FIRST MAJESTIC SILVER CORP. | |||||
By: | |||||
/s/ Connie Lillico | |||||
Connie Lillico | |||||
Corporate Secretary | |||||
May 6, 2021 |
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 |
Keith Neumeyer | Raymond Polman, CPA, CA | |||||||
President & CEO | Chief Financial Officer | |||||||
May 5, 2021 | May 5, 2021 |
CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS | ||||||||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | ||||||||
General | ||||||||
Statements of Earnings (Loss) | ||||||||
Statements of Financial Position | ||||||||
Other items | ||||||||
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) | |||||
FOR THE THREE MONTHS ENDED MARCH 31, 2021 and 2020 | |||||
Condensed Interim Consolidated Financial Statements - Unaudited | (In thousands of US dollars, except share and per share amounts) |
Three Months Ended March 31, | |||||||||||||||||
Note | 2021 | 2020 | |||||||||||||||
Revenues | $100,522 | $86,065 | |||||||||||||||
Mine operating costs | |||||||||||||||||
Cost of sales | 57,061 | 49,835 | |||||||||||||||
Cost of sales - standby costs | — | 946 | |||||||||||||||
Depletion, depreciation and amortization | 15,345 | 14,169 | |||||||||||||||
72,406 | 64,950 | ||||||||||||||||
Mine operating earnings | 28,116 | 21,115 | |||||||||||||||
General and administrative expenses | 6,961 | 6,284 | |||||||||||||||
Share-based payments | 3,594 | 2,378 | |||||||||||||||
Mine holding costs | 3,868 | 4,779 | |||||||||||||||
Loss on divestiture of exploration projects | — | 10,106 | |||||||||||||||
Foreign exchange gain | (1,797) | (2,826) | |||||||||||||||
Operating earnings | 15,490 | 394 | |||||||||||||||
Unrealized loss on foreign currency derivatives | — | (22,654) | |||||||||||||||
Investment and other income | (3,150) | (540) | |||||||||||||||
Finance costs | (3,773) | (3,856) | |||||||||||||||
Earnings (loss) before income taxes | 8,567 | (26,656) | |||||||||||||||
Income taxes | |||||||||||||||||
Current income tax expense | 8,537 | 1,214 | |||||||||||||||
Deferred income tax (recovery) expense | (1,825) | 4,566 | |||||||||||||||
6,712 | 5,780 | ||||||||||||||||
Net earnings (loss) for the period | $1,855 | ($32,436) | |||||||||||||||
Earnings (loss) per common share | |||||||||||||||||
Basic | $0.01 | ($0.15) | |||||||||||||||
Diluted | $0.01 | ($0.15) | |||||||||||||||
Weighted average shares outstanding | |||||||||||||||||
Basic | 222,544,712 | 209,396,052 | |||||||||||||||
Diluted | 225,772,720 | 209,396,052 |
Keith Neumeyer, Director | Douglas Penrose, Director |
The accompanying notes are an integral part of the condensed interim consolidated financial statements | |||||
First Majestic Silver Corp. 2021 First Quarter Report | Page 1 |
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | |||||
FOR THE THREE MONTHS ENDED MARCH 31, 2021 and 2020 | |||||
Condensed interim Consolidated Financial Statements - Unaudited | (In thousands of US dollars) |
Note | Three Months Ended March 31, | ||||||||||||||||
2021 | 2020 | ||||||||||||||||
Net earnings (loss) for the period | $1,855 | ($32,436) | |||||||||||||||
Other comprehensive (loss) income | |||||||||||||||||
Items that will not be subsequently reclassified to net earnings (loss): | |||||||||||||||||
Unrealized (loss) gain on fair value of investments in marketable securities, net of tax | (4,726) | 293 | |||||||||||||||
Realized loss on investments in marketable securities, net of tax | (651) | — | |||||||||||||||
Remeasurement of retirement benefit plan | — | (455) | |||||||||||||||
Other comprehensive loss | (5,377) | (162) | |||||||||||||||
Total comprehensive loss | ($3,522) | ($32,598) |
The accompanying notes are an integral part of the condensed interim consolidated financial statements | |||||
First Majestic Silver Corp. 2021 First Quarter Report | Page 2 |
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||
FOR THE THREE MONTHS ENDED MARCH 31, 2021 and 2020 | |||||
Condensed Interim Consolidated Financial Statements - Unaudited | (In thousands of US dollars) |
Three Months Ended March 31, | ||||||||||||||
Note | 2021 | 2020 | ||||||||||||
Operating Activities | ||||||||||||||
Net earnings (loss) for the period | $1,855 | ($32,436) | ||||||||||||
Adjustments for: | ||||||||||||||
Depletion, depreciation and amortization | 15,805 | 14,625 | ||||||||||||
Share-based payments | 3,594 | 2,378 | ||||||||||||
Income tax expense | 6,712 | 5,780 | ||||||||||||
Finance costs | 3,773 | 3,856 | ||||||||||||
Write-down on assets held-for-sale | 2,081 | — | ||||||||||||
Loss on divestiture of exploration projects | — | 10,176 | ||||||||||||
Fair value adjustment on foreign currency derivatives | — | 22,654 | ||||||||||||
Unrealized loss from marketable securities and silver futures derivatives | 1,289 | 1,079 | ||||||||||||
Unrealized foreign exchange gain | (3,980) | (4,799) | ||||||||||||
Operating cash flows before movements in working capital and taxes | 31,129 | 23,313 | ||||||||||||
Net change in non-cash working capital items | (13,766) | (10,763) | ||||||||||||
Income taxes paid | (9,932) | (502) | ||||||||||||
Cash generated by operating activities | 7,431 | 12,048 | ||||||||||||
Investing Activities | ||||||||||||||
Expenditures on mining interests | (33,416) | (19,772) | ||||||||||||
Acquisition of property, plant and equipment | (10,806) | (12,016) | ||||||||||||
Deposits paid for acquisition of non-current assets | (2,292) | (1,518) | ||||||||||||
Proceeds from sale of marketable securities | 250 | — | ||||||||||||
Cash used in investing activities | (46,264) | (33,306) | ||||||||||||
Financing Activities | ||||||||||||||
Proceeds from prospectus offerings, net of share issue costs | — | 13,792 | ||||||||||||
Proceeds from exercise of stock options | 4,363 | 1,841 | ||||||||||||
Repayment of lease liabilities | (1,328) | (1,779) | ||||||||||||
Finance costs paid | (1,759) | (1,956) | ||||||||||||
Repayment of debt facilities | — | (10,000) | ||||||||||||
Shares repurchased and cancelled | — | (1,694) | ||||||||||||
Cash provided by financing activities | 1,276 | 204 | ||||||||||||
Effect of exchange rate on cash and cash equivalents held in foreign currencies | 663 | (2,768) | ||||||||||||
Decrease in cash and cash equivalents | (37,557) | (21,054) | ||||||||||||
Cash and cash equivalents, beginning of the period | 238,578 | 169,009 | ||||||||||||
Cash and cash equivalents, end of period | $201,684 | $145,187 | ||||||||||||
Cash | $169,818 | $138,065 | ||||||||||||
Short-term investments | 31,866 | 7,122 | ||||||||||||
Cash and cash equivalents, end of period | $201,684 | $145,187 | ||||||||||||
Supplemental cash flow information |
The accompanying notes are an integral part of the condensed interim consolidated financial statements | |||||
First Majestic Silver Corp. 2021 First Quarter Report | Page 3 |
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION | |||||
AS AT MARCH 31, 2021 AND DECEMBER 31, 2020 | |||||
Condensed Interim Consolidated Financial Statements - Unaudited | (In thousands of US dollars) |
Note | March 31, 2021 | December 31, 2020 | |||||||||||||||
Assets | |||||||||||||||||
Current assets | |||||||||||||||||
Cash and cash equivalents | $201,684 | $238,578 | |||||||||||||||
Trade and other receivables | 3,780 | 4,271 | |||||||||||||||
Value added taxes receivable | 48,256 | 41,641 | |||||||||||||||
Inventories | 36,079 | 32,512 | |||||||||||||||
Other financial assets | 31,681 | 36,319 | |||||||||||||||
Prepaid expenses and other | 4,826 | 2,725 | |||||||||||||||
Assets held-for-sale | 3,432 | — | |||||||||||||||
Total current assets | 329,738 | 356,046 | |||||||||||||||
Non-current assets | |||||||||||||||||
Mining interests | 537,547 | 509,730 | |||||||||||||||
Property, plant and equipment | 257,717 | 258,220 | |||||||||||||||
Right-of-use assets | 13,297 | 14,330 | |||||||||||||||
Deposits on non-current assets | 11,349 | 14,246 | |||||||||||||||
Non-current value added taxes receivable | 17,036 | 15,301 | |||||||||||||||
Deferred tax assets | 68,014 | 69,644 | |||||||||||||||
Total assets | $1,234,698 | $1,237,517 | |||||||||||||||
Liabilities and Equity | |||||||||||||||||
Current liabilities | |||||||||||||||||
Trade and other payables | $69,344 | $76,002 | |||||||||||||||
Advance for assets held-for-sale | 4,449 | — | |||||||||||||||
Unearned revenue | 2,025 | 2,717 | |||||||||||||||
Current portion of debt facilities | 10,400 | 10,975 | |||||||||||||||
Current portion of lease liabilities | 4,944 | 5,358 | |||||||||||||||
Income taxes payable | 5,741 | 6,574 | |||||||||||||||
Total current liabilities | 96,903 | 101,626 | |||||||||||||||
Non-current liabilities | |||||||||||||||||
Debt facilities | 143,314 | 141,733 | |||||||||||||||
Lease liabilities | 14,272 | 15,217 | |||||||||||||||
Decommissioning liabilities | 50,347 | 51,471 | |||||||||||||||
Other liabilities | 5,503 | 5,406 | |||||||||||||||
Non-current income taxes payable | 21,707 | 23,099 | |||||||||||||||
Deferred tax liabilities | 43,505 | 48,729 | |||||||||||||||
Total liabilities | $375,551 | $387,281 | |||||||||||||||
Equity | |||||||||||||||||
Share capital | 1,097,140 | 1,087,139 | |||||||||||||||
Equity reserves | 99,052 | 101,997 | |||||||||||||||
Accumulated deficit | (337,045) | (338,900) | |||||||||||||||
Total equity | $859,147 | $850,236 | |||||||||||||||
Total liabilities and equity | $1,234,698 | $1,237,517 | |||||||||||||||
The accompanying notes are an integral part of the condensed interim consolidated financial statements | |||||
First Majestic Silver Corp. 2021 First Quarter Report | Page 4 |
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY | |||||
FOR THE THREE MONTHS ENDED MARCH 31 2021 AND 2020 | |||||
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, 2019 | 208,112,072 | $933,182 | $74,060 | ($2,532) | $19,164 | $90,692 | ($361,553) | $662,321 | ||||||||||||||||||||||||||||||||||||
Net loss for the period | — | — | — | — | — | — | (32,436) | (32,436) | ||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | (162) | — | (162) | — | (162) | ||||||||||||||||||||||||||||||||||||
Total comprehensive loss | — | — | — | (162) | — | (162) | (32,436) | (32,598) | ||||||||||||||||||||||||||||||||||||
Share-based payments | — | — | 2,378 | — | — | 2,378 | — | 2,378 | ||||||||||||||||||||||||||||||||||||
Shares issued for: | ||||||||||||||||||||||||||||||||||||||||||||
Prospectus offerings (Note 20(a)) | 1,304,338 | 13,792 | — | — | — | — | — | 13,792 | ||||||||||||||||||||||||||||||||||||
Exercise of stock options (Note 20(b)) | 295,816 | 2,549 | (708) | — | — | (708) | — | 1,841 | ||||||||||||||||||||||||||||||||||||
Settlement of restricted share units (Note 20(c)) | 112,000 | 879 | (879) | — | — | (879) | — | — | ||||||||||||||||||||||||||||||||||||
Shares repurchased and cancelled (Note 20(f)) | (275,000) | (1,260) | — | — | — | — | (434) | (1,694) | ||||||||||||||||||||||||||||||||||||
Balance at March 31, 2020 | 209,549,226 | $949,142 | $74,851 | ($2,694) | $19,164 | $91,321 | ($394,423) | $646,040 | ||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | 221,965,011 | $1,087,139 | $75,420 | $7,413 | $19,164 | $101,997 | ($338,900) | $850,236 | ||||||||||||||||||||||||||||||||||||
Net earnings for the period | — | — | — | — | — | — | 1,855 | 1,855 | ||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | (5,377) | — | (5,377) | — | (5,377) | ||||||||||||||||||||||||||||||||||||
Total comprehensive loss | — | — | — | (5,377) | — | (5,377) | 1,855 | (3,522) | ||||||||||||||||||||||||||||||||||||
Share-based payments | — | — | 4,345 | — | — | 4,345 | — | 4,345 | ||||||||||||||||||||||||||||||||||||
Shares issued for: | ||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options (Note 20(b)) | 543,864 | 6,146 | (1,783) | — | — | (1,783) | — | 4,363 | ||||||||||||||||||||||||||||||||||||
Acquisition of Springpole Silver Stream (Note 14(c)) | 287,300 | 3,750 | — | — | — | — | — | 3,750 | ||||||||||||||||||||||||||||||||||||
Settlement of restricted share units (Note 20(c)) | 8,301 | 105 | (130) | — | — | (130) | — | (25) | ||||||||||||||||||||||||||||||||||||
Balance at March 31, 2021 | 222,804,476 | $1,097,140 | $77,852 | $2,036 | $19,164 | $99,052 | ($337,045) | $859,147 |
The accompanying notes are an integral part of the condensed interim consolidated financial statements | |||||
First Majestic Silver Corp. 2021 First 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. 2021 First 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. 2021 First 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) |
Three Months Ended March 31, 2021 and 2020 | Revenue | Cost of sales | Depletion, depreciation, and amortization | Mine operating earnings (loss) | Capital expenditures | ||||||||||||||||||||||||||||||
Mexico | |||||||||||||||||||||||||||||||||||
San Dimas | 2021 | $61,789 | $31,323 | $9,804 | $20,662 | $14,482 | |||||||||||||||||||||||||||||
2020 | 48,065 | 26,067 | 8,781 | 13,217 | 12,802 | ||||||||||||||||||||||||||||||
Santa Elena | 2021 | 22,183 | 17,885 | 3,112 | 1,186 | 14,334 | |||||||||||||||||||||||||||||
2020 | 22,635 | 13,928 | 2,791 | 5,916 | 7,402 | ||||||||||||||||||||||||||||||
La Encantada | 2021 | 19,702 | 10,043 | 1,833 | 7,826 | 2,729 | |||||||||||||||||||||||||||||
2020 | 15,294 | 9,318 | 2,140 | 3,836 | 2,791 | ||||||||||||||||||||||||||||||
Non-producing Properties | 2021 | — | 17 | 123 | (140) | 932 | |||||||||||||||||||||||||||||
2020 | 183 | 1,361 | 191 | (1,369) | 2,095 | ||||||||||||||||||||||||||||||
Others(1) | 2021 | 4,793 | 1,720 | 473 | 2,600 | 12,583 | |||||||||||||||||||||||||||||
2020 | 239 | 321 | 266 | (348) | 4,966 | ||||||||||||||||||||||||||||||
Intercompany elimination(2) | 2021 | (7,945) | (3,927) | — | (4,018) | — | |||||||||||||||||||||||||||||
2020 | (351) | (214) | — | (137) | — | ||||||||||||||||||||||||||||||
Consolidated | 2021 | $100,522 | $57,061 | $15,345 | $28,116 | $45,060 | |||||||||||||||||||||||||||||
2020 | $86,065 | $50,781 | $14,169 | $21,115 | $30,056 |
At March 31, 2021 and December 31, 2020 | Mining Interests | Property, plant and equipment | Total mining assets | Total assets | Total liabilities | ||||||||||||||||||||||||||||||||||||
Producing | Exploration | ||||||||||||||||||||||||||||||||||||||||
Mexico | |||||||||||||||||||||||||||||||||||||||||
San Dimas | 2021 | $208,452 | $20,485 | $109,903 | $338,840 | $447,150 | $106,561 | ||||||||||||||||||||||||||||||||||
2020 | 204,592 | 17,179 | 112,105 | 333,876 | 439,145 | 105,462 | |||||||||||||||||||||||||||||||||||
Santa Elena | 2021 | 67,458 | 30,717 | 51,430 | 149,605 | 180,719 | 36,182 | ||||||||||||||||||||||||||||||||||
2020 | 52,892 | 33,951 | 49,245 | 136,088 | 166,525 | 33,467 | |||||||||||||||||||||||||||||||||||
La Encantada | 2021 | 27,076 | 2,393 | 17,466 | 46,935 | 97,908 | 26,642 | ||||||||||||||||||||||||||||||||||
2020 | 25,865 | 2,955 | 16,555 | 45,375 | 99,185 | 29,354 | |||||||||||||||||||||||||||||||||||
Non-producing Properties | 2021 | 108,837 | 37,893 | 28,258 | 174,989 | 217,685 | 34,683 | ||||||||||||||||||||||||||||||||||
2020 | 108,837 | 37,004 | 29,888 | 175,730 | 219,109 | 40,274 | |||||||||||||||||||||||||||||||||||
Others | 2021 | — | 34,235 | 50,660 | 84,895 | 291,235 | 171,483 | ||||||||||||||||||||||||||||||||||
2020 | — | 26,455 | 50,427 | 76,882 | 313,553 | 178,724 | |||||||||||||||||||||||||||||||||||
Consolidated | 2021 | $411,823 | $125,724 | $257,717 | $795,263 | $1,234,698 | $375,551 | ||||||||||||||||||||||||||||||||||
2020 | $392,185 | $117,545 | $258,220 | $767,950 | $1,237,517 | $387,281 |
The accompanying notes are an integral part of the condensed interim consolidated financial statements | |||||
First Majestic Silver Corp. 2021 First 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) |
Three Months Ended March 31, | ||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||
Gross revenue from payable metals: | ||||||||||||||||||||
Silver | $72,852 | 72 | % | $52,014 | 60 | % | ||||||||||||||
Gold | 28,338 | 28 | % | 34,702 | 40 | % | ||||||||||||||
Lead | — | — | % | 74 | — | % | ||||||||||||||
Gross revenue | 101,190 | 100 | % | 86,790 | 100 | % | ||||||||||||||
Less: smelting and refining costs | (668) | (725) | ||||||||||||||||||
Revenues | $100,522 | $86,065 |
The accompanying notes are an integral part of the condensed interim consolidated financial statements | |||||
First Majestic Silver Corp. 2021 First 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 March 31, | ||||||||||||||
2021 | 2020 | |||||||||||||
Consumables and materials | $10,776 | $9,920 | ||||||||||||
Labour costs | 32,847 | 27,323 | ||||||||||||
Energy | 8,632 | 7,778 | ||||||||||||
Other costs | 3,040 | 4,361 | ||||||||||||
Production costs | $55,295 | $49,382 | ||||||||||||
Transportation and other selling costs | 662 | 522 | ||||||||||||
Workers participation costs | 3,667 | 1,998 | ||||||||||||
Environmental duties and royalties | 573 | 396 | ||||||||||||
Inventory changes | (3,136) | (2,463) | ||||||||||||
Cost of Sales | $57,061 | $49,835 | ||||||||||||
Cost of Sales - Standby Costs(1) | $— | $946 |
Three Months Ended March 31, | ||||||||||||||
2021 | 2020 | |||||||||||||
Corporate administration | $1,484 | $1,277 | ||||||||||||
Salaries and benefits | 3,096 | 3,165 | ||||||||||||
Audit, legal and professional fees | 1,656 | 1,047 | ||||||||||||
Filing and listing fees | 88 | 155 | ||||||||||||
Directors fees and expenses | 177 | 184 | ||||||||||||
Depreciation | 460 | 456 | ||||||||||||
$6,961 | $6,284 |
The accompanying notes are an integral part of the condensed interim consolidated financial statements | |||||
First Majestic Silver Corp. 2021 First 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) |
Three Months Ended March 31, | ||||||||||||||
2021 | 2020 | |||||||||||||
Del Toro | $969 | $2,182 | ||||||||||||
La Parrilla | 1,033 | 1,719 | ||||||||||||
San Martin | 1,019 | — | ||||||||||||
La Guitarra | 848 | 878 | ||||||||||||
$3,868 | $4,779 |
Three Months Ended March 31, | ||||||||||||||
2021 | 2020 | |||||||||||||
Loss from investment in marketable securities (Note 13(a)) | ($1,289) | ($1,368) | ||||||||||||
Loss on write-down of assets held-for-sale(1) | (2,081) | — | ||||||||||||
Gain from investment in silver futures derivatives | — | 290 | ||||||||||||
Interest income and other | 220 | 538 | ||||||||||||
($3,150) | ($540) |
Three Months Ended March 31, | ||||||||||||||
2021 | 2020 | |||||||||||||
$2,670 | $2,640 | |||||||||||||
Lease liabilities (Note 19) | 371 | 403 | ||||||||||||
Accretion of decommissioning liabilities | 640 | 623 | ||||||||||||
Silver sales and other | 92 | 190 | ||||||||||||
$3,773 | $3,856 |
The accompanying notes are an integral part of the condensed interim consolidated financial statements | |||||
First Majestic Silver Corp. 2021 First 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) |
Three Months Ended March 31, | ||||||||||||||
2021 | 2020 | |||||||||||||
Net earnings (loss) for the period | $1,855 | ($32,436) | ||||||||||||
Weighted average number of shares on issue - basic | 222,544,712 | 209,396,052 | ||||||||||||
Impact of effect on dilutive securities: | ||||||||||||||
Stock options | 2,477,161 | — | ||||||||||||
Restricted, performance and deferred share units | 750,847 | — | ||||||||||||
Weighted average number of shares on issue - diluted(1) | 225,772,720 | 209,396,052 | ||||||||||||
Earnings (loss) per share - basic and diluted | $0.01 | ($0.15) |
March 31, 2021 | December 31, 2020 | ||||||||||
Finished goods - doré | $2,642 | $2,812 | |||||||||
Work-in-process | 2,615 | 2,780 | |||||||||
Stockpile | 2,136 | 1,336 | |||||||||
Silver coins and bullion | 5,025 | 956 | |||||||||
Materials and supplies | 23,661 | 24,628 | |||||||||
$36,079 | $32,512 |
March 31, 2021 | December 31, 2020 | ||||||||||
FVTPL marketable securities (a) | $12,702 | $13,876 | |||||||||
FVTOCI marketable securities (b) | 16,187 | 22,443 | |||||||||
Total other financial assets | $31,681 | $36,319 |
The accompanying notes are an integral part of the condensed interim consolidated financial statements | |||||
First Majestic Silver Corp. 2021 First 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) |
March 31, 2021 | December 31, 2020 | ||||||||||
Depletable properties | $411,823 | $392,185 | |||||||||
Non-depletable properties (exploration and evaluation costs) | 125,724 | 117,545 | |||||||||
$537,547 | $509,730 |
Depletable properties | San Dimas | Santa Elena | La Encantada | Non-producing Properties(1) | Total | ||||||||||||||||||||||||
Cost | |||||||||||||||||||||||||||||
At December 31, 2019 | $220,658 | $61,654 | $111,590 | $494,132 | $888,034 | ||||||||||||||||||||||||
Additions | 21,263 | 6,218 | 4,201 | — | 31,682 | ||||||||||||||||||||||||
Change in decommissioning liabilities | 4,527 | 1,191 | 2,049 | 3,059 | 10,826 | ||||||||||||||||||||||||
Transfer from exploration properties | 3,645 | 4,229 | 472 | — | 8,346 | ||||||||||||||||||||||||
At December 31, 2020 | $250,093 | $73,292 | $118,312 | $497,191 | $938,888 | ||||||||||||||||||||||||
Additions | 10,001 | 4,530 | 895 | — | 15,426 | ||||||||||||||||||||||||
Transfer from exploration properties | — | 11,402 | 1,293 | — | 12,695 | ||||||||||||||||||||||||
At March 31, 2021 | $260,094 | $89,223 | $120,500 | $497,191 | $967,009 | ||||||||||||||||||||||||
Accumulated depletion, amortization and impairment | |||||||||||||||||||||||||||||
At December 31, 2019 | ($27,225) | ($16,608) | ($88,499) | ($388,354) | ($520,686) | ||||||||||||||||||||||||
Depletion and amortization | (18,277) | (3,792) | (3,948) | — | (26,017) | ||||||||||||||||||||||||
At December 31, 2020 | ($45,502) | ($20,400) | ($92,447) | ($388,354) | ($546,703) | ||||||||||||||||||||||||
Depletion and amortization | (6,141) | (1,365) | (977) | — | (8,483) | ||||||||||||||||||||||||
At March 31, 2021 | ($51,643) | ($21,765) | ($93,424) | ($388,354) | ($555,186) | ||||||||||||||||||||||||
Carrying values | |||||||||||||||||||||||||||||
At December 31, 2020 | $204,592 | $52,892 | $25,865 | $108,837 | $392,185 | ||||||||||||||||||||||||
At March 31, 2021 | $208,452 | $67,458 | $27,076 | $108,837 | $411,823 |
The accompanying notes are an integral part of the condensed interim consolidated financial statements | |||||
First Majestic Silver Corp. 2021 First 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) |
Non-depletable properties | San Dimas(a) | Santa Elena(b) | La Encantada | Non-producing Properties(1) | Exploration Projects(2) | Springpole Stream(c) | Total | ||||||||||||||||||||||||||||||||||
At December 31, 2019 | $8,699 | $18,592 | $1,104 | $32,938 | $34,710 | $— | $96,043 | ||||||||||||||||||||||||||||||||||
Exploration and evaluation expenditures | 12,125 | 19,588 | 2,323 | 4,066 | 1,142 | 4,356 | 43,601 | ||||||||||||||||||||||||||||||||||
Change in decommissioning liabilities (Note 20) | — | — | — | — | 59 | — | 59 | ||||||||||||||||||||||||||||||||||
Sale of exploration project | — | — | — | — | (13,812) | — | (13,812) | ||||||||||||||||||||||||||||||||||
Transfer to producing properties | (3,645) | (4,229) | (472) | — | — | — | (8,346) | ||||||||||||||||||||||||||||||||||
At December 31, 2020 | $17,179 | $33,951 | $2,955 | $37,004 | $22,099 | $4,356 | $117,545 | ||||||||||||||||||||||||||||||||||
Exploration and evaluation expenditures | 3,306 | 8,168 | 731 | 889 | 280 | 7,500 | 20,874 | ||||||||||||||||||||||||||||||||||
Transfer to producing properties | — | (11,402) | (1,293) | — | — | — | (12,695) | ||||||||||||||||||||||||||||||||||
At March 31, 2021 | $20,485 | $30,717 | $2,393 | $37,893 | $22,379 | $11,856 | $125,724 |
The accompanying notes are an integral part of the condensed interim consolidated financial statements | |||||
First Majestic Silver Corp. 2021 First 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) |
The accompanying notes are an integral part of the condensed interim consolidated financial statements | |||||
First Majestic Silver Corp. 2021 First 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) |
Land and Buildings(1) | Machinery and Equipment | Assets under Construction(2) | Other | Total | |||||||||||||||||||||||||
Cost | |||||||||||||||||||||||||||||
At December 31, 2019 | $198,412 | $456,655 | $27,645 | $24,438 | $707,150 | ||||||||||||||||||||||||
Additions | — | 2,096 | 47,266 | 391 | 49,753 | ||||||||||||||||||||||||
Transfers and disposals | 917 | 9,873 | (19,242) | 3,822 | (4,630) | ||||||||||||||||||||||||
At December 31, 2020 | $199,329 | $468,624 | $55,669 | $28,651 | $752,273 | ||||||||||||||||||||||||
Additions | — | 344 | 8,363 | 53 | 8,760 | ||||||||||||||||||||||||
Transfers and disposals | 1,005 | 1,355 | (4,988) | 2,237 | (391) | ||||||||||||||||||||||||
At March 31, 2021 | $200,334 | $470,323 | $59,044 | $30,941 | $760,642 | ||||||||||||||||||||||||
Accumulated depreciation, amortization and impairment | |||||||||||||||||||||||||||||
At December 31, 2019 | ($129,040) | ($326,300) | $— | ($15,171) | ($470,511) | ||||||||||||||||||||||||
Depreciation and amortization | (4,188) | (19,833) | — | (2,555) | (26,576) | ||||||||||||||||||||||||
Transfers and disposals | 72 | 2,754 | — | 208 | 3,034 | ||||||||||||||||||||||||
At December 31, 2020 | ($133,156) | ($343,379) | $— | ($17,518) | ($494,053) | ||||||||||||||||||||||||
Depreciation and amortization | (1,227) | (4,959) | — | (748) | (6,934) | ||||||||||||||||||||||||
Transfers and disposals | — | 119 | — | 24 | 143 | ||||||||||||||||||||||||
Write-down on assets-held-for-sale | — | — | — | (2,081) | (2,081) | ||||||||||||||||||||||||
At March 31, 2021 | ($134,383) | ($348,219) | $— | ($20,323) | ($502,925) | ||||||||||||||||||||||||
Carrying values | |||||||||||||||||||||||||||||
At December 31, 2020 | $66,173 | $125,245 | $55,669 | $11,133 | $258,220 | ||||||||||||||||||||||||
At March 31, 2021 | $65,951 | $122,104 | $59,044 | $10,618 | $257,717 |
The accompanying notes are an integral part of the condensed interim consolidated financial statements | |||||
First Majestic Silver Corp. 2021 First 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) |
San Dimas | Santa Elena | La Encantada | Non-producing Properties(1) | Other | Total | ||||||||||||||||||||||||||||||
Cost | |||||||||||||||||||||||||||||||||||
At December 31, 2019 | $136,303 | $90,762 | $137,302 | $297,240 | $45,543 | $707,150 | |||||||||||||||||||||||||||||
Additions | 10,384 | 7,933 | 4,209 | 272 | 26,955 | 49,753 | |||||||||||||||||||||||||||||
Transfers and disposals | 41 | (1,364) | 1,999 | (3,751) | (1,555) | (4,630) | |||||||||||||||||||||||||||||
At December 31, 2020 | $146,728 | $97,331 | $143,510 | $293,761 | $70,943 | $752,273 | |||||||||||||||||||||||||||||
Additions(2) | 1,175 | 1,636 | 1,102 | 43 | 4,804 | 8,760 | |||||||||||||||||||||||||||||
Transfers and disposals | 1,646 | 4,732 | 836 | (5,733) | (1,872) | (391) | |||||||||||||||||||||||||||||
At March 31, 2021 | $149,549 | $103,699 | $145,448 | $288,071 | $73,875 | $760,642 | |||||||||||||||||||||||||||||
Accumulated depreciation, amortization and impairment | |||||||||||||||||||||||||||||||||||
At December 31, 2019 | ($19,747) | ($42,975) | ($122,566) | ($266,190) | ($19,033) | ($470,511) | |||||||||||||||||||||||||||||
Depreciation and amortization | (15,032) | (6,451) | (2,646) | (592) | (1,855) | (26,576) | |||||||||||||||||||||||||||||
Transfers and disposals | 156 | 1,340 | (1,743) | 2,909 | 372 | 3,034 | |||||||||||||||||||||||||||||
At December 31, 2020 | ($34,623) | ($48,086) | ($126,955) | ($263,873) | ($20,516) | ($494,053) | |||||||||||||||||||||||||||||
Depreciation and amortization | (3,949) | (1,608) | (647) | (66) | (664) | (6,934) | |||||||||||||||||||||||||||||
Transfers and disposals | (1,074) | (2,575) | (380) | 4,126 | 46 | 143 | |||||||||||||||||||||||||||||
Write-down on assets held-for-sale | — | — | — | — | (2,081) | (2,081) | |||||||||||||||||||||||||||||
At March 31, 2021 | ($39,646) | ($52,269) | ($127,982) | ($259,813) | ($23,215) | ($502,925) | |||||||||||||||||||||||||||||
Carrying values | |||||||||||||||||||||||||||||||||||
At December 31, 2020 | $112,105 | $49,245 | $16,555 | $29,888 | $50,427 | $258,220 | |||||||||||||||||||||||||||||
At March 31, 2021 | $109,903 | $51,430 | $17,466 | $28,258 | $50,660 | $257,717 |
The accompanying notes are an integral part of the condensed interim consolidated financial statements | |||||
First Majestic Silver Corp. 2021 First 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) |
Land and Buildings | Machinery and Equipment | Other | Total | ||||||||||||||||||||
At December 31, 2019 | $4,207 | $7,812 | $15 | $12,034 | |||||||||||||||||||
Additions | 1,939 | 554 | — | 2,494 | |||||||||||||||||||
Remeasurements | 2,789 | (10) | — | 2,779 | |||||||||||||||||||
Depreciation and amortization | (848) | (2,106) | (7) | (2,961) | |||||||||||||||||||
Impairment | — | (16) | — | (16) | |||||||||||||||||||
At December 31, 2020 | $8,087 | $6,234 | $8 | $14,330 | |||||||||||||||||||
Remeasurements | 45 | (115) | — | (70) | |||||||||||||||||||
Depreciation and amortization | (247) | (399) | (2) | (648) | |||||||||||||||||||
Disposals | (186) | (130) | — | (315) | |||||||||||||||||||
At March 31, 2021 | $7,700 | $5,590 | $7 | $13,297 |
March 31, 2021 | December 31, 2020 | ||||||||||
Trade payables | $18,523 | $31,262 | |||||||||
Trade related accruals | 23,503 | 18,635 | |||||||||
Payroll and related benefits | 25,221 | 21,427 | |||||||||
Environmental duty | 584 | 2,156 | |||||||||
Other accrued liabilities | 1,513 | 2,522 | |||||||||
$69,344 | $76,002 |
The accompanying notes are an integral part of the condensed interim consolidated financial statements | |||||
First Majestic Silver Corp. 2021 First 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) |
Convertible Debentures (a) | Revolving Credit Facility (b) | Total | ||||||||||||||||||
Balance at December 31, 2019 | $136,607 | $19,211 | $155,818 | |||||||||||||||||
Finance costs | ||||||||||||||||||||
Interest expense | 2,984 | 763 | 3,747 | |||||||||||||||||
Accretion | 6,168 | 678 | 6,846 | |||||||||||||||||
Proceeds from drawdown of Revolving Credit Facility | — | 10,000 | 10,000 | |||||||||||||||||
Repayments of principal | — | (19,969) | (19,969) | |||||||||||||||||
Payments of finance costs | (2,934) | (800) | (3,734) | |||||||||||||||||
Balance at December 31, 2020 | $142,825 | $9,883 | $152,708 | |||||||||||||||||
Finance costs | ||||||||||||||||||||
Interest expense | 733 | 183 | 916 | |||||||||||||||||
Accretion | 1,582 | 172 | 1,754 | |||||||||||||||||
Payments of finance costs | (1,467) | (197) | (1,664) | |||||||||||||||||
Balance at March 31, 2021 | $143,673 | $10,041 | $153,714 | |||||||||||||||||
Statements of Financial Position Presentation | ||||||||||||||||||||
Current portion of debt facilities | $1,092 | $9,883 | $10,975 | |||||||||||||||||
Non-current portion of debt facilities | 141,733 | — | 141,733 | |||||||||||||||||
Balance at December 31, 2020 | $142,825 | $9,883 | $152,708 | |||||||||||||||||
Current portion of debt facilities | $359 | $10,041 | $10,400 | |||||||||||||||||
Non-current portion of debt facilities | 143,314 | — | 143,314 | |||||||||||||||||
Balance at March 31, 2021 | $143,673 | $10,041 | $153,714 |
The accompanying notes are an integral part of the condensed interim consolidated financial statements | |||||
First Majestic Silver Corp. 2021 First 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) |
The accompanying notes are an integral part of the condensed interim consolidated financial statements | |||||
First Majestic Silver Corp. 2021 First 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) |
Finance Leases | Operating Leases (a) | Equipment Financing (c) | Total | ||||||||||||||||||||
Balance at December 31, 2019 | $50 | $18,951 | $2,935 | $21,936 | |||||||||||||||||||
Additions | — | 2,494 | — | 2,494 | |||||||||||||||||||
Remeasurements | — | 2,779 | — | 2,779 | |||||||||||||||||||
Finance costs | — | 1,396 | 83 | 1,479 | |||||||||||||||||||
Repayments of principal | (50) | (5,353) | (2,303) | (7,706) | |||||||||||||||||||
Payments of finance costs | — | — | (126) | (126) | |||||||||||||||||||
Foreign exchange loss | — | (281) | — | (281) | |||||||||||||||||||
Balance at December 31, 2020 | $— | $19,986 | $589 | $20,575 | |||||||||||||||||||
Remeasurements | — | (70) | — | (70) | |||||||||||||||||||
Disposals | — | (126) | — | (126) | |||||||||||||||||||
Finance costs | — | 367 | 4 | 371 | |||||||||||||||||||
Repayments of principal | — | (1,112) | (216) | (1,328) | |||||||||||||||||||
Payments of finance costs | — | — | (3) | (3) | |||||||||||||||||||
Foreign exchange gain | — | (203) | — | (203) | |||||||||||||||||||
Balance at March 31, 2021 | $— | $18,842 | $374 | $19,216 | |||||||||||||||||||
Statements of Financial Position Presentation | |||||||||||||||||||||||
Current portion of lease liabilities | $— | $4,820 | $538 | $5,358 | |||||||||||||||||||
Non-current portion of lease liabilities | — | 15,166 | 51 | 15,217 | |||||||||||||||||||
Balance at December 31, 2020 | $— | $19,986 | $589 | $20,575 | |||||||||||||||||||
Current portion of lease liabilities | $— | $4,570 | $374 | $4,944 | |||||||||||||||||||
Non-current portion of lease liabilities | — | 14,272 | — | 14,272 | |||||||||||||||||||
Balance at March 31, 2021 | $— | $18,842 | $374 | $19,216 |
The accompanying notes are an integral part of the condensed interim consolidated financial statements | |||||
First Majestic Silver Corp. 2021 First 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) |
Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | ||||||||||||||||||||||
Number of Shares | Net Proceeds | Number of Shares | Net Proceeds | ||||||||||||||||||||
ATM program(1) | — | $— | 1,304,338 | $13,792 | |||||||||||||||||||
The accompanying notes are an integral part of the condensed interim consolidated financial statements | |||||
First Majestic Silver Corp. 2021 First Quarter Report | Page 22 |
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS | |||||
Condensed Interim Consolidated Financial Statements - Unaudited | (Tabular amounts are expressed in thousands of US dollars) |
Options Outstanding | Options Exercisable | ||||||||||||||||||||||||||||||||||
Exercise prices (CAD$) | 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) | |||||||||||||||||||||||||||||
4.80 - 10.00 | 2,538,859 | 8.61 | 7.62 | 1,566,640 | 8.63 | 7.30 | |||||||||||||||||||||||||||||
10.01 - 15.00 | 3,038,993 | 12.31 | 4.91 | 1,694,497 | 11.18 | 1.51 | |||||||||||||||||||||||||||||
15.01 - 20.00 | 1,224,696 | 16.30 | 8.14 | 272,674 | 15.98 | 5.46 | |||||||||||||||||||||||||||||
20.01 - 126.01 | 76,773 | 25.21 | 2.38 | 64,273 | 25.85 | 0.92 | |||||||||||||||||||||||||||||
6,879,321 | 11.80 | 6.46 | 3,598,084 | 10.70 | 4.32 |
Three Months Ended | Year Ended | ||||||||||||||||||||||
March 31, 2021 | December 31, 2020 | ||||||||||||||||||||||
Number of Options | Weighted Average Exercise Price (CAD $/Share) | Number of Options | Weighted Average Exercise Price (CAD $/Share) | ||||||||||||||||||||
Balance, beginning of the year | 7,074,092 | 12.07 | 7,583,439 | 10.70 | |||||||||||||||||||
Granted | 422,500 | 17.15 | 2,621,924 | 13.46 | |||||||||||||||||||
Exercised | (543,864) | 10.17 | (2,473,926) | 7.50 | |||||||||||||||||||
Cancelled or expired | (73,407) | 80.59 | (657,345) | 18.96 | |||||||||||||||||||
Balance, end of the period | 6,879,321 | 11.80 | 7,074,092 | 12.07 |
Three Months Ended | Year Ended | |||||||||||||||||||
Assumption | Based on | March 31, 2021 | December 31, 2020 | |||||||||||||||||
Risk-free interest rate (%) | Yield curves on Canadian government zero- coupon bonds with a remaining term equal to the stock options’ expected life | 0.59 | 1.03 | |||||||||||||||||
Expected life (years) | Average of the expected vesting term and expiry term of the option | 5.87 | 5.83 | |||||||||||||||||
Expected volatility (%) | Historical and implied volatility of the precious metals mining sector | 49.00 | 49.00 | |||||||||||||||||
Expected dividend yield (%) | Annualized dividend rate as of the date of grant | — | — |
The accompanying notes are an integral part of the condensed interim consolidated financial statements | |||||
First Majestic Silver Corp. 2021 First Quarter Report | Page 23 |
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS | |||||
Condensed Interim Consolidated Financial Statements - Unaudited | (Tabular amounts are expressed in thousands of US dollars) |
Three Months Ended March 31, 2021 | Year Ended December 31, 2020 | ||||||||||||||||
Number of shares | Weighted Average Fair Value (CAD$) | Number of shares | Weighted Average Fair Value (CAD$) | ||||||||||||||
Outstanding, beginning of the year | 184,483 | 15.66 | 128,944 | 10.36 | |||||||||||||
Granted | 291,697 | 17.13 | 211,192 | 15.72 | |||||||||||||
Settled | (9,968) | 15.93 | (127,000) | 10.32 | |||||||||||||
Forfeited | — | — | (28,653) | 15.93 | |||||||||||||
Outstanding, end of the period | 466,212 | 16.57 | 184,483 | 15.66 |
Three Months Ended March 31, 2021 | Year Ended December 31, 2020 | ||||||||||||||||
Number of shares | Weighted Average Fair Value (CAD$) | Number of shares | Weighted Average Fair Value (CAD$) | ||||||||||||||
Outstanding, beginning of the year | 109,035 | 15.61 | — | — | |||||||||||||
Granted | 175,600 | 17.08 | 122,575 | 15.65 | |||||||||||||
Forfeited | — | — | (13,540) | 15.93 | |||||||||||||
Outstanding, end of the period | 284,635 | 16.52 | 109,035 | 15.61 |
The accompanying notes are an integral part of the condensed interim consolidated financial statements | |||||
First Majestic Silver Corp. 2021 First Quarter Report | Page 24 |
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS | |||||
Condensed Interim Consolidated Financial Statements - Unaudited | (Tabular amounts are expressed in thousands of US dollars) |
Three Months Ended March 31, 2021 | ||||||||
Number of shares | Weighted Average Fair Value (CAD$) | |||||||
Outstanding, beginning of the year | — | — | ||||||
Granted | 28,869 | 17.97 | ||||||
Outstanding, end of the period | 28,869 | 17.97 |
The accompanying notes are an integral part of the condensed interim consolidated financial statements | |||||
First Majestic Silver Corp. 2021 First 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) |
Financial Instruments Measured at Fair Value | Valuation Method | |||||||
Trade receivables (related to concentrate sales) | Receivables that are subject to provisional pricing and final price adjustment at the end of the quotational period are estimated based on observable forward price of metal per London Metal Exchange (Level 2) | |||||||
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. | |||||||
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 | |||||||
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. |
March 31, 2021 | December 31, 2020 | ||||||||||||||||||||||||||||||||||
Fair value measurement | Fair value measurement | ||||||||||||||||||||||||||||||||||
Carrying value | Level 1 | Level 2 | Carrying value | Level 1 | Level 2 | ||||||||||||||||||||||||||||||
Financial assets | |||||||||||||||||||||||||||||||||||
Marketable securities (Note 13) | $ | 31,681 | $ | 26,880 | $ | 4,802 | $ | 36,319 | $ | 30,996 | $ | 5,323 | |||||||||||||||||||||||
March 31, 2021 | December 31, 2020 | ||||||||||
Equity | $859,147 | $850,236 | |||||||||
Debt facilities | 153,714 | 152,708 | |||||||||
Lease liabilities | 19,216 | 20,575 | |||||||||
Less: cash and cash equivalents | (201,684) | (238,578) | |||||||||
$830,393 | $784,941 |
The accompanying notes are an integral part of the condensed interim consolidated financial statements | |||||
First Majestic Silver Corp. 2021 First 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) |
The accompanying notes are an integral part of the condensed interim consolidated financial statements | |||||
First Majestic Silver Corp. 2021 First 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) |
Carrying Amount | Contractual Cash Flows | Less than 1 year | 2 to 3 years | 4 to 5 years | After 5 years | |||||||||||||||||||||||||||||||||
Trade and other payables | $69,344 | $69,344 | $69,344 | $— | $— | $— | ||||||||||||||||||||||||||||||||
Debt facilities | 153,714 | 172,429 | 12,995 | 159,434 | — | — | ||||||||||||||||||||||||||||||||
Lease liabilities | 19,216 | 19,066 | 4,888 | 7,148 | 5,994 | 1,036 | ||||||||||||||||||||||||||||||||
Other liabilities | 5,503 | 5,493 | — | — | — | 5,493 | ||||||||||||||||||||||||||||||||
$247,777 | $266,332 | $87,227 | $166,582 | $5,994 | $6,529 |
March 31, 2021 | |||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | Trade and other receivables | Value added taxes receivable | Other financial assets | Trade and other payables | Net assets (liabilities) exposure | Effect of +/- 10% change in currency | |||||||||||||||||||||||||||||||||||
Canadian dollar | $78,777 | $62 | $— | $9,192 | ($2,682) | $85,349 | $8,535 | ||||||||||||||||||||||||||||||||||
Mexican peso | 9,970 | — | 65,811 | — | (41,050) | 34,731 | 3,473 | ||||||||||||||||||||||||||||||||||
$88,747 | $62 | $65,811 | $9,192 | ($43,732) | $120,080 | $12,008 |
The accompanying notes are an integral part of the condensed interim consolidated financial statements | |||||
First Majestic Silver Corp. 2021 First 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) |
March 31, 2021 | |||||||||||||||||
Effect of +/- 10% change in metal prices | |||||||||||||||||
Silver | Gold | Total | |||||||||||||||
Metals in doré inventory | $245 | $282 | $527 | ||||||||||||||
$245 | $282 | $527 |
Three Months Ended March 31, | |||||||||||||||||
2021 | 2020 | ||||||||||||||||
Net change in non-cash working capital items: | |||||||||||||||||
Decrease in trade and other receivables | $491 | $751 | |||||||||||||||
(Increase) decrease in value added taxes receivable | (8,350) | 819 | |||||||||||||||
Increase in inventories | (3,156) | (1,700) | |||||||||||||||
Increase in prepaid expenses and other | (2,101) | (4,036) | |||||||||||||||
Increase (decrease) in income taxes payable | 292 | (482) | |||||||||||||||
Decrease in trade and other payables | (942) | (6,115) | |||||||||||||||
($13,766) | ($10,763) | ||||||||||||||||
Non-cash investing and financing activities: | |||||||||||||||||
Transfer of share-based payments reserve upon settlement of RSUs | $130 | $879 | |||||||||||||||
Transfer of share-based payments reserve upon exercise of options | 1,783 | 708 | |||||||||||||||
Acquisition of mining interests | (3,750) | — | |||||||||||||||
The accompanying notes are an integral part of the condensed interim consolidated financial statements | |||||
First Majestic Silver Corp. 2021 First 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. 2021 First 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. 2021 First 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) |
The accompanying notes are an integral part of the condensed interim consolidated financial statements | |||||
First Majestic Silver Corp. 2021 First 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) |
Total Consideration | ||||||||
26,719,727 Consideration Shares issued to Sprott Mining with an accounting fair value of $15.59 per share(1) | $416,561 | |||||||
1,705,514 Private Placement Shares issued to Sprott Mining with an accounting fair value of $15.59 per share(1) | 26,589 | |||||||
5,000,000 Consideration Warrants issued to Sprott Mining with an accounting fair value of $4.63 per warrant(2) | 23,150 | |||||||
Cash paid for Triggered Tax Adjustment | 13,723 | |||||||
Cash paid for Working Capital Adjustment | 5,494 | |||||||
Total consideration | $485,517 | |||||||
Allocation of Purchase Price | ||||||||
Cash and cash equivalents | $2,226 | |||||||
Inventories | 19,324 | |||||||
Trade and other receivables(3) | 5,071 | |||||||
Other financial assets | 5,101 | |||||||
Prepaid expenses | 1,879 | |||||||
Restricted cash | 96,971 | |||||||
Mining interest and property, plant and equipment | 630,504 | |||||||
Trade and other payables | (21,538) | |||||||
Lease liabilities | (2,879) | |||||||
Income taxes payable | (46,277) | |||||||
Contingent environmental provision(4) | (17,900) | |||||||
Decommissioning liabilities | (87,345) | |||||||
Deferred tax liabilities | (99,620) | |||||||
Net assets acquired | $485,517 |
The accompanying notes are an integral part of the condensed interim consolidated financial statements | |||||
First Majestic Silver Corp. 2021 First Quarter Report | Page 33 |
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. 2021 First Quarter Report | Page 2 |
COMPANY OVERVIEW |
First Majestic Silver Corp. 2021 First Quarter Report | Page 3 |
2021 FIRST QUARTER HIGHLIGHTS |
Key Performance Metrics | 2021-Q1 | 2020-Q4 | Change Q1 vs Q4 | 2020-Q1 | Change Q1 vs Q1 | ||||||||||||||||||||||||
Operational | |||||||||||||||||||||||||||||
Ore Processed / Tonnes Milled | 614,245 | 625,332 | (2 | %) | 599,142 | 3 | % | ||||||||||||||||||||||
Silver Ounces Produced | 2,908,024 | 3,452,959 | (16 | %) | 3,151,980 | (8 | %) | ||||||||||||||||||||||
Silver Equivalent Ounces Produced | 4,540,296 | 5,477,492 | (17 | %) | 6,195,057 | (27 | %) | ||||||||||||||||||||||
Cash Costs per Silver Equivalent Ounce (1) | $12.61 | $10.21 | 24 | % | $8.25 | 53 | % | ||||||||||||||||||||||
All-in Sustaining Cost per Silver Equivalent Ounce (1) | $19.35 | $16.12 | 20 | % | $12.23 | 58 | % | ||||||||||||||||||||||
Total Production Cost per Tonne (1) | $90.03 | $85.68 | 5 | % | $82.41 | 9 | % | ||||||||||||||||||||||
Average Realized Silver Price per Ounce (1) | $27.13 | $24.88 | 9 | % | $17.36 | 56 | % | ||||||||||||||||||||||
Financial (in $millions) | |||||||||||||||||||||||||||||
Revenues | $100.5 | $117.1 | (14 | %) | $86.1 | 17 | % | ||||||||||||||||||||||
Mine Operating Earnings | $28.1 | $43.7 | (36 | %) | $21.1 | 33 | % | ||||||||||||||||||||||
Net Earnings (Loss) | $1.9 | $34.5 | (95 | %) | ($32.4) | NM | |||||||||||||||||||||||
Operating Cash Flows before Movements in Working Capital and Taxes | $31.1 | $48.2 | (35 | %) | $23.3 | 33 | % | ||||||||||||||||||||||
Cash and Cash Equivalents | $201.7 | $238.6 | (15 | %) | $145.2 | 39 | % | ||||||||||||||||||||||
Working Capital (1) | $232.8 | $254.4 | (8 | %) | $139.8 | 67 | % | ||||||||||||||||||||||
Shareholders | |||||||||||||||||||||||||||||
Earnings (Loss) per Share ("EPS") - Basic | $0.01 | $0.16 | (95 | %) | ($0.15) | NM | |||||||||||||||||||||||
Adjusted EPS (1) | $0.03 | $0.11 | (71 | %) | $0.04 | (20 | %) | ||||||||||||||||||||||
Cash Flow per Share (1) | $0.14 | $0.22 | (36 | %) | $0.11 | 26 | % |
First Quarter Production Summary | San Dimas | Santa Elena | La Encantada | Consolidated | ||||||||||
Ore Processed / Tonnes Milled | 199,466 | 185,358 | 229,421 | 614,245 | ||||||||||
Silver Ounces Produced | 1,716,143 | 453,528 | 738,354 | 2,908,024 | ||||||||||
Gold Ounces Produced | 17,448 | 6,327 | 97 | 23,873 | ||||||||||
Silver Equivalent Ounces Produced | 2,910,946 | 884,332 | 745,018 | 4,540,296 | ||||||||||
Cash Costs per Silver Equivalent Ounce | $10.00 | $20.18 | $13.77 | $12.61 | ||||||||||
All-in Sustaining Cost per Silver Equivalent Ounce | $14.31 | $25.66 | $16.30 | $19.35 | ||||||||||
Total Production Cost per Tonne | $140.29 | $94.15 | $42.99 | $90.03 |
First Majestic Silver Corp. 2021 First Quarter Report | Page 4 |
First Majestic Silver Corp. 2021 First Quarter Report | Page 5 |
First Majestic Silver Corp. 2021 First Quarter Report | Page 6 |
OVERVIEW OF OPERATING RESULTS |
2021 | 2020 | 2019 | |||||||||||||||||||||||||||||||||
PRODUCTION HIGHLIGHTS | Q1 | Q4 | Q3 | Q2(2) | Q1 | Q4 | Q3 | Q2 | |||||||||||||||||||||||||||
Ore processed/tonnes milled | |||||||||||||||||||||||||||||||||||
San Dimas | 199,466 | 208,648 | 189,918 | 114,390 | 200,109 | 182,265 | 173,679 | 172,368 | |||||||||||||||||||||||||||
Santa Elena | 185,358 | 168,276 | 204,577 | 89,590 | 177,834 | 196,640 | 229,094 | 229,761 | |||||||||||||||||||||||||||
La Encantada | 229,421 | 248,408 | 261,425 | 129,579 | 221,200 | 221,049 | 191,926 | 207,421 | |||||||||||||||||||||||||||
Non-producing properties(1) | — | — | — | — | — | 26,528 | 61,268 | 127,344 | |||||||||||||||||||||||||||
Consolidated | 614,245 | 625,332 | 655,920 | 333,559 | 599,142 | 626,482 | 655,967 | 736,896 | |||||||||||||||||||||||||||
Silver equivalent ounces produced | |||||||||||||||||||||||||||||||||||
San Dimas | 2,910,946 | 3,477,061 | 3,125,662 | 2,395,633 | 3,672,169 | 3,516,117 | 3,502,102 | 3,641,139 | |||||||||||||||||||||||||||
Santa Elena | 884,332 | 901,630 | 1,091,026 | 595,651 | 1,593,400 | 1,592,397 | 1,859,170 | 1,461,345 | |||||||||||||||||||||||||||
La Encantada | 745,018 | 1,098,800 | 984,397 | 514,092 | 929,487 | 991,856 | 891,205 | 492,957 | |||||||||||||||||||||||||||
Non-producing properties(1) | — | — | — | — | — | 133,042 | 384,240 | 815,041 | |||||||||||||||||||||||||||
Consolidated | 4,540,296 | 5,477,492 | 5,201,085 | 3,505,376 | 6,195,057 | 6,233,412 | 6,636,716 | 6,410,483 | |||||||||||||||||||||||||||
Silver ounces produced | |||||||||||||||||||||||||||||||||||
San Dimas | 1,716,143 | 1,941,286 | 1,678,075 | 1,102,931 | 1,677,376 | 1,658,721 | 1,639,481 | 1,603,016 | |||||||||||||||||||||||||||
Santa Elena | 453,528 | 418,153 | 502,375 | 222,100 | 550,133 | 619,321 | 632,216 | 596,872 | |||||||||||||||||||||||||||
La Encantada | 738,354 | 1,093,521 | 978,416 | 509,544 | 924,472 | 987,630 | 885,627 | 489,194 | |||||||||||||||||||||||||||
Non-producing properties(1) | — | — | — | — | — | 82,752 | 210,417 | 504,483 | |||||||||||||||||||||||||||
Consolidated | 2,908,024 | 3,452,959 | 3,158,866 | 1,834,575 | 3,151,980 | 3,348,424 | 3,367,740 | 3,193,566 | |||||||||||||||||||||||||||
Cash cost per AgEq Ounce(3) | |||||||||||||||||||||||||||||||||||
San Dimas | $ | 10.00 | $ | 8.49 | $ | 7.74 | $ | 6.43 | $ | 7.15 | $ | 6.86 | $ | 6.87 | $ | 6.98 | |||||||||||||||||||
Santa Elena | $ | 20.18 | $ | 16.50 | $ | 13.81 | $ | 11.44 | $ | 9.25 | $ | 8.73 | $ | 7.26 | $ | 9.49 | |||||||||||||||||||
La Encantada | $ | 13.77 | $ | 10.42 | $ | 10.16 | $ | 9.55 | $ | 10.80 | $ | 10.15 | $ | 10.72 | $ | 16.53 | |||||||||||||||||||
Consolidated | $ | 12.61 | $ | 10.21 | $ | 9.48 | $ | 7.76 | $ | 8.25 | $ | 8.23 | $ | 8.16 | $ | 9.43 | |||||||||||||||||||
All-in sustaining cost per AgEq Ounce(3) | |||||||||||||||||||||||||||||||||||
San Dimas | $ | 14.31 | $ | 12.32 | $ | 10.74 | $ | 10.70 | $ | 9.86 | $ | 10.01 | $ | 9.22 | $ | 10.00 | |||||||||||||||||||
Santa Elena | $ | 25.66 | $ | 21.76 | $ | 16.36 | $ | 15.02 | $ | 10.60 | $ | 10.70 | $ | 7.96 | $ | 10.89 | |||||||||||||||||||
La Encantada | $ | 16.30 | $ | 12.39 | $ | 12.12 | $ | 11.76 | $ | 13.33 | $ | 12.69 | $ | 12.65 | $ | 18.82 | |||||||||||||||||||
Consolidated | $ | 19.35 | $ | 16.12 | $ | 14.01 | $ | 13.95 | $ | 12.23 | $ | 12.81 | $ | 11.68 | $ | 13.39 | |||||||||||||||||||
Production cost per tonne | |||||||||||||||||||||||||||||||||||
San Dimas | $ | 140.29 | $ | 135.13 | $ | 120.60 | $ | 129.67 | $ | 126.33 | $ | 127.19 | $ | 135.71 | $ | 142.42 | |||||||||||||||||||
Santa Elena | $ | 94.15 | $ | 86.32 | $ | 71.44 | $ | 74.50 | $ | 81.04 | $ | 68.77 | $ | 57.78 | $ | 58.88 | |||||||||||||||||||
La Encantada | $ | 42.99 | $ | 43.72 | $ | 36.04 | $ | 36.80 | $ | 43.82 | $ | 43.92 | $ | 47.86 | $ | 38.29 | |||||||||||||||||||
Consolidated | $ | 90.03 | $ | 85.68 | $ | 71.56 | $ | 78.78 | $ | 82.41 | $ | 78.62 | $ | 78.87 | $ | 77.93 |
First Majestic Silver Corp. 2021 First Quarter Report | Page 7 |
CONSOLIDATED | 2021-Q1 | 2020-Q4 | 2020-Q1 | Change Q1 vs Q4 | Change '21 vs '20 | |||||||||||||||||||||
Ore processed/tonnes milled | 614,245 | 625,332 | 599,142 | (2 | %) | 3 | % | |||||||||||||||||||
Average silver grade (g/t) | 166 | 194 | 185 | (14 | %) | (10 | %) | |||||||||||||||||||
Average gold grade (g/t) | 1.26 | 1.37 | 1.74 | (8 | %) | (28 | %) | |||||||||||||||||||
Silver recovery (%) | 89 | % | 89 | % | 89 | % | 0 | % | 0 | % | ||||||||||||||||
Gold recovery (%) | 96 | % | 96 | % | 96 | % | 0 | % | 0 | % | ||||||||||||||||
Production | ||||||||||||||||||||||||||
Silver ounces produced | 2,908,024 | 3,452,959 | 3,151,980 | (16 | %) | (8 | %) | |||||||||||||||||||
Gold ounces produced | 23,873 | 26,343 | 32,202 | (9 | %) | (26 | %) | |||||||||||||||||||
Silver equivalent ounces produced | 4,540,296 | 5,477,492 | 6,195,057 | (17 | %) | (27 | %) | |||||||||||||||||||
Cost | ||||||||||||||||||||||||||
Cash cost per AgEq Ounce | $12.61 | $10.21 | $8.25 | 24 | % | 53 | % | |||||||||||||||||||
All-In sustaining costs per AgEq Ounce | $19.35 | $16.12 | $12.23 | 20 | % | 58 | % | |||||||||||||||||||
Total production cost per tonne | $90.03 | $85.68 | $82.41 | 5 | % | 9 | % | |||||||||||||||||||
Underground development (m) | 13,707 | 12,004 | 10,888 | 14 | % | 26 | % | |||||||||||||||||||
Diamond drilling (m) | 39,552 | 57,147 | 40,458 | (31 | %) | (2 | %) |
First Majestic Silver Corp. 2021 First Quarter Report | Page 8 |
San Dimas | 2021-Q1 | 2020-Q4 | 2020-Q1 | Change Q1 vs Q4 | Change '21 vs '20 | ||||||||||||||||||
Total ore processed/tonnes milled | 199,466 | 208,648 | 200,109 | (4 | %) | 0 | % | ||||||||||||||||
Average silver grade (g/t) | 285 | 309 | 280 | (8 | %) | 2 | % | ||||||||||||||||
Average gold grade (g/t) | 2.83 | 3.10 | 3.44 | (9 | %) | (18 | %) | ||||||||||||||||
Silver recovery (%) | 94 | % | 94 | % | 93 | % | 0 | % | 1 | % | |||||||||||||
Gold recovery (%) | 96 | % | 96 | % | 96 | % | 0 | % | 0 | % | |||||||||||||
Production | |||||||||||||||||||||||
Silver ounces produced | 1,716,143 | 1,941,286 | 1,677,376 | (12 | %) | 2 | % | ||||||||||||||||
Gold ounces produced | 17,448 | 19,980 | 21,308 | (13 | %) | (18 | %) | ||||||||||||||||
Silver equivalent ounces produced | 2,910,946 | 3,477,061 | 3,672,169 | (16 | %) | (21 | %) | ||||||||||||||||
Cost | |||||||||||||||||||||||
Cash cost per AgEq Ounce | $10.00 | $8.49 | $7.15 | 18 | % | 40 | % | ||||||||||||||||
All-In sustaining costs per AgEq Ounce | $14.31 | $12.32 | $9.86 | 16 | % | 45 | % | ||||||||||||||||
Total production cost per tonne | $140.29 | $135.13 | $126.33 | 4 | % | 11 | % | ||||||||||||||||
Underground development (m) | 8,242 | 8,454 | 7,100 | (3 | %) | 16 | % | ||||||||||||||||
Diamond drilling (m) | 24,078 | 26,537 | 22,087 | (9 | %) | 9 | % |
First Majestic Silver Corp. 2021 First Quarter Report | Page 9 |
SANTA ELENA | 2021-Q1 | 2020-Q4 | 2020-Q1 | Change Q1 vs Q4 | Change '21 vs '20 | ||||||||||||||||||
Total ore processed/tonnes milled | 185,358 | 168,276 | 177,834 | 10 | % | 4 | % | ||||||||||||||||
Underground tonnes | |||||||||||||||||||||||
Tonnes milled | 122,401 | 105,591 | 125,529 | 16 | % | (2 | %) | ||||||||||||||||
Average silver grade (g/t) | 106 | 113 | 130 | (6 | %) | (18 | %) | ||||||||||||||||
Average gold grade (g/t) | 1.37 | 1.58 | 2.48 | (13 | %) | (45 | %) | ||||||||||||||||
Heap leach tonnes | |||||||||||||||||||||||
Tonnes milled | 62,957 | 62,685 | 52,305 | 0 | % | 20 | % | ||||||||||||||||
Average silver grade (g/t) | 35 | 33 | 36 | 6 | % | (3 | %) | ||||||||||||||||
Average gold grade (g/t) | 0.61 | 0.61 | 0.73 | 0 | % | (16 | %) | ||||||||||||||||
Silver recovery (%) | 93 | % | 93 | % | 94 | % | 0 | % | (1 | %) | |||||||||||||
Gold recovery (%) | 96 | % | 96 | % | 96 | % | 0 | % | 0 | % | |||||||||||||
Production | |||||||||||||||||||||||
Silver ounces produced | 453,528 | 418,153 | 550,133 | 8 | % | (18 | %) | ||||||||||||||||
Gold ounces produced | 6,327 | 6,294 | 10,842 | 1 | % | (42 | %) | ||||||||||||||||
Silver equivalent ounces produced | 884,332 | 901,630 | 1,593,400 | (2 | %) | (45 | %) | ||||||||||||||||
Cost | |||||||||||||||||||||||
Cash cost per AgEq Ounce | $20.18 | $16.50 | $9.25 | 22 | % | 118 | % | ||||||||||||||||
All-In sustaining costs per AgEq Ounce | $25.66 | $21.76 | $10.60 | 18 | % | 142 | % | ||||||||||||||||
Total production cost per tonne | $94.15 | $86.32 | $81.04 | 9 | % | 16 | % | ||||||||||||||||
Underground development (m) | 4,500 | 2,663 | 1,940 | 69 | % | 132 | % | ||||||||||||||||
Diamond drilling (m) | 12,607 | 16,994 | 9,474 | (26 | %) | 33 | % |
First Majestic Silver Corp. 2021 First Quarter Report | Page 10 |
First Majestic Silver Corp. 2021 First Quarter Report | Page 11 |
LA ENCANTADA | 2021-Q1 | 2020-Q4 | 2020-Q1 | Change Q1 vs Q4 | Change '21 vs '20 | ||||||||||||||||||
Ore processed/tonnes milled | 229,421 | 248,408 | 221,200 | (8 | %) | 4 | % | ||||||||||||||||
Average silver grade (g/t) | 131 | 172 | 165 | (24 | %) | (21 | %) | ||||||||||||||||
Silver recovery (%) | 77 | % | 80 | % | 79 | % | (4 | %) | (3 | %) | |||||||||||||
Production | |||||||||||||||||||||||
Silver ounces produced | 738,354 | 1,093,521 | 924,472 | (32 | %) | (20 | %) | ||||||||||||||||
Gold ounces produced | 97 | 69 | 52 | 41 | % | 87 | % | ||||||||||||||||
Silver equivalent ounces produced | 745,018 | 1,098,800 | 929,487 | (32 | %) | (20 | %) | ||||||||||||||||
Cost | |||||||||||||||||||||||
Cash cost per AgEq Ounce | $13.77 | $10.42 | $10.80 | 32 | % | 28 | % | ||||||||||||||||
All-In sustaining costs per AgEq Ounce | $16.30 | $12.39 | $13.33 | 32 | % | 22 | % | ||||||||||||||||
Total production cost per tonne | $42.99 | $43.72 | $43.82 | (2 | %) | (2 | %) | ||||||||||||||||
Underground development (m) | 965 | 888 | 1,024 | 9 | % | (6 | %) | ||||||||||||||||
Diamond drilling (m) | 2,867 | 8,101 | 4,565 | (65%) | (37%) |
First Majestic Silver Corp. 2021 First Quarter Report | Page 12 |
First Majestic Silver Corp. 2021 First Quarter Report | Page 13 |
First Majestic Silver Corp. 2021 First Quarter Report | Page 14 |
OVERVIEW OF FINANCIAL PERFORMANCE |
First Quarter | First Quarter | ||||||||||||||||||||||
2021 | 2020 | Variance % | |||||||||||||||||||||
Revenues | $100,522 | $86,065 | 17 | % | (1) | ||||||||||||||||||
Mine operating costs | |||||||||||||||||||||||
Cost of sales | 57,061 | 49,835 | 14 | % | (2) | ||||||||||||||||||
Cost of sales - standby costs | — | 946 | (100 | %) | |||||||||||||||||||
Depletion, depreciation and amortization | 15,345 | 14,169 | 8 | % | (3) | ||||||||||||||||||
72,406 | 64,950 | 11 | % | ||||||||||||||||||||
Mine operating earnings | 28,116 | 21,115 | 33 | % | |||||||||||||||||||
General and administrative expenses | 6,961 | 6,284 | 11 | % | (4) | ||||||||||||||||||
Share-based payments | 3,594 | 2,378 | 51 | % | |||||||||||||||||||
Mine holding costs | 3,868 | 4,779 | (19 | %) | (5) | ||||||||||||||||||
Loss on divestiture of exploration projects | — | 10,106 | (100 | %) | (6) | ||||||||||||||||||
Foreign exchange gain | (1,797) | (2,826) | 36 | % | |||||||||||||||||||
Operating earnings | 15,490 | 394 | NM | ||||||||||||||||||||
Fair value adjustment on foreign currency derivatives | — | (22,654) | 100 | % | (7) | ||||||||||||||||||
Investment and other loss | (3,150) | (540) | NM | (8) | |||||||||||||||||||
Finance costs | (3,773) | (3,856) | 2 | % | |||||||||||||||||||
Earnings (loss) before income taxes | 8,567 | (26,656) | NM | ||||||||||||||||||||
Current income tax expense | 8,537 | 1,214 | NM | ||||||||||||||||||||
Deferred income tax (recovery) expense | (1,825) | 4,566 | NM | ||||||||||||||||||||
Income tax expense | 6,712 | 5,780 | 16 | % | (9) | ||||||||||||||||||
Net earnings (loss) for the period | $1,855 | ($32,436) | NM | (10) | |||||||||||||||||||
Earnings (loss) per share (basic) | $0.01 | ($0.15) | NM | (10) | |||||||||||||||||||
Earnings (loss) per share (diluted) | $0.01 | ($0.15) | NM | (10) |
First Majestic Silver Corp. 2021 First Quarter Report | Page 15 |
First Majestic Silver Corp. 2021 First Quarter Report | Page 16 |
SUMMARY OF QUARTERLY RESULTS |
2021 | 2020 | 2019 | ||||||||||||||||||||||||||||||
Selected Financial Information | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | ||||||||||||||||||||||||
Revenue | $100,522 | $117,075 | $125,881 | $34,855 | $86,065 | $96,476 | $96,989 | $83,669 | ||||||||||||||||||||||||
Cost of sales | $57,061 | $58,008 | $60,275 | $26,187 | $49,835 | $55,033 | $54,994 | $62,772 | ||||||||||||||||||||||||
Cost of sales - standby costs | $— | $— | $— | $9,166 | $946 | $— | $— | $— | ||||||||||||||||||||||||
Depletion, depreciation and amortization | $15,345 | $15,399 | $17,573 | $7,264 | $14,169 | $17,502 | $14,181 | $16,691 | ||||||||||||||||||||||||
Mine operating earnings (loss) | $28,116 | $43,668 | $48,033 | ($7,762) | $21,115 | $23,941 | $27,814 | $4,206 | ||||||||||||||||||||||||
Net earnings (loss) after tax | $1,855 | $34,545 | $30,946 | ($9,968) | ($32,436) | ($39,946) | $8,559 | ($11,967) | ||||||||||||||||||||||||
Earnings (loss) per share - basic | $0.01 | $0.16 | $0.14 | ($0.05) | ($0.15) | ($0.19) | $0.04 | ($0.06) | ||||||||||||||||||||||||
Earnings (loss) per share - diluted | $0.01 | $0.15 | $0.14 | ($0.05) | ($0.15) | ($0.19) | $0.04 | ($0.06) |
LIQUIDITY, CAPITAL RESOURCES AND CONTRACTUAL OBLIGATIONS |
Three Months Ended March 31, | ||||||||||||||
2021 | 2020 | |||||||||||||
Cash flow | ||||||||||||||
Cash generated by operating activities | $7,431 | $12,048 | ||||||||||||
Cash used in investing activities | (46,264) | (33,306) | ||||||||||||
Cash generated by financing activities | 1,276 | 204 | ||||||||||||
Increase in cash and cash equivalents | ($37,557) | ($21,054) | ||||||||||||
Effect of exchange rate on cash and cash equivalents held in foreign currencies | 663 | (2,768) | ||||||||||||
Cash and cash equivalents, beginning of the period | 238,578 | 169,009 | ||||||||||||
Cash and cash equivalents, end of period | $201,684 | $145,187 | ||||||||||||
First Majestic Silver Corp. 2021 First Quarter Report | Page 17 |
Contractual Cash Flows | Less than 1 year | 2 to 3 years | 4 to 5 years | After 5 years | |||||||||||||||||||||||||
Trade and other payables | $69,344 | $69,344 | $— | $— | $— | ||||||||||||||||||||||||
Debt facilities | 172,429 | 12,995 | 159,434 | — | — | ||||||||||||||||||||||||
Lease liabilities | 19,066 | 4,888 | 7,148 | 5,994 | 1,036 | ||||||||||||||||||||||||
Other liabilities | 5,493 | — | — | — | 5,493 | ||||||||||||||||||||||||
Purchase obligations and commitments | 38,906 | 33,906 | 5,000 | — | — | ||||||||||||||||||||||||
$305,238 | $121,133 | $171,582 | $5,994 | $6,529 |
MANAGEMENT OF RISKS AND UNCERTAINTIES |
First Majestic Silver Corp. 2021 First Quarter Report | Page 18 |
March 31, 2021 | |||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | Trade and other receivables | Value added taxes receivable | Other financial assets | Trade and other payables | Net assets (liabilities) exposure | Effect of +/- 10% change in currency | |||||||||||||||||||||||||||||||||||
Canadian dollar | $78,777 | $62 | $— | $9,192 | ($2,682) | $85,349 | $8,535 | ||||||||||||||||||||||||||||||||||
Mexican peso | 9,970 | — | 65,811 | — | (41,050) | 34,731 | 3,473 | ||||||||||||||||||||||||||||||||||
$88,747 | $62 | $65,811 | $9,192 | ($43,732) | $120,080 | $12,008 |
First Majestic Silver Corp. 2021 First Quarter Report | Page 19 |
March 31, 2021 | |||||||||||||||||
Effect of +/- 10% change in metal prices | |||||||||||||||||
Silver | Gold | Total | |||||||||||||||
Metals in doré inventory | $245 | $282 | $527 | ||||||||||||||
$245 | $282 | $527 |
First Majestic Silver Corp. 2021 First Quarter Report | Page 20 |
First Majestic Silver Corp. 2021 First Quarter Report | Page 21 |
First Majestic Silver Corp. 2021 First Quarter Report | Page 22 |
First Majestic Silver Corp. 2021 First Quarter Report | Page 23 |
OTHER FINANCIAL INFORMATION |
SUBSEQUENT EVENTS |
ACCOUNTING POLICIES, JUDGMENTS AND ESTIMATES |
First Majestic Silver Corp. 2021 First Quarter Report | Page 24 |
NON-GAAP MEASURES |
First Majestic Silver Corp. 2021 First Quarter Report | Page 25 |
First Majestic Silver Corp. 2021 First Quarter Report | Page 26 |
(expressed in thousands of U.S. Dollars, except ounce and per ounce amounts) | Three Months Ended March 31, 2021 | |||||||||||||
San Dimas | Santa Elena | La Encantada | Consolidated | |||||||||||
Mining cost | $11,577 | $6,295 | $3,181 | $21,054 | ||||||||||
Milling cost | 6,643 | 7,245 | 3,937 | 17,825 | ||||||||||
Indirect cost | 9,761 | 3,911 | 2,743 | 16,416 | ||||||||||
Total production cost (A) | $27,982 | $17,451 | $9,861 | $55,294 | ||||||||||
Add: transportation and other selling cost | 347 | 148 | 111 | 662 | ||||||||||
Add: smelting and refining cost | 394 | 119 | 155 | 668 | ||||||||||
Add: environmental duty and royalties cost | 369 | 112 | 92 | 573 | ||||||||||
Total cash cost (B) | $29,092 | $17,830 | $10,219 | $57,197 | ||||||||||
Workers’ participation | 3,469 | 55 | 126 | 3,667 | ||||||||||
General and administrative expenses | — | — | — | 6,501 | ||||||||||
Share-based payments | — | — | — | 3,594 | ||||||||||
Accretion of decommissioning liabilities | 177 | 77 | 129 | 639 | ||||||||||
Sustaining capital expenditures | 8,836 | 4,657 | 973 | 15,096 | ||||||||||
Operating lease payments | 68 | 50 | 644 | 1,131 | ||||||||||
All-In Sustaining Costs (C) | $41,642 | $22,669 | $12,091 | $87,825 | ||||||||||
Payable silver equivalent ounces produced (D) | 2,909,490 | 883,447 | 741,865 | 4,534,803 | ||||||||||
Tonnes milled (E) | 199,466 | 185,358 | 229,421 | 614,245 | ||||||||||
Cash cost per AgEq ounce (B/D) | $10.00 | $20.18 | $13.77 | $12.61 | ||||||||||
AISC per AgEq ounce (C/D) | $14.31 | $25.66 | $16.30 | $19.35 | ||||||||||
Production cost per tonne (A/E) | $140.29 | $94.15 | $42.99 | $90.03 | ||||||||||
First Majestic Silver Corp. 2021 First Quarter Report | Page 27 |
(expressed in thousands of U.S. Dollars, except ounce and per ounce amounts) | Three Months Ended March 31, 2020 | |||||||||||||
San Dimas | Santa Elena | La Encantada | Consolidated | |||||||||||
Mining cost | $11,298 | $4,737 | $2,625 | $18,660 | ||||||||||
Milling cost | 5,493 | 6,988 | 4,382 | 16,862 | ||||||||||
Indirect cost | 8,489 | 2,686 | 2,685 | 13,861 | ||||||||||
Total production cost (A) | $25,279 | $14,411 | $9,694 | $49,383 | ||||||||||
Add: transportation and other selling cost | 296 | 72 | 89 | 522 | ||||||||||
Add: smelting and refining cost | 395 | 134 | 184 | 725 | ||||||||||
Add: environmental duty and royalties cost | 257 | 109 | 33 | 397 | ||||||||||
Total cash cost (B) | $26,227 | $14,726 | $9,998 | $51,026 | ||||||||||
Workers’ participation | 1,682 | 55 | 74 | 1,998 | ||||||||||
General and administrative expenses | — | — | — | 5,828 | ||||||||||
Share-based payments | — | — | — | 2,378 | ||||||||||
Accretion of decommissioning liabilities | 149 | 78 | 126 | 623 | ||||||||||
Sustaining capital expenditures | 8,000 | 1,964 | 1,498 | 12,659 | ||||||||||
Operating lease payments | 127 | 51 | 642 | 1,143 | ||||||||||
All-In Sustaining Costs (C) | $36,185 | $16,874 | $12,338 | $75,655 | ||||||||||
Payable silver equivalent ounces produced (D) | 3,670,333 | 1,591,807 | 925,639 | 6,187,779 | ||||||||||
Tonnes milled (E) | 200,109 | 177,834 | 221,200 | 599,142 | ||||||||||
Cash cost per AgEq ounce (B/D) | $7.15 | $9.25 | $10.80 | $8.25 | ||||||||||
AISC per AgEq ounce (C/D) | $9.86 | $10.60 | $13.33 | $12.23 | ||||||||||
Production cost per tonne (A/E) | $126.33 | $81.04 | $43.82 | $82.41 | ||||||||||
First Majestic Silver Corp. 2021 First Quarter Report | Page 28 |
Three Months Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
Revenues as reported | $100,522 | $86,065 | |||||||||
Add back: smelting and refining charges | 668 | 725 | |||||||||
Gross revenues | 101,190 | 86,790 | |||||||||
Less: Sandstorm gold revenues | (557) | (999) | |||||||||
Less: Wheaton gold revenues | (6,288) | (6,883) | |||||||||
Gross revenues, excluding Sandstorm, Wheaton (A) | $94,345 | $78,908 | |||||||||
Payable silver equivalent ounces sold | 4,249,516 | 5,556,937 | |||||||||
Less: Payable silver equivalent ounces sold to Sandstorm | (82,250) | (216,393) | |||||||||
Less: Payable silver equivalent ounces sold to Wheaton | (690,130) | (795,050) | |||||||||
Payable silver equivalent ounces sold, excluding Sandstorm and Wheaton (B) | 3,477,135 | 4,545,494 | |||||||||
Average realized silver price per ounce (A/B) | $27.13 | $17.36 | |||||||||
Average market price per ounce of silver per COMEX | $26.25 | $16.89 | |||||||||
Three Months Ended March 31, | ||||||||||||||
2021 | 2020 | |||||||||||||
Operating Cash Flows before Working Capital and Taxes | $31,129 | $23,313 | ||||||||||||
Weighted average number of shares on issue - basic | 222,544,712 | 209,396,052 | ||||||||||||
Cash Flow per Share | $0.14 | $0.11 |
First Majestic Silver Corp. 2021 First Quarter Report | Page 29 |
Three Months Ended March 31, | ||||||||||||||
2021 | 2020 | |||||||||||||
Net earnings (loss) as reported | $1,855 | ($32,436) | ||||||||||||
Adjustments for non-cash or unusual items: | ||||||||||||||
Deferred income tax (recovery) expense | (1,825) | 4,566 | ||||||||||||
Share-based payments | 3,594 | 2,378 | ||||||||||||
Loss from investment in derivatives and marketable securities | 1,289 | 1,368 | ||||||||||||
Unrealized loss on foreign currency derivatives | — | 22,654 | ||||||||||||
Write-down on assets held-for-sale | 2,081 | — | ||||||||||||
Recovery of mineral inventory | — | (443) | ||||||||||||
Loss on divestiture of exploration projects | — | 10,106 | ||||||||||||
Adjusted net earnings | $6,994 | $8,193 | ||||||||||||
Weighted average number of shares on issue - basic | 222,544,712 | 209,396,052 | ||||||||||||
Adjusted EPS | $0.03 | $0.04 |
March 31, 2021 | December 31, 2020 | ||||||||||
Current Assets | $329,738 | $356,046 | |||||||||
Less: Current Liabilities | (96,903) | (101,626) | |||||||||
Working Capital | $232,835 | $254,420 | |||||||||
Available Undrawn Revolving Credit Facility | 65,000 | 65,000 | |||||||||
Available Liquidity | $297,835 | $319,420 |
First Majestic Silver Corp. 2021 First Quarter Report | Page 30 |
MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING |
First Majestic Silver Corp. 2021 First Quarter Report | Page 31 |
CAUTIONARY STATEMENTS |
First Majestic Silver Corp. 2021 First Quarter Report | Page 32 |
First Majestic Silver Corp. 2021 First Quarter Report | Page 33 |
Date: | May 5, 2021 | |||||||
“Keith Neumeyer” | ||||||||
Keith Neumeyer | ||||||||
Chief Executive Officer |
Date: | May 5, 2021 | |||||||
“Raymond Polman” | ||||||||
Raymond Polman | ||||||||
Chief Financial Officer |
New York - AG | May 6, 2021 | ||||
Toronto – FR | |||||
Frankfurt – FMV | |||||
Key Performance Metrics | 2021-Q1 | 2020-Q4 | Change Q1 vs Q4 | 2020-Q1 | Change Q1 vs Q1 | ||||||||||||||||||||||||
Operational | |||||||||||||||||||||||||||||
Ore Processed / Tonnes Milled | 614,245 | 625,332 | (2 | %) | 599,142 | 3 | % | ||||||||||||||||||||||
Silver Ounces Produced | 2,908,024 | 3,452,959 | (16 | %) | 3,151,980 | (8 | %) | ||||||||||||||||||||||
Silver Equivalent Ounces Produced | 4,540,296 | 5,477,492 | (17 | %) | 6,195,057 | (27 | %) | ||||||||||||||||||||||
Cash Costs per Silver Equivalent Ounce (1) | $12.61 | $10.21 | 24 | % | $8.25 | 53 | % | ||||||||||||||||||||||
All-in Sustaining Cost per Silver Equivalent Ounce (1) | $19.35 | $16.12 | 20 | % | $12.23 | 58 | % | ||||||||||||||||||||||
Total Production Cost per Tonne (1) | $90.03 | $85.68 | 5 | % | $82.41 | 9 | % | ||||||||||||||||||||||
Average Realized Silver Price per Ounce (1) | $27.13 | $24.88 | 9 | % | $17.32 | 57 | % | ||||||||||||||||||||||
Financial (in $millions) | |||||||||||||||||||||||||||||
Revenues | $100.5 | $117.1 | (14 | %) | $86.1 | 17 | % | ||||||||||||||||||||||
Mine Operating Earnings | $28.1 | $43.7 | (36 | %) | $21.1 | 33 | % | ||||||||||||||||||||||
Net Earnings (Loss) | $1.9 | $34.5 | (95 | %) | ($32.4) | NM | |||||||||||||||||||||||
Operating Cash Flows before Movements in Working Capital and Taxes | $31.1 | $48.2 | (35 | %) | $23.3 | 33 | % | ||||||||||||||||||||||
Cash and Cash Equivalents | $201.7 | $238.6 | (15 | %) | $145.2 | 39 | % | ||||||||||||||||||||||
Working Capital (1) | $232.8 | $254.4 | (8 | %) | $139.8 | 67 | % | ||||||||||||||||||||||
Shareholders | |||||||||||||||||||||||||||||
Earnings (Loss) per Share ("EPS") - Basic | $0.01 | $0.16 | (95 | %) | ($0.15) | NM | |||||||||||||||||||||||
Adjusted EPS (1) | $0.03 | $0.11 | (71 | %) | $0.04 | (20 | %) | ||||||||||||||||||||||
Cash Flow per Share (1) | $0.14 | $0.22 | (36 | %) | $0.11 | 26 | % |
First Quarter Production Summary | San Dimas | Santa Elena | La Encantada | Consolidated | ||||||||||
Ore Processed / Tonnes Milled | 199,466 | 185,358 | 229,421 | 614,245 | ||||||||||
Silver Ounces Produced | 1,716,143 | 453,528 | 738,354 | 2,908,024 | ||||||||||
Gold Ounces Produced | 17,448 | 6,327 | 97 | 23,873 | ||||||||||
Silver Equivalent Ounces Produced | 2,910,946 | 884,332 | 745,018 | 4,540,296 | ||||||||||
Cash Costs per AgEq Ounce | $10.00 | $20.18 | $13.77 | $12.61 | ||||||||||
All-in Sustaining Cost per AgEq Ounce | $14.31 | $25.66 | $16.30 | $19.35 | ||||||||||
Total Production Cost per Tonne | $140.29 | $94.15 | $42.99 | $90.03 |
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