FIRST MAJESTIC SILVER CORP. | |||||
By: | |||||
/s/ Samir Patel | |||||
Samir Patel | |||||
General Counsel & Corporate Secretary | |||||
August 3, 2023 |
925 West Georgia Street, Suite 1800, Vancouver, B.C., Canada V6C 3L2 Phone: 604.688.3033 | Fax: 604.639.8873| Toll Free: 1.866.529.2807 | Email: info@firstmajestic.com www.firstmajestic.com |
/s/ Keith Neumeyer | /s/ David Soares | |||||||
Keith Neumeyer | David Soares, CPA, CA | |||||||
President & CEO | Chief Financial Officer | |||||||
August 2, 2023 | August 2, 2023 |
CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS | ||||||||
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS | ||||||||
General | ||||||||
Statements of Earnings (Loss) | ||||||||
Statements of Financial Position | ||||||||
Other items | ||||||||
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) | |||||
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2023 AND 2022 | |||||
Condensed Interim Consolidated Financial Statements - Unaudited | (In thousands of US dollars, except share and per share amounts) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||
Note | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||
Revenues | $146,692 | $159,443 | $303,644 | $316,281 | |||||||||||||||||||||||||
Mine operating costs | |||||||||||||||||||||||||||||
Cost of sales | 104,607 | 113,619 | 228,476 | 224,832 | |||||||||||||||||||||||||
Cost of sales - standby costs | 8,360 | — | 13,437 | — | |||||||||||||||||||||||||
Depletion, depreciation and amortization |
32,587 | 34,212 | 67,016 | 64,768 | |||||||||||||||||||||||||
145,554 | 147,831 | 308,929 | 289,600 | ||||||||||||||||||||||||||
Mine operating earnings (loss) | 1,138 | 11,612 | (5,285) | 26,681 | |||||||||||||||||||||||||
General and administrative expenses | 11,673 | 9,380 | 20,121 | 19,662 | |||||||||||||||||||||||||
Share-based payments | 3,320 | 2,986 | 7,949 | 7,808 | |||||||||||||||||||||||||
Mine holding costs | 3,718 | 2,430 | 7,507 | 5,595 | |||||||||||||||||||||||||
Write down on asset held-for-sale | 7,229 | — | 7,229 | — | |||||||||||||||||||||||||
Impairment (reversal) of non-current asset | — | (7,585) | 125,200 | (7,585) | |||||||||||||||||||||||||
Loss on sale of mining interest | — | — | 1,378 | — | |||||||||||||||||||||||||
Foreign exchange (gain) loss | (5,952) | 986 | (11,595) | 277 | |||||||||||||||||||||||||
Operating (loss) earnings | (18,850) | 3,415 | (163,074) | 924 | |||||||||||||||||||||||||
Investment and other income (loss) | 3,644 | (3,918) | 6,869 | (1,286) | |||||||||||||||||||||||||
Finance costs | (7,326) | (4,835) | (12,949) | (9,425) | |||||||||||||||||||||||||
Loss before income taxes | (22,532) | (5,338) | (169,154) | (9,787) | |||||||||||||||||||||||||
Income taxes |
|||||||||||||||||||||||||||||
Current income tax expense | 5,348 | 25,450 | 5,413 | 36,942 | |||||||||||||||||||||||||
Deferred income tax (recovery) expense | (10,346) | 53,262 | (56,373) | 30,036 | |||||||||||||||||||||||||
(4,998) | 78,712 | (50,960) | 66,978 | ||||||||||||||||||||||||||
Net loss for the period | ($17,534) | ($84,050) | ($118,194) | ($76,765) | |||||||||||||||||||||||||
Loss per common share | |||||||||||||||||||||||||||||
Basic |
($0.06) | ($0.32) | ($0.43) | ($0.29) | |||||||||||||||||||||||||
Diluted |
($0.06) | ($0.32) | ($0.43) | ($0.29) | |||||||||||||||||||||||||
Weighted average shares outstanding |
|||||||||||||||||||||||||||||
Basic |
280,993,803 | 262,680,950 | 277,625,669 | 261,447,267 | |||||||||||||||||||||||||
Diluted |
280,993,803 | 262,680,950 | 277,625,669 | 261,447,267 |
/s/ Keith Neumeyer | /s/ Colette Rustad | |||||||
Keith Neumeyer, Director | Colette Rustad, Director |
The accompanying notes are an integral part of the condensed interim consolidated financial statements | |||||
First Majestic Silver Corp. 2023 Second Quarter Report | Page 1 |
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | |||||
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2023 AND 2022 | |||||
Condensed Interim Consolidated Financial Statements - Unaudited | (In thousands of US dollars, except share and per share amounts) |
Note | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Net loss for the period | ($17,534) | ($84,050) | ($118,194) | ($76,765) | ||||||||||||||||||||||
Other comprehensive earnings | ||||||||||||||||||||||||||
Items that will not be subsequently reclassified to net loss: | ||||||||||||||||||||||||||
Unrealized loss on fair value of investments in marketable securities, net of tax | (17,376) | (9,421) | (14,897) | (8,106) | ||||||||||||||||||||||
Realized gain on investments in marketable securities, net of tax | — | 248 | — | 482 | ||||||||||||||||||||||
Other comprehensive loss | (17,376) | (9,173) | (14,897) | (7,624) | ||||||||||||||||||||||
Total comprehensive loss | ($34,910) | ($93,223) | ($133,091) | ($84,389) |
The accompanying notes are an integral part of the condensed interim consolidated financial statements | |||||
First Majestic Silver Corp. 2023 Second Quarter Report | Page 2 |
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2023 AND 2022 | |||||
Condensed Interim Consolidated Financial Statements - Unaudited | (In thousands of US dollars) |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
Note | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||
Operating Activities |
||||||||||||||||||||||||||
Net loss for the period | ($17,534) | ($84,050) | ($118,194) | ($76,765) | ||||||||||||||||||||||
Adjustments for: | ||||||||||||||||||||||||||
Depletion, depreciation and amortization | 32,976 | 34,623 | 67,795 | 65,580 | ||||||||||||||||||||||
Share-based payments | 3,424 | 2,986 | 7,677 | 7,808 | ||||||||||||||||||||||
Income tax (recovery) expense | (4,998) | 78,712 | (50,960) | 66,978 | ||||||||||||||||||||||
Finance costs | 7,326 | 4,835 | 12,949 | 9,425 | ||||||||||||||||||||||
Write down on asset held-for-sale | 7,229 | — | 7,229 | — | ||||||||||||||||||||||
Unrealized (gain) loss from marketable securities and silver futures derivatives | (1,240) | 3,303 | (3,457) | 961 | ||||||||||||||||||||||
(Gain) loss on sale of mining interest | (575) | — | 803 | — | ||||||||||||||||||||||
Impairment (reversal) of non-current asset | — | (7,585) | 125,200 | (7,585) | ||||||||||||||||||||||
Other | 281 | 181 | (298) | 1,931 | ||||||||||||||||||||||
Operating cash flows before non-cash working capital and taxes | 26,889 | 33,005 | 48,744 | 68,333 | ||||||||||||||||||||||
Net change in non-cash working capital items | (2,538) | (17,426) | (12,983) | (44,265) | ||||||||||||||||||||||
Income taxes paid | (3,972) | (28,832) | (20,052) | (56,305) | ||||||||||||||||||||||
Cash generated by (used in) operating activities |
20,379 | (13,253) | 15,709 | (32,237) | ||||||||||||||||||||||
Investing Activities |
||||||||||||||||||||||||||
Expenditures on mining interests | (31,072) | (49,319) | (72,049) | (81,347) | ||||||||||||||||||||||
Acquisition of property, plant and equipment | (6,375) | (18,148) | (14,847) | (24,444) | ||||||||||||||||||||||
Deposits paid for acquisition of non-current assets | (284) | (839) | (3,132) | (4,879) | ||||||||||||||||||||||
Other | 186 | 1,257 | 186 | 3,842 | ||||||||||||||||||||||
Cash used in investing activities |
(37,545) | (67,049) | (89,842) | (106,828) | ||||||||||||||||||||||
Financing Activities |
||||||||||||||||||||||||||
Proceeds from prospectus offering, net of share issue costs | 77,874 | 17,341 | 92,266 | 30,580 | ||||||||||||||||||||||
Proceeds from exercise of stock options | 924 | 1,108 | 1,242 | 3,293 | ||||||||||||||||||||||
Repayment of lease liabilities | (3,531) | (2,978) | (6,957) | (5,998) | ||||||||||||||||||||||
Finance costs paid | (2,363) | (436) | (3,737) | (688) | ||||||||||||||||||||||
Dividends declared and paid | (1,605) | (3,634) | (3,085) | (3,634) | ||||||||||||||||||||||
Cash provided by financing activities |
71,299 | 11,401 | 79,729 | 23,553 | ||||||||||||||||||||||
Effect of exchange rate on cash and cash equivalents held in foreign currencies | 1,326 | (1,508) | 3,201 | (22) | ||||||||||||||||||||||
Increase (decrease) in cash and cash equivalents | 54,133 | (68,901) | 5,596 | (115,512) | ||||||||||||||||||||||
Cash and cash equivalents, beginning of the period | 104,776 | 192,801 | 151,438 | 237,926 | ||||||||||||||||||||||
Cash and cash equivalent reclassified as held for sale | — | (4,671) | — | (4,671) | ||||||||||||||||||||||
Cash and cash equivalents, end of period | $160,235 | $117,721 | $160,235 | $117,721 | ||||||||||||||||||||||
Supplemental cash flow information |
The accompanying notes are an integral part of the condensed interim consolidated financial statements | |||||
First Majestic Silver Corp. 2023 Second Quarter Report | Page 3 |
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION | |||||
AS AT JUNE 30, 2023 AND DECEMBER 31, 2022 | |||||
Condensed Interim Consolidated Financial Statements - Unaudited | (In thousands of US dollars) |
Note | June 30, 2023 | December 31, 2022 | |||||||||||||||
Assets | |||||||||||||||||
Current assets |
|||||||||||||||||
Cash and cash equivalents | $160,235 | $151,438 | |||||||||||||||
Restricted cash | 28,746 | — | |||||||||||||||
Trade and other receivables | 5,259 | 8,598 | |||||||||||||||
Value added taxes receivable | 28,224 | 32,618 | |||||||||||||||
Inventories | 57,948 | 64,761 | |||||||||||||||
Other financial assets | 52,113 | 34,528 | |||||||||||||||
Prepaid expenses and other | 9,021 | 5,617 | |||||||||||||||
Assets held-for-sale | 21,254 | 72,729 | |||||||||||||||
Total current assets |
362,800 | 370,289 | |||||||||||||||
Non-current assets |
|||||||||||||||||
Mining interests | 993,850 | 1,061,124 | |||||||||||||||
Property, plant and equipment | 408,805 | 451,335 | |||||||||||||||
Right-of-use assets | 27,391 | 26,649 | |||||||||||||||
Deposits on non-current assets | 8,207 | 6,003 | |||||||||||||||
Non-current restricted cash | 117,304 | 125,193 | |||||||||||||||
Non-current value added taxes receivable | 14,006 | 12,354 | |||||||||||||||
Deferred tax assets | 81,620 | 57,062 | |||||||||||||||
Total assets |
$2,013,983 | $2,110,009 | |||||||||||||||
Liabilities and Equity |
|||||||||||||||||
Current liabilities |
|||||||||||||||||
Trade and other payables | $96,040 | $115,120 | |||||||||||||||
Unearned revenue | 3,662 | 3,383 | |||||||||||||||
Current portion of debt facilities | 533 | 551 | |||||||||||||||
Current portion of lease liabilities | 16,571 | 13,827 | |||||||||||||||
Liabilities relating to assets held-for-sale | 6,354 | 16,278 | |||||||||||||||
Income taxes payable | 2,446 | 18,240 | |||||||||||||||
Total current liabilities |
125,606 | 167,399 | |||||||||||||||
Non-current liabilities |
|||||||||||||||||
Debt facilities | 214,329 | 209,811 | |||||||||||||||
Lease liabilities | 23,379 | 23,756 | |||||||||||||||
Decommissioning liabilities | 153,451 | 149,017 | |||||||||||||||
Other liabilities | 7,207 | 5,655 | |||||||||||||||
Non-current income taxes payable | 23,365 | 20,605 | |||||||||||||||
Deferred tax liabilities | 90,339 | 122,468 | |||||||||||||||
Total liabilities |
$637,676 | $698,711 | |||||||||||||||
Equity | |||||||||||||||||
Share capital | 1,877,382 | 1,781,280 | |||||||||||||||
Equity reserves | 89,100 | 98,914 | |||||||||||||||
Accumulated deficit | (590,175) | (468,896) | |||||||||||||||
Total equity |
$1,376,307 | $1,411,298 | |||||||||||||||
Total liabilities and equity |
$2,013,983 | $2,110,009 | |||||||||||||||
The accompanying notes are an integral part of the condensed interim consolidated financial statements | |||||
First Majestic Silver Corp. 2023 Second Quarter Report | Page 4 |
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY | |||||
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2023 AND 2022 | |||||
Condensed Interim Consolidated Financial Statements - Unaudited | (In thousands of US dollars, except share and per share amounts) |
Share Capital | Equity Reserves |
Accumulated deficit |
||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Share-based payments(a) |
Other comprehensive income(loss)(b) |
Equity component of convertible debenture(c) |
Total equity reserves | Total equity | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | 260,050,658 | $1,659,781 | $101,385 | ($6,387) | $3,945 | $98,943 | ($347,753) | $1,410,971 | ||||||||||||||||||||||||||||||||||||||||||||||||
Net loss for the period | — | — | — | — | — | — | (76,765) | (76,765) | ||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | (7,624) | — | (7,624) | — | (7,624) | ||||||||||||||||||||||||||||||||||||||||||||||||
Total comprehensive loss | — | — | — | (7,624) | — | (7,624) | (76,765) | (84,389) | ||||||||||||||||||||||||||||||||||||||||||||||||
Share-based payments | — | — | 7,710 | — | — | 7,710 | — | 7,710 | ||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued for: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Prospectus offerings (Note 23(a)) |
2,318,497 | 30,580 | — | — | — | — | — | 30,580 | ||||||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options (Note 23(b)) |
401,498 | 4,823 | (1,530) | — | — | (1,530) | — | 3,293 | ||||||||||||||||||||||||||||||||||||||||||||||||
Settlement of restricted share units (Note 23(c)) |
82,515 | 1,075 | (1,340) | — | — | (1,340) | — | (265) | ||||||||||||||||||||||||||||||||||||||||||||||||
Dividend declared and paid (Note 23(g)) |
— | — | — | — | — | — | (3,634) | (3,634) | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2022 | 262,853,168 | $1,696,259 | $106,225 | ($14,011) | $3,945 | $96,159 | ($428,152) | $1,364,266 | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2022 | 272,577,979 | $1,781,280 | $110,895 | ($15,926) | $3,945 | $98,914 | ($468,896) | $1,411,298 | ||||||||||||||||||||||||||||||||||||||||||||||||
Net loss for the period | — | — | — | — | — | — | (118,194) | (118,194) | ||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | (14,897) | — | (14,897) | — | (14,897) | ||||||||||||||||||||||||||||||||||||||||||||||||
Total comprehensive loss | — | — | — | (14,897) | — | (14,897) | (118,194) | (133,091) | ||||||||||||||||||||||||||||||||||||||||||||||||
Share-based payments | — | — | 7,677 | — | — | 7,677 | — | 7,677 | ||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued for: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Prospectus offerings (Note 23(a)) |
13,919,634 | 92,266 | — | — | — | — | — | 92,266 | ||||||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options (Note 23(b)) |
192,500 | 1,849 | (607) | — | — | (607) | — | 1,242 | ||||||||||||||||||||||||||||||||||||||||||||||||
180,592 | 1,987 | (1,987) | — | — | (1,987) | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Dividend declared (Note 23(g)) |
— | — | — | — | — | — | (3,085) | (3,085) | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2023 | 286,870,705 | $1,877,382 | $115,978 | ($30,823) | $3,945 | $89,100 | ($590,175) | $1,376,307 |
The accompanying notes are an integral part of the condensed interim consolidated financial statements | |||||
First Majestic Silver Corp. 2023 Second Quarter Report | Page 5 |
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS | |||||
Condensed Interim Consolidated Financial Statements - Unaudited | (Tabular amounts are expressed in thousands of US dollars) |
The accompanying notes are an integral part of the condensed interim consolidated financial statements | |||||
First Majestic Silver Corp. 2023 Second Quarter Report | Page 6 |
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS | |||||
Condensed Interim Consolidated Financial Statements - Unaudited |
(Tabular amounts are expressed in thousands of US dollars) |
The accompanying notes are an integral part of the condensed interim consolidated financial statements | |||||
First Majestic Silver Corp. 2023 Second Quarter Report | Page 7 |
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS | |||||
Condensed Interim Consolidated Financial Statements - Unaudited |
(Tabular amounts are expressed in thousands of US dollars) |
The accompanying notes are an integral part of the condensed interim consolidated financial statements | |||||
First Majestic Silver Corp. 2023 Second Quarter Report | Page 8 |
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS | |||||
Condensed Interim Consolidated Financial Statements - Unaudited |
(Tabular amounts are expressed in thousands of US dollars) |
The accompanying notes are an integral part of the condensed interim consolidated financial statements | |||||
First Majestic Silver Corp. 2023 Second Quarter Report | Page 9 |
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS | |||||
Condensed Interim Consolidated Financial Statements - Unaudited |
(Tabular amounts are expressed in thousands of US dollars) |
Three Months Ended June 30, 2023 and 2022 | Revenue | Cost of sales | Depletion, depreciation, and amortization | Mine operating earnings (loss) | Capital expenditures | ||||||||||||||||||||||||||||||||||||||||||
Mexico | |||||||||||||||||||||||||||||||||||||||||||||||
San Dimas | 2023 | $66,885 | $45,149 | $12,863 | $8,873 | $10,403 | |||||||||||||||||||||||||||||||||||||||||
2022 | 54,255 | 33,532 | 11,445 | 9,278 | 14,356 | ||||||||||||||||||||||||||||||||||||||||||
Santa Elena | 2023 | 42,481 | 25,512 | 9,583 | 7,386 | 13,423 | |||||||||||||||||||||||||||||||||||||||||
2022 | 49,334 | 27,911 | 6,902 | 14,521 | 16,390 | ||||||||||||||||||||||||||||||||||||||||||
La Encantada | 2023 | 19,272 | 13,525 | 2,993 | 2,754 | 2,024 | |||||||||||||||||||||||||||||||||||||||||
2022 | 21,317 | 11,702 | 2,341 | 7,274 | 2,739 | ||||||||||||||||||||||||||||||||||||||||||
Non-producing Properties | 2023 | — | — | 86 | (86) | 30 | |||||||||||||||||||||||||||||||||||||||||
2022 | — | — | 104 | (104) | 183 | ||||||||||||||||||||||||||||||||||||||||||
United States | |||||||||||||||||||||||||||||||||||||||||||||||
Jerritt Canyon (2) |
2023 | 15,660 | 27,225 | 6,452 | (18,017) | 4,033 | |||||||||||||||||||||||||||||||||||||||||
2022 | 36,252 | 41,743 | 12,827 | (18,318) | 26,859 | ||||||||||||||||||||||||||||||||||||||||||
Others(1) |
2023 | 2,394 | 1,556 | 610 | 228 | 647 | |||||||||||||||||||||||||||||||||||||||||
2022 | 2,570 | 1,428 | 593 | 549 | 9,521 | ||||||||||||||||||||||||||||||||||||||||||
Intercompany elimination | 2023 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
2022 | (4,285) | (2,697) | — | (1,588) | — | ||||||||||||||||||||||||||||||||||||||||||
Consolidated | 2023 | $146,692 | $112,967 | $32,587 | $1,138 | $30,560 | |||||||||||||||||||||||||||||||||||||||||
2022 | $159,443 | $113,619 | $34,212 | $11,612 | $70,049 |
The accompanying notes are an integral part of the condensed interim consolidated financial statements | |||||
First Majestic Silver Corp. 2023 Second Quarter Report | Page 10 |
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS | |||||
Condensed Interim Consolidated Financial Statements - Unaudited |
(Tabular amounts are expressed in thousands of US dollars) |
Six Months Ended June 30, 2023 and 2022 | Revenue | Cost of sales | Depletion, depreciation, and amortization | Mine operating earnings (loss) | Capital expenditures | ||||||||||||||||||||||||||||||
Mexico | |||||||||||||||||||||||||||||||||||
San Dimas | 2023 | $128,145 | $84,784 | $25,627 | $17,734 | $22,296 | |||||||||||||||||||||||||||||
2022 | 116,196 | 64,835 | 22,321 | 29,040 | 27,259 | ||||||||||||||||||||||||||||||
Santa Elena | 2023 | 91,497 | 52,739 | 18,454 | 20,304 | 26,958 | |||||||||||||||||||||||||||||
2022 | 92,218 | 52,215 | 12,312 | 27,691 | 26,510 | ||||||||||||||||||||||||||||||
La Encantada | 2023 | 38,033 | 26,897 | 6,018 | 5,118 | 3,875 | |||||||||||||||||||||||||||||
2022 | 36,830 | 21,731 | 4,112 | 10,987 | 4,938 | ||||||||||||||||||||||||||||||
Non-producing Properties | 2023 | — | — | 171 | (171) | 255 | |||||||||||||||||||||||||||||
2022 | — | — | 208 | (208) | 412 | ||||||||||||||||||||||||||||||
United States | |||||||||||||||||||||||||||||||||||
Jerritt Canyon (2) |
2023 | 39,769 | 73,714 | 15,404 | (49,349) | 22,798 | |||||||||||||||||||||||||||||
2022 | 73,284 | 87,354 | 24,422 | (38,492) | 42,978 | ||||||||||||||||||||||||||||||
Others(1) |
2023 | 6,200 | 3,779 | 1,342 | 1,079 | 1,032 | |||||||||||||||||||||||||||||
2022 | 6,922 | 3,857 | 1,393 | 1,672 | 14,876 | ||||||||||||||||||||||||||||||
Intercompany elimination | 2023 | — | — | — | — | — | |||||||||||||||||||||||||||||
2022 | (9,169) | (5,160) | — | (4,009) | — | ||||||||||||||||||||||||||||||
Consolidated | 2023 | $303,644 | $241,913 | $67,016 | ($5,285) | $77,214 | |||||||||||||||||||||||||||||
2022 | $316,281 | $224,832 | $64,768 | $26,681 | $116,974 |
The accompanying notes are an integral part of the condensed interim consolidated financial statements | |||||
First Majestic Silver Corp. 2023 Second Quarter Report | Page 11 |
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS | |||||
Condensed Interim Consolidated Financial Statements - Unaudited |
(Tabular amounts are expressed in thousands of US dollars) |
At June 30, 2023 and December 31, 2022 |
Mining Interests | Property, plant and equipment | Total mining assets |
Total assets |
Total liabilities | ||||||||||||||||||||||||||||||||||||
Producing | Exploration | ||||||||||||||||||||||||||||||||||||||||
Mexico | |||||||||||||||||||||||||||||||||||||||||
San Dimas | 2023 | $234,163 | $17,609 | $90,602 | $342,374 | $556,903 | $102,551 | ||||||||||||||||||||||||||||||||||
2022 | 211,658 | 38,831 | 94,377 | 344,866 | 489,970 | 76,835 | |||||||||||||||||||||||||||||||||||
Santa Elena | 2023 | 120,525 | 46,103 | 96,773 | 263,401 | 339,504 | 83,646 | ||||||||||||||||||||||||||||||||||
2022 | 110,094 | 41,731 | 99,979 | 251,804 | 295,489 | 79,295 | |||||||||||||||||||||||||||||||||||
La Encantada | 2023 | 23,951 | 3,977 | 23,631 | 51,559 | 104,292 | 27,008 | ||||||||||||||||||||||||||||||||||
2022 | 23,496 | 4,935 | 24,422 | 52,853 | 106,008 | 30,601 | |||||||||||||||||||||||||||||||||||
Non-producing Properties | 2023 | 62,414 | 14,022 | 17,953 | 94,389 | 161,319 | 24,103 | ||||||||||||||||||||||||||||||||||
2022 | 62,414 | 13,781 | 18,195 | 94,390 | 206,796 | 33,391 | |||||||||||||||||||||||||||||||||||
United States | |||||||||||||||||||||||||||||||||||||||||
Jerritt Canyon | 2023 | 353,729 | 81,831 | 133,858 | 569,418 | 631,509 | 202,804 | ||||||||||||||||||||||||||||||||||
2022 | 425,158 | 93,680 | 166,778 | 685,617 | 756,062 | 226,814 | |||||||||||||||||||||||||||||||||||
Others | 2023 | — | 35,525 | 45,988 | 81,513 | 220,456 | 197,564 | ||||||||||||||||||||||||||||||||||
2022 | — | 35,346 | 47,584 | 82,930 | 255,684 | 251,775 | |||||||||||||||||||||||||||||||||||
Consolidated | 2023 | $794,782 | $199,068 | $408,805 | $1,402,655 | $2,013,983 | $637,676 | ||||||||||||||||||||||||||||||||||
2022 | $832,820 | $228,304 | $451,335 | $1,512,459 | $2,110,009 | $698,711 |
The accompanying notes are an integral part of the condensed interim consolidated financial statements | |||||
First Majestic Silver Corp. 2023 Second Quarter Report | Page 12 |
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS | |||||
Condensed Interim Consolidated Financial Statements - Unaudited |
(Tabular amounts are expressed in thousands of US dollars) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||
Gross revenue from payable metals: |
|||||||||||||||||||||||||||||||||||
Silver | $66,912 | 45 | % | $62,090 | 39 | % | $127,977 | 42 | % | $124,245 | 39 | % | |||||||||||||||||||||||
Gold | 80,397 | 55 | % | 98,009 | 61 | % | 176,934 | 58 | % | 193,337 | 61 | % | |||||||||||||||||||||||
Gross revenue | 147,309 | 100 | % | 160,099 | 100 | % | 304,911 | 100 | % | 317,582 | 100 | % | |||||||||||||||||||||||
Less: smelting and refining costs | (617) | (656) | (1,267) | (1,301) | |||||||||||||||||||||||||||||||
Revenues | $146,692 | $159,443 | $303,644 | $316,281 |
The accompanying notes are an integral part of the condensed interim consolidated financial statements | |||||
First Majestic Silver Corp. 2023 Second Quarter Report | Page 13 |
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS | |||||
Condensed Interim Consolidated Financial Statements - Unaudited |
(Tabular amounts are expressed in thousands of US dollars) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Consumables and materials | $17,241 | $26,277 | $46,956 | $51,907 | |||||||||||||||||||
Labour costs | 50,446 | 51,528 | 116,691 | 110,608 | |||||||||||||||||||
Energy | 10,060 | 13,768 | 23,976 | 26,093 | |||||||||||||||||||
Maintenance | 1,472 | 2,671 | 3,270 | 5,000 | |||||||||||||||||||
Assays and labwork | 671 | 1,533 | 1,741 | 2,792 | |||||||||||||||||||
Insurance | 554 | 950 | 1,991 | 2,202 | |||||||||||||||||||
Other costs(1) |
13,560 | 6,796 | 9,942 | 8,865 | |||||||||||||||||||
Production costs | $94,004 | $103,523 | $204,567 | $207,467 | |||||||||||||||||||
Transportation and other selling costs | 869 | 915 | 1,804 | 1,284 | |||||||||||||||||||
Workers' participation costs | 5,420 | 4,531 | 9,924 | 7,241 | |||||||||||||||||||
Environmental duties and royalties | 2,795 | 2,878 | 5,989 | 5,647 | |||||||||||||||||||
Finished goods inventory changes | 1,519 | (1,345) | 6,192 | 76 | |||||||||||||||||||
Other(2) |
— | 3,117 | — | 3,117 | |||||||||||||||||||
Cost of Sales | $104,607 | $113,619 | $228,476 | $224,832 | |||||||||||||||||||
Cost of Sales - Standby Costs(3) |
$8,360 | $— | $13,437 | $— |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Corporate administration | $2,553 | $2,457 | $4,583 | $4,295 | |||||||||||||||||||
Salaries and benefits | 5,759 | 3,510 | 9,782 | 9,186 | |||||||||||||||||||
Audit, legal and professional fees | 2,616 | 2,593 | 4,290 | 4,635 | |||||||||||||||||||
Filing and listing fees | 169 | 188 | 314 | 314 | |||||||||||||||||||
Directors' fees and expenses | 187 | 221 | 373 | 420 | |||||||||||||||||||
Depreciation | 389 | 411 | 779 | 812 | |||||||||||||||||||
$11,673 | $9,380 | $20,121 | $19,662 |
The accompanying notes are an integral part of the condensed interim consolidated financial statements | |||||
First Majestic Silver Corp. 2023 Second Quarter Report | Page 14 |
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS | |||||
Condensed Interim Consolidated Financial Statements - Unaudited |
(Tabular amounts are expressed in thousands of US dollars) |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
La Parrilla(1) |
$1,708 | $546 | $2,913 | $1,615 | ||||||||||||||||||||||
Del Toro | 667 | 580 | 1,323 | 1,226 | ||||||||||||||||||||||
San Martin | 4 | 993 | 643 | 1,586 | ||||||||||||||||||||||
La Guitarra(1) |
— | 311 | 514 | 1,168 | ||||||||||||||||||||||
Santa Elena (2) |
477 | — | 1,252 | — | ||||||||||||||||||||||
Jerritt Canyon | 862 | — | 862 | — | ||||||||||||||||||||||
$3,718 | $2,430 | $7,507 | $5,595 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Gain from investment in silver futures derivatives | $1,391 | $— | $4,391 | $2,888 | ||||||||||||||||||||||
Loss from investment in marketable securities (Note 13(a)) |
(150) | (3,303) | (934) | (3,849) | ||||||||||||||||||||||
Interest income and other | 2,403 | (615) | 3,412 | (325) | ||||||||||||||||||||||
$3,644 | ($3,918) | $6,869 | ($1,286) |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Debt facilities(1) (Note 21) |
$2,982 | $2,507 | $5,888 | $4,889 | ||||||||||||||||||||||
Accretion of decommissioning liabilities | 2,673 | 1,510 | 4,415 | 3,016 | ||||||||||||||||||||||
Lease liabilities (Note 22) |
699 | 506 | 1,284 | 1,041 | ||||||||||||||||||||||
Silver sales and other | 972 | 312 | 1,362 | 479 | ||||||||||||||||||||||
$7,326 | $4,835 | $12,949 | $9,425 |
The accompanying notes are an integral part of the condensed interim consolidated financial statements | |||||
First Majestic Silver Corp. 2023 Second Quarter Report | Page 15 |
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS | |||||
Condensed Interim Consolidated Financial Statements - Unaudited |
(Tabular amounts are expressed in thousands of US dollars) |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Net loss for the period | ($17,534) | ($84,050) | ($118,194) | ($76,765) | ||||||||||||||||||||||
Weighted average number of shares on issue - basic | 280,993,803 | 262,680,950 | 277,625,669 | 261,447,267 | ||||||||||||||||||||||
Effect on dilutive securities: | ||||||||||||||||||||||||||
Stock options | — | — | — | — | ||||||||||||||||||||||
Restricted, performance and deferred share units | — | — | — | — | ||||||||||||||||||||||
Weighted average number of shares on issue - diluted(1) |
280,993,803 | 262,680,950 | 277,625,669 | 261,447,267 | ||||||||||||||||||||||
Loss per share - basic and diluted | ($0.06) | ($0.32) | ($0.43) | ($0.29) |
June 30, 2023 |
December 31, 2022 |
||||||||||
Finished goods - doré | $3,639 | $5,561 | |||||||||
Work-in-process | 7,710 | 9,176 | |||||||||
Stockpile | 3,716 | 4,825 | |||||||||
Silver coins and bullion | 5,057 | 8,001 | |||||||||
Materials and supplies | 37,826 | 37,198 | |||||||||
$57,948 | $64,761 |
The accompanying notes are an integral part of the condensed interim consolidated financial statements | |||||
First Majestic Silver Corp. 2023 Second Quarter Report | Page 16 |
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS | |||||
Condensed Interim Consolidated Financial Statements - Unaudited |
(Tabular amounts are expressed in thousands of US dollars) |
June 30, 2023 |
December 31, 2022 |
||||||||||
FVTPL marketable securities (a) | $5,551 | $6,657 | |||||||||
FVTOCI marketable securities (b) | 46,562 | 27,871 | |||||||||
Total other financial assets | $52,113 | $34,528 |
The accompanying notes are an integral part of the condensed interim consolidated financial statements | |||||
First Majestic Silver Corp. 2023 Second Quarter Report | Page 17 |
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS | |||||
Condensed Interim Consolidated Financial Statements - Unaudited |
(Tabular amounts are expressed in thousands of US dollars) |
The accompanying notes are an integral part of the condensed interim consolidated financial statements | |||||
First Majestic Silver Corp. 2023 Second Quarter Report | Page 18 |
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS | |||||
Condensed Interim Consolidated Financial Statements - Unaudited |
(Tabular amounts are expressed in thousands of US dollars) |
As at June 30, 2023 | As at December 31, 2022 |
|||||||||||||
La Parrilla | La Guitarra(1) |
La Parrilla | ||||||||||||
Assets: | ||||||||||||||
Cash and cash equivalents | $— | $5,218 | $— | |||||||||||
Trade and other receivables | — | 396 | — | |||||||||||
Inventory | 854 | 437 | 876 | |||||||||||
Prepaid expenses and other | — | 51 | — | |||||||||||
Current assets | $854 | $6,102 | $876 | |||||||||||
Non-Current Assets: | ||||||||||||||
Mineral Interests - depletable | 10,103 | 30,193 | 13,758 | |||||||||||
Mineral Interests - non-depletable | 3,788 | 3,917 | 5,252 | |||||||||||
Property, plant and equipment | 5,828 | 4,004 | 7,821 | |||||||||||
Right of use assets | 591 | 16 | 645 | |||||||||||
Deposits on long-term assets | 90 | 26 | 117 | |||||||||||
Total assets held-for-sale | $21,254 | $44,258 | $28,469 | |||||||||||
Liabilities: | ||||||||||||||
Trade payables and accrued liabilities | $— | $141 | $— | |||||||||||
Current portion of lease obligations | — | 8 | — | |||||||||||
Current Liabilities | $— | $149 | $— | |||||||||||
Non-Current Liabilities: | ||||||||||||||
Deferred tax liabilities | 1,667 | 6,894 | 1,667 | |||||||||||
Lease obligations | 519 | 12 | 438 | |||||||||||
Decommissioning liabilities | 4,168 | 2,951 | 4,167 | |||||||||||
Total liabilities relating to assets held-for-sale | $6,354 | $10,006 | $6,272 | |||||||||||
Net assets held for sale | $14,900 | $34,252 | $22,197 |
The accompanying notes are an integral part of the condensed interim consolidated financial statements | |||||
First Majestic Silver Corp. 2023 Second Quarter Report | Page 19 |
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS | |||||
Condensed Interim Consolidated Financial Statements - Unaudited |
(Tabular amounts are expressed in thousands of US dollars) |
Asset | Owner | Location | Royalty | Allocated Value Total | ||||||||||
La Encantada | First Majestic Silver Corp. | Coahuila, Mexico | 100% Gold Royalty(1) |
$1,720,574 | ||||||||||
La Parrilla | First Majestic Silver Corp. | Durango, Mexico | 2% Net Smelter Return | $3,871,290 | ||||||||||
Del Toro | First Majestic Silver Corp. | Zacatecas, Mexico | 2% Net Smelter Return | $3,226,075 | ||||||||||
San Martin | First Majestic Silver Corp. | Jalisco, Mexico | 2% Net Smelter Return | $5,376,792 | ||||||||||
La Guitarra | Sierra Madre Gold and Silver Ltd. | Mexico, Mexico | 2% Net Smelter Return | $3,011,004 | ||||||||||
Plomosas | GR Silver Mining Ltd. | Sinaloa, Mexico | 2% Net Smelter Return | $4,301,434 | ||||||||||
La Luz | First Majestic Silver Corp. | San Luís Potosí, Mexico | 2% Net Smelter Return | $— | ||||||||||
La Joya | First Majestic Silver Corp. - Optioned to Silver Dollar Resources | Durango, Mexico | 2% Net Smelter Return | $— |
June 30, 2023 |
December 31, 2022 |
||||||||||
Depletable properties | $794,782 | $832,820 | |||||||||
Non-depletable properties (exploration and evaluation costs, exploration potential) | 199,068 | 228,304 | |||||||||
$993,850 | $1,061,124 |
The accompanying notes are an integral part of the condensed interim consolidated financial statements | |||||
First Majestic Silver Corp. 2023 Second Quarter Report | Page 20 |
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS | |||||
Condensed Interim Consolidated Financial Statements - Unaudited |
(Tabular amounts are expressed in thousands of US dollars) |
Depletable properties | San Dimas | Santa Elena | La Encantada | Jerritt Canyon |
Non-producing
Properties(1)
|
Total | |||||||||||||||||||||||||||||
Cost | |||||||||||||||||||||||||||||||||||
At December 31, 2021 | $286,196 | $125,921 | $122,735 | $386,069 | $494,568 | $1,415,490 | |||||||||||||||||||||||||||||
Additions | 30,733 | 23,957 | 2,507 | 58,728 | — | 115,925 | |||||||||||||||||||||||||||||
Transfer to assets held-for-sale (Note 14) |
— | — | — | — | (279,399) | (279,399) | |||||||||||||||||||||||||||||
Change in decommissioning liabilities |
(1,800) | 1,518 | (879) | 1,241 | (2,332) | (2,252) | |||||||||||||||||||||||||||||
Disposal of royalty portfolio (Note 14) |
— | — | (1,721) | — | — | (1,721) | |||||||||||||||||||||||||||||
Transfer from non-depletable properties | — | — | 2,098 | 30,503 | — | 32,601 | |||||||||||||||||||||||||||||
At December 31, 2022 | $315,129 | $151,396 | $124,740 | $476,541 | $212,838 | $1,280,644 | |||||||||||||||||||||||||||||
Additions | 12,982 | 16,824 | 1,377 | 13,349 | — | 44,532 | |||||||||||||||||||||||||||||
Transfer from non-depletable properties | 26,426 | 1,896 | 2,021 | — | — | 30,343 | |||||||||||||||||||||||||||||
At June 30, 2023 | $354,537 | $170,116 | $128,138 | $489,890 | $212,838 | $1,355,519 | |||||||||||||||||||||||||||||
Accumulated depletion, amortization and impairment reversal | |||||||||||||||||||||||||||||||||||
At December 31, 2021 | ($72,671) | ($28,650) | ($96,908) | ($23,258) | ($388,354) | ($609,841) | |||||||||||||||||||||||||||||
Depletion and amortization | (30,800) | (12,652) | (4,336) | (28,125) | — | (75,913) | |||||||||||||||||||||||||||||
Reversal of impairment (Note 14) |
— | — | — | — | 8,203 | 8,203 | |||||||||||||||||||||||||||||
Transfer to assets held-for-sale (Note 14) |
— | — | — | — | 235,448 | 235,448 | |||||||||||||||||||||||||||||
Impairment (Note 14) |
— | — | — | — | (5,721) | (5,721) | |||||||||||||||||||||||||||||
At December 31, 2022 | ($103,471) | ($41,302) | ($101,244) | ($51,383) | ($150,424) | ($447,824) | |||||||||||||||||||||||||||||
Depletion and amortization | (16,903) | (8,289) | (2,943) | (6,650) | — | (34,785) | |||||||||||||||||||||||||||||
Impairment (Note 18) |
— | — | — | (78,128) | — | (78,128) | |||||||||||||||||||||||||||||
At June 30, 2023 | ($120,374) | ($49,591) | ($104,187) | ($136,161) | ($150,424) | ($560,737) | |||||||||||||||||||||||||||||
Carrying values | |||||||||||||||||||||||||||||||||||
At December 31, 2022 | $211,658 | $110,094 | $23,496 | $425,158 | $62,414 | $832,820 | |||||||||||||||||||||||||||||
At June 30, 2023 | $234,163 | $120,525 | $23,951 | $353,729 | $62,414 | $794,782 |
The accompanying notes are an integral part of the condensed interim consolidated financial statements | |||||
First Majestic Silver Corp. 2023 Second Quarter Report | Page 21 |
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS | |||||
Condensed Interim Consolidated Financial Statements - Unaudited |
(Tabular amounts are expressed in thousands of US dollars) |
Non-depletable properties |
San Dimas(a) |
Santa Elena(b) |
La Encantada(c) |
Jerritt Canyon(d) |
Non-producing
Properties(1)
|
Exploration Projects(2) |
Springpole
Stream(e)
|
Total | |||||||||||||||||||||||||||||||||||||||
At December 31, 2021 |
$29,186 | $31,067 | $4,640 | $104,431 | $38,752 | $22,948 | $11,856 | $242,881 | |||||||||||||||||||||||||||||||||||||||
Exploration and evaluation expenditures | 9,645 | 10,664 | 2,393 | 19,752 | 771 | 694 | — | 43,919 | |||||||||||||||||||||||||||||||||||||||
Change in decommissioning liabilities | — | — | — | — | — | (153) | — | (153) | |||||||||||||||||||||||||||||||||||||||
Impairment (Note 14) |
— | — | — | — | (2,132) | — | — | (2,132) | |||||||||||||||||||||||||||||||||||||||
Reversal of impairment | — | — | — | — | 1,044 | — | — | 1,044 | |||||||||||||||||||||||||||||||||||||||
Metalla royalty | — | — | — | — | (15,485) | — | — | (15,485) | |||||||||||||||||||||||||||||||||||||||
Transfer to assets held-for-sale (Note 14) |
— | — | — | — | (9,169) | — | — | (9,169) | |||||||||||||||||||||||||||||||||||||||
Transfer to depletable properties | — | — | (2,098) | (30,503) | — | — | — | (32,601) | |||||||||||||||||||||||||||||||||||||||
At December 31, 2022 |
$38,831 | $41,731 | $4,935 | $93,680 | $13,781 | $23,489 | $11,856 | $228,304 | |||||||||||||||||||||||||||||||||||||||
Exploration and evaluation expenditures | 5,204 | 6,268 | 1,063 | 5,539 | 241 | 375 | — | 18,690 | |||||||||||||||||||||||||||||||||||||||
Impairment (Note 18) |
— | — | — | (17,388) | — | — | (17,388) | ||||||||||||||||||||||||||||||||||||||||
Disposal of La Joya | — | — | — | — | — | (195) | — | (195) | |||||||||||||||||||||||||||||||||||||||
Transfer to asset held-for-sale (Note 14) |
— | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Transfer to depletable properties | (26,426) | (1,896) | (2,021) | — | — | — | — | (30,343) | |||||||||||||||||||||||||||||||||||||||
At June 30, 2023 | $17,609 | $46,103 | $3,977 | $81,831 | $14,022 | $23,669 | $11,856 | $199,068 |
The accompanying notes are an integral part of the condensed interim consolidated financial statements | |||||
First Majestic Silver Corp. 2023 Second Quarter Report | Page 22 |
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS | |||||
Condensed Interim Consolidated Financial Statements - Unaudited |
(Tabular amounts are expressed in thousands of US dollars) |
The accompanying notes are an integral part of the condensed interim consolidated financial statements | |||||
First Majestic Silver Corp. 2023 Second Quarter Report | Page 23 |
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS | |||||
Condensed Interim Consolidated Financial Statements - Unaudited |
(Tabular amounts are expressed in thousands of US dollars) |
Land and Buildings(1) |
Machinery and Equipment | Assets under Construction(2) |
Other | Total | |||||||||||||||||||||||||
Cost | |||||||||||||||||||||||||||||
At December 31, 2021 | $244,957 | $624,462 | $90,451 | $33,583 | $993,453 | ||||||||||||||||||||||||
Additions | — | 5,038 | 64,088 | 507 | 69,633 | ||||||||||||||||||||||||
Reclassification to assets held-for-sale (Note 14) |
(30,903) | (82,275) | (176) | (2,111) | (115,465) | ||||||||||||||||||||||||
Transfers and disposals | 23,192 | 47,783 | (80,436) | 4,772 | (4,689) | ||||||||||||||||||||||||
At December 31, 2022 | $237,246 | $595,008 | $73,927 | $36,751 | $942,932 | ||||||||||||||||||||||||
Additions | 14 | 439 | 13,293 | 246 | 13,992 | ||||||||||||||||||||||||
Reclassification to asset held-for-sale (Note 14) |
(14) | 26 | — | — | 12 | ||||||||||||||||||||||||
Transfers and disposals | 3,087 | 24,099 | (30,915) | 1,205 | (2,524) | ||||||||||||||||||||||||
At June 30, 2023 | $240,333 | $619,572 | $56,305 | $38,202 | $954,412 | ||||||||||||||||||||||||
Accumulated depreciation, amortization and impairment reversal | |||||||||||||||||||||||||||||
At December 31, 2021 | ($147,079) | ($374,879) | $— | ($22,258) | ($544,216) | ||||||||||||||||||||||||
Depreciation and amortization | (12,016) | (40,419) | — | (3,793) | (56,228) | ||||||||||||||||||||||||
Impairment (Note 14) |
(1,742) | — | — | — | (1,742) | ||||||||||||||||||||||||
Impairment reversal (Note 14) |
3,076 | — | — | — | 3,076 | ||||||||||||||||||||||||
Reclassification to assets held-for-sale (Note 14) |
20,774 | 80,964 | — | 1,902 | 103,640 | ||||||||||||||||||||||||
Transfers and disposals | — | 3,606 | — | 267 | 3,873 | ||||||||||||||||||||||||
At December 31, 2022 | ($136,987) | ($330,728) | $— | ($23,882) | ($491,597) | ||||||||||||||||||||||||
Depreciation and amortization | (6,300) | (18,179) | — | (1,976) | (26,455) | ||||||||||||||||||||||||
Impairment (Note 18) |
(7,585) | (21,979) | — | (120) | (29,684) | ||||||||||||||||||||||||
Reclassification to asset held-for-sale (Note 14) |
— | (117) | — | — | (117) | ||||||||||||||||||||||||
Transfers and disposals | — | 2,246 | — | — | 2,246 | ||||||||||||||||||||||||
At June 30, 2023 | ($150,872) | ($368,757) | $— | ($25,978) | ($545,607) | ||||||||||||||||||||||||
Carrying values | |||||||||||||||||||||||||||||
At December 31, 2022 | $100,259 | $264,280 | $73,927 | $12,869 | $451,335 | ||||||||||||||||||||||||
At June 30, 2023 | $89,461 | $250,815 | $56,305 | $12,224 | $408,805 |
The accompanying notes are an integral part of the condensed interim consolidated financial statements | |||||
First Majestic Silver Corp. 2023 Second Quarter Report | Page 24 |
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS | |||||
Condensed Interim Consolidated Financial Statements - Unaudited |
(Tabular amounts are expressed in thousands of US dollars) |
San Dimas | Santa Elena | La Encantada | Jerritt Canyon |
Non-producing
Properties(1)
|
Other | Total | |||||||||||||||||||||||||||||||||||
Cost | |||||||||||||||||||||||||||||||||||||||||
At December 31, 2021 | $158,528 | $122,597 | $150,718 | $193,085 | $285,806 | $82,719 | $993,453 | ||||||||||||||||||||||||||||||||||
Additions (2) |
6,985 | 13,093 | 5,325 | 16,297 | 98 | 27,835 | 69,633 | ||||||||||||||||||||||||||||||||||
Reclassification to assets held-for-sale | — | — | — | — | (115,465) | — | (115,465) | ||||||||||||||||||||||||||||||||||
Transfers and disposals | (717) | 31,852 | 1,880 | 367 | (5,421) | (32,650) | (4,689) | ||||||||||||||||||||||||||||||||||
At December 31, 2022 | $164,796 | $167,542 | $157,923 | $209,749 | $165,018 | $77,904 | $942,932 | ||||||||||||||||||||||||||||||||||
Additions(2) |
4,110 | 3,866 | 1,435 | 3,910 | 14 | 657 | 13,992 | ||||||||||||||||||||||||||||||||||
Reclassification to asset held-for-sale (Note 14) |
— | — | — | — | 12 | — | 12 | ||||||||||||||||||||||||||||||||||
Transfers and disposals | 451 | (1,435) | 399 | (19) | (943) | (977) | (2,524) | ||||||||||||||||||||||||||||||||||
At June 30, 2023 | $169,357 | $169,973 | $159,757 | $213,640 | $164,101 | $77,584 | $954,412 | ||||||||||||||||||||||||||||||||||
Accumulated depreciation, amortization and impairment | |||||||||||||||||||||||||||||||||||||||||
At December 31, 2021 | ($53,055) | ($57,754) | ($130,038) | ($20,228) | ($258,626) | ($24,515) | ($544,216) | ||||||||||||||||||||||||||||||||||
Depreciation and amortization | (17,554) | (10,058) | (2,809) | (22,747) | (222) | (2,838) | (56,228) | ||||||||||||||||||||||||||||||||||
Impairment | — | — | — | — | (1,742) | — | (1,742) | ||||||||||||||||||||||||||||||||||
Impairment reversal | — | — | — | — | 3,076 | — | 3,076 | ||||||||||||||||||||||||||||||||||
Reclassification to assets held-for-sale | — | — | — | — | 103,640 | — | 103,640 | ||||||||||||||||||||||||||||||||||
Transfers and disposals | 190 | 249 | (654) | 4 | 7,051 | (2,967) | 3,873 | ||||||||||||||||||||||||||||||||||
At December 31, 2022 | ($70,419) | ($67,563) | ($133,501) | ($42,971) | ($146,823) | ($30,320) | ($491,597) | ||||||||||||||||||||||||||||||||||
Depreciation and amortization | (8,335) | (7,367) | (2,226) | (7,127) | (84) | (1,316) | (26,455) | ||||||||||||||||||||||||||||||||||
Impairment (Note 18) |
— | — | — | (29,684) | — | — | (29,684) | ||||||||||||||||||||||||||||||||||
Reclassification to asset held-for-sale (Note 14) |
— | — | — | — | (117) | — | (117) | ||||||||||||||||||||||||||||||||||
Transfers and disposals | (1) | 1,730 | (399) | — | 876 | 40 | 2,246 | ||||||||||||||||||||||||||||||||||
At June 30, 2023 | ($78,755) | ($73,200) | ($136,126) | ($79,782) | ($146,148) | ($31,596) | ($545,607) | ||||||||||||||||||||||||||||||||||
Carrying values | |||||||||||||||||||||||||||||||||||||||||
At December 31, 2022 | $94,377 | $99,979 | $24,422 | $166,778 | $18,195 | $47,584 | $451,335 | ||||||||||||||||||||||||||||||||||
At June 30, 2023 | $90,602 | $96,773 | $23,631 | $133,858 | $17,953 | $45,988 | $408,805 |
The accompanying notes are an integral part of the condensed interim consolidated financial statements | |||||
First Majestic Silver Corp. 2023 Second Quarter Report | Page 25 |
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS | |||||
Condensed Interim Consolidated Financial Statements - Unaudited |
(Tabular amounts are expressed in thousands of US dollars) |
Land and Buildings | Machinery and Equipment | Other | Total | ||||||||||||||||||||
At December 31, 2021 | $8,302 | $20,921 | $2 | $29,225 | |||||||||||||||||||
Additions | 1,786 | 1,514 | 14 | 3,314 | |||||||||||||||||||
Remeasurements | 578 | 2,239 | (2) | 2,815 | |||||||||||||||||||
Depreciation and amortization | (1,608) | (6,431) | (5) | (8,044) | |||||||||||||||||||
Transfer to asset held-for-sale | (634) | (27) | — | (661) | |||||||||||||||||||
At December 31, 2022 | $8,424 | $18,216 | $9 | $26,649 | |||||||||||||||||||
Remeasurements | 78 | 5,323 | — | 5,401 | |||||||||||||||||||
Depreciation and amortization | (865) | (3,848) | (3) | (4,716) | |||||||||||||||||||
Transfer to asset held-for-sale (Note 14) |
47 | 10 | — | 57 | |||||||||||||||||||
At June 30, 2023 | $7,684 | $19,701 | $6 | $27,391 |
The accompanying notes are an integral part of the condensed interim consolidated financial statements | |||||
First Majestic Silver Corp. 2023 Second Quarter Report | Page 26 |
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS | |||||
Condensed Interim Consolidated Financial Statements - Unaudited |
(Tabular amounts are expressed in thousands of US dollars) |
Six Months Ended June 30, 2023 | ||||||||
Impairment of non-current asset | $125,200 | |||||||
Deferred income tax recovery | (31,237) | |||||||
Impairment of non-current asset, net of tax | $93,963 |
Six Months Ended June 30, 2023 | ||||||||
Mining interest - producing properties | $78,128 | |||||||
Mining interests - exploration properties (non-depletable) | 17,388 | |||||||
Property, plant and equipment | 29,684 | |||||||
Impairment of non-current asset | $125,200 |
The accompanying notes are an integral part of the condensed interim consolidated financial statements | |||||
First Majestic Silver Corp. 2023 Second Quarter Report | Page 27 |
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS | |||||
Condensed Interim Consolidated Financial Statements - Unaudited |
(Tabular amounts are expressed in thousands of US dollars) |
June 30, 2023 |
December 31, 2022 |
||||||||||
Chartis Commutation Account(2) |
$28,746 | $— | |||||||||
Current Restricted Cash | $28,746 | $— | |||||||||
Nevada Division of Environmental Protection(1) |
$17,875 | $17,702 | |||||||||
Chartis Commutation Account(2) |
— | 28,365 | |||||||||
SAT Primero tax dispute(3) |
99,429 | 79,126 | |||||||||
Non-Current Restricted Cash | $117,304 | $125,193 | |||||||||
Total Restricted Cash | $146,050 | $125,193 |
June 30, 2023 |
December 31, 2022 |
||||||||||
Trade payables | $36,251 | $40,782 | |||||||||
Trade related accruals | 22,276 | 30,312 | |||||||||
Payroll and related benefits | 27,454 | 31,797 | |||||||||
NSR royalty liabilities (Notes 15(b)(c)) |
1,930 | 1,518 | |||||||||
Environmental duty and net mineral sales proceeds tax | 1,616 | 3,570 | |||||||||
Other accrued liabilities | 6,513 | 7,141 | |||||||||
$96,040 | $115,120 |
The accompanying notes are an integral part of the condensed interim consolidated financial statements | |||||
First Majestic Silver Corp. 2023 Second Quarter Report | Page 28 |
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS | |||||
Condensed Interim Consolidated Financial Statements - Unaudited |
(Tabular amounts are expressed in thousands of US dollars) |
Convertible Debentures (a) |
Revolving Credit Facility (b) |
Total | ||||||||||||||||||
Balance at December 31, 2021 | $181,178 | $56 | $181,234 | |||||||||||||||||
Finance costs | ||||||||||||||||||||
Interest expense | 896 | 1,241 | 2,137 | |||||||||||||||||
Accretion | 8,673 | — | 8,673 | |||||||||||||||||
Proceeds from drawdown of revolving credit facility | — | 50,000 | 50,000 | |||||||||||||||||
Repayments of principal | — | (30,000) | (30,000) | |||||||||||||||||
Payments of finance costs | (505) | (1,177) | (1,682) | |||||||||||||||||
Balance at December 31, 2022 | $190,242 | $20,120 | $210,362 | |||||||||||||||||
Finance costs | ||||||||||||||||||||
Interest expense | 395 | 975 | 1,370 | |||||||||||||||||
Accretion | 4,518 | — | 4,518 | |||||||||||||||||
Payments of finance costs | (431) | (957) | (1,388) | |||||||||||||||||
Balance at June 30, 2023 | $194,724 | $20,138 | $214,862 | |||||||||||||||||
Statements of Financial Position Presentation | ||||||||||||||||||||
Current portion of debt facilities | $431 | $120 | $551 | |||||||||||||||||
Non-current portion of debt facilities | 189,811 | 20,000 | 209,811 | |||||||||||||||||
Balance at December 31, 2022 | $190,242 | $20,120 | $210,362 | |||||||||||||||||
Current portion of debt facilities | $395 | $138 | $533 | |||||||||||||||||
Non-current portion of debt facilities | 194,329 | 20,000 | 214,329 | |||||||||||||||||
Balance at June 30, 2023 | $194,724 | $20,138 | $214,862 |
The accompanying notes are an integral part of the condensed interim consolidated financial statements | |||||
First Majestic Silver Corp. 2023 Second Quarter Report | Page 29 |
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS | |||||
Condensed Interim Consolidated Financial Statements - Unaudited |
(Tabular amounts are expressed in thousands of US dollars) |
The accompanying notes are an integral part of the condensed interim consolidated financial statements | |||||
First Majestic Silver Corp. 2023 Second Quarter Report | Page 30 |
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS | |||||
Condensed Interim Consolidated Financial Statements - Unaudited |
(Tabular amounts are expressed in thousands of US dollars) |
The accompanying notes are an integral part of the condensed interim consolidated financial statements | |||||
First Majestic Silver Corp. 2023 Second Quarter Report | Page 31 |
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS | |||||
Condensed Interim Consolidated Financial Statements - Unaudited |
(Tabular amounts are expressed in thousands of US dollars) |
Finance Leases | Operating Leases(a) |
Equipment Financing(b) |
Total | ||||||||||||||||||||
Balance at December 31, 2021 | $5,253 | $34,544 | $64 | $39,861 | |||||||||||||||||||
Additions | 3,109 | 3,314 | — | 6,423 | |||||||||||||||||||
Remeasurements | — | 2,815 | — | 2,815 | |||||||||||||||||||
Finance costs | 237 | 1,894 | — | 2,131 | |||||||||||||||||||
Repayments of principal | (2,446) | (10,959) | (64) | (13,469) | |||||||||||||||||||
Payments of finance costs | (210) | — | — | (210) | |||||||||||||||||||
Transfer to asset held-for-sale (Note 14) |
— | (458) | — | (458) | |||||||||||||||||||
Foreign exchange | — | 490 | — | 490 | |||||||||||||||||||
Balance at December 31, 2022 | $5,943 | $31,640 | $— | $37,583 | |||||||||||||||||||
Additions | 2,231 | — | — | 2,231 | |||||||||||||||||||
Remeasurements | — | 5,401 | — | 5,401 | |||||||||||||||||||
Disposals | — | (22) | — | (22) | |||||||||||||||||||
Finance costs | 199 | 1,085 | — | 1,284 | |||||||||||||||||||
Repayment of principal | (1,833) | (5,124) | — | (6,957) | |||||||||||||||||||
Repayments of finance costs | (199) | (788) | — | (987) | |||||||||||||||||||
Transfer to asset held-for-sale (Note 14) |
— | (81) | — | (81) | |||||||||||||||||||
Foreign Exchange | 66 | 1,432 | — | 1,498 | |||||||||||||||||||
Balance at June 30, 2023 | $6,407 | $33,543 | $— | $39,950 | |||||||||||||||||||
Statements of Financial Position Presentation | |||||||||||||||||||||||
Current portion of lease liabilities | $2,801 | $11,026 | $— | $13,827 | |||||||||||||||||||
Non-current portion of lease liabilities | 3,142 | 20,614 | — | 23,756 | |||||||||||||||||||
Balance at December 31, 2022 | $5,943 | $31,640 | $— | $37,583 | |||||||||||||||||||
Current portion of lease liabilities | $3,427 | $13,144 | $— | $16,571 | |||||||||||||||||||
Non-current portion of lease liabilities | 2,980 | 20,399 | — | 23,379 | |||||||||||||||||||
Balance at June 30, 2023 | $6,407 | $33,543 | $— | $39,950 |
The accompanying notes are an integral part of the condensed interim consolidated financial statements | |||||
First Majestic Silver Corp. 2023 Second Quarter Report | Page 32 |
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS | |||||
Condensed Interim Consolidated Financial Statements - Unaudited |
(Tabular amounts are expressed in thousands of US dollars) |
Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | ||||||||||||||||||||||
Number of Shares | Net Proceeds | Number of Shares | Net Proceeds | ||||||||||||||||||||
ATM program(1)(2)(3) |
13,919,634 | $92,266 | 2,318,497 | $30,580 | |||||||||||||||||||
The accompanying notes are an integral part of the condensed interim consolidated financial statements | |||||
First Majestic Silver Corp. 2023 Second Quarter Report | Page 33 |
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS | |||||
Condensed Interim Consolidated Financial Statements - Unaudited |
(Tabular amounts are expressed in thousands of US dollars) |
Options Outstanding |
Options Exercisable |
||||||||||||||||||||||||||||||||||
Exercise prices (CAD$) | Number of Options |
Weighted Average Exercise Price (CAD $/Share) | Weighted Average Remaining Life (Years) | Number of Options |
Weighted Average Exercise Price (CAD $/Share) | Weighted Average Remaining Life (Years) | |||||||||||||||||||||||||||||
5.01 - 10.00 | 2,064,795 | 8.64 | 6.36 | 1,521,795 | 8.63 | 5.32 | |||||||||||||||||||||||||||||
10.01 - 15.00 | 3,848,760 | 12.79 | 8.51 | 1,279,487 | 13.74 | 7.32 | |||||||||||||||||||||||||||||
15.01 - 20.00 | 1,126,607 | 16.38 | 7.34 | 770,587 | 16.23 | 7.03 | |||||||||||||||||||||||||||||
20.01 - 250.00 | 577,250 | 21.49 | 7.91 | 430,855 | 21.44 | 7.90 | |||||||||||||||||||||||||||||
7,617,412 | 12.85 | 7.71 | 4,002,724 | 13.11 | 6.56 |
Six Months Ended | Year Ended | ||||||||||||||||||||||
June 30, 2023 | December 31, 2022 | ||||||||||||||||||||||
Number of Options |
Weighted Average Exercise Price (CAD $/Share) | Number of Options |
Weighted Average Exercise Price (CAD $/Share) | ||||||||||||||||||||
Balance, beginning of the period | 7,275,744 | 13.19 | 5,638,383 | 13.29 | |||||||||||||||||||
Granted | 1,037,149 | 10.23 | 3,107,500 | 12.96 | |||||||||||||||||||
Exercised | (192,500) | 8.64 | (609,623) | 9.76 | |||||||||||||||||||
Cancelled or expired | (502,981) | 13.95 | (860,516) | 15.44 | |||||||||||||||||||
Balance, end of the period | 7,617,412 | 12.85 | 7,275,744 | 13.19 |
Six Months Ended | Year Ended | |||||||||||||||||||
Assumption | Based on |
June 30, 2023 | December 31, 2022 | |||||||||||||||||
Risk-free interest rate (%) | Yield curves on Canadian government zero- coupon bonds with a remaining term equal to the stock options’ expected life | 3.66 | 2.16 | |||||||||||||||||
Expected life (years) | Weighted average life of previously transacted awards | 3.84 | 5.91 | |||||||||||||||||
Expected volatility (%) | Historical volatility of the Company's stock | 60.28 | 49.00 | |||||||||||||||||
Expected dividend yield (%) | Annualized dividend rate as of the date of grant | 0.33% | 1.64% |
The accompanying notes are an integral part of the condensed interim consolidated financial statements | |||||
First Majestic Silver Corp. 2023 Second Quarter Report | Page 34 |
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS | |||||
Condensed Interim Consolidated Financial Statements - Unaudited |
(Tabular amounts are expressed in thousands of US dollars) |
Six Months Ended June 30, 2023 | Year Ended December 31, 2022 | ||||||||||||||||
Number of shares | Weighted Average Fair Value (CAD$) |
Number of shares | Weighted Average Fair Value (CAD$) |
||||||||||||||
Outstanding, beginning of the period | 652,339 | 14.35 | 400,549 | 16.77 | |||||||||||||
Granted | 741,782 | 10.97 | 498,740 | 13.18 | |||||||||||||
Settled | (142,505) | 14.7 | (159,016) | 16.57 | |||||||||||||
Forfeited | (148,393) | 11.95 | (87,934) | 14.74 | |||||||||||||
Outstanding, end of the period | 1,103,223 | 12.36 | 652,339 | 14.35 |
The accompanying notes are an integral part of the condensed interim consolidated financial statements | |||||
First Majestic Silver Corp. 2023 Second Quarter Report | Page 35 |
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS | |||||
Condensed Interim Consolidated Financial Statements - Unaudited |
(Tabular amounts are expressed in thousands of US dollars) |
Six Months Ended June 30, 2023 | Year Ended December 31, 2022 | ||||||||||||||||
Number of shares | Weighted Average Fair Value (CAD$) |
Number of shares | Weighted Average Fair Value (CAD$) |
||||||||||||||
Outstanding, beginning of the period | 474,654 | 14.82 | 275,516 | 16.58 | |||||||||||||
Granted | 358,369 | 11.29 | 268,955 | 13.21 | |||||||||||||
Settled | (38,087) | 15.47 | — | — | |||||||||||||
Forfeited | (109,482) | 13.96 | (69,817) | 15.55 | |||||||||||||
Outstanding, end of the period | 685,454 | 13.08 | 474,654 | 14.82 |
Six Months Ended June 30, 2023 | Year Ended December 31, 2022 | ||||||||||||||||
Number of shares | Weighted Average Fair Value (CAD$) |
Number of shares | Weighted Average Fair Value (CAD$) |
||||||||||||||
Outstanding, beginning of the period | 50,601 | 15.83 | 25,185 | 18.31 | |||||||||||||
Granted | — | — | 37,312 | 14.07 | |||||||||||||
Settled | — | — | (11,896) | 15.55 | |||||||||||||
Outstanding, end of the period | 50,601 | 15.83 | 50,601 | 15.83 |
The accompanying notes are an integral part of the condensed interim consolidated financial statements | |||||
First Majestic Silver Corp. 2023 Second Quarter Report | Page 36 |
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS | |||||
Condensed Interim Consolidated Financial Statements - Unaudited |
(Tabular amounts are expressed in thousands of US dollars) |
Declaration Date | Record Date | Dividend per Common Share | ||||||||||||
February 23, 2023 | March 10, 2023 | $0.0054 | ||||||||||||
May 4, 2023 | May 18, 2023 | $0.0057 | ||||||||||||
August 3, 2023(1) |
August 16, 2023 | $0.0051 |
The accompanying notes are an integral part of the condensed interim consolidated financial statements | |||||
First Majestic Silver Corp. 2023 Second Quarter Report | Page 37 |
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS | |||||
Condensed Interim Consolidated Financial Statements - Unaudited |
(Tabular amounts are expressed in thousands of US dollars) |
Financial Instruments Measured at Fair Value | Valuation Method | |||||||
Marketable securities - common shares | Marketable securities and silver future derivatives are valued based on quoted market prices for identical assets in an active market (Level 1) as at the date of statements of financial position. Marketable securities - stock warrants are valued using the Black-Scholes model based on the observable market inputs (Level 2). | |||||||
Marketable securities - stock warrants | ||||||||
Silver futures derivatives | ||||||||
Financial Instruments Measured at Amortized Cost | Valuation Method | |||||||
Cash and cash equivalents | Approximated carrying value due to their short-term nature | |||||||
Restricted cash | ||||||||
Trade and other receivables | ||||||||
Trade and other payables | ||||||||
Debt facilities | Approximated carrying value as discount rate on these | |||||||
instruments approximate the Company's credit risk. |
June 30, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||||||||
Fair value measurement | Fair value measurement | ||||||||||||||||||||||||||||||||||
Carrying value | Level 1 | Level 2 | Carrying value | Level 1 | Level 2 | ||||||||||||||||||||||||||||||
Financial assets | |||||||||||||||||||||||||||||||||||
Marketable securities (Note 13) |
$52,113 | $50,478 | $1,636 | $34,528 | $33,426 | $1,102 | |||||||||||||||||||||||||||||
The accompanying notes are an integral part of the condensed interim consolidated financial statements | |||||
First Majestic Silver Corp. 2023 Second Quarter Report | Page 38 |
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS | |||||
Condensed Interim Consolidated Financial Statements - Unaudited |
(Tabular amounts are expressed in thousands of US dollars) |
June 30, 2023 |
December 31, 2022 |
||||||||||
Equity | $1,376,307 | $1,411,298 | |||||||||
Debt facilities | 214,862 | 210,362 | |||||||||
Lease liabilities | 39,950 | 37,583 | |||||||||
Less: cash and cash equivalents | (160,235) | (151,438) | |||||||||
$1,470,884 | $1,507,805 |
The accompanying notes are an integral part of the condensed interim consolidated financial statements | |||||
First Majestic Silver Corp. 2023 Second Quarter Report | Page 39 |
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS | |||||
Condensed Interim Consolidated Financial Statements - Unaudited |
(Tabular amounts are expressed in thousands of US dollars) |
Carrying Amount |
Contractual
Cash Flows
|
Less than 1 year |
2 to 3 years |
4 to 5 years |
After 5 years | |||||||||||||||||||||||||||||||||
Trade and other payables | $96,040 | $96,040 | $96,040 | $— | $— | $— | ||||||||||||||||||||||||||||||||
Debt facilities | 214,862 | 259,744 | 3,104 | 26,209 | 230,431 | — | ||||||||||||||||||||||||||||||||
Lease liabilities | 39,950 | 44,274 | 16,772 | 22,260 | 4,347 | 895 | ||||||||||||||||||||||||||||||||
Other liabilities | 7,207 | 6,956 | — | — | 6,956 | — | ||||||||||||||||||||||||||||||||
Commitments | 4,157 | 4,157 | 4,157 | — | — | — | ||||||||||||||||||||||||||||||||
$362,216 | $411,171 | $120,073 | $48,469 | $241,734 | $895 |
The accompanying notes are an integral part of the condensed interim consolidated financial statements | |||||
First Majestic Silver Corp. 2023 Second Quarter Report | Page 40 |
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS | |||||
Condensed Interim Consolidated Financial Statements - Unaudited |
(Tabular amounts are expressed in thousands of US dollars) |
June 30, 2023 | |||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | Restricted cash | Value added taxes receivable | Other financial assets | Trade and other payables | Net assets (liabilities) exposure | Effect of +/- 10% change in currency | |||||||||||||||||||||||||||||||||||
Canadian dollar | $20,895 | $— | $— | $1,968 | ($4,864) | $17,999 | $1,800 | ||||||||||||||||||||||||||||||||||
Mexican peso | 17,128 | 99,433 | 42,230 | — | (57,223) | 101,568 | 10,157 | ||||||||||||||||||||||||||||||||||
$38,023 | $99,433 | $42,230 | $1,968 | ($62,087) | $119,567 | $11,957 |
June 30, 2023 | |||||||||||||||||
Effect of +/- 10% change in metal prices | |||||||||||||||||
Silver | Gold | Total | |||||||||||||||
Metals in doré inventory | $1,200 | $445 | $1,645 | ||||||||||||||
$1,200 | $445 | $1,645 |
The accompanying notes are an integral part of the condensed interim consolidated financial statements | |||||
First Majestic Silver Corp. 2023 Second Quarter Report | Page 41 |
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS | |||||
Condensed Interim Consolidated Financial Statements - Unaudited |
(Tabular amounts are expressed in thousands of US dollars) |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Other adjustments to investing activities: | ||||||||||||||||||||||||||
Purchase of marketable securities | ($1,065) | $— | ($1,065) | ($1,419) | ||||||||||||||||||||||
Proceeds from disposal of marketable securities | 1,251 | 1,623 | 1,251 | 2,739 | ||||||||||||||||||||||
Cash received on settlement of silver futures | — | (366) | — | 2,522 | ||||||||||||||||||||||
$186 | $1,257 | $186 | $3,842 | |||||||||||||||||||||||
Net change in non-cash working capital items: |
||||||||||||||||||||||||||
Decrease in trade and other receivables | $1,555 | $3,783 | $3,339 | $1,134 | ||||||||||||||||||||||
Decrease in value added taxes receivable | 5,936 | 126 | 2,742 | 7,216 | ||||||||||||||||||||||
Decrease (increase) in inventories | 10,599 | (1,576) | 4,978 | (3,953) | ||||||||||||||||||||||
Decrease (increase) in prepaid expenses and other | 919 | (2,101) | (3,403) | (6,338) | ||||||||||||||||||||||
Increase in income taxes payable | 524 | 450 | 1,489 | 442 | ||||||||||||||||||||||
Decrease in trade and other payables | (7,083) | (20,441) | (1,271) | (28,732) | ||||||||||||||||||||||
(Increase) decrease in restricted cash (Note 19) |
(14,988) | 2,333 | (20,857) | (14,034) | ||||||||||||||||||||||
($2,538) | ($17,426) | ($12,983) | ($44,265) | |||||||||||||||||||||||
Non-cash investing and financing activities: |
||||||||||||||||||||||||||
Shares received from disposition of mining interest | $575 | $— | $33,747 | $— | ||||||||||||||||||||||
Disposition of La Guitarra | — | — | (34,550) | — | ||||||||||||||||||||||
Transfer of share-based payments reserve upon settlement of RSU's | 402 | 493 | 1,987 | 1,340 | ||||||||||||||||||||||
Transfer of share-based payments reserve upon exercise of options | 447 | 505 | 607 | 1,530 | ||||||||||||||||||||||
Assets acquired by finance lease | — | — | (2,231) | (1,810) | ||||||||||||||||||||||
$1,424 | $998 | ($440) | $1,060 |
The accompanying notes are an integral part of the condensed interim consolidated financial statements | |||||
First Majestic Silver Corp. 2023 Second Quarter Report | Page 42 |
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS | |||||
Condensed Interim Consolidated Financial Statements - Unaudited |
(Tabular amounts are expressed in thousands of US dollars) |
The accompanying notes are an integral part of the condensed interim consolidated financial statements | |||||
First Majestic Silver Corp. 2023 Second Quarter Report | Page 43 |
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS | |||||
Condensed Interim Consolidated Financial Statements - Unaudited |
(Tabular amounts are expressed in thousands of US dollars) |
The accompanying notes are an integral part of the condensed interim consolidated financial statements | |||||
First Majestic Silver Corp. 2023 Second Quarter Report | Page 44 |
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS | |||||
Condensed Interim Consolidated Financial Statements - Unaudited |
(Tabular amounts are expressed in thousands of US dollars) |
The accompanying notes are an integral part of the condensed interim consolidated financial statements | |||||
First Majestic Silver Corp. 2023 Second Quarter Report | Page 45 |
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS | |||||
Condensed Interim Consolidated Financial Statements - Unaudited |
(Tabular amounts are expressed in thousands of US dollars) |
The accompanying notes are an integral part of the condensed interim consolidated financial statements | |||||
First Majestic Silver Corp. 2023 Second Quarter Report | Page 46 |
925 West Georgia Street, Suite 1800, Vancouver, B.C., Canada V6C 3L2 Phone: 604.688.3033 | Fax: 604.639.8873| Toll Free: 1.866.529.2807 | Email: info@firstmajestic.com www.firstmajestic.com |
TABLE OF CONTENTS |
OVERVIEW OF OPERATING RESULTS | ||||||||
OVERVIEW OF FINANCIAL PERFORMANCE | ||||||||
OTHER DISCLOSURES | ||||||||
First Majestic Silver Corp. 2023 Second Quarter Report | Page 2 |
COMPANY OVERVIEW |
First Majestic Silver Corp. 2023 Second Quarter Report | Page 3 |
2023 SECOND QUARTER HIGHLIGHTS |
Key Performance Metrics | 2023-Q2 | 2023-Q1 | Change Q2 vs Q1 |
2022-Q2 | Change Q2 vs Q2 | 2023-YTD | 2022-YTD | Change | |||||||||||||||||||||||||||||||||
Operational | |||||||||||||||||||||||||||||||||||||||||
Ore Processed / Tonnes Milled | 733,170 | 845,868 | (13 | %) | 903,791 | (19 | %) | 1,579,038 | 1,780,909 | (11 | %) | ||||||||||||||||||||||||||||||
Silver Ounces Produced | 2,633,411 | 2,543,059 | 4 | % | 2,775,928 | (5 | %) | 5,176,470 | 5,389,255 | (4 | %) | ||||||||||||||||||||||||||||||
Gold Ounces Produced | 45,022 | 60,594 | (26 | %) | 59,391 | (24 | %) | 105,616 | 118,282 | (11 | %) | ||||||||||||||||||||||||||||||
Silver Equivalent Ounces Produced | 6,320,971 | 7,627,105 | (17 | %) | 7,705,935 | (18 | %) | 13,948,076 | 14,927,937 | (7 | %) | ||||||||||||||||||||||||||||||
Cash Costs per Silver Equivalent Ounce (1) |
$15.58 | $15.16 | 3 | % | $14.12 | 10 | % | $15.35 | $14.52 | 6 | % | ||||||||||||||||||||||||||||||
All-in Sustaining Cost per Silver Equivalent Ounce (1) |
$21.52 | $20.90 | 3 | % | $19.91 | 8 | % | $21.17 | $20.38 | 4 | % | ||||||||||||||||||||||||||||||
Total Production Cost per Tonne(1) |
$128.21 | $130.71 | (2 | %) | $114.55 | 12 | % | $129.55 | $116.50 | 11 | % | ||||||||||||||||||||||||||||||
Average Realized Silver Price per Silver Equivalent Ounce (1) |
$24.95 | $21.98 | 14 | % | $23.93 | 4 | % | $23.32 | $23.82 | (2 | %) | ||||||||||||||||||||||||||||||
Financial (in $millions) | |||||||||||||||||||||||||||||||||||||||||
Revenues | $146.7 | $157.0 | (7 | %) | $159.4 | (8 | %) | $303.6 | $316.3 | (4 | %) | ||||||||||||||||||||||||||||||
Mine Operating Earnings (Loss) | $1.1 | ($6.4) | 118 | % | $11.6 | (91 | %) | ($5.3) | $26.7 | (120 | %) | ||||||||||||||||||||||||||||||
Net Loss | ($17.5) | ($100.7) | 83 | % | ($84.1) | 79 | % | ($118.2) | ($76.8) | (54 | %) | ||||||||||||||||||||||||||||||
Operating Cash Flows before Non-Cash Working Capital and Taxes |
$26.9 | $21.9 | 23 | % | $33.0 | (18 | %) | $48.7 | $68.3 | (29 | %) | ||||||||||||||||||||||||||||||
Cash and Cash Equivalents | $160.2 | $104.8 | 53 | % | $117.7 | 36 | % | $160.2 | $117.7 | 36 | % | ||||||||||||||||||||||||||||||
Working Capital (1) |
$237.2 | $184.6 | 28 | % | $199.8 | 19 | % | $237.2 | $199.8 | 19 | % | ||||||||||||||||||||||||||||||
Free Cash Flow (1) |
$7.4 | ($26.7) | 128 | % | ($37.5) | 120 | % | ($19.3) | ($77.9) | 75 | % | ||||||||||||||||||||||||||||||
Shareholders | |||||||||||||||||||||||||||||||||||||||||
(Loss) Earnings per Share ("EPS") - Basic | ($0.06) | ($0.37) | 84 | % | ($0.32) | 81 | % | ($0.43) | ($0.29) | (45 | %) | ||||||||||||||||||||||||||||||
Adjusted EPS (1) |
($0.02) | $0.00 | (100 | %) | ($0.02) | 0 | % | ($0.02) | ($0.05) | 64 | % | ||||||||||||||||||||||||||||||
Second Quarter Production Summary | San Dimas | Santa Elena | La Encantada | Jerritt Canyon (1) |
Consolidated | ||||||||||||
Ore Processed / Tonnes Milled | 227,065 | 213,878 | 260,986 | 31,240 | 733,170 | ||||||||||||
Silver Ounces Produced | 1,690,831 | 142,037 | 800,543 | — | 2,633,411 | ||||||||||||
Gold Ounces Produced | 20,509 | 20,073 | 76 | 4,364 | 45,022 | ||||||||||||
Silver Equivalent Ounces Produced | 3,372,418 | 1,788,596 | 806,789 | 353,168 | 6,320,971 | ||||||||||||
Cash Costs per Silver Equivalent Ounce | $12.07 | $14.45 | $16.90 | $51.66 | $15.58 | ||||||||||||
All-in Sustaining Cost per Silver Equivalent Ounce | $15.89 | $18.00 | $19.83 | $51.96 | $21.52 | ||||||||||||
Cash Cost per Gold Ounce | N/A | N/A | N/A | $4,181 | N/A | ||||||||||||
All-In Sustaining Costs per Gold Ounce | N/A | N/A | N/A | $4,205 | N/A | ||||||||||||
Total Production Cost per Tonne | $173.62 | $109.88 | $49.91 | $577.83 | $128.21 |
First Majestic Silver Corp. 2023 Second Quarter Report | Page 4 |
First Majestic Silver Corp. 2023 Second Quarter Report | Page 5 |
First Majestic Silver Corp. 2023 Second Quarter Report | Page 6 |
2023 PRODUCTION OUTLOOK AND COST GUIDANCE UPDATE |
Silver Oz (M) | Gold Oz (k) | Silver Eqv Oz (M) | Cash Cost | AISC | ||||||||||||||||
Silver: | ($ per AgEq oz) | ($ per AgEq oz) | ||||||||||||||||||
San Dimas, Mexico | 3.1 – 3.5 | 38 – 42 | 6.3 – 7.0 | 11.03 – 11.64 | 14.77 – 15.46 | |||||||||||||||
Santa Elena, Mexico | 0.7 – 0.8 | 48 – 53 | 4.7 – 5.2 | 12.04 – 12.66 | 14.78 – 15.44 | |||||||||||||||
La Encantada, Mexico | 1.5 – 1.7 | – | 1.5 – 1.7 | 17.78 – 18.77 | 20.76 – 21.92 | |||||||||||||||
Total Production | 5.3 – 5.9 | 86 - 95 | 12.4 – 13.8 | 12.23 – 12.89 | 17.69 – 18.92 | |||||||||||||||
First Majestic Silver Corp. 2023 Second Quarter Report | Page 7 |
Silver Oz (M) | Gold Oz (k) | Silver Eqv Oz (M) | Cash Cost | AISC | |||||||||||||
Silver: | ($ per AgEq oz) | ($ per AgEq oz) | |||||||||||||||
San Dimas, Mexico | 6.4 – 6.8 | 78 – 83 | 12.9 – 13.7 | 11.06 – 11.41 | 14.79 – 15.19 | ||||||||||||
Santa Elena, Mexico | 0.9 – 1.0 | 91 – 97 | 8.5 – 9.1 | 12.51 – 12.92 | 15.62 – 16.06 | ||||||||||||
La Encantada, Mexico | 3.1 – 3.3 | – | 3.1 – 3.3 | 17.01 – 17.52 | 19.85 – 20.44 | ||||||||||||
Mexico Consolidated: | 10.5 – 11.2 | 169 – 180 | 24.5 – 26.1 | 12.33 – 12.72 | 17.23 – 17.66 | ||||||||||||
Gold: | ($ per AuEq oz) | ($ per AuEq oz) | |||||||||||||||
Jerritt Canyon, USA | – | 21 | 1.7 | 2,881 | 3,267 | ||||||||||||
Total Production | ($ per AgEq oz) | ($ per AgEq oz) | |||||||||||||||
Consolidated* | 10.5 – 11.2 | 190 - 201 | 26.2 – 27.8 | 13.63 – 14.07 | 19.37 – 20.15 |
Revised 2023 Capital Budget ($millions) | Sustaining | Expansionary | Total | ||||||||
Underground Development | $39.9 | $34.5 | $74.4 | ||||||||
Exploration | — | 29.2 | 29.2 | ||||||||
Property, Plant and Equipment | 22.9 | 6.7 | 29.7 | ||||||||
Corporate Projects | 1.5 | 5.0 | 6.5 | ||||||||
Total* | $64.3 | $75.4 | $139.7 |
First Majestic Silver Corp. 2023 Second Quarter Report | Page 8 |
OVERVIEW OF OPERATING RESULTS |
2023 | 2022 | 2021 | |||||||||||||||||||||||||||||||||
PRODUCTION HIGHLIGHTS | Q2(2) |
Q1(2) |
Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | |||||||||||||||||||||||||||
Ore processed/tonnes milled | |||||||||||||||||||||||||||||||||||
San Dimas | 227,065 | 219,367 | 210,108 | 185,126 | 197,102 | 195,300 | 206,738 | 214,205 | |||||||||||||||||||||||||||
Santa Elena | 213,878 | 208,821 | 207,188 | 214,387 | 228,487 | 201,911 | 224,459 | 234,862 | |||||||||||||||||||||||||||
La Encantada | 260,986 | 271,278 | 254,766 | 255,945 | 264,555 | 249,906 | 268,239 | 263,645 | |||||||||||||||||||||||||||
Jerritt Canyon | 31,240 | 146,403 | 179,502 | 181,056 | 213,647 | 230,001 | 256,374 | 230,415 | |||||||||||||||||||||||||||
Consolidated | 733,170 | 845,868 | 851,564 | 836,514 | 903,791 | 877,118 | 955,810 | 943,126 | |||||||||||||||||||||||||||
Silver equivalent ounces produced | |||||||||||||||||||||||||||||||||||
San Dimas | 3,372,418 | 3,296,367 | 3,054,098 | 3,776,124 | 3,046,664 | 3,080,940 | 4,015,346 | 3,422,032 | |||||||||||||||||||||||||||
Santa Elena | 1,788,596 | 2,105,336 | 2,302,904 | 2,733,761 | 2,241,763 | 1,868,787 | 1,955,550 | 1,061,657 | |||||||||||||||||||||||||||
La Encantada | 806,789 | 843,951 | 813,649 | 788,872 | 871,365 | 651,875 | 768,796 | 913,481 | |||||||||||||||||||||||||||
Jerritt Canyon | 353,168 | 1,381,452 | 1,388,140 | 1,467,435 | 1,546,143 | 1,620,400 | 1,821,331 | 1,922,270 | |||||||||||||||||||||||||||
Consolidated | 6,320,971 | 7,627,105 | 7,558,791 | 8,766,192 | 7,705,935 | 7,222,002 | 8,561,023 | 7,319,441 | |||||||||||||||||||||||||||
Silver ounces produced | |||||||||||||||||||||||||||||||||||
San Dimas | 1,690,831 | 1,602,483 | 1,392,506 | 1,649,002 | 1,527,465 | 1,632,117 | 2,174,353 | 1,888,371 | |||||||||||||||||||||||||||
Santa Elena | 142,037 | 104,129 | 199,388 | 308,070 | 384,953 | 337,201 | 426,870 | 508,641 | |||||||||||||||||||||||||||
La Encantada | 800,543 | 836,448 | 804,802 | 779,028 | 863,510 | 644,009 | 757,586 | 905,074 | |||||||||||||||||||||||||||
Consolidated | 2,633,411 | 2,543,059 | 2,396,696 | 2,736,100 | 2,775,928 | 2,613,327 | 3,358,809 | 3,302,086 | |||||||||||||||||||||||||||
Gold ounces produced | |||||||||||||||||||||||||||||||||||
San Dimas | 20,509 | 20,124 | 20,257 | 23,675 | 18,354 | 18,528 | 23,795 | 20,767 | |||||||||||||||||||||||||||
Santa Elena | 20,073 | 24,039 | 25,830 | 26,989 | 22,309 | 19,556 | 19,810 | 7,498 | |||||||||||||||||||||||||||
Jerritt Canyon | 4,364 | 16,341 | 16,845 | 16,299 | 18,632 | 20,707 | 23,660 | 26,145 | |||||||||||||||||||||||||||
Consolidated | 44,946 | 60,504 | 62,932 | 66,963 | 59,295 | 58,791 | 67,265 | 54,410 | |||||||||||||||||||||||||||
Cash cost per Ounce(1) |
|||||||||||||||||||||||||||||||||||
San Dimas (per AgEq Ounce) | $ | 12.07 | $ | 10.86 | $ | 11.54 | $ | 8.25 | $ | 10.41 | $ | 9.41 | $ | 7.98 | $ | 8.29 | |||||||||||||||||||
Santa Elena (per AgEq Ounce) | $ | 14.45 | $ | 11.93 | $ | 11.20 | $ | 10.37 | $ | 12.34 | $ | 12.96 | $ | 11.56 | $ | 17.09 | |||||||||||||||||||
La Encantada (per AgEq Ounce) | $ | 16.90 | $ | 15.48 | $ | 15.48 | $ | 15.55 | $ | 14.09 | $ | 16.41 | $ | 14.51 | $ | 12.25 | |||||||||||||||||||
Jerritt Canyon (per Au Ounce) | $ | 4,181 | $ | 2,540 | $ | 2,519 | $ | 2,767 | $ | 1,989 | $ | 2,120 | $ | 1,674 | $ | 1,735 | |||||||||||||||||||
Consolidated (per AgEq Ounce) | $ | 15.58 | $ | 15.16 | $ | 15.36 | $ | 13.34 | $ | 14.12 | $ | 14.94 | $ | 12.32 | $ | 14.09 | |||||||||||||||||||
All-in sustaining cost per Ounce(1) |
|||||||||||||||||||||||||||||||||||
San Dimas (per AgEq Ounce) | $ | 15.89 | $ | 14.67 | $ | 16.79 | $ | 10.97 | $ | 14.97 | $ | 12.98 | $ | 11.29 | $ | 11.58 | |||||||||||||||||||
Santa Elena (per AgEq Ounce) | $ | 18.00 | $ | 15.18 | $ | 12.75 | $ | 12.29 | $ | 15.34 | $ | 16.31 | $ | 14.02 | $ | 21.10 | |||||||||||||||||||
La Encantada (per AgEq Ounce) | $ | 19.83 | $ | 18.64 | $ | 19.39 | $ | 18.61 | $ | 16.65 | $ | 19.63 | $ | 19.41 | $ | 15.28 | |||||||||||||||||||
Jerritt Canyon (per Au Ounce) | $ | 4,205 | $ | 3,055 | $ | 2,865 | $ | 3,317 | $ | 2,429 | $ | 2,488 | $ | 2,077 | $ | 2,286 | |||||||||||||||||||
Consolidated (per AgEq Ounce) | $ | 21.52 | $ | 20.90 | $ | 20.69 | $ | 17.83 | $ | 19.91 | $ | 20.87 | $ | 17.26 | $ | 19.93 | |||||||||||||||||||
Production cost per tonne | |||||||||||||||||||||||||||||||||||
San Dimas | $ | 173.62 | $ | 157.39 | $ | 162.68 | $ | 161.41 | $ | 155.09 | $ | 143.66 | $ | 146.30 | $ | 128.67 | |||||||||||||||||||
Santa Elena | $ | 109.88 | $ | 108.74 | $ | 114.29 | $ | 124.94 | $ | 109.50 | $ | 111.36 | $ | 93.78 | $ | 75.76 | |||||||||||||||||||
La Encantada | $ | 49.91 | $ | 46.27 | $ | 47.69 | $ | 46.29 | $ | 44.58 | $ | 41.43 | $ | 39.70 | $ | 41.08 | |||||||||||||||||||
Jerritt Canyon | $ | 577.83 | $ | 278.57 | $ | 233.39 | $ | 245.66 | $ | 169.16 | $ | 187.15 | $ | 151.23 | $ | 192.17 | |||||||||||||||||||
Consolidated | $ | 128.21 | $ | 130.71 | $ | 131.41 | $ | 135.07 | $ | 114.55 | $ | 118.51 | $ | 105.37 | $ | 106.52 |
First Majestic Silver Corp. 2023 Second Quarter Report | Page 9 |
CONSOLIDATED | 2023-Q2 | 2023-Q1 | 2023-YTD | 2022-YTD | Change Q2 vs Q1 |
Change '23 vs '22 |
|||||||||||||||||||||||||||||
Ore processed/tonnes milled | 733,170 | 845,868 | 1,579,038 | 1,780,909 | (13 | %) | (11 | %) | |||||||||||||||||||||||||||
Production | |||||||||||||||||||||||||||||||||||
Silver ounces produced | 2,633,411 | 2,543,059 | 5,176,470 | 5,389,255 | 4 | % | (4 | %) | |||||||||||||||||||||||||||
Gold ounces produced | 45,022 | 60,594 | 105,616 | 118,282 | (26 | %) | (11 | %) | |||||||||||||||||||||||||||
Silver equivalent ounces produced | 6,320,971 | 7,627,105 | 13,948,076 | 14,927,937 | (17 | %) | (7 | %) | |||||||||||||||||||||||||||
Cost | |||||||||||||||||||||||||||||||||||
Cash cost per AgEq Ounce | $15.58 | $15.16 | $15.35 | $14.52 | 3 | % | 6 | % | |||||||||||||||||||||||||||
All-in sustaining costs per AgEq Ounce | $21.52 | $20.90 | $21.17 | $20.38 | 3 | % | 4 | % | |||||||||||||||||||||||||||
Total production cost per tonne | $128.21 | $130.71 | $129.55 | $116.50 | (2 | %) | 11 | % | |||||||||||||||||||||||||||
Underground development (m) | 8,687 | 10,962 | 19,649 | 24,557 | (21 | %) | (20 | %) | |||||||||||||||||||||||||||
Exploration drilling (m) | 42,285 | 36,688 | 78,973 | 151,669 | 15 | % | (48 | %) |
First Majestic Silver Corp. 2023 Second Quarter Report | Page 10 |
First Majestic Silver Corp. 2023 Second Quarter Report | Page 11 |
San Dimas | 2023-Q2 | 2023-Q1 | 2023-YTD | 2022-YTD | Change Q2 vs Q1 |
Change '23 vs '22 |
||||||||||||||||||||||||||
Total ore processed/tonnes milled | 227,065 | 219,367 | 446,432 | 392,402 | 4 | % | 14 | % | ||||||||||||||||||||||||
Average silver grade (g/t) | 245 | 241 | 243 | 269 | 2 | % | (10 | %) | ||||||||||||||||||||||||
Average gold grade (g/t) | 2.92 | 2.98 | 2.95 | 3.05 | (2 | %) | (3 | %) | ||||||||||||||||||||||||
Silver recovery (%) | 95 | % | 94 | % | 94 | % | 93 | % | 1 | % | 1 | % | ||||||||||||||||||||
Gold recovery (%) | 96 | % | 96 | % | 96 | % | 96 | % | 0 | % | 0 | % | ||||||||||||||||||||
Production | ||||||||||||||||||||||||||||||||
Silver ounces produced | 1,690,831 | 1,602,483 | 3,293,313 | 3,159,582 | 6 | % | 4 | % | ||||||||||||||||||||||||
Gold ounces produced | 20,509 | 20,124 | 40,633 | 36,882 | 2 | % | 10 | % | ||||||||||||||||||||||||
Silver equivalent ounces produced | 3,372,418 | 3,296,367 | 6,668,785 | 6,127,604 | 2 | % | 9 | % | ||||||||||||||||||||||||
Cost | ||||||||||||||||||||||||||||||||
Cash cost per AgEq Ounce | $12.07 | $10.86 | $11.47 | $9.90 | 11 | % | 16 | % | ||||||||||||||||||||||||
All-In sustaining costs per AgEq Ounce | $15.89 | $14.67 | $15.29 | $13.97 | 8 | % | 9 | % | ||||||||||||||||||||||||
Total production cost per tonne | $173.62 | $157.39 | $165.64 | $149.40 | 10 | % | 11 | % | ||||||||||||||||||||||||
Underground development (m) | 4,895 | 4,664 | 9,559 | 11,861 | 5 | % | (19 | %) | ||||||||||||||||||||||||
Exploration drilling (m) | 16,588 | 14,145 | 30,733 | 41,700 | 17 | % | (26 | %) |
First Majestic Silver Corp. 2023 Second Quarter Report | Page 12 |
First Majestic Silver Corp. 2023 Second Quarter Report | Page 13 |
SANTA ELENA | 2023-Q2 | 2023-Q1 | 2023-YTD | 2022-YTD | Change Q2 vs Q1 |
Change '23 vs '22 |
||||||||||||||||||||||||||
Total ore processed/tonnes milled | 213,878 | 208,821 | 422,699 | 430,398 | 2 | % | (2 | %) | ||||||||||||||||||||||||
Average silver grade (g/t) | 39 | 31 | 35 | 68 | 26 | % | (49 | %) | ||||||||||||||||||||||||
Average gold grade (g/t) | 3.12 | 4.00 | 3.55 | 3.22 | (22 | %) | 10 | % | ||||||||||||||||||||||||
Silver recovery (%) | 52 | % | 50 | % | 51 | % | 77 | % | 4 | % | (34 | %) | ||||||||||||||||||||
Gold recovery (%) | 94 | % | 90 | % | 91 | % | 94 | % | 4 | % | (3 | %) | ||||||||||||||||||||
Production | ||||||||||||||||||||||||||||||||
Silver ounces produced | 142,037 | 104,129 | 246,166 | 722,154 | 36 | % | (66 | %) | ||||||||||||||||||||||||
Gold ounces produced | 20,073 | 24,039 | 44,112 | 41,865 | (16 | %) | 5 | % | ||||||||||||||||||||||||
Silver equivalent ounces produced | 1,788,596 | 2,105,336 | 3,893,932 | 4,110,550 | (15 | %) | (5 | %) | ||||||||||||||||||||||||
Cost | ||||||||||||||||||||||||||||||||
Cash cost per AgEq Ounce | $14.45 | $11.93 | $13.09 | $12.62 | 21 | % | 4 | % | ||||||||||||||||||||||||
All-In sustaining costs per AgEq Ounce | $18.00 | $15.18 | $16.48 | $15.78 | 19 | % | 4 | % | ||||||||||||||||||||||||
Total production cost per tonne | $109.88 | $108.74 | $109.31 | $110.37 | 1 | % | (1 | %) | ||||||||||||||||||||||||
Underground development (m) | 3,042 | 2,623 | 5,664 | 7,424 | 16 | % | (24 | %) | ||||||||||||||||||||||||
Exploration drilling (m) | 16,373 | 14,499 | 30,872 | 32,320 | 13 | % | (4 | %) |
First Majestic Silver Corp. 2023 Second Quarter Report | Page 14 |
First Majestic Silver Corp. 2023 Second Quarter Report | Page 15 |
LA ENCANTADA | 2023-Q2 | 2023-Q1 | 2023-YTD | 2022-YTD | Change Q2 vs Q1 |
Change '23 vs '22 |
||||||||||||||||||||||||||
Ore processed/tonnes milled | 260,986 | 271,278 | 532,264 | 514,462 | (4 | %) | 3 | % | ||||||||||||||||||||||||
Average silver grade (g/t) | 127 | 132 | 130 | 125 | (4 | %) | 4 | % | ||||||||||||||||||||||||
Silver recovery (%) | 75 | % | 72 | % | 74 | % | 73 | % | 4 | % | 1 | % | ||||||||||||||||||||
Production | ||||||||||||||||||||||||||||||||
Silver ounces produced | 800,543 | 836,448 | 1,636,991 | 1,507,519 | (4 | %) | 9 | % | ||||||||||||||||||||||||
Gold ounces produced | 76 | 89 | 166 | 196 | (15 | %) | (15 | %) | ||||||||||||||||||||||||
Silver equivalent ounces produced | 806,789 | 843,951 | 1,650,740 | 1,523,240 | (4 | %) | 8 | % | ||||||||||||||||||||||||
Cost | ||||||||||||||||||||||||||||||||
Cash cost per AgEq Ounce | $16.90 | $15.48 | $16.18 | $15.08 | 9 | % | 7 | % | ||||||||||||||||||||||||
All-In sustaining costs per AgEq Ounce | $19.83 | $18.64 | $19.22 | $17.92 | 6 | % | 7 | % | ||||||||||||||||||||||||
Total production cost per tonne | $49.91 | $46.27 | $48.05 | $43.05 | 8 | % | 12 | % | ||||||||||||||||||||||||
Underground development (m) | 750 | 834 | 1,584 | 1,101 | (10 | %) | 44 | % | ||||||||||||||||||||||||
Exploration drilling (m) | 1,950 | 1,863 | 3,812 | 5,225 | 5% | (27%) |
First Majestic Silver Corp. 2023 Second Quarter Report | Page 16 |
Jerritt Canyon | 2023-Q2 | 2023-Q1 | 2023-YTD | 2022-YTD | Change Q2 vs Q1 |
Change '23 vs '22 |
||||||||||||||||||||||||||
Ore processed/tonnes milled | 31,240 | 146,403 | 177,643 | 443,648 | (79 | %) | (60 | %) | ||||||||||||||||||||||||
Average gold grade (g/t) | 4.90 | 4.03 | 4.19 | 3.40 | 21 | % | 23 | % | ||||||||||||||||||||||||
Gold recovery (%) | 89 | % | 86 | % | 87 | % | 81 | % | 3 | % | 7 | % | ||||||||||||||||||||
Production | ||||||||||||||||||||||||||||||||
Gold ounces produced | 4,364 | 16,341 | 20,705 | 39,339 | (73 | %) | (47 | %) | ||||||||||||||||||||||||
Silver equivalent ounces produced | 353,168 | 1,381,452 | 1,734,619 | 3,166,543 | (74 | %) | (45 | %) | ||||||||||||||||||||||||
Cost | ||||||||||||||||||||||||||||||||
Cash cost per Au Ounce | $4,181 | $2,540 | $2,886 | $2,058 | 65 | % | 40 | % | ||||||||||||||||||||||||
All-In sustaining costs per Au Ounce | $4,205 | $3,055 | $3,297 | $2,460 | 38 | % | 34 | % | ||||||||||||||||||||||||
Total production cost per tonne | $577.83 | $278.57 | $331.19 | $178.49 | 107 | % | 86 | % | ||||||||||||||||||||||||
Underground development (m) | — | 2,841 | 2,841 | 4,172 | (100 | %) | (32 | %) | ||||||||||||||||||||||||
Exploration drilling (m) | 7,375 | 6,181 | 13,556 | 72,423 | 19 | % | (81 | %) |
First Majestic Silver Corp. 2023 Second Quarter Report | Page 17 |
First Majestic Silver Corp. 2023 Second Quarter Report | Page 18 |
First Majestic Silver Corp. 2023 Second Quarter Report | Page 19 |
First Majestic Silver Corp. 2023 Second Quarter Report | Page 20 |
OVERVIEW OF FINANCIAL PERFORMANCE |
Second Quarter | Second Quarter | ||||||||||||||||||||||
2023 | 2022 | Variance % | |||||||||||||||||||||
Revenues | $146,692 | $159,443 | (8 | %) | (1) | ||||||||||||||||||
Mine operating costs | |||||||||||||||||||||||
Cost of sales | 104,607 | 113,619 | (8 | %) | (2) | ||||||||||||||||||
Cost of sales - standby costs | 8,360 | — | 100 | % | (2) | ||||||||||||||||||
Depletion, depreciation and amortization | 32,587 | 34,212 | (5 | %) | (3) | ||||||||||||||||||
145,554 | 147,831 | (2 | %) | ||||||||||||||||||||
Mine operating earnings | 1,138 | 11,612 | (90 | %) | |||||||||||||||||||
General and administrative expenses | 11,673 | 9,380 | 24 | % | (4) | ||||||||||||||||||
Share-based payments | 3,320 | 2,986 | 11 | % | |||||||||||||||||||
Mine holding costs | 3,718 | 2,430 | 53 | % | |||||||||||||||||||
Reversal of Impairment | — | (7,585) | (100 | %) | |||||||||||||||||||
Write down on assets held-for-sale | 7,229 | — | 100 | % | (5) | ||||||||||||||||||
Foreign exchange (gain) loss | (5,952) | 986 | NM | ||||||||||||||||||||
Operating (loss) earnings | (18,850) | 3,415 | NM | ||||||||||||||||||||
Investment and other income (loss) | 3,644 | (3,918) | 193 | % | (6) | ||||||||||||||||||
Finance costs | (7,326) | (4,835) | 52 | % | (7) | ||||||||||||||||||
Loss before income taxes | (22,532) | (5,338) | NM | ||||||||||||||||||||
Current income tax expense | 5,348 | 25,450 | (79 | %) | (8) | ||||||||||||||||||
Deferred income tax (recovery) expense | (10,346) | 53,262 | (119 | %) | |||||||||||||||||||
Income tax (recovery) expense | (4,998) | 78,712 | 106 | % | (8) | ||||||||||||||||||
Net loss for the period | ($17,534) | ($84,050) | 79 | % | (9) | ||||||||||||||||||
Loss per share (basic and diluted) | ($0.06) | ($0.32) | 81 | % | (9) |
First Majestic Silver Corp. 2023 Second Quarter Report | Page 21 |
First Majestic Silver Corp. 2023 Second Quarter Report | Page 22 |
Year to Date | Year to Date | Variance % | |||||||||||||||||||||
2023 | 2022 | 23 vs '22 | |||||||||||||||||||||
Revenues | $303,644 | $316,281 | (4 | %) | (1) | ||||||||||||||||||
Mine operating costs | |||||||||||||||||||||||
Cost of sales | 228,476 | 224,832 | 2 | % | (2) | ||||||||||||||||||
Cost of sales - standby costs | 13,437 | — | 100 | % | (2) | ||||||||||||||||||
Depletion, depreciation and amortization | 67,016 | 64,768 | 3 | % | (3) | ||||||||||||||||||
308,929 | 289,600 | 7 | % | ||||||||||||||||||||
Mine operating (loss) earnings | (5,285) | 26,681 | (120 | %) | |||||||||||||||||||
General and administrative | 20,121 | 19,662 | 2 | % | (4) | ||||||||||||||||||
Share-based payments | 7,949 | 7,808 | 2 | % | (5) | ||||||||||||||||||
Impairment (reversal) of non-current assets | 125,200 | (7,585) | NM | (6) | |||||||||||||||||||
Write down on assets held-for-sale | 7,229 | — | 100 | % | (7) | ||||||||||||||||||
Mine holding costs | 7,507 | 5,595 | 34 | % | |||||||||||||||||||
Loss on divestitures | 1,378 | — | 100 | % | (8) | ||||||||||||||||||
Foreign exchange (gain) loss | (11,595) | 277 | NM | ||||||||||||||||||||
Operating (loss) earnings | (163,074) | 924 | NM | ||||||||||||||||||||
Investment and other income (loss) | 6,869 | (1,286) | NM | ||||||||||||||||||||
Finance costs | (12,949) | (9,425) | 37 | % | |||||||||||||||||||
Loss before income taxes | (169,154) | (9,787) | NM | ||||||||||||||||||||
Current income tax expense | 5,413 | 36,942 | (85 | %) | |||||||||||||||||||
Deferred income tax (recovery) expense | (56,373) | 30,036 | NM | (9) | |||||||||||||||||||
Income tax (recovery) expense | (50,960) | 66,978 | (176 | %) | (9) | ||||||||||||||||||
Net loss for the year | ($118,194) | ($76,765) | (54 | %) | (10) | ||||||||||||||||||
Loss per common share | |||||||||||||||||||||||
Basic and diluted | ($0.43) | ($0.29) | (45 | %) | (10) | ||||||||||||||||||
First Majestic Silver Corp. 2023 Second Quarter Report | Page 23 |
First Majestic Silver Corp. 2023 Second Quarter Report | Page 24 |
SUMMARY OF QUARTERLY RESULTS |
2023 | 2022 | 2021 | |||||||||||||||||||||||||||||||||
Selected Financial Information | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | |||||||||||||||||||||||||||
Revenue | $146,692 | $156,952 | $148,189 | $159,751 | $159,443 | $156,838 | $204,876 | $124,646 | |||||||||||||||||||||||||||
Cost of sales | $104,607 | $123,868 | $126,148 | $120,707 | $113,619 | $111,213 | $121,236 | $92,006 | |||||||||||||||||||||||||||
Depletion, depreciation and amortization | $32,587 | $34,429 | $35,307 | $35,707 | $34,212 | $30,556 | $43,278 | $29,122 | |||||||||||||||||||||||||||
Mine operating earnings (loss) | $1,138 | ($6,423) | ($13,266) | $3,337 | $11,612 | $15,069 | $40,362 | $3,518 | |||||||||||||||||||||||||||
Net (loss) earnings after tax | ($17,534) | ($100,660) | ($16,819) | ($20,692) | ($84,050) | $7,285 | ($3,971) | ($18,406) | |||||||||||||||||||||||||||
(Loss) earnings per share - basic | ($0.06) | ($0.37) | ($0.06) | ($0.08) | ($0.32) | $0.03 | ($0.02) | ($0.07) | |||||||||||||||||||||||||||
(Loss) earnings per share - diluted | ($0.06) | ($0.37) | ($0.06) | ($0.08) | ($0.32) | $0.03 | ($0.02) | ($0.07) |
LIQUIDITY, CAPITAL RESOURCES AND CONTRACTUAL OBLIGATIONS |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Cash flow | |||||||||||||||||||||||
Cash generated by (used in) operating activities | $20,379 | ($13,253) | $15,709 | ($32,237) | |||||||||||||||||||
Cash used in investing activities | (37,545) | (67,049) | (89,842) | (106,828) | |||||||||||||||||||
Cash provided by financing activities | 71,299 | 11,401 | 79,729 | 23,553 | |||||||||||||||||||
Increase (decrease) in cash and cash equivalents | $54,133 | ($68,901) | $5,596 | ($115,512) | |||||||||||||||||||
Effect of exchange rate on cash and cash equivalents held in foreign currencies | 1,326 | (1,508) | 3,201 | (22) | |||||||||||||||||||
Cash and cash equivalent reclassified as held for sale | — | (4,671) | — | (4,671) | |||||||||||||||||||
Cash and cash equivalents, beginning of the period | 104,776 | 192,801 | 151,438 | 237,926 | |||||||||||||||||||
Cash and cash equivalents, end of period | $160,235 | $117,721 | $160,235 | $117,721 | |||||||||||||||||||
First Majestic Silver Corp. 2023 Second Quarter Report | Page 25 |
First Majestic Silver Corp. 2023 Second Quarter Report | Page 26 |
Contractual Cash Flows |
Less than 1 year |
2 to 3 years |
4 to 5 years |
After 5 years | |||||||||||||||||||||||||
Trade and other payables | $96,040 | $96,040 | $— | $— | $— | ||||||||||||||||||||||||
Debt facilities | 259,744 | 3,104 | 26,209 | 230,431 | — | ||||||||||||||||||||||||
Lease liabilities | 44,274 | 16,772 | 22,260 | 4,347 | 895 | ||||||||||||||||||||||||
Other liabilities | 6,956 | — | — | 6,956 | — | ||||||||||||||||||||||||
Purchase obligations and commitments | 4,157 | 4,157 | — | — | — | ||||||||||||||||||||||||
$411,171 | $120,073 | $48,469 | $241,734 | $895 |
MANAGEMENT OF RISKS AND UNCERTAINTIES |
First Majestic Silver Corp. 2023 Second Quarter Report | Page 27 |
June 30, 2023 | |||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | Restricted cash | Value added taxes receivable | Other financial assets | Trade and other payables | Net assets (liabilities) exposure | Effect of +/- 10% change in currency | |||||||||||||||||||||||||||||||||||
Canadian dollar | $20,895 | $— | $— | $1,968 | ($4,864) | $17,999 | $1,800 | ||||||||||||||||||||||||||||||||||
Mexican peso | 17,128 | 99,433 | 42,230 | — | (57,223) | 101,568 | 10,157 | ||||||||||||||||||||||||||||||||||
$38,023 | $99,433 | $42,230 | $1,968 | ($62,087) | $119,567 | $11,957 |
June 30, 2023 | |||||||||||||||||
Effect of +/- 10% change in metal prices |
|||||||||||||||||
Silver | Gold | Total | |||||||||||||||
Metals in doré inventory | $1,200 | $445 | $1,645 | ||||||||||||||
$1,200 | $445 | $1,645 |
First Majestic Silver Corp. 2023 Second Quarter Report | Page 28 |
First Majestic Silver Corp. 2023 Second Quarter Report | Page 29 |
First Majestic Silver Corp. 2023 Second Quarter Report | Page 30 |
First Majestic Silver Corp. 2023 Second Quarter Report | Page 31 |
First Majestic Silver Corp. 2023 Second Quarter Report | Page 32 |
First Majestic Silver Corp. 2023 Second Quarter Report | Page 33 |
OTHER FINANCIAL INFORMATION |
First Majestic Silver Corp. 2023 Second Quarter Report | Page 34 |
SUBSEQUENT EVENTS |
ACCOUNTING POLICIES, JUDGMENTS AND ESTIMATES |
First Majestic Silver Corp. 2023 Second Quarter Report | Page 35 |
First Majestic Silver Corp. 2023 Second Quarter Report | Page 36 |
First Majestic Silver Corp. 2023 Second Quarter Report | Page 37 |
NON-GAAP MEASURES |
First Majestic Silver Corp. 2023 Second Quarter Report | Page 38 |
First Majestic Silver Corp. 2023 Second Quarter Report | Page 39 |
(expressed in thousands of U.S. Dollars, except ounce and per ounce amounts) |
Three Months Ended June 30, 2023 | ||||||||||||||||
San Dimas | Santa Elena | La Encantada | Jerritt Canyon | Consolidated | |||||||||||||
Mining cost | $16,694 | $9,395 | $4,222 | $2,040 | $32,352 | ||||||||||||
Milling cost | 8,941 | 9,214 | 5,290 | 14,880 | 38,325 | ||||||||||||
Indirect cost | 13,794 | 4,891 | 3,512 | 1,132 | 23,329 | ||||||||||||
Total production cost (A) | $39,430 | $23,500 | $13,024 | $18,051 | $94,005 | ||||||||||||
Add: transportation and other selling cost | 405 | 232 | 155 | 16 | 869 | ||||||||||||
Add: smelting and refining cost | 404 | 55 | 144 | 16 | 619 | ||||||||||||
Add: environmental duty and royalties cost | 365 | 2,026 | 255 | 148 | 2,794 | ||||||||||||
Total cash cost (B) | $40,604 | $25,813 | $13,578 | $18,231 | $98,287 | ||||||||||||
Workers’ participation | 4,958 | 242 | 220 | — | 5,760 | ||||||||||||
General and administrative expenses | — | — | — | — | 11,284 | ||||||||||||
Share-based payments | — | — | — | — | 3,320 | ||||||||||||
Accretion of decommissioning liabilities | 418 | 293 | 306 | — | 1,017 | ||||||||||||
Sustaining capital expenditures | 7,309 | 4,190 | 957 | 105 | 12,976 | ||||||||||||
Operating lease payments | 164 | 1,604 | 870 | — | 3,093 | ||||||||||||
All-In Sustaining Costs (C) | $53,453 | $32,142 | $15,931 | $18,334 | $135,737 | ||||||||||||
Payable silver equivalent ounces produced (D) | 3,364,067 | 1,785,988 | 803,400 | 352,860 | 6,306,315 | ||||||||||||
Payable gold ounces produced (E) | N/A | N/A | N/A | 4,360 | N/A | ||||||||||||
Tonnes milled (F) | 227,065 | 213,878 | 260,986 | 31,240 | 733,170 | ||||||||||||
Cash cost per AgEq ounce (B/D) | $12.07 | $14.45 | $16.90 | $51.66 | $15.58 | ||||||||||||
AISC per AgEq ounce (C/D) | $15.89 | $18.00 | $19.83 | $51.96 | $21.52 | ||||||||||||
Cash cost per Au ounce (B/E) | N/A | N/A | N/A | $4,181 | N/A | ||||||||||||
AISC per Au ounce (C/E) | N/A | N/A | N/A | $4,205 | N/A | ||||||||||||
Production cost per tonne (A/F) | $173.62 | $109.88 | $49.91 | $577.83 | $128.21 | ||||||||||||
First Majestic Silver Corp. 2023 Second Quarter Report | Page 40 |
(expressed in thousands of U.S. Dollars, except ounce and per ounce amounts) |
Three Months Ended June 30, 2022 | ||||||||||||||||
San Dimas | Santa Elena | La Encantada | Jerritt Canyon | Consolidated | |||||||||||||
Mining cost | $11,785 | $11,611 | $3,683 | $18,270 | $45,348 | ||||||||||||
Milling cost | 8,550 | 8,237 | 5,284 | 12,696 | 34,767 | ||||||||||||
Indirect cost | 10,234 | 5,171 | 2,827 | 5,176 | 23,408 | ||||||||||||
Total production cost (A) | $30,569 | $25,019 | $11,794 | $36,141 | $103,523 | ||||||||||||
Add: transportation and other selling cost | 405 | 267 | 136 | 53 | 915 | ||||||||||||
Add: smelting and refining cost | 331 | 116 | 187 | 23 | 657 | ||||||||||||
Add: environmental duty and royalties cost | 316 | 2,209 | 106 | 837 | 3,468 | ||||||||||||
Total cash cost (B) | $31,621 | $27,611 | $12,223 | $37,054 | $108,563 | ||||||||||||
Workers’ participation | 3,619 | 1,392 | (480) | — | 4,531 | ||||||||||||
General and administrative expenses | — | — | — | — | 8,969 | ||||||||||||
Share-based payments | — | — | — | — | 2,986 | ||||||||||||
Accretion of decommissioning liabilities | 298 | 163 | 210 | 514 | 1,510 | ||||||||||||
Sustaining capital expenditures | 9,844 | 4,163 | 1,673 | 7,682 | 24,227 | ||||||||||||
Operating lease payments | 125 | 1,007 | 815 | — | 2,345 | ||||||||||||
All-In Sustaining Costs (C) | $45,507 | $34,336 | $14,441 | $45,250 | $153,131 | ||||||||||||
Payable silver equivalent ounces produced (D) | 3,039,048 | 2,238,242 | 867,675 | 1,544,596 | 7,689,561 | ||||||||||||
Payable gold ounces produced (E) | N/A | N/A | N/A | 18,632 | N/A | ||||||||||||
Tonnes milled (F) | 197,102 | 228,487 | 264,555 | 213,647 | 903,791 | ||||||||||||
Cash cost per AgEq ounce (B/D) | $10.41 | $12.34 | $14.09 | $23.99 | $14.12 | ||||||||||||
AISC per AgEq ounce (C/D) | $14.97 | $15.34 | $16.65 | $29.29 | $19.91 | ||||||||||||
Cash cost per Au ounce (B/E) | N/A | N/A | N/A | $1,989 | N/A | ||||||||||||
AISC per Au ounce (C/E) | N/A | N/A | N/A | $2,429 | N/A | ||||||||||||
Production cost per tonne (A/F) | $155.09 | $109.50 | $44.58 | $169.16 | $114.55 | ||||||||||||
First Majestic Silver Corp. 2023 Second Quarter Report | Page 41 |
(expressed in thousands of U.S. Dollars, except ounce and per ounce amounts) |
Six Months Ended June 30, 2023 | ||||||||||||||||
San Dimas | Santa Elena | La Encantada | Jerritt Canyon | Consolidated | |||||||||||||
Mining cost | $31,282 | $17,797 | $8,048 | $26,838 | $83,966 | ||||||||||||
Milling cost | 16,823 | 18,328 | 10,729 | 26,745 | 72,625 | ||||||||||||
Indirect cost | 25,843 | 10,082 | 6,800 | 5,252 | 47,977 | ||||||||||||
Total production cost (A) | $73,947 | $46,207 | $25,578 | $58,834 | $204,566 | ||||||||||||
Add: transportation and other selling cost | 843 | 477 | 331 | 30 | 1,804 | ||||||||||||
Add: smelting and refining cost | 789 | 104 | 323 | 52 | 1,268 | ||||||||||||
Add: environmental duty and royalties cost | 742 | 4,106 | 361 | 780 | 5,989 | ||||||||||||
Total cash cost (B) | $76,321 | $50,894 | $26,593 | $59,696 | $213,627 | ||||||||||||
Workers’ participation | 8,352 | 903 | 669 | — | 10,285 | ||||||||||||
General and administrative expenses | — | — | — | — | 19,342 | ||||||||||||
Share-based payments | — | — | — | — | 7,949 | ||||||||||||
Accretion of decommissioning liabilities | 815 | 573 | 598 | 514 | 2,500 | ||||||||||||
Sustaining capital expenditures | 15,859 | 8,733 | 1,991 | 7,994 | 34,999 | ||||||||||||
Operating lease payments | 349 | 2,955 | 1,747 | — | 5,884 | ||||||||||||
All-In Sustaining Costs (C) | $101,696 | $64,058 | $31,598 | $68,204 | $294,586 | ||||||||||||
Payable silver equivalent ounces produced (D) | 6,652,193 | 3,888,166 | 1,643,779 | 1,732,930 | 13,917,068 | ||||||||||||
Payable gold ounces produced (E) | N/A | N/A | N/A | 20,685 | N/A | ||||||||||||
Tonnes milled (F) | 446,432 | 422,699 | 532,264 | 177,643 | 1,579,038 | ||||||||||||
Cash cost per AgEq ounce (B/D) | $11.47 | $13.09 | $16.18 | $34.45 | $15.35 | ||||||||||||
AISC per AgEq ounce (C/D) | $15.29 | $16.48 | $19.22 | $39.36 | $21.17 | ||||||||||||
Cash cost per Au ounce (B/E) | N/A | N/A | N/A | $2,886 | N/A | ||||||||||||
AISC per Au ounce (C/E) | N/A | N/A | N/A | $3,297 | N/A | ||||||||||||
Production cost per tonne (A/F) | $165.64 | $109.31 | $48.05 | $331.19 | $129.55 | ||||||||||||
First Majestic Silver Corp. 2023 Second Quarter Report | Page 42 |
(expressed in thousands of U.S. Dollars, except ounce and per ounce amounts) | Six Months Ended June 30, 2022 | ||||||||||||||||
San Dimas | Santa Elena | La Encantada | Jerritt Canyon | Consolidated | |||||||||||||
Mining cost | $22,682 | $21,902 | $6,776 | $45,463 | $96,824 | ||||||||||||
Milling cost | 14,708 | 15,466 | 9,516 | 23,029 | 62,719 | ||||||||||||
Indirect cost | 21,235 | 10,136 | 5,856 | 10,694 | 47,921 | ||||||||||||
Total production cost (A) | $58,626 | $47,504 | $22,149 | $79,187 | $207,466 | ||||||||||||
Add: transportation and other selling cost | 511 | 377 | 222 | 66 | 1,284 | ||||||||||||
Add: smelting and refining cost | 721 | 216 | 325 | 39 | 1,301 | ||||||||||||
Add: environmental duty and royalties cost | 697 | 3,688 | 183 | 1,670 | 6,238 | ||||||||||||
Total cash cost (B) | $60,555 | $51,785 | $22,879 | $80,962 | $216,289 | ||||||||||||
Workers’ participation | 6,018 | 2,223 | (1,000) | — | 7,241 | ||||||||||||
General and administrative expenses | — | — | — | — | 18,850 | ||||||||||||
Share-based payments | — | — | — | — | 7,808 | ||||||||||||
Accretion of decommissioning liabilities | 590 | 322 | 419 | 1,027 | 3,017 | ||||||||||||
Sustaining capital expenditures | 18,023 | 8,354 | 3,261 | 14,783 | 45,672 | ||||||||||||
Operating lease payments | 241 | 2,076 | 1,625 | — | 4,724 | ||||||||||||
All-In Sustaining Costs (C) | $85,427 | $64,760 | $27,184 | $96,772 | $303,601 | ||||||||||||
Payable silver equivalent ounces produced (D) | 6,114,098 | 4,104,111 | 1,516,738 | 3,163,376 | 14,898,323 | ||||||||||||
Payable gold ounces produced (E) | N/A | N/A | N/A | 39,339 | N/A | ||||||||||||
Tonnes milled (F) | 392,402 | 430,398 | 514,462 | 443,648 | 1,780,909 | ||||||||||||
Cash cost per AgEq ounce (B/D) | $9.90 | $12.62 | $15.08 | $25.59 | $14.52 | ||||||||||||
AISC per AgEq ounce (C/D) | $13.97 | $15.78 | $17.92 | $30.59 | $20.38 | ||||||||||||
Cash cost per Au ounce (B/E) | N/A | N/A | N/A | $2,058 | N/A | ||||||||||||
AISC per Au ounce (C/E) | N/A | N/A | N/A | $2,460 | N/A | ||||||||||||
Production cost per tonne (A/F) | $149.40 | $110.37 | $43.05 | $178.49 | $116.50 | ||||||||||||
First Majestic Silver Corp. 2023 Second Quarter Report | Page 43 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Revenues as reported | $146,693 | $159,442 | $303,644 | $316,281 | |||||||||||||||||||
Add back: smelting and refining charges | 617 | 656 | 1,267 | 1,301 | |||||||||||||||||||
Gross revenues | 147,310 | 160,098 | 304,911 | 317,582 | |||||||||||||||||||
Less: Sandstorm gold revenues | (99) | (408) | (504) | (699) | |||||||||||||||||||
Less: Wheaton gold revenues | (7,131) | (6,630) | (13,782) | (12,855) | |||||||||||||||||||
Gross revenues, excluding Sandstorm, Wheaton (A) | $140,079 | $153,060 | $290,625 | $304,028 | |||||||||||||||||||
Payable silver equivalent ounces sold | 6,123,091 | 7,359,045 | 13,934,728 | 14,559,149 | |||||||||||||||||||
Less: Payable silver equivalent ounces sold to Sandstorm | (17,644) | (73,311) | (92,632) | (121,425) | |||||||||||||||||||
Less: Payable silver equivalent ounces sold to Wheaton | (490,104) | (889,941) | (1,377,805) | (1,676,335) | |||||||||||||||||||
Payable silver equivalent ounces sold, excluding Sandstorm and Wheaton (B) | 5,615,343 | 6,395,794 | 12,464,291 | 12,761,388 | |||||||||||||||||||
Average realized silver price per silver equivalent ounce (A/B) | $24.95 | $23.93 | $23.32 | $23.82 | |||||||||||||||||||
Average market price per ounce of silver per COMEX | $24.20 | $22.63 | $23.38 | $23.34 | |||||||||||||||||||
First Majestic Silver Corp. 2023 Second Quarter Report | Page 44 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Gross revenue, excluding Sandstorm, Wheaton | $140,079 | $153,060 | $290,625 | $304,028 | |||||||||||||||||||
Less: Silver revenues | 66,912 | 62,089 | 127,977 | 124,245 | |||||||||||||||||||
Gross gold revenues, excluding Sandstorm, Wheaton (A) | $73,166 | $90,970 | $162,648 | $179,783 | |||||||||||||||||||
Gold ounces sold | 50,460 | 59,697 | 109,647 | 117,912 | |||||||||||||||||||
Less: Gold ounces sold to Wheaton | 11,354 | 10,633 | 22,005 | 20,703 | |||||||||||||||||||
Less: Gold ounces sold to Sandstorm | 210 | 864 | 1,066 | 1,484 | |||||||||||||||||||
Gold ounces sold, excluding Sandstorm and Wheaton (B) | 38,896 | 48,200 | 86,576 | 95,725 | |||||||||||||||||||
Average realized gold price per ounce (A/B) | $1,881 | $1,887 | $1,879 | $1,878 | |||||||||||||||||||
Average market price per ounce of gold | $1,977 | $1,872 | $1,934 | $1,873 | |||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Operating cash flows | $20,379 | ($13,253) | $15,709 | ($32,237) | |||||||||||||||||||
Less: Sustaining capital expenditures | 12,976 | 24,227 | 34,999 | 45,672 | |||||||||||||||||||
Free cash flow | $7,403 | ($37,480) | ($19,290) | ($77,909) |
First Majestic Silver Corp. 2023 Second Quarter Report | Page 45 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Net (loss) earnings as reported | ($17,534) | ($84,050) | ($118,194) | ($76,765) | |||||||||||||||||||
Adjustments for non-cash or unusual items: | |||||||||||||||||||||||
Tax settlement | — | 21,340 | — | 21,340 | |||||||||||||||||||
Impairment (reversal) of non-current assets | — | (7,585) | 125,200 | (7,585) | |||||||||||||||||||
Deferred income tax (recovery) expense | (10,346) | 53,262 | (56,373) | 30,036 | |||||||||||||||||||
Loss from investment in marketable securities | 150 | 3,303 | 934 | 3,849 | |||||||||||||||||||
Loss on divestiture of mining interest | — | — | 1,378 | — | |||||||||||||||||||
Share-based payments | 3,320 | 2,986 | 7,949 | 7,808 | |||||||||||||||||||
Standby Costs | 8,360 | — | 13,437 | — | |||||||||||||||||||
Abnormal costs (1) |
— | 3,117 | — | 3,117 | |||||||||||||||||||
Write-down on assets held-for-sale | 7,229 | — | 7,229 | — | |||||||||||||||||||
Write-down of mineral inventory | 3,348 | 1,941 | 13,869 | 6,353 | |||||||||||||||||||
Adjusted net loss | ($5,473) | ($5,686) | ($4,571) | ($11,847) | |||||||||||||||||||
Weighted average number of shares on issue - basic | 280,993,803 | 262,680,950 | 277,625,669 | 261,447,267 | |||||||||||||||||||
Adjusted EPS | ($0.02) | ($0.02) | ($0.02) | ($0.05) |
First Majestic Silver Corp. 2023 Second Quarter Report | Page 46 |
June 30, 2023 | December 31, 2022 | ||||||||||
Current Assets | $362,800 | $370,289 | |||||||||
Less: Current Liabilities | (125,606) | (167,399) | |||||||||
Working Capital | $237,194 | $202,890 | |||||||||
Available Undrawn Revolving Credit Facility | 124,640 | 75,000 | |||||||||
Available Liquidity | $361,834 | $277,890 |
MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING |
First Majestic Silver Corp. 2023 Second Quarter Report | Page 47 |
CAUTIONARY STATEMENTS |
First Majestic Silver Corp. 2023 Second Quarter Report | Page 48 |
First Majestic Silver Corp. 2023 Second Quarter Report | Page 49 |
Date: | August 2, 2023 | |||||||
/s/ Keith Neumeyer |
||||||||
Keith Neumeyer |
||||||||
President & Chief Executive Officer |
Date: | August 2, 2023 | |||||||
/s/ David Soares | ||||||||
David Soares | ||||||||
Chief Financial Officer |
New York - AG | August 3, 2023 | ||||
Toronto – FR | |||||
Frankfurt – FMV | |||||
Key Performance Metrics | 2023-Q2 | 2023-Q1 | Change Q2 vs Q1 |
2022-Q2 | Change Q2 vs Q2 | |||||||||||||||||||||
Operational | ||||||||||||||||||||||||||
Ore Processed / Tonnes Milled | 733,170 | 845,868 | (13 | %) | 903,791 | (19 | %) | |||||||||||||||||||
Silver Ounces Produced | 2,633,411 | 2,543,059 | 4 | % | 2,775,928 | (5 | %) | |||||||||||||||||||
Gold Ounces Produced | 45,022 | 60,594 | (26 | %) | 59,391 | (24 | %) | |||||||||||||||||||
Silver Equivalent Ounces Produced | 6,320,971 | 7,627,105 | (17 | %) | 7,705,935 | (18 | %) | |||||||||||||||||||
Cash Costs per Silver Equivalent Ounce (1) |
$15.58 | $15.16 | 3 | % | $14.12 | 10 | % | |||||||||||||||||||
All-in Sustaining Cost per Silver Equivalent Ounce (1) |
$21.52 | $20.90 | 3 | % | $19.91 | 8 | % | |||||||||||||||||||
Total Production Cost per Tonne (1) |
$128.21 | $130.71 | (2 | %) | $114.55 | 12 | % | |||||||||||||||||||
Average Realized Silver Price per Silver Equivalent Ounce (1) |
$24.95 | $21.98 | 14 | % | $23.93 | 4 | % | |||||||||||||||||||
Financial (in $millions) | ||||||||||||||||||||||||||
Revenues | $146.7 | $157.0 | (7 | %) | $159.4 | (8 | %) | |||||||||||||||||||
Mine Operating Earnings (Loss) | $1.1 | ($6.4) | 118 | % | $11.6 | (91 | %) | |||||||||||||||||||
Net Loss | ($17.5) | ($100.7) | 83 | % | ($84.1) | 79 | % | |||||||||||||||||||
Operating Cash Flows before Non-Cash Working Capital and Taxes | $26.9 | $21.9 | 23 | % | $33.0 | (18 | %) | |||||||||||||||||||
Cash and Cash Equivalents | $160.2 | $104.8 | 53 | % | $117.7 | 36 | % | |||||||||||||||||||
Working Capital (1) |
$237.2 | $184.6 | 28 | % | $199.8 | 19 | % | |||||||||||||||||||
Free Cash Flow (1) |
$7.4 | ($26.7) | 128 | % | ($37.5) | 120 | % | |||||||||||||||||||
Shareholders | ||||||||||||||||||||||||||
(Loss) Earnings per Share ("EPS") - Basic | ($0.06) | ($0.37) | 84 | % | ($0.32) | 81 | % | |||||||||||||||||||
Adjusted EPS (1) |
($0.02) | $0.00 | (100 | %) | ($0.02) | 0 | % | |||||||||||||||||||
Second Quarter Production Summary | San Dimas | Santa Elena | La Encantada | Jerritt Canyon(1) |
Consolidated | ||||||||||||
Ore Processed / Tonnes Milled | 227,065 | 213,878 | 260,986 | 31,240 | 733,170 | ||||||||||||
Silver Ounces Produced | 1,690,831 | 142,037 | 800,543 | — | 2,633,411 | ||||||||||||
Gold Ounces Produced | 20,509 | 20,073 | 76 | 4,364 | 45,022 | ||||||||||||
Silver Equivalent Ounces Produced | 3,372,418 | 1,788,596 | 806,789 | 353,168 | 6,320,971 | ||||||||||||
Cash Costs per Silver Equivalent Ounce(2) |
$12.07 | $14.45 | $16.90 | $51.66 | $15.58 | ||||||||||||
All-in Sustaining Cost per Silver Equivalent Ounce(2) |
$15.89 | $18.00 | $19.83 | $51.96 | $21.52 | ||||||||||||
Cash Cost per Gold Ounce(2) |
N/A | N/A | N/A | $4,181 | N/A | ||||||||||||
All-In Sustaining Costs per Gold Ounce(2) |
N/A | N/A | N/A | $4,205 | N/A | ||||||||||||
Total Production Cost per Tonne(2) |
$173.62 | $109.88 | $49.91 | $577.83 | $128.21 |