Q2 2026 First Majestic Silver Corp Earnings Call

July 30, 2026

Speaker #1: Thank you for standing by. This is the conference operator. Welcome to the First Majestic Silver Q2 2026 financial results conference call. As a reminder, all participants are in listen-only mode, and the conference is being recorded.

Operator: Thank you for standing by. This is the conference operator. Welcome to the First Majestic Silver Q2 2026 Financial Results Conference Call. As a reminder, all participants are in listen-only mode, and the conference is being recorded. After the presentation, there'll be an opportunity to ask questions. To join the question queue, you may press star then one on your telephone keypad. If you're 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 call, 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 #1: After the presentation, there'll be an opportunity to ask questions. To join the question queue, you may press star, then 1 on your telephone keypad.

Speaker #1: If you're 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 #1: Should you need assistance during the conference call, you may reach an operator by pressing star, then 0. I would now like to turn the conference over to Mr. Keith Neumeyer, Chief Executive Officer of FIRST MAJESTIC SILVER.

Operator 2: 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 #1: Keith, please go ahead.

Speaker #2: Oh, thank you. And, welcome, everyone, to our Q2, conference call, to discuss today's or this morning's news release. Hopefully, you've all read it, by now.

Keith Neumeyer: Well, thank you, and welcome everyone to our Q2 conference call to discuss today's or this morning's news release. Hopefully you've all read it by now. Before I get into introducing Samir, I'd like to introduce the people in the room with me here today. Mani Alkhafaji, our President and Chief Corporate Development Officer. We have Dave Howe, our Chief Operating Officer, who's new to the company. He's joined us about three months ago. Samir Patel, General Counsel, Corporate Secretary. Darrell Rae, and Joel Faltinsky from Investor Relations. Darren Fernandez from our financial leadership team, and our new CFO, Neil Beaumont, who's just recently joined us a couple weeks ago. We did put a news release out on that. His bio's there.

Speaker #2: Before I get into introducing Samir, I'd like to introduce the people in the room with me here today: Manuel Kavaggi, our President and Chief Corporate Development Officer.

Speaker #2: We have Dave Howe, our chief operating officer, who's new to the company. He's joined us about three months ago. and Samir Patel, general counsel, corporate secretary.

Speaker #2: Dara Ray, and Joe Feltinski from Investor Relations; Darren Fernandez from our financial leadership team; and our new CFO, Neal Beaumont, who's just recently joined us a couple of weeks ago.

Speaker #2: And we did put a news release out on that, and, you know, his bio's there. He's with Canada Pension Plan, and KPMG, and BHP, and has added a lot of, you know, depth to the financial role that we're quite pleased about.

Keith Neumeyer: He was with Canada Pension Plan and KPMG and BHP and has added a lot of depth to the finance role, which we are quite pleased about. I am just going to pass this on to Samir for comments.

Speaker #2: So, I'm just going to pass this on to Samir for comments.

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 that reflect the company's current views with respect to future events.

Speaker #3: 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 quarterly language included in our news release that was disseminated early this morning. And the disclosure on non-IFRS measures in our most recently filed management 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 early 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. 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.

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 have a presentation showing on the screen, some of you hopefully can see it. You've got full control over it. We'll go through it slide by slide on our end.

Keith Neumeyer: Thanks, Samir. We have a presentation showing on the screen. Some of you hopefully can see it. You have got full control over it. We will go through it slide by slide on our end. I will not read the entire slides, as I am hoping most people on the call have already gone through our news release. Another strong quarter for us. Big revenue number, $416 million, up 53% year over year. 3.8 million ounces of silver produced in the quarter, bringing our H1 production numbers up to 7.3 million ounces, which is basically 50% of our revised guidance that we put out in July, which is obviously, as you probably know, about 10% increase from our guidance that we put out in January. We are looking forward to a strong H2 going forward. EBITDA of $1,252 million, up 110%. Strong cash flow of $0.50 a share.

Speaker #2: I won't read the entire slides, as I'm hoping most people on the call have already gone through our news release, but another strong quarter for us.

Speaker #2: big revenue number, 416 million. dollars, 53%. Year over year, 3.8 million ounces of silver, produced in that quarter. bringing our H1 production numbers up to 7.3 million ounces, which is basically 50% of our revised gu-guidance that we put out in July, which is obviously, as you probably know, about 10% increase from our, our guidance that we put out in, in January.

Speaker #2: So we're looking forward to a, a strong H2, going forward. EBITDA of 252 million, up 110%. strong cash flows of 50 cents a share.

Speaker #2: Exploration is continuing at a robust pace. We did 94,000 meters across the portfolio in Q2. For the first six months of the year, we completed 160,000 meters of drilling.

Keith Neumeyer: Exploration is continuing at a robust pace. We did 94,000 meters across the portfolio in Q2. In the full H1 of the year, we did 160,000 meters of drilling. We're very pleased to see the permits come in from Mexico on our Santo Niño and Navidad portals. Those two discoveries have been well laid out to the public in the form of several news releases over the last couple of years. These two portals, we are actually projecting them to come into development in about 12 or 14 months, but we've now started development at Santo Niño within the last few weeks, and really looking forward to doing first blasting there in the next week or so.

Speaker #2: We're very, very pleased to see the permits come in from Mexico on our Santo Niño and Navidad portals. Those two discoveries have been well laid out to the public in the form of several news releases.

Speaker #2: So, over the last couple of years, these two portals—we are actually projecting them to come into development in about 12 to 14 months.

Speaker #2: We've now started development at Santo Niño. In the last few weeks, we're looking forward to doing first-lassing there in the next week or so.

Speaker #2: So, Santo Niño is over a year ahead of schedule, which will hopefully bring OR into the mill, towards the end of 2027 from that.

Keith Neumeyer: Santo Niño is over a year ahead of schedule, which will hopefully bring ore into the mill towards the end of 2027 from that, and slightly later, probably about another 18 months after that, we'll probably see Navidad starting to add ore to the mill at Santa Elena. Those are two very exciting things that are developing at Santa Elena. Looking for extended mine life there as a result of these two new discoveries that were discovered about two years ago now. We did revise our guidance, as I did say already. We did declare our dividend as well. It's a 270% increase in our dividend year over year, which is obviously nice for shareholders. We did do substantial share buybacks in the quarter. We bought 1.2 million shares during the period in that program was there for us to use at any time.

Speaker #2: And, slightly later, probably about a 18-month, after that, we'll probably see Navidad starting to add, OR to the mill at Santo Niño. So those are two very exciting, things that are developing at, Santo Niño, looking for, you know, extended mine life there as a result of these two, new discoveries that we're discovered about two years ago now.

Speaker #2: so we did revise our, guidance, as I did say already. you know, we did declare our dividend as well, into 270% increase in our dividend year over year.

Speaker #2: Which is obviously nice for shareholders. We did do substantial share buybacks in the quarter. We bought 1.2 million shares during the period, and that program, you know, was there for us to use at any time.

Speaker #2: you know, you know, whether or not we do that going forward, I expect that we likely will. But, you know, look for further news on that.

Keith Neumeyer: Whether or not we do that going forward, I expect that we likely will, but look for further news on that. We ended with a strong treasury at the end of 30 June. We had $1.25 billion in the treasury, which is obviously a pretty nice place to be. I'm going to jump to the next slide. That was all slide three, on slide four. We're looking at the All-In Sustaining Costs, and as everyone knows listening to this webinar, our analysts are quite familiar with this. There is inflation, of course, as a result of quite large bonuses going to the workforce, which is quite nice for them. You probably imagine how happy the workforce is these days, because their bonuses are tied to silver prices. It's really paying off for the communities in the areas that we're active in.

Speaker #2: We ended with a strong treasury. At the end of June 30th, $1.25 billion in the treasury, which is obviously a pretty nice place to be.

Speaker #2: So I'm going to jump to the next slide. That was all slide three. So on slide four, we're looking at the all-in sustaining costs. And, you know, as everyone knows, listening to this webinar, our analysts are quite familiar with this.

Speaker #2: There is inflation, of course, you know, as a result of, you know, quite large bonuses going to the workforce, which is quite nice for them.

Speaker #2: you can, you, you know, you probably imagine how happy the workforce is these days because, you know, there are bonuses that are tied to silver prices.

Speaker #2: So it's really paying off for the communities in the areas that we're active in. So that's a really nice result from our perspective.

Keith Neumeyer: That's really nice to see from our perspective. We're keeping our costs in line. As you can see on that graph there, our cost per ton are at 107. Pretty well compared to the last four years. We are keeping our costs in line on a daily basis as a result of strong efforts that are currently underway. Jumping to the next slide, operating cash flows. Obviously quite good. You see the Q2 number there of $248 million, slightly down from Q1, and that's all price driven, as we all know. What happens in the gold and silver prices, we are affected by those prices as we're completely unhedged at all times as our shareholders virtually demand that we remain unhedged, which I'm a firm believer of that.

Speaker #2: You know, we're keeping our costs in line. as you can see on that graph there, you know, our cost per ton are, you know, 107.

Speaker #2: You know, pretty well compared to the last four years. So, we are keeping our costs in line on a daily basis as a result of the following efforts.

Speaker #2: that are currently underway. So, jumping to the next slide—operating cash flows—you know, obviously quite tight, quite good. You know, you see the Q2 number there of $248 million.

Speaker #2: Slightly down from Q1. And that's all price-driven. You know, as we all know, what happens in the gold and silver prices, you know, we are affected by those, prices as we're completely un-unhedged.

Speaker #2: At all times, as our, our shareholders, virtually demand that we remain unhedged, which I'm a firm believer of that. And, it's still a strong cash flows and still adding cash to our treasury, which is, obviously very nice to see.

Keith Neumeyer: Still with strong cash flows and still adding cash in our treasury, which is obviously very nice to see. Free cash flow of a strong $195 million as well in the quarter. Moving along. At Los Gatos, we're working to continually reach the 4,000 tons a day. We actually exceeded that number, as you can see. We hit a record of 4,070 tons per day in June, which is great. We're on track to have continuous throughput at Los Gatos at 4,000 tons a day, which is important for that operation. Santa Elena continues to perform extremely well. We now have our throughput where it's getting close to 3,500 tons a day. We expect to have daily throughput at 3,500 tons a day throughout H2, and again, those permits at San Dimas and Navidad are key for that asset going forward.

Speaker #2: Free cash flow—the strong $195 million as well in the quarter. Moving along, at Los Gatos, we're working to continually reach the 4,000 ton per day.

Speaker #2: We actually exceeded that number, as you can see. we hit a record of 4,070 tons per day in June, which is great. We're on track, to, have, continuous, throughput.

Speaker #2: At Los Gatos, at 4,000 tons a day, which is important for that operation. You know, Santo Niño continues to perform extremely well.

Speaker #2: we, we now have our throughput, or we are getting close to 3,500 tons a day. now, we expect to have, daily throughput at 3,500 tons a day throughout, H2.

Speaker #2: And again, these permits at Santo Niño and Navidad, of course, are key for that asset going forward. San Dimas had a pretty good quarter.

Keith Neumeyer: San Dimas had a pretty good quarter. There were some labor disruptions, as is quite common at that mine, as most of our shareholders are aware. Nevertheless, the union's getting paid a lot of money these days, and I can tell you, they're quite happy and they're working hard, and some of the development rates that we're seeing out of the workforce there are quite good compared to the last couple of years. La Encantada, we had our own fleet now of trucks doing our own ore transport to the mill. That's the changeover from what we did over the last several years. We bought our own fleet, and it's really paying off and adding to the throughput, and we're starting to hit record throughput levels at La Encantada as we speak, which is really nice to see for that operation.

Speaker #2: You know, there was some labor disruptions as quite common at that mine, as most of our shareholders, are aware. but nevertheless, the union is getting paid a lot of money these days, and they're, I can tell you, they're quite happy.

Speaker #2: And they're working hard. Some of the development rates that we're seeing out of the workforce there are quite good compared to the last couple of years.

Speaker #2: At La Quintada, you know, we have our own fleet now of trucks doing our own ore transport to the mill. That's a change from what we did over the last several years.

Speaker #2: we bought our own fleet and it's really paying off. And, adding to the throughput. And we're starting to hit record throughput levels, at La Quintada as we speak, which is really nice to see for that operation.

Speaker #2: So, both La Quintada and, and Santo Niño are, are performing. But budget, which is, quite nice to see. Jumping to the next slide. Jerry Canyon, we continually get a bunch of questions on Jerry.

Keith Neumeyer: Both La Encantada and Santa Elena are performing above budget, which is quite nice to see. Jumping to the next slide. Jerritt Canyon, we continually get a bunch of questions on Jerritt Canyon. We're pretty excited about it. At our current gold prices, it's going to be a big cash flow generator for us. We have initiated underground development and rehabilitation. Drilling is continuing. I don't have the number in front of me, but we had substantial meters of drilling in the quarter, and we'll continue to do that to prove up the mine plan and get ready for mining next year. A variety of consultants have been hired to initiate production there. We're on track. We're within budget. A bunch of the key equipment has now been ordered. There's a couple of components that are still being worked on to get orders in the system.

Speaker #2: You know, we're pretty excited about it. It, you know, our current gold price is, it's going to be a big cash flow generator for us.

Speaker #2: And we have initiated underground development and rehabilitation. Drilling is continuing. I don't have the number in front of me, but we had substantial meters of drilling in the quarter.

Speaker #2: And we'll continue to do that to, prove up the mine plan and get ready for mining, next year in a variety of consultants have been.

Speaker #2: Prior to initiating production there, we're on track. We're within budget, and a bunch of the key equipment has now been ordered. There are a couple of components that are still being worked on to get orders in the system.

Speaker #2: But as I said, we're on track to see production at Jerry Canyon, likely in Q3 of 2027, which will be a pretty exciting event for all of us, including our shareholders.

Keith Neumeyer: As I said, we're on track to see production at Jerritt Canyon likely in Q3 of 2027, which will be a pretty exciting event for all of us, including our shareholders. Jumping along to future catalysts. That is page or slide eight, for those of you who are following us. Exploration is really key for us this year and last year. You can see that we're adding ounces to our resource base. We had a nice increase in our numbers that we put out in March of this year, and we continually discover new structures and new ore bodies. Just recently, we've had some good news on San Dimas, which is really nice to see. The drilling in San Dimas and Navidad are continuing. We continually see nice extensions of the San Dimas ore body. We will be updating our resources over the coming quarters.

Speaker #2: So, jumping along to future catalysts—that is, page or slide eight. For those of you who are following us, you know exploration is really key for us this year and last year.

Speaker #2: You know, you see that we're adding ounces to our resource base. We have a nice increase in our numbers that we put out in March of this year.

Speaker #2: And we continually discover new structures and new ore bodies. And just recently, we've had some good news on San Dimas, which is really nice to see.

Speaker #2: And, the drilling in Santo Niño and Navidad are continuing. We're continually seeing nice extensions of the Santo Niño OR body. And, we will be updating our resources, over the coming quarters.

Speaker #2: We're likely to be putting out a 43-101 on Los Gatos in the next quarter or so, and we'll likely be following that up with Santo Niño.

Keith Neumeyer: We're likely to be putting out a 43-101 on Los Gatos in the next quarter or so, and we'll likely be following that up with Santa Elena 43-101 out a little later this year or early next year. Look for further news on exploration, look for further news on the Jerritt Canyon restart, and look for the continued cash flow and then cash generation and building our treasury, because that's really one of our key focuses right now, really getting ready for the future. We think we have a very bright future ahead with all the great things going on within the company. That's it for the presentation. We'll open the call up for questions.

Speaker #2: 431101 out. Later this year, early next year. yeah, so look for further news on expiration. Look for further news on the Jerry Canyon restart.

Speaker #2: And look for the continued cash flow, and then cash generation, and building our treasury, because that's really one of our key focuses right now.

Speaker #2: We're really getting ready for the future. And, you know, we think we have a very bright future ahead, with all the great things going on within the company.

Speaker #2: And that's it for the presentation. we'll open the call up for questions.

Operator 2: Thank you, Keith. We will now proceed to the question and answer session. To join the question queue, you may press star then one on your telephone keypad. You'll hear a tone acknowledging your request. If you're using a speakerphone, please pick up your handset before pressing any keys. To withdraw your question, please press star then two. If you're 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. Our first question is from Heiko Ihle with H.C. Wainwright. Please go ahead.

Operator: Thank you, Keith. We will now proceed to the question and answer session. To join the question queue, you may press star then one on your telephone keypad. You'll hear a tone acknowledging your request. If you're using a speakerphone, please pick up your handset before pressing any keys. To withdraw your question, please press star then two. If you're 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. Our first question is from Heiko Ihle with H.C. Wainwright. Please go ahead.

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

Speaker #1: You'll hear a tone acknowledging your request. If you're using a speakerphone, please pick up your handset before pressing any keys. To withdraw your question, please press star then two.

Speaker #1: And if you're 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 #1: Our first question is from Heiko Ehle with HC Wainwright. Please go ahead.

Heiko Ihle: Good morning, Keith and team. How are you?

Speaker #3: Good morning, Keith and team. How are you? Hey, two quick questions here. Your finished goods inventory—I mean, obviously over a million ounces of silver, close to 5,000 ounces of gold, as of the end of last month.

Keith Neumeyer: How are you?

Heiko Ihle: Hey, two quickie ones here. Your finished goods inventory, obviously over 1 million ounces of silver, close to 5,000 ounces of gold, as of the end of last month. Do you want to give a little bit of color of where that stands today and what the new baseline is? If I want to go out on a limb here, maybe even where you see this at the end of this quarter and maybe even at the end of the year, just so we can incorporate that into our model.

Speaker #3: you want to get a little bit of color where that stands today. what the new baseline is. And if I want to go out on a limb here, maybe even where you see this at the end of this quarter and maybe even at the end of the year, just so we can, you know, incorporate it into our model.

Speaker #2: Yeah, sure. The mint needs, you know, around 400,000 ounces in the vault at all times, you know, to keep that business operating sufficiently.

Keith Neumeyer: Yeah, sure. The mint needs around 400,000 ounces in the vault at all times to keep that business operating sufficiently. That should be kind of, I think, your base. Last quarter, we ended off a little over 600,000 ounces. You're right, this quarter we're over 1 million. The reason really for that is just the precipitous drop in the silver price during a very short period of time, and we didn't want to be caught selling silver in the low $50 range, and I felt that there was going to be a bounce, and we are seeing that now. I don't want to give you numbers or false expectations, but I would suggest that that inventory number will drop during the quarter.

Speaker #2: So, you know, that should be kind of, I think, your base. last quarter we, you know, ended off a little over 600,000 ounces. You're right.

Speaker #2: This quarter we're over a million. And the reason really for that is just the precipitous drop in the silver price during a very, a very short period of time.

Speaker #2: And we didn't want to be caught selling silver in the low $50 range. I felt that there was going to be a bounce.

Speaker #2: And we are seeing that now. And, you know, I don't want to give you numbers or false expectations, but I would, suggest, that, that inventory number will drop during the quarter.

Speaker #3: Okay. Fair enough. and then completely different one, I mean, Jerry Canyon, it seems like things are really starting to happen there. And, and, and frankly, they need to, given that, you know, we're at this point, what, 17 months away at the very, longest of the timeline here with the second half of next year.

Heiko Ihle: Fair enough. Then, completely different one. Jerritt Canyon, it seems like things are really starting to happen there. Frankly, they need to, given that we're at this point, what, 17 months away at the very longest of the timeline here with the H2 of next year. How many people are working there now? Maybe if you would, a little bit of an inkling of a clue of quarter-by-quarter capital spent at the site.

Speaker #3: How many people are working there now? And, maybe, if you would, could you give a little bit of an inkling, a clue, about quarter-by-quarter capital spent at the site?

Speaker #2: Yeah, we haven't put the details out on that yet. I, you know, we did put the number of $75 million out in February.

Keith Neumeyer: Yeah, we haven't put the details out on that yet. We did put the number of $75 million out in February. We're well in line with that number. The Sandvik fleet, for example, the deposits have been made and other key components deposits have been made. There's a couple other key components that are being ordered in the next 30 days, and deposits will be made on those orders as well. A lot of that money is back-ended. We will be putting out additional capital requirements, likely in January 2027, once we get through the 2027 budget. We don't really expect that $75 million is going to change in 2026 unless there's some changes currently that potentially we may decide to buy additional equipment or something along those lines. Nothing currently is anticipated regarding that.

Speaker #2: we're, well in line with that number. you know, the Sandvik fleet, for example, you know, the deposits have been made and other key components, deposits have been made.

Speaker #2: There are a couple of other key components that are being ordered in the next, you know, 30 days, and deposits will be made on those orders as well.

Speaker #2: So, you know, a lot of that money is back-ended. we will be putting out additional capital requirements, likely in January of 2027, once we get through the 2027 budget.

Speaker #2: But we don't really expect that $75 million is going to change in 2026, unless, you know, there are some changes currently that potentially we may decide to buy additional equipment or something along those lines.

Speaker #2: But not, nothing currently is anticipated. regarding that. And, oh, and I'll, I'll be and on the staffing, there was about 40 people that have been there, cur you know, over the last couple years.

Keith Neumeyer: On the staffing, there was about 40 people that have been there over the last couple of years, and they were there for care and maintenance purposes. We had 45 positions that we needed to fill from the time we decided to start to when we started building out the workforce. Of those 45 individuals, 80% of those positions have now been filled.

Speaker #2: And they're there for care and maintenance purposes. We had a, 45 individual or 45 positions that we needed to fill. or, you know, from the time we decided to start, to, you know, to, to when we started building out the workforce.

Speaker #2: of those 45 individuals, 80% of those, positions have now been filled.

Speaker #3: Okay. That's good. very helpful. I'll get back in queue. Thank you guys.

Heiko Ihle: Okay. That's good. Very helpful. I'll get back in queue. Thank you, guys.

Speaker #2: Okay. Thank you.

Keith Neumeyer: Okay. Thank you.

Speaker #1: The next question is from Eric Windmill with Scotiabank. Please go ahead.

Operator 2: The next question is from Eric Winmill with Scotiabank. Please go ahead.

Operator: The next question is from Eric Winmill with Scotiabank. Please go ahead.

Speaker #4: Great. hi, Keith and team. thanks for taking my question. just wondering here, Santo Niño and, and Navidad, any comments here in terms of critical path items or, you know, sort of sequencing, over the next 12 or 18 months as you ramp up to production there?

Eric Winmill: Great. Hi, Keith and team. Thanks for taking my question. Just wondering here, Santo Niño and Navidad, any comments here in terms of critical path items or sequencing over the next 12 or 18 months as you ramp up to production there?

Speaker #2: Let me pass that question on to our Chief Operating Officer, Dave Howell.

Keith Neumeyer: Let me pass that question on to our Chief Operating Officer, Dave Howe.

Speaker #5: No, I don't see any. Good morning. I really don't see any issues. I think we're actually trying to speed some of the ore access up.

Dave Howe: Good morning. I really don't see any issues. I think we're actually trying to speed some of the ore access up. We're looking at about now revising our mine plan.

Speaker #5: So we're looking at about now revising our mind plan.

Speaker #2: Does that answer your question, Eric? Or would you like more specifics?

Keith Neumeyer: Does that answer your question, Eric? Would you like more specifics?

Speaker #4: Yeah, anything you can share there in terms of what we should be looking for here, you know, on the works program through the balance of this year and next?

Eric Winmill: Yeah, anything you can share there in terms of what we should be looking for here in the works program here through the balance of this year and the next?

Speaker #2: Well, I think we, we, you know, our first blast should be around 15th of August. And then we'll just be pushing ahead. We, we've got all of our, ground control items ordered.

Dave Howe: Well, I think our first blast should be around the 15 August. Then we'll just be pushing ahead. We've got all of our ground control items ordered. Then we'll just push down, spiraling down. I don't see any issues going forward with the development.

Speaker #2: And then we'll just push down, spiraling down. But I don't see any issues going forward with, I mean, the development.

Speaker #4: Okay, great. That's helpful. Thank you very much. And in terms of, you know, San Dimas or any other mines, any major works programs underway beyond the expansions you talked about?

Eric Winmill: Okay, great. That's helpful. Thank you very much. In terms of San Dimas or any other mines, any major works programs underway beyond the expansions you talked about?

Speaker #2: Dave should be back.

Keith Neumeyer: Dave, did you get that?

Speaker #5: No, right now, no. We're just pushing ahead with our development, doing very well. As Keith mentioned earlier, our union work is doing very well with the long hauling and development.

Dave Howe: Well, right now, no, we are just pushing ahead with our development. Doing very well, as Keith mentioned earlier. Our Union work is doing very well with the long hauling development, so no, we do not see any issues at all.

Speaker #5: So we're, no, we don't see any issues at all.

Speaker #4: Okay, great. That's helpful, thank you. And maybe just more of a strategy question, but obviously, you know, the cash balance is building. Any thoughts here on capital allocation when it comes to, you know, M&A, or dividends and buybacks?

Eric Winmill: Okay, great. That is helpful. Thank you. Maybe just more of a strategy question, but obviously, cash balance is building. Any thoughts here on capital allocation when it comes to M&A or dividends and buybacks? Any thoughts for the rest of this year?

Speaker #4: Any thoughts for the rest of this year?

Speaker #2: Well, in the quarter, we spent $22 million on share buybacks, which is, I think, the most we've ever spent in the history of the company on share buybacks.

Keith Neumeyer: Well, in the quarter, we spent $22 million on share buybacks, which is, I think, the most we have ever spent in the history of the company on share buybacks. I cannot commit to you on what we are going to be doing for the rest of the year, but it obviously is on our list of things to do with our cash. The dividends are upgraded, doubled in January for 2026. That was really nice to see. It is still a relatively low dividend. I would like to see it increase further, but I like to see the treasury build even more. I know it is a lot of money, $1.25 billion. It is a lot, and it is growing, which is really nice to see. There is a couple of cash items that are on our list that could be large. That is the tax settlement in Mexico with Primero Empresa Minera.

Speaker #2: I can't commit to you on, on what we're going to be doing. For the rest of the year, but it is o-obviously, it is on our list of things, to do wi-with our cash.

Speaker #2: The dividends are up, update upgraded, you know, doubled, in, in, January for 2026. And that was really nice to see. It's still a relatively low dividend.

Speaker #2: You know, I'd like to see it increase further. But, you know, I'd like to see, you know, the treasury, you know, build even more.

Speaker #2: I know it's a lot of money. 1.25 billion. And it's, it's a lot. And I and it is growing, which is really nice to see.

Speaker #2: You know, there are a couple of cash items that, you know, are on our list that could be large. And that's the tax settlement in Mexico with Primero, San Dimas.

Keith Neumeyer: That is the tax settlement in Mexico with Primero Empresa Minera. As all our shareholders, and I am sure you are aware about, so are Eric. Once we get that off our plate, which we hope will be resolved by the end of the year. With Jerritt Canyon also, we do not know what the spend is going to be in 2027. We have got some numbers that we are expecting to make public, as I said, in January 2027 to get that finally up and running by Q3. Once we get those two big spends out behind us, then we will look at further capital allocations.

Speaker #2: but all our shareholders and I'm sure you're aware about. So or Eric. so, the, once we get that off our plate, which we hope will be resolved by the end of the year, and then, you know, with, with, Cherry Canyon also, you know, we don't know what the spend is going to be in 2027.

Keith Neumeyer: As all our shareholders, and I am sure you are aware about, so are Eric. Once we get that off our plate, which we hope will be resolved by the end of the year. With Jerritt Canyon also, we do not know what the spend is going to be in 2027. We have got some numbers that we are expecting to make public, as I said, in January 2027 to get that finally up and running by Q3. Once we get those two big spends out behind us, then we will look at further capital allocations.

Speaker #2: We've got some numbers that we're expecting to make public. As I said, in January of '27, to get that finally up and running by the third quarter.

Speaker #2: But once we get those two big spends out behind us, then, you know, we'll look at further capital allocations.

Speaker #4: Okay, fantastic. I appreciate the added color. I'll hop back in the queue. Thank you. Cheers.

Eric Winmill: Okay, fantastic. Appreciate the added color. I will hop back in the queue. Thank you. Cheers.

Speaker #2: Thank you.

Keith Neumeyer: Thank you.

Speaker #1: Once again, if you have a question, please press star, then one. The next question is from Alex Tarantu with National Bank. Please go ahead.

Operator 2: Once again, if you have a question, please press star then one. The next question is from Alex Tarrant with National Bank. Please go ahead.

Operator: Once again, if you have a question, please press star then one. The next question is from Alex Tarrant with National Bank. Please go ahead.

Speaker #4: Hey, guys. Thanks for taking my questions here. I wanted to follow up just on, on Santo Niño—sorry, well, Santo Niño, rather. Keith, can you give me a comment?

Alex Tarrant: Hey, guys. Thanks for taking my questions here. Wanted to follow up just on Santo Niño, sorry, well, Santa Elena rather. Keith, you made a comment, and I apologize if I think I may have missed it here, but you are saying Santo Niño targeting to get that first ore from there end of 2027. Was that right? Navidad maybe about 18 months after? I just wanted to confirm that is kind of what you are targeting at the moment.

Alex Terentiew: Hey, guys. Thanks for taking my questions here. Wanted to follow up just on Santo Niño, sorry, well, Santa Elena rather. Keith, you made a comment, and I apologize if I think I may have missed it here, but you are saying Santo Niño targeting to get that first ore from there end of 2027. Was that right? Navidad maybe about 18 months after? I just wanted to confirm that is kind of what you are targeting at the moment.

Speaker #4: And I think—I apologize if I may have missed it here—but you're saying Santo Niño is targeting to get that first ore by the end of 2027?

Speaker #4: Was that right? And then, Navidad, maybe about 18 months after? I just wanted to confirm that's kind of what you're targeting at the moment.

Speaker #2: Yeah, no, that's exactly right, Alex.

Keith Neumeyer: Yeah, no, that's exactly right, Alex.

Speaker #4: Okay. All right, good. And then, I, I know, or maybe you can just can you remind me, actually, when it comes to metallurgy, I know that Hermitanya ore, a lot of the stuff you're putting through now, you know, gold recovery is good.

Alex Tarrant: Okay. All right, good. Then maybe can you just remind me actually, when it comes to metallurgy, I know that Ermitaño ore, a lot of the stuff you're putting through now, gold recovery is good, but silver recovery is a little bit lighter. What's the expectation for Santo Niño ore? Is that the same as Ermitaño, or are we seeing something a bit better there?

Alex Terentiew: Okay. All right, good. Then maybe can you just remind me actually, when it comes to metallurgy, I know that Ermitaño ore, a lot of the stuff you're putting through now, gold recovery is good, but silver recovery is a little bit lighter. What's the expectation for Santo Niño ore? Is that the same as Ermitaño, or are we seeing something a bit better there?

Speaker #4: But, you know, silver recovery is a little bit lighter. What's the expectation for Santo Niño ore? Is that, you know, the same as Hermitanya, or are we seeing something a bit better there?

Speaker #2: Dave, do you want to grab that one?

Keith Neumeyer: Dave, do you want to grab that one?

Speaker #5: I do want to.

Dave Howe: I'm quite

Dave Howe: I'm quite.

Keith Neumeyer: The recoveries at Santo Niño.

Speaker #2: Is that the recovery? Is that Santo Niño?

Speaker #5: Oh, Santo Niño. This should be very good. I don't know. We're looking at—I don't have the number.

Dave Howe: Oh, Santo Niño. They should be very good. I don't know. I don't have the number.

Speaker #2: We, we—I'll pass it on to Danny. He's got the numbers. Yeah. Oh, Santo Niño is behaving similarly to the original Santa Elena. So we're seeing mid-'90s.

Keith Neumeyer: I'll pass it on to Danny. He's got the numbers.

Dave Howe: What number?

[Company Representative] (First Majestic Silver): Yeah. No, Santo Niño is behaving similarly to the original Santa Elena, we're seeing mid-nineties. The metallurgical testing for both Navidad and Santo Niño is showing 95 plus for both gold and silver with higher silver grade as well. We're expecting more contribution of silver from both of them.

Speaker #2: The metallurgical testing for both Navidad and Santo Niño is showing 95-plus for both gold and silver, with higher silver grade as well. So we're expecting more contribution of silver from both of them.

Alex Tarrant: Yeah. Perfect. That's what I was looking to hear. Okay, great. Just my last question, on capital spending, I think you guys are a little bit light. Well, at least tracking so far for this year, your H1 of the year is a bit, I think it was around 37% of your annual guidance. I guess that implies, obviously, the H2 this year is going to be heavier. I'm just curious, is there any projects maybe falling behind a little bit just from just timing perspective or permitting or anything like that? Or really just we should expect a lot more spending to pick up in the H2 this year?

Alex Terentiew: Yeah. Perfect. That's what I was looking to hear. Okay, great. Just my last question, on capital spending, I think you guys are a little bit light. Well, at least tracking so far for this year, your H1 of the year is a bit, I think it was around 37% of your annual guidance. I guess that implies, obviously, the H2 this year is going to be heavier. I'm just curious, is there any projects maybe falling behind a little bit just from just timing perspective or permitting or anything like that? Or really just we should expect a lot more spending to pick up in the H2 this year?

Speaker #4: Perfect, that's what I was looking at here. Okay, great. And just my last question, on capital spending—you know, I think you guys are a little bit light.

Speaker #4: Well, at least, tracking so far for this year, your first half of the year is a bit—I think it was around 37% of your annual guidance.

Speaker #4: I guess that implies, obviously, the second half of this year is going to be, you know, heavier. But I'm just curious, is there any, you know, any projects maybe falling behind a little bit, just from, just timing perspective or permitting or anything like that?

Speaker #4: Or really, should we just expect a lot more spending to pick up in the second half of this year?

Speaker #2: Yeah, it is very much back-ended. And, you know, there's really no issues anywhere, except, you know, maybe the status is a little bit behind on development.

Keith Neumeyer: Yeah, it is very much back-ended. There's really no issues anywhere there except maybe Los Gatos is a little bit behind on development. It's not materially behind, it is slightly behind budget. The other mines are well within budget, most of the effects are timing.

Speaker #2: It's not material—materially behind. But it is slightly behind budget. The other mines are well within budget. But mostly, the effect is—most of the effects are timing.

Speaker #4: Perfect. All right, that's it for me. Thank you.

Alex Tarrant: Perfect. All right. That's it for me. Thank you.

Alex Terentiew: Perfect. All right. That's it for me. Thank you.

Speaker #2: If there's anyone else.

Keith Neumeyer: If there's anyone else.

Operator 2: I'll now pass the floor.

Operator: I'll now pass the floor.

Speaker #1: I'm going to pass the floor. I was just going to say, I'll now pass the floor over to Mr. Darryl Ray, Investor Relations at First Majestic Silver, to take us through questions submitted through the webcast.

Keith Neumeyer: Sorry.

Operator 2: I was just going to say, I'll now pass the floor over to Mr. Darren Ray, Investor Relations at First Majestic Silver, to take us through questions submitted through the webcast.

Operator: I was just going to say, I'll now pass the floor over to Mr. Darren Ray, Investor Relations at First Majestic Silver, to take us through questions submitted through the webcast.

Speaker #3: Okay, thanks, Gavin. Yeah, there are a lot of questions that are very similar, Keith, to ones that you've already answered—a lot on capital allocation, the dividends, and stock buybacks.

Darren Ray: Okay, thanks, Gayleen. There's a lot of questions that are very similar, Keith, to ones that you've already answered a lot on capital allocation, the dividends, and stock buybacks. We'll do that. Maybe a little bit that we haven't talked about is our holdings in other junior mining companies. There's a question here on what are your thoughts and what are your plans for the holdings in these companies such as Silver Storm and Sierra Madre?

Darrell Rae: Okay, thanks, Gayleen. There's a lot of questions that are very similar, Keith, to ones that you've already answered a lot on capital allocation, the dividends, and stock buybacks. We'll do that. Maybe a little bit that we haven't talked about is our holdings in other junior mining companies. There's a question here on what are your thoughts and what are your plans for the holdings in these companies such as Silver Storm and Sierra Madre?

Speaker #3: We'll do that. Maybe one area we haven't talked about yet is our holdings in other junior mining companies. There's a question here on what are your thoughts and what are your plans for the holdings in these companies, such as Silver Storm and Sierra Madre.

Speaker #2: Our plan is to continually help those companies evolve and, hopefully, into much larger businesses, you know, so we could, you know, make some central profits on those investments.

Keith Neumeyer: Our plan is to continually help those companies evolve and hopefully much larger businesses so we could make some substantial profits on those investments. That's why we sold those assets to those groups. We're confident that those groups can continually build. We have sold some of the Sierra Madre shares over the last few quarters, just take a little bit of money off the table. We've now added a larger position as a result of the sale of Del Toro. We're actually up on that from a per share basis anyways, or number of share basis. Silver Storm, we just lent them $5 million last week. We did that same structure with Sierra Madre as well about two years ago. Sierra Madre just paid the balance of their loan back to us last quarter or in Q2, which was really nice to see.

Speaker #2: That's why we, you know, sold those assets to those groups. We, you know, we're confident that those groups can, you know, continually build. And, you know, we have sold – CC sold some of the Sierra Madre shares over the last few quarters, just, you know, to take a little bit of money off the table.

Speaker #2: But, we've now added a, a larger position as, as a result of the sale of Del Toro. So we're actually up on that, from a on a first share basis anyways.

Speaker #2: On our number of share basis—Silver Storm, you know, we just lent them $5 million last week. We did that same structure with Sierra Madre as well, about two years ago.

Speaker #2: Sierra Madre just paid the balance of their loan back to us, last, or in Q2, which was really nice to see. So, you know, Sierra Madre came through with their commitment.

Keith Neumeyer: Sierra Madre came through with their commitment and paid back the loan. The loan to Silver Storm is the same structure, and we're working with them to build out their team in Mexico, and we're very supportive shareholders of both those companies.

Speaker #2: And paid back the loan. So, you know, the loan to Silver Storm is the same structure. And we're working with them to build out their team.

Speaker #2: In Mexico, and we're very supportive shareholders of both those companies.

Speaker #3: Okay, thanks, Keith. That's it from the queue for us, Gavin.

Darren Ray: Okay, thanks, Keith. That's it from the queue for us, Gayleen.

Darrell Rae: Okay, thanks, Keith. That's it from the queue for us, Gayleen.

Speaker #1: All right. I'd like to hand the call back to Keith for any closing remarks.

Operator 2: All right. I'd like to hand the call back to Keith for any closing remarks.

Operator: All right. I'd like to hand the call back to Keith for any closing remarks.

Speaker #2: Okay, well, thanks everyone for your time today and for dialing into our call. I understand this will also be on the website for people to have a listen to a little bit later.

Keith Neumeyer: Well, thanks everyone for your time today and dialing into our call. I understand this will be also on the website for people to have a listen to it a little bit later. If there are any other questions or comments that anyone on the call or anyone who's going to be listening to the webcast after the call, please contact our investor relations department for any further answers to any queries that you may have. Thanks again.

Speaker #2: If there are any other questions or comments that anyone on the call, or anyone who will be listening to the webcast after the call, may have, please contact our Investor Relations department for any further answers to queries that you may have.

Speaker #2: Thanks again.

Operator 2: This brings to a close today's conference call. You may disconnect your lines. Thank you for participating and have a pleasant day.

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

Q2 2026 First Majestic Silver Corp Earnings Call

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