First Majestic Reports Second Quarter Financial Results and Updates 2019 Production and Cost Guidance

VANCOUVER, First Majestic Silver Corp reported silver equivalent production up 25% to 6.4 million ounces, pure silver production up 16% to 3.2 million ounces and revenue up 5% to $83.7 million primarily due to 13% increase in silver equivalent ounces, partially offset by a 12% decrease in silver prices. “In the second quarter, our strong production results were mostly offset by lower silver prices which impacted revenues, earnings and cash flows compared to the same quarter of the prior year,” said Keith Neumeyer, President and CEO. Continued strong production from our San Dimas and Santa Elena mines, which together produced approximately 80% of the Company’s total production, generated mine operating earnings of $14.2 million. At Santa Elena, we are already seeing improvements in metallurgical recoveries following the installation of its new high-intensity grinding mill in the second quarter. This project has been a success and a great example of how new technologies are changing the mining industry.

In an effort to further improve margins and profitability, we made the difficult decision to temporarily suspend mining operations at La Parrilla towards the end of 2019,” stated Neumeyer. “Year-to-date, the La Parrilla complex of mines has produced approximately 7% of our total production but unfortunately has struggled to make a profit due to continued low silver and lead prices. However, we will continue to staff our Central lab at La Parrilla and will revitalize the exploration program to test near mine targets in order to build enough Reserves and Resources to justify a potential restart by early 2021.” 

The Company reported mine operating earnings of $4.2 million compared to ($2.3) million in the second quarter of 2018. The increase in mine operating earnings in the quarter was attributed to the San Dimas and Santa Elena mines, which generated mine operating earnings of $11.0 million and $3.2 million, respectively, offset by losses at the other units due to scaled back production at San Martin, Del Toro and La Parrilla mines. The Company is revising annual guidance for 2019 to reflect changes in its operational plans during the second half of the 2019 fiscal year. 

The company’s address is 1800, 925 West Georgia St., Vancouver, BC V6C 3L2, www.firstmajestic.com.