderful.

Mani Alkhafaji: We, the coupon rate on this is 1/8, which is wonderful. We're glad to have the supports in the market. Moving on to our dividends policy, we did declare dividends for Q4. It's important to recognize, we're also seeing a lot of confidence in our balance sheets and our cash flow to the point that we have declared an increase. We've effectively doubled our dividend policy, effective 2026, so that'll be reflected on revenue earned for Q1 of 2026. That went from 1% of the top line to 2% of the top line being revenue. Lastly, some of the capitalists, you know, we're blessed to have three world-class districts in our portfolio, and we see a lot of value in the drill bits.

Speaker #2: So we're glad to have the supports in the market. Moving on to our dividends policy. So we did declare dividends for Q4, but it's important to recognize we're obviously seeing a lot of confidence in our balance sheets and our cash flow, to the point that we have declared an increase.

Speaker #2: We effectively doubled our dividend policy effective 2026. So that'll be reflected on revenue earned for Q1 of 2026. So that went from 1% off the top line to 2% of the top line being revenue.

Mani Alkhafaji: That went from 1% of the top line to 2% of the top line being revenue. Lastly, some of the capitalists, you know, we're blessed to have three world-class districts in our portfolio, and we see a lot of value in the drill bits.

Speaker #2: And lastly, some of the capitalist it's we're blessed to have three world-class districts in our portfolio. And we see a lot of value in the drill bits.

Speaker #2: So, you see, we're coming—we have declared a 266-kilometer drilling across all the operations, which we're quite excited about. Plenty of targets that we'll be chasing.

Mani Alkhafaji: So you see, we're, we're coming—well, we have declared a 266km of drilling across all the operations, which we're quite excited about. Plenty of targets that we'll be chasing. Our updated reserve and resource reflect a lot of the success that we've had from 2025. Look for that. That will likely go out before 31 March 2026. Continuing, continued strengthening of the balance sheets. Metal prices have obviously, are better than they were in Q4. Q4 is wonderful. You can imagine what Q1 and hopefully the rest of 2026 will look like for First Majestic. With that, that concludes our prepared slide deck. We'd like to open it up for Q&A, if there's any.

Mani Alkhafaji: So you see, we're, we're coming well, we have declared a 266km of drilling across all the operations, which we're quite excited about. Plenty of targets that we'll be chasing. Our updated reserve and resource reflect a lot of the success that we've had from 2025. Look for that. That will likely go out before 31st March 2026. Continuing, continued strengthening of the balance sheets. Metal prices have obviously, are better than they were in Q4. Q4 is wonderful.

Speaker #2: Our updated reserve and resource reflect a lot of the success that we've had from 2025, so look for that. That will likely go out before March 31st.

Speaker #2: And continuing strengthening of the balance sheets. Metal prices have obviously are better than they were in Q4. Q4 is wonderful. You can imagine what Q1 and hopefully the rest of 2026 will look like for First Majestic.

Mani Alkhafaji: You can imagine what Q1 and hopefully the rest of 2026 will look like for First Majestic. With that, that concludes our prepared slide deck. We'd like to open it up for Q&A, if there's any.

Speaker #2: With that, that concludes our prepared slide deck. We'd like to open it up for Q&A, if there's any.

Speaker #1: Well, thanks, Manny, for doing that. And anyone who wants to ask any questions, we're available.

Keith Neumeyer: Well, thanks, Manny, for doing that. And, if anyone wants to ask any questions, we're available.

Speaker #3: Thank you, Keith. We will now proceed to the question-and-answer session. Once again, to join the question queue, you may press star, then 1 on your telephone keypad.

Operator: Thank you, Keith. We will now proceed to the question and answer session. Once again, to join the question queue, you may press Star, then one on your telephone keypad. You will hear a tone acknowledging your request. If you are using a speakerphone, please pick up your handset before pressing any keys. To withdraw your question, please press Star then two. If you are participating today through the webcast, you can submit a question in writing by using the form in the lower section of the webcast frame on your screen. And the first question today will come from Heiko Ihle with H.C. Wainwright. Please go ahead.

Operator: Thank you, Keith. We will now proceed to the question and answer session. Once again, to join the question queue, you may press star, then one on your telephone keypad. You will hear a tone acknowledging your request. If you are using a speakerphone, please pick up your handset before pressing any keys.

Speaker #3: You will hear a tone acknowledging your request. If you are using a speakerphone, please pick up your handset before pressing any keys. To withdraw your question, please press star, then 2.

Operator: To withdraw your question, please press star then two. If you are participating today through the webcast, you can submit a question in writing by using the form in the lower section of the webcast frame on your screen. And the first question today will come from Heiko Ihle with H.C. Wainwright. Please go ahead.

Speaker #3: If you are participating today through the webcast, you can submit a question in writing by using the form in the lower section of the webcast frame on your screen.

Speaker #3: And the first question of the day will come from Heiko Ihle with HC Wainwright. Please go ahead.

Speaker #4: Hey, Keith and team. Congratulations on a good quarter here.

Heiko Ihle: Hey, Keith and team. Congratulations on a good quarter here.

Speaker #5: Thanks, Heiko.

Keith Neumeyer: Thanks, Heiko.

Speaker #4: Hey, we're close to two-thirds through Q1 right now, or at least we're in the second half of the quarter. Metal prices have obviously been extremely volatile.

Heiko Ihle: Hey, we're, we're close to two-thirds through Q1 right now, or at least we're in the second half of the quarter. Metal prices have obviously been extremely volatile, a bit of unprecedented times here. I've heard that some of the refineries have been putting off, you know, taking the products from some sellers for capacity reasons. Cost-wise, obviously, there are some changes. I guess, I guess the question is: Is there anything quantifiable that you're willing to, you know, point out on this call that you encountered this quarter related to costs or shipments or anything unexpected that maybe we don't yet account for in our models?

Speaker #4: A bit of unprecedented times here. I heard that some of the refineries have been putting off taking a product from some sellers for capacity reasons.

Speaker #4: Cost-wise, obviously, there are some changes. I guess the question is: Is there anything quantifiable that you're willing to point out on this call that you encountered this quarter related to costs or shipments, or anything unexpected that maybe we don't yet account for in our models?

Heiko Ihle: Cost-wise, obviously, there are some changes. I guess, I guess the question is: Is there anything quantifiable that you're willing to, you know, point out on this call that you encountered this quarter related to costs or shipments or anything unexpected that maybe we don't yet account for in our models?

Speaker #2: Well, the refineries have suspended financing, and that's really the biggest issue. So, if you're a small retail store in Miami, for example, and you're used to your people walking in the front door...

Keith Neumeyer: Well, the refineries have suspended financing, and that's really the biggest issue. So, you know, I think it's, you know, if you're a small retail store, you know, in Miami, for example, and, you're used to, you know, people are walking in their front door and selling you silver, you know, that small retail store would collect, you know, X amount of ounces over a period of a few days. And then, you know, it's a cash flow issue, right? So they would then phone up the refinery that they would normally use for, you know, that would buy that metal from them to melt it into other products, and they would get financing for that. So that would keep that business operating and, you know, cash flow coming in.

Speaker #2: And selling you silver, that small retail store would collect X amount of ounces over a period of a few days. And it's a cash flow issue, right?

Keith Neumeyer: And then, you know, it's a cash flow issue, right? So they would then phone up the refinery that they would normally use for, you know, that would buy that metal from them to melt it into other products, and they would get financing for that. So that would keep that business operating and, you know, cash flow coming in.

Speaker #2: So they would then phone up the refinery that they would normally use, that would buy that metal from them, to melt it into other products.

Speaker #2: And they would get financing for that, so that would keep that business operating and cash flow coming in. What's happened is, because of the tightness in the market and the volatility in the market, the refineries have told everyone they're no longer financing.

Keith Neumeyer: What's happened is, because of the tightness in the market and the volatility in the market, the refineries have told everyone they're no longer financing. So, it's really hurt, you know, the retail buyers of metal, because they just simply can't buy the metal anymore because they have to wait, you know, 30, 45 days and sometimes even longer than that, depending on the quality of the metal that they're buying. For us, it doesn't affect us in any way. You know, we don't finance our metal. You know, we're you know if you're a smaller producer, you may be affected because you need the cash flow to finance your business. For us, we don't have to do that, so, you know, we wait for outturn and, so, yeah, it doesn't affect us.

Speaker #2: So it really hurts the retail buyers of metal, because they just simply can't buy the metal anymore. They have to wait 30, 45 days, and sometimes even longer than that, depending on the quality of the metal that they're buying.

Speaker #2: For us, it doesn't affect us in any way. We don't finance our metal. If you're a smaller producer, you may be affected because you need the cash flow to finance your business.

Keith Neumeyer: You know, we don't finance our metal. You know, we're you know if you're a smaller producer, you may be affected because you need the cash flow to finance your business. For us, we don't have to do that, so, you know, we wait for outturn and, so, yeah, it doesn't affect us.

Speaker #2: For us, we don't have to do that. So we wait for outturn. And so, yeah, it doesn't affect us.

Speaker #4: Fair enough. And then just to clarify, you got 266,000 meters of exploration plant this year. Just costs that you're seeing and availability of rigs, I assume, is no issue?

Heiko Ihle: Fair enough. And then just to clarify, you got 266,000 meters of exploration planned this year. Just the costs that you're seeing and availability of rigs, I assume, is no issue?

Speaker #2: Yeah, the beauty thing with that, Heiko—sorry, this is Manny—we have a contractor who basically does most of our drilling, with long-term contracts.

Mani Alkhafaji: Yeah. The beauty thing with that, Heiko, sorry, this is Manny. We have a contractor who basically does most of our drilling with long-term contracts, so our costs are relatively contained. With that being obviously, you know, First Majestic with a big footprint in Mexico, we're able to have access to resources, so the number of rigs are available to us. So no, no, no concerns.

Speaker #2: So our costs are relatively contained. With that being, obviously, First Majestic, with a big footprint in Mexico, we're able to have access to resources.

Speaker #2: So the number of rigs are available to us. So no concerns.

Speaker #4: Very good. I'll get back in queue. Thank you.

Heiko Ihle: Very good. I'll get back in queue. Thank you.

Speaker #3: The next question will come from Alex Terentio with National Bank. Please go ahead.

Operator: The next question will come from Alex Tarantino with National Bank. Please go ahead.

Speaker #6: Hey, guys. Yeah, nice quarter. Nice to see your cash jump as much as it did there, which kind of leads me to my question.

Alex Terentiew: Hey, guys. Yeah, nice, nice quarter. Nice to see your cash jump as much as it did there. Which kind of leads me to my question. You know, it's a nice problem to have, or you can debate whether it's a problem or not, but you know, cash is going up. I know you guys are spending this a bit more on development this year and bumping your exploration or keeping your exploration nice and strong. But you know, how are you guys thinking about the cash and what to do with it? These silver prices and your free cash flow is going to be, you know, should be strong again in 2026.

Speaker #6: It's a nice problem to have, or you can debate whether it's a problem or not. But cash is going up. I know you guys are spending this a bit more on development this year and bumping your expiration or keeping your expiration nice and strong.

Speaker #6: But how are you guys thinking about the cash and what to do with it? These silver prices, your free cash flow is going to be should be strong again in 2026.

Alex Terentiew: Is there other thoughts for, you know, additional capital returns to investors or, and obviously, you know, Jerritt Canyon might play into this as well. So maybe just, you know, kind of wrapping a question on your thoughts on Jerritt Canyon in there as well here.

Speaker #6: Are there other thoughts for additional capital returns to investors? Or, obviously, Jared Kangan might play into this as well. So maybe just kind of wrapping a question on your thoughts on Jared Kangan in there as well here.

Speaker #2: Yeah, sure. Sure, Alex. And thanks for your report today. It was quite good to see. Yeah, capital allocation. There is a tax issue that is still pending.

Keith Neumeyer: Yeah, sure. Sure, Alex, and thanks for your report today. It was quite, quite good to see. Yeah, you know, capital allocation, there is this tax issue that is still pending. So we can't, you know, report the market. The market is well aware of that issue, and it's something that the team is actively in discussions with to solve, and we hope that 2026 is going to be the final year that that issue will be behind us, you know, after, you know, that just, you know, starting back in 2012, that we inherited in 2018. So, you know, that's one issue that we hope to see. You know, we haven't done any share buybacks in Q4, but we always have that option to do that as well. We did increase the dividend.

Speaker #2: And that's out in the market. The market is well aware of that issue. And it's something that the team is actively in discussions with to solve.

Speaker #2: And we hope that 2026 is going to be the final year that that issue will be behind us, after that dispute starting back in 2012.

Speaker #2: That we inherited in 2018. So that's one issue that we hope to see. We haven't done any share buybacks in Q4, but we always have that option.

Keith Neumeyer: So, you know, that's one issue that we hope to see. You know, we haven't done any share buybacks in Q4, but we always have that option to do that as well. We did increase the dividend.

Speaker #2: To do that as well. We did increase the dividend. There will be some news coming on Jared Kangan. Over the next couple of months.

Keith Neumeyer: There will be some news coming on Jerritt Canyon over the next couple of months. So I would, you know, suggest people wait for that. But look, I, you know, being the CEO for twenty-some-odd, 23 years, it's kind of nice to see $1 billion in value. So, we're not about to spend it anytime soon.

Keith Neumeyer: There will be some news coming on Jerritt Canyon over the next couple of months. So I would, you know, suggest people wait for that. But look, I, you know, being the CEO for 20-some-odd, 23 years, it's kind of nice to see $1 billion in value. So, we're not about to spend it anytime soon.

Speaker #2: So I would suggest people wait for that. And—but look, being the CEO for 20-some-odd, 23 years, it's kind of nice to see a billion dollars in stock.

Speaker #2: So we're now about to spend it anytime soon.

Speaker #6: Okay. Fair enough. And just one little accounting question. Realized silver price came in 59 bucks. Average price in the quarter, I think, was 54.

Alex Terentiew: Okay, fair enough. And just one little accounting question. You know, realized silver price came in $59. Average price in the quarter, it was $54. So is that, you know, I, I'm guessing part of that could be just, you know, timing of sales, but it's also, do you guys, do you guys factor in final sale on, you know, provisional pricing, settlements into that? You know, if there's a positive adjustment, you kind of factor that into the quarter's realized price. Is that how your accounting works?

Speaker #6: So, I'm guessing part of that could be just timing of sales, but it's also you guys factor in final sale on provisional pricing, settlements into that.

Speaker #6: So if there's a positive adjustment, you kind of factor that into the quarter's realized price. Is that how you're accounting works?

Speaker #2: Yeah, that's one part of it, Alex—due to the constant trade sales. But also, keep in mind you have a leverage on how many—well, no one else really has.

Mani Alkhafaji: Yeah, that, that's, that's one part of it, Alex.

Alex Terentiew: Okay.

Mani Alkhafaji: Due to the trade sales. But also-

Mani Alkhafaji: Due to the trade sales. But also

Alex Terentiew: Yes. Yeah.

Mani Alkhafaji: You have a lever that not many, well, no one else really has. We have the mint. The mint recognized $69 average price as well, and that helps pull the overall. That's about 12% of our production that went to the mint in Q4. Of the Doré production, I should say.

Speaker #2: We have the mint. The mint recognized $69 average price as well. So that helps close the overall number. That's about 12% of our production that went to the mint in Q4.

Speaker #2: Out the door in production, I should say.

Speaker #6: Okay, that's a good point. Thanks. That's it for me.

Alex Terentiew: Okay, that's a good point. Thanks. That's it for me.

Speaker #3: I will now pass the floor over to Mr. Darrell Ray. Investor relations at First Majestic Silver to take us through questions submitted through the webcast.

Operator: I will now pass the floor over to Mr. Darryl Ray, Investor Relations at First Majestic Silver, to take us through questions submitted through the webcast.

Speaker #7: Yeah, we just had a few more. Team, one relates—a couple of questions on this. But congrats on the solid results at the Mint.

Darryl Ray: Yeah, we just have a few more team. One relates a couple of questions on this, but you know, congrats on the solid results at the mint. Do you have any plans to expand First Mint? And do you want to elaborate on that for us?

Speaker #7: Do you have any plans to expand First Mint? And do you want to elaborate on that for us?

Mani Alkhafaji: Yeah. So keep in mind, the mint is less than a year, is about a year old. So the ramp-up has been pretty exciting, pretty quick. The answer is yes, we do plan on expanding. The facility is capable of further expansion. We're working diligently on, obviously, on marketing strategy to get the name out there, and it's been quite effective, so we'll keep working on that.

Speaker #2: Yeah. So keep in mind the mint is less than a year is about a year old. So the wrap-up has been pretty exciting, pretty quick.

Speaker #2: The answer is yes. We do plan on expanding. The facility is capable of further expansion. We're working diligently on obviously our marketing strategy to get the name out there.

Speaker #2: And it's been quite effective, so we'll keep working on that.

Speaker #7: Okay. And we had a few questions on along the lines of congrats on the strong average selling price versus the COMEX in the quarter.

Darryl Ray: Okay, and we had a few questions on along the lines of congrats on the strong average selling price versus the COMEX in the quarter. Are you hedging prices, and would you consider direct-to-market selling in the future?

Speaker #7: Are you hedging prices? And would you consider direct-to-market selling in the future?

Speaker #2: We have interestingly enough, I've been contacted by direct buyers over the last month or so. We did assist one US buyer with some ounces in Q4.

Keith Neumeyer: We have, interestingly enough, I've been contacted by, you know, direct buyers over the last month or so. We did assist one US buyer with some ounces in Q4. It's not a strategy that we normally follow. It doesn't really make a lot of sense for us to do that. And we don't hedge. We're fully exposed. I think our investors or shareholders who own First Majestic would not quite appreciate us hedging. So, you know, we just simply don't do that.

Speaker #2: It's not a strategy that we normally follow. It doesn't really make a lot of sense for us to do that. And we don't hedge.

Speaker #2: We're fully exposed. I think our investors or shareholders who own First Majestic are not quite appreciative of us hedging, so we just simply don't do that.

Speaker #7: Okay. And probably the last question just kind of looking through these is around silver purity. Nice to see your silver purity at 60%. Do you have any plans to buy a late-stage developer?

Darryl Ray: Okay, and probably the last question, just kind of looking through these, is around silver purity. Nice to see your silver purity at 60%. Do you have any plans to buy a late-stage developer, or what are your plans to maintain your focus on silver?

Speaker #7: Or, what are your plans to maintain your focus on silver?

Speaker #2: Well, as Manny said in the presentation, our silver purity is very important to us. It's a major KPI for us. So, it's nice to have gold.

Keith Neumeyer: Well, as Manny said in the presentation, our silver purity is very important to us. It's a major KPI for us, so it's nice to have gold. You know, gold is very stable, much more stable than silver, as you know, I'm sure all the listeners are aware of. But you know, we're always going to maintain as much purity of silver as we possibly can. But you know, silver mines are hard, hard to come by. They're pretty rare animals, so we're always looking around for the next big acquisition, so stay tuned.

Speaker #2: Gold is very stable—not only much more stable than silver is, as I'm sure all the listeners are aware of. But we're always going to maintain as much purity in silver as we possibly can.

Speaker #2: But silver mines are hard to come by. They're pretty rare animals, so we're always looking around for the next big acquisition. So stay tuned.

Speaker #7: That's great. Okay, and I know we're getting close to the top of the hour. Maybe one last one—any update on Jerritt Canyon and when a restart may happen?

Darryl Ray: That's great. Okay, and I know we're getting close to the top of the hour. Maybe one last one. Any update on Jerritt Canyon, when a restart may happen, or, any general update on Jerritt?

Speaker #7: Or any general update on Jared?

Speaker #2: Yeah, so we'll keep in touch on that. We're going to be putting a standalone update on Jared Kangan. Once we have the plans and numbers finalized—we're hoping before the end of the quarter.

Mani Alkhafaji: Yeah. So we'll keep in touch on that. We're going to be putting a standalone update on Jerritt Canyon once we have the plans and numbers finalized. We're hoping before the end of the quarter; that's still the plan. You can imagine First Majestic's management team is focused on Jerritt Canyon now, now that Gatos is integrated and closed. So, we're putting a lot of attention, and we'll be sharing that once ready.

Speaker #2: That's still the plan. You can imagine First Majestic or management's team is focused on Jared Kangan now, now that Gatos is integrated and closed.

Speaker #2: So we're putting a lot of attention on that, and we'll be sharing that once ready.

Speaker #7: Okay, that's it from the queue, Nick.

Darryl Ray: Okay. That's it from the queue, Nick.

Speaker #3: Okay. Thank you. Showing no further audio questions. This will conclude our question and answer session. I would like to turn the conference back over to Keith for any closing remarks.

Operator: Okay. Thank you. Showing no further audio questions, this will conclude our question-and-answer session. I would like to turn the conference back over to Keith for any closing remarks.

Keith Neumeyer: Yeah. Thanks for everyone to join us today, and if there are additional questions, please feel free to contact us. I think you know who we are and how to contact us. So, we're always available. So, Darryl, and Joel, and Manny, and myself, feel free to reach out. We'll be at the PDAC coming up in the next few weeks as well. You know, we'll hope to see you at our aquarium event on the Monday evening for further contact or questions.

Speaker #2: Thanks to everyone for joining us today. If there are additional questions, please feel free to contact us. I think you know who we are.

Speaker #2: And how to contact us. So we're always available. So Darrell, and Joel, and Manny, and myself—feel free to reach out. We'll be at the PDAC coming up.

Speaker #2: In the next few weeks as well. We hope to see you at our aquarium event on Monday evening. For further contact or questions,

Operator: This brings today's conference call to a close. You may now disconnect your lines. Thank you for participating, and have a pleasant day.

Q4 2025 First Majestic Silver Corp Earnings Call

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