UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of November 2024

Commission File Number: 001-34984

FIRST MAJESTIC SILVER CORP.
(Translation of registrant's name into English)

Suite 1800 - 925 West Georgia Street
Vancouver, British Columbia V6C 3L2
(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

[ ] Form 20-F   [x] Form 40-F




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DOCUMENTS INCORPORATED BY REFERENCE

Exhibits 99.1 and 99.2 to this Report on Form 6-K are hereby incorporated by reference (i) as Exhibits to the Registration Statement on Form F-10 of First Majestic Silver Corp. (File No. 333-273734) and (ii) into the Registration Statement on Form S-8 of First Majestic Silver Corp. (File No. 333-258124).


DOCUMENTS FILED AS PART OF THIS FORM 6-K

Exhibits


SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
FIRST MAJESTIC SILVER CORP. 
  
By: 
  
/s/ Samir Patel 
Samir Patel 
General Counsel & Corporate Secretary 
  
November 7, 2024 













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CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023

(UNAUDITED)
















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










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Management’s Responsibilities over Financial Reporting


The condensed interim consolidated financial statements of First Majestic Silver Corp. (the “Company”) are the responsibility of the Company’s management. The condensed interim consolidated financial statements are prepared in accordance with International Accounting Standard 34, "Interim Financial Reporting", as issued by the International Accounting Standards Board and reflect management’s best estimates and judgment based on information currently available.

Management has developed and maintains a system of internal controls to ensure that the Company’s assets are safeguarded, transactions are authorized and properly recorded, and financial information is reliable.

The Board of Directors is responsible for ensuring management fulfills its responsibilities. The Audit Committee reviews the results of the condensed interim consolidated financial statements prior to their submission to the Board of Directors for approval.

The condensed interim consolidated financial statements have not been audited.




/s/ Keith Neumeyer /s/ David Soares
Keith Neumeyer David Soares, CPA, CA
President & CEOChief Financial Officer
November 6, 2024November 6, 2024






TABLE OF CONTENTS
CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
 
 
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS 
General
Note 2. Basis of Presentation
Statements of Earnings (Loss)
Statements of Financial Position
Other items

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF EARNINGS (LOSS)
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023
Condensed Interim Consolidated Financial Statements - Unaudited(In thousands of US dollars, except share and per share amounts)







f
The Condensed Interim Consolidated Statements of Earnings (Loss) provide a summary of the Company’s financial performance and net earnings or loss over the reporting periods.
 Three Months Ended September 30,Nine Months Ended September 30,
 Note2024202320242023
Revenues$146,087 $133,211 $388,267 $436,855 
Mine operating costs
Cost of sales85,694 92,187 255,279 320,662 
Cost of sales - standby costs— — — 13,438 
Depletion, depreciation and amortization
31,871 27,998 89,325 95,014 
117,565 120,185 344,604 429,114 
Mine operating earnings 28,522 13,026 43,663 7,741 
General and administrative expenses9,440 10,439 28,186 30,560 
Share-based payments 2,935 2,762 10,895 10,711 
Mine holding costs6,153 7,243 18,173 14,750 
Write down on asset held-for-sale— — — 7,229 
Restructuring costs— 6,428 — 6,428 
Impairment of non-current asset— — — 125,200 
Loss on sale of mining interest— 1,646 — 3,024 
Foreign exchange loss (gain) 5,848 2,642 15,824 (8,953)
Operating earnings (loss) 4,146 (18,134)(29,415)(181,208)
Investment and other income 528 1,275 4,086 8,144 
Finance costs(6,858)(6,739)(21,277)(19,688)
Loss before income taxes (2,184)(23,598)(46,606)(192,752)
Income taxes
 
Current income tax expense (recovery)11,174 (178)16,707 5,235 
Deferred income tax expense (recovery)13,235 3,729 25,094 (52,644)
 24,409 3,551 41,801 (47,409)
Net loss for the period($26,593)($27,149)($88,407)($145,343)
Loss per common share 
     Basic
($0.09)($0.09)($0.30)($0.52)
     Diluted
($0.09)($0.09)($0.30)($0.52)
Weighted average shares outstanding
 
     Basic
301,000,656 286,921,720 293,440,674 280,758,404 
     Diluted
301,000,656 286,921,720 293,440,674 280,758,404 
Approved and authorized by the Board of Directors for issuance on November 6, 2024.
/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. 2024 Third Quarter Report
Page 1

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023
Condensed Interim Consolidated Financial Statements - Unaudited(In thousands of US dollars, except share and per share amounts)

The Condensed Interim Consolidated Statements of Comprehensive Income (Loss) provide a summary of total comprehensive earnings or loss and summarizes items recorded in other comprehensive income that may or may not be subsequently reclassified to profit or loss depending on future events.
 NoteThree Months Ended September 30,Nine Months Ended September 30,
 2024202320242023
Net loss for the period($26,593)($27,149)($88,407)($145,343)
Other comprehensive income (loss)    
Items that will not be subsequently reclassified to net loss:
Unrealized gain (loss) on fair value of investments in marketable securities, net of tax5,825 (10,449)8,312 (25,346)
Realized loss on investments in marketable securities, net of tax(7)(579)(576)(579)
Other comprehensive income (loss)5,818 (11,028)7,736 (25,925)
Total comprehensive loss($20,775)($38,177)($80,671)($171,268)

The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2024 Third Quarter Report
Page 2

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023
Condensed Interim Consolidated Financial Statements - Unaudited(In thousands of US dollars)

The Condensed Interim Consolidated Statements of Cash Flows provide a summary of movements in cash and cash equivalents during the reporting periods by classifying them as operating, investing or financing activities.
  Three Months Ended September 30,Nine Months Ended September 30,
 Note2024202320242023
Operating Activities
     
Net loss for the period ($26,593)($27,149)($88,407)($145,343)
Adjustments for: 
Depletion, depreciation and amortization 32,251 28,363 90,444 96,158 
Share-based payments 2,710 2,793 9,773 10,470 
Income tax expense (recovery)24,409 3,551 41,801 (47,409)
Finance costs6,858 6,739 21,277 19,688 
Write down on asset held-for-sale— — — 7,229 
Unrealized loss (gain) from marketable securities and silver futures derivatives1,180 254 831 (3,203)
Loss on sale of mining interest— 2,221 — 3,024 
Impairment of non-current asset— — — 125,200 
Other(1,058)(2,639)421 (2,937)
Operating cash flows before non-cash working capital and taxes 39,757 14,133 76,140 62,877 
Net change in non-cash working capital items2,967 7,967 9,827 (5,016)
Income taxes paid (1,686)(2,120)(15,651)(22,172)
Cash generated in operating activities
 41,038 19,980 70,316 35,689 
Investing Activities
     
Expenditures on mining interests (27,837)(23,584)(72,620)(95,633)
Acquisition of property, plant and equipment (5,187)(9,966)(17,886)(24,813)
Deposits paid for acquisition of non-current assets  (25)882 (502)(2,250)
Other329 25 1,211 211 
Cash (used in) investing activities
 (32,720)(32,643)(89,797)(122,485)
Financing Activities
 
Proceeds from prospectus offering, net of share issue costs22,745 (174)93,899 92,092 
Proceeds from exercise of stock options 5 306 36 1,548 
Repayment of lease liabilities(4,638)(4,104)(12,545)(11,061)
Finance costs paid (2,467)(2,827)(7,078)(6,564)
Repayment of debt facilities(20,000)— (20,000)— 
Dividends declared and paid(1,388)(1,466)(3,847)(4,550)
Cash (used in) provided by financing activities
 (5,743)(8,265)50,465 71,465 
Effect of exchange rate on cash and cash equivalents held in foreign currencies (18)(976)(1,835)2,228 
Increase (decrease) in cash and cash equivalents2,575 (20,928)30,984 (15,331)
Cash and cash equivalents, beginning of the period 152,173 160,239 125,581 151,438 
Cash and cash equivalents, end of the period $154,730 $138,335 $154,730 $138,335 
Supplemental cash flow information
    
The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2024 Third Quarter Report
Page 3

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
AS AT SEPTEMBER 30, 2024 AND DECEMBER 31, 2023
Condensed Interim Consolidated Financial Statements - Unaudited(In thousands of US dollars)
The Condensed Interim Consolidated Statements of Financial Position provides a summary of assets, liabilities and equity, as well as their current versus non-current nature, as at the reporting date.
 NoteSeptember 30, 2024December 31, 2023
Assets   
Current assets
   
Cash and cash equivalents $154,730 $125,581 
Trade and other receivables18,080 10,099 
Value added taxes receivable41,044 38,587 
Inventories68,268 63,690 
Other financial assets63,994 62,380 
Prepaid expenses and other 9,478 8,720 
Total current assets
 355,594 309,057 
Non-current assets
   
Mining interests1,028,578 998,835 
Property, plant and equipment383,591 406,294 
Right-of-use assets22,480 27,284 
Deposits on non-current assets 6,511 6,430 
Non-current restricted cash103,866 125,573 
Non-current value added taxes receivable11,098 14,150 
Deferred tax assets65,777 88,732 
Total assets
 $1,977,495 $1,976,355 
Liabilities and Equity
   
Current liabilities
   
Trade and other payables$92,266 $94,413 
Unearned revenue782 2,301 
Current portion of debt facilities607 832 
Current portion of lease liabilities15,840 17,370 
Income taxes payable7,875 5,222 
Total current liabilities
 117,370 120,138 
Non-current liabilities
 
Debt facilities206,190 218,980 
Lease liabilities10,884 19,332 
Decommissioning liabilities158,239 151,564 
Other liabilities 6,025 5,592 
Non-current income taxes payable20,323 23,612 
Deferred tax liabilities81,154 79,017 
Total liabilities
 $600,185 $618,235 
Equity   
Share capital1,976,695 1,879,971 
Equity reserves 102,745 88,025 
Accumulated deficit (702,130)(609,876)
Total equity
 $1,377,310 $1,358,120 
Total liabilities and equity
 $1,977,495 $1,976,355 
Commitments (Note 24); Contingencies (Note 26); Subsequent event (Note 27)
 
The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2024 Third Quarter Report
Page 4

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023
Condensed Interim Consolidated Financial Statements - Unaudited(In thousands of US dollars, except share and per share amounts)
The Condensed Interim Consolidated Statements of Changes in Equity summarizes movements in equity, including common shares, share capital, equity reserves and retained earnings or accumulated deficit.

 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, 2022272,577,979 $1,781,280 $110,895 ($15,926)$3,945 $98,914 ($468,896)$1,411,298 
Net loss for the period— — — — — — (145,343)(145,343)
Other comprehensive loss— — — (25,925)— (25,925)— (25,925)
Total comprehensive loss— — — (25,925)— (25,925)(145,343)(171,268)
Share-based payments— — 10,470 — — 10,470 — 10,470 
Shares issued for:
   Prospectus offerings (Note 23(a))
13,919,634 92,092 — — — — — 92,092 
   Exercise of stock options (Note 23(b))
242,500 2,308 (760)— — (760)— 1,548 
   Settlement of restricted and deferred
   share units (Note 23(c) and 23(e))
192,998 2,115 (2,124)— — (2,124)— (9)
Dividend declared and paid (Note 23(f))
— — — — — — (4,550)(4,550)
Balance at September 30, 2023286,933,111 $1,877,795 $118,481 ($41,851)$3,945 $80,575 ($618,789)$1,339,581 
Balance at December 31, 2023287,146,715 $1,879,971 $119,304 ($35,224)$3,945 $88,025 ($609,876)$1,358,121 
Net loss for the period— — — — — — (88,407)(88,407)
Other comprehensive income— — — 7,736 — 7,736 — 7,736 
Total comprehensive loss— — — 7,736 — 7,736 (88,407)(80,671)
Share-based payments— — 9,773 — — 9,773 — 9,773 
Shares issued for:
Prospectus offerings (Note 23(a))
14,300,000 93,899 — — — — — 93,899 
   Exercise of stock options (Note 23(b))
6,000 56 (20)— — (20)— 36 
   Settlement of restricted, preferred, and
deferred share units (Note 23(c), 23(d), and 23(e))
268,546 2,769 (2,769)— — (2,769)— — 
Dividend declared and paid (Note 23(f))
— — — — — — (3,847)(3,847)
Balance at September 30, 2024301,721,261 $1,976,695 $126,288 ($27,488)$3,945 $102,745 ($702,130)$1,377,310 

(a)Share-based payments reserve records the cumulative amount recognized under IFRS 2 share-based payments in respect of stock options granted, restricted share units, deferred share units, preferred share units and shares purchase warrants issued but not exercised or settled to acquire shares of the Company.
(b)Other comprehensive income reserve principally records the unrealized fair value gains or losses related to fair value through other comprehensive income ("FVTOCI") of financial instruments and re-measurements arising from actuarial gains or losses and return on plan assets in relation to San Dimas' retirement benefit plan.
(c)Equity component of convertible debenture reserve represents the estimated fair value of its conversion option of $42.3 million, net of deferred tax effect of $11.4 million. This amount is not subsequently remeasured and will remain in equity until the conversion option is exercised, in which case, the balance recognized in equity will be transferred to share capital. Where the conversion option remains unexercised at the maturity date of the convertible note, the balance will remain in equity reserves.
The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2024 Third 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)

1. NATURE OF OPERATIONS

First Majestic Silver Corp. (the “Company” or “First Majestic”) is in the business of production, development, exploration, and acquisition of mineral properties with a focus on silver and gold production in North America. The Company owns three producing mines in Mexico consisting of the Santa Elena Silver/Gold Mine, the San Dimas Silver/Gold Mine, and the La Encantada Silver Mine. The Company also owns the Jerritt Canyon Gold Mine in Nevada, USA which the Company placed on temporary suspension on March 20, 2023 to focus on exploration, definition, and expansion of the mineral resources and optimization of mine planning and plant operations. The Company owns two additional mines in Mexico that are in suspension: the San Martin Silver Mine and the Del Toro Silver Mine, and several exploration stage projects. In addition, the Company is the 100% owner and operator of its own minting facility, First Mint, LLC ("First Mint").

First Majestic is incorporated in the Province of British Columbia, Canada, and is publicly listed on the New York Stock Exchange (“NYSE”) and the Toronto Stock Exchange (“TSX”) under the symbol “AG”, and on the Frankfurt Stock Exchange under the symbol “FMV”. The Company’s head office and principal address is located at Suite 1800 - 925 West Georgia Street, Vancouver, British Columbia, V6C 3L2, Canada.

2. BASIS OF PRESENTATION

These condensed interim consolidated financial statements have been prepared in accordance with International Accounting Standard (“IAS”) 34, “Interim Financial Reporting” of the International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB"). These condensed interim consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements as at and for the year ended December 31, 2023 as some disclosures from the annual consolidated financial statements have been condensed or omitted.

These condensed interim consolidated financial statements have been prepared on a historical cost basis except for certain items that are measured at fair value including derivative financial instruments (Note 24) and marketable securities (Note 13). All dollar amounts presented are in thousands of United States dollars unless otherwise specified.

These condensed interim consolidated financial statements incorporate the financial statements of the Company and its controlled subsidiaries. Control exists when the Company has the power, directly or indirectly, to govern the financial and operating policies of an entity so as to obtain benefits from its activities. The consolidated financial statements include the accounts of the Company and its subsidiaries. Intercompany balances, transactions, income and expenses are eliminated on consolidation.

These condensed interim consolidated financial statements were prepared using accounting policies consistent with those in the audited consolidated financial statements as at and for the year ended December 31, 2023 except as outlined in Note 3.

3. MATERIAL ACCOUNTING POLICY INFORMATION, ESTIMATES AND JUDGMENTS

The Company’s management makes judgments in its process of applying the Company’s accounting policies in the preparation of its unaudited condensed interim consolidated financial statements. In addition, the preparation of the financial data requires that the Company’s management make assumptions and estimates of the impacts of uncertain future events on the carrying amounts of the Company’s assets and liabilities at the end of the reporting period, and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates as the estimation process is inherently uncertain. Estimates are reviewed on an ongoing basis based on historical experience and other factors that are considered to be relevant under the circumstances. Revisions to estimates and the resulting impacts on the carrying amounts of the Company’s assets and liabilities are accounted for prospectively.

In preparing the Company’s unaudited condensed interim consolidated financial statements for the three and nine months ended September 30, 2024, the Company applied the accounting policies, critical judgments and estimates disclosed in Note 3 of its audited consolidated financial statements for the year ended December 31, 2023 and the following accounting policies, critical judgments and estimates in applying accounting policies:


The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2024 Third 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)
3. MATERIAL ACCOUNTING POLICY INFORMATION, ESTIMATES AND JUDGMENTS (continued)
New and amended IFRS standards that are effective for the current year:

In the current year, the Company has applied the below amendments to IFRS Standards and Interpretations issued by the IASB that were effective for annual periods that begin on or after January 1, 2024. Their adoption has not had any material impact on the disclosures or on the amounts reported in these financial statements.

Classification of Liabilities as Current or Non-Current with Covenants (Amendments to IAS 1)

The amendments aim to promote consistency in applying the requirements by helping companies determine whether, in the statement of financial position, debt and other liabilities with an uncertain settlement date should be classified as current (due or potentially due to be settled within one year) or non-current.

In addition, the amendment requires entities to disclose information to enable users of the financial statements to understand the risk that non-current liabilities with covenants could become repayable within twelve months. The amendments were applied effective January 1, 2024 and did not have a material impact on the Company’s consolidated financial statements.

Lease Liability in a Sale and Leaseback (Amendments to IFRS 16)

The amendments require a seller-lessee to subsequently measure lease liabilities arising from a leaseback in a way that it does not recognize any amount of the gain or loss that relates to the right of use it retains. The new requirements do not prevent a seller-lessee from recognizing in profit or loss any gain or loss relating to the partial or full termination of a lease. A seller-lessee applies the amendments retrospectively in accordance with IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors to sale and leaseback transactions entered into after the date of initial application. The amendments were applied effective January 1, 2024 and did not have a material impact on the Company’s consolidated financial statements.

Supplier Financing Arrangements (Amendments to IAS 7 and IFRS 7)

The amendments require disclosures regarding the effects of supplier finance arrangements on their liabilities, cash flows and exposure to liquidity risk. Entities are required to disclose the following:

•The terms and conditions;
•The amount of the liabilities that are part of the arrangements, breaking out the amounts for which the suppliers have already received payment from the finance providers, and stating where the liabilities are reflected in the balance sheet;
•Ranges of payment due dates; and
•Liquidity risk information.

The amendments were applied effective January 1, 2024 and did not have a material impact on the Company’s consolidated financial statements.

Future Changes in Accounting Policies Not Yet Effective in the Current Period

At the date of authorization of these financial statements, the Company has not applied the following new and revised IFRS Accounting Standards that have been issued but are not yet effective. Management does not expect that the adoption of the Standards listed below will have a material impact on the financial statements of the Company in future periods, except if indicated.

Lack of Exchangeability (Amendments to IAS 21)

The amendments clarify how an entity should assess whether a currency is exchangeable and how it should determine a spot exchange rate when exchangeability is lacking. In addition, the amendments require the disclosure of information that enables users of financial statements to understand the impact of a currency not being exchangeable.

The amendments are effective for annual reporting periods beginning on or after January 1, 2025, although earlier application is permitted. This amendment is not expected to have a material impact on the Company’s consolidated financial statements.
The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2024 Third 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)
3. MATERIAL ACCOUNTING POLICY INFORMATION, ESTIMATES AND JUDGMENTS (continued)
Future Changes in Accounting Policies Not Yet Effective in the Current Period (continued)
Presentation and Disclosure in Financial Statements (Amendment to IFRS 18)

In April 2024, the IASB released IFRS 18 Presentation and Disclosure in Financial Statements. IFRS 18 replaces IAS 1 Presentation of Financial Statements while carrying forward many of the requirements in IAS 1. IFRS 18 introduces new requirements to: i) present specified categories and defined subtotals in the statement of earnings, ii) provide disclosures on management-defined performance measures (MPMs) in the notes to the financial statements, iii) improve aggregation and disaggregation. Some of the requirements in IAS 1 are moved to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors and IFRS 7 Financial Instruments: Disclosures. The IASB also made minor amendments to IAS 7 Statement of Cash Flows and IAS 33 Earnings per Share in connection with the new standard. IFRS 18 requires retrospective application with specific transition provisions.

The amendments are effective for annual reporting periods beginning on or after January 1, 2027, although earlier application is permitted. The Company is currently evaluating the impact of IFRS 18 on its Company’s consolidated financial statements.

4. SEGMENTED INFORMATION

All of the Company’s operations are within the mining and metals industry and its major products are precious metals doré which are refined or smelted into pure silver and gold and sold to global metal brokers. Transfer prices between reporting segments are set on an arms-length basis in a manner similar to transactions with third parties. Coins and bullion cost of sales are based on transfer prices.

An operating segment is defined as a component of the Company that:
•Engages in business activities from which it may earn revenues and incur expenses;
•Whose operating results are reviewed regularly by the entity’s chief operating decision maker; and
•For which discrete financial information is available.

For the nine months ended September 30, 2024, the Company's significant operating segments include its three operating mines in Mexico, the Jerritt Canyon Gold Mine in Nevada, United States and its "non-producing properties" in Mexico which include the Del Toro and San Martin mines, which have been placed on suspension. In addition, as of January 1, 2024, the Company has added First Mint LLC ("First Mint") as a significant segment, which is inclusive of the Company's bullion store and its minting facility in Nevada, United States. Prior period information relating to First Mint was previously shown with "Others" and this corresponding comparative information has now been included within the First Mint segment. The Jerritt Canyon Gold mine was placed on temporary suspension as of March 20, 2023 to focus on exploration, definition, and expansion of the mineral resources and optimization of mine planning and plant operations. “Others” consists primarily of the Company’s corporate assets including cash and cash equivalents, other development and exploration properties (Note 15), debt facilities (Note 21), and corporate expenses which are not allocated to operating segments. The Company’s chief operating decision maker (“CODM”) evaluates segment performance based on mine operating earnings. Therefore, other income and expense items are not allocated to the segments.


The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2024 Third 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)
4. SEGMENTED INFORMATION (continued)
Significant information relating to the Company’s reportable operating segments is summarized in the tables below:

Three Months Ended September 30, 2024 and 2023 RevenueCost of salesDepletion, depreciation, and amortizationMine operating earnings (loss)Capital expenditures
Mexico     
San Dimas2024$49,739 $38,507 $13,135 ($1,903)$14,303 
202355,828 43,903 12,261 (336)13,547 
Santa Elena(1)
202477,603 32,454 12,541 32,608 11,234 
202361,313 31,441 10,398 19,474 12,287 
La Encantada202415,096 12,789 3,373 (1,066)1,923 
202313,756 15,347 3,040 (4,631)1,614 
   Non-producing Properties2024— — 38 (38)233 
2023— — 69 (69)373 
United States
Jerritt Canyon(1)(3)
20243,850 2,018 2,000 (168)5,946 
2023706 580 1,602 (1,476)2,831 
First Mint(2)
20242,665 2,091 131 443 — 
20231,608 916 — 692 — 
Others2024— 39 653 (692)1,097 
2023628 (628)1,551 
Intercompany elimination2024(2,866)(2,204)— (662)— 
2023— — — — — 
Consolidated2024$146,087 $85,694 $31,871 $28,522 $34,736 
2023$133,211 $92,187 $27,998 $13,026 $32,203 
(1) Santa Elena and Jerritt Canyon have incurred mine holding costs related to care and maintenance and temporary suspension activities (Note 8).
(2) The First Mint segment is inclusive of operations from the Company's bullion store and its minting facility located in Nevada. This segment generated coin and bullion revenue of $2.7 million (2023 - $1.6 million) through the sale of 83,852 silver ounces (2023 - 61,444) at an average price of $31.78 per ounce (2023 - $26.17). Prior period information relating to First Mint was previously shown within the "Others" segment.
(3) Jerritt Canyon was placed on temporary suspension in March 2023. In-circuit recovery efforts performed in Q3 2024 resulted in the recovery of 1,684 ounces.

During the three months ended September 30, 2024, the Company had four (September 30, 2023 - three) customers that accounted for 95% (September 30, 2023 - 99%) of its sales revenue, with two major metal brokers accounting for 86% of total revenue, each contributing 46% and 40%, respectively (September 30, 2023 - 94%).

The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2024 Third 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)
4. SEGMENTED INFORMATION (continued)
Nine Months Ended September 30, 2024 and 2023 RevenueCost of salesDepletion, depreciation, and amortizationMine operating earnings (loss)Capital expenditures
Mexico     
San Dimas2024$142,066 $118,533 $35,675 ($12,142)$39,443 
2023183,973 128,687 37,888 17,398 35,844 
Santa Elena(3)
2024201,995 93,153 34,366 74,476 35,319 
2023152,810 84,180 28,852 39,778 39,245 
La Encantada202440,130 39,865 11,595 (11,330)5,423 
202351,789 42,244 9,058 487 5,489 
   Non-producing Properties2024— — 117 (117)540 
2023— — 240 (240)627 
United States
Jerritt Canyon(2)(3)
20245,424 2,911 5,321 (2,808)8,098 
202340,475 74,294 17,006 (50,825)25,630 
First Mint(1)
20246,949 6,510 319 120 — 
20237,808 4,640 — 3,168 — 
Others2024— 1,942 1,932 (3,874)2,381 
2023— 55 1,970 (2,025)2,583 
Intercompany elimination2024(8,297)(7,635)— (662)— 
2023— — — — — 
Consolidated2024$388,267 $255,279 $89,325 $43,663 $91,204 
2023$436,855 $334,100 $95,014 $7,741 $109,418 
(1) The First Mint segment is inclusive of operations from the Company's bullion store and its minting facility located in Nevada. This segment generated coin and bullion revenue of $6.9 million (2023 - $7.8 million) from coins and bullion sales of 120,811 silver ounces (2023 - 300,587) at an average price of $30.52 per ounce (2023 -$25.97). Prior period information relating to First Mint was previously shown within the "Others" segment.
(2) Cost of Sales for Jerritt Canyon is inclusive of one time standby costs (Note 6).
(3) Santa Elena and Jerritt Canyon have incurred mine holding costs related to care and maintenance and temporary suspension activities (Note 8).

During the nine months ended September 30, 2024, the Company had four (September 30, 2023 - three) customers that accounted for 97% (September 30, 2023 - 98%) of its sales revenue, with two major metal brokers accounting for 90% of total revenue, each contributing 70% and 20%, respectively (September 30, 2023 - 94%).

The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2024 Third 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)
4. SEGMENTED INFORMATION (continued)

At September 30, 2024 and
December 31, 2023		Mining InterestsProperty, plant and equipmentTotal
mining assets		 Total
assets		Total liabilities
ProducingExploration
Mexico       
San Dimas2024$226,494 $36,962 $91,241 $354,697 $546,631 $82,240 
2023227,942 24,696 97,112 349,750 581,639 89,280 
Santa Elena2024124,393 61,504 92,948 278,845 387,009 103,173 
2023123,123 50,483 98,513 272,119 363,460 98,100 
La Encantada202421,839 3,942 26,593 52,374 98,786 25,209 
202322,181 4,461 30,015 56,657 112,310 26,702 
   Non-producing Properties202462,566 14,875 17,073 94,514 134,417 15,961 
202362,566 14,404 17,611 94,581 141,841 17,794 
United States
Jerritt Canyon2024350,504 89,283 129,985 569,772 603,431 146,261 
2023350,504 82,645 133,971 567,120 600,101 150,958 
First Mint2024— — 4,126 4,126 19,575 264 
2023— — 1,830 1,830 12,145 1,723 
Others2024— 36,216 21,624 57,840 187,647 227,077 
2023— 35,830 27,242 63,072 164,859 233,678 
Consolidated2024$785,796 $242,782 $383,591 $1,412,169 $1,977,495 $600,185 
2023$786,316 $212,519 $406,294 $1,405,129 $1,976,355 $618,235 


The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2024 Third 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)
5. REVENUES

The majority of the Company’s revenues are from the sale of precious metals contained in doré form. The Company’s primary products are precious metals (silver and gold). Revenues from the sale of metal, including by-products, are recorded net of smelting and refining costs.

Revenues for the period are summarized as follows:
 Three Months Ended September 30,Nine Months Ended September 30,
 2024202320242023
Gross revenue from payable metals:
    
   Silver$57,654 39 %$59,021 44 %$158,559 41 %$186,998 43 %
   Gold89,338 61 %74,777 56 %231,732 59 %251,711 57 %
Gross revenue146,992 100 %133,798 100 %390,291 100 %438,709 100 %
Less: smelting and refining costs(905)(587)(2,024)(1,854)
Revenues$146,087 $133,211 $388,267 $436,855 

As at September 30, 2024, the Company had $0.8 million of unearned revenue (December 31, 2023 - $2.3 million) that has not satisfied performance obligations.

(a)Gold Stream Agreement with Sandstorm Gold Ltd.
The Santa Elena mine is subject to a gold streaming agreement with Sandstorm Gold Ltd. (“Sandstorm”), which requires the Company to sell to Sandstorm 20% of its gold production over the life of mine from its leach pad and a designated area of its underground operations. The selling price to Sandstorm is the lesser of the prevailing market price or $450 per ounce, subject to a 1% annual inflation adjustment. During the three and nine months ended September 30, 2024, the Company delivered nil ounces and 21 ounces (2023 - nil and 1,071 ounces) of gold to Sandstorm at an average price of $nil per ounce and $482 per ounce (2023 - $nil and $473 per ounce).

(b)    Net Smelter Royalty
The Santa Elena mine has a net smelter return ("NSR") royalty agreement with Orogen Royalties Inc. that provides them with a 2% NSR royalty from the production of the Ermitaño property. In addition, there is an underlying NSR royalty where Osisko Gold Royalties Ltd. retains a 2% NSR royalty from the sale of mineral products extracted from the Ermitaño property. For the three and nine months ended September 30, 2024, the Company has incurred $3.0 and $7.9 million (2023 - $2.3 and $5.9 million) in NSR royalty payments in connection with production from Ermitaño.
In 2022, the Company sold a portfolio of its existing royalty interests to Metalla Royalty and Streaming Limited ("Metalla"). Under the agreement, the Company has granted Metalla a 100% gross value royalty for the first 1,000 ounces of gold produced annually from the La Encantada property. For the three and nine months ended September 30, 2024, the Company has incurred $0.1 million and $0.3 million, respectively (2023 - $0.2 and $0.4 million) in NSR royalty payments from production at La Encantada.

(c) Gold Stream Agreement with Wheaton Precious Metals Corporation

In 2018, the San Dimas mine entered into a purchase agreement with Wheaton Precious Metals International ("WPMI"), a wholly owned subsidiary of Wheaton Precious Metals Corp., which entitles WPMI to receive 25% of the gold equivalent production (based on a fixed exchange ratio of 70 silver ounces to 1 gold ounce) at San Dimas in exchange for ongoing payments equal to the lesser of $600 (subject to a 1% annual inflation adjustment) and the prevailing market price for each gold equivalent ounce delivered. Should the average gold to silver ratio over a six-month period exceed 90:1 or fall below 50:1, the fixed exchange ratio would be increased to 90:1 or decreased to 50:1, respectively. The fixed gold to silver exchange ratio as of September 30, 2024, was 70:1.

During the three and nine months ended September 30, 2024, the Company delivered 7,022 and 21,756 ounces (2023 - 9,695 and 31,700 ounces) of gold to WPMI at $637 and $634 per ounce (2023 - $631 and $628 per ounce).

The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2024 Third 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)
6. COST OF SALES

Cost of sales are costs that are directly related to production and generation of revenues at the operating segments. Significant components of cost of sales, excluding depletion, depreciation and amortization are comprised of the following:
 Three Months Ended September 30,Nine Months Ended September 30,
 2024202320242023
Labour costs39,692 47,427 123,075 164,118 
Consumables and materials21,432 22,620 58,827 69,576 
Energy7,488 8,810 26,791 32,786 
Maintenance1,772 1,725 4,819 4,995 
Assays and labwork761 765 2,556 2,506 
Insurance625 934 1,904 2,925 
Other costs(1)
2,779 2,041 8,388 11,982 
Production costs$74,549 $84,322 $226,360 $288,888 
Transportation and other selling costs632 533 1,921 2,337 
Workers' participation costs4,946 3,978 15,406 13,902 
Environmental duties and royalties3,900 3,153 10,328 9,142 
Finished goods inventory changes1,667 201 (495)6,393 
Other (3)
— — 1,759 — 
Cost of Sales$85,694 $92,187 $255,279 $320,662 
Cost of Sales - Standby Costs(2)
$— $— $— $13,438 
(1) Other costs include inventory write-downs, stockpile and work-in-process inventory changes, land access payments as well as services related to travel and medical testing. The inventory write-downs during the three and nine months ended September 30, 2024, totaled $nil and $1.5 million and are related to La Encantada (2023 - the total amounted to $1.0 million for La Encantada during the quarter, and $14.8 million for both La Encantada and Jerritt Canyon during the nine-month period).
(2) Cost of sales for the three and nine months ended September 30, 2023 included one-time standby costs of $nil and $13.4 million primarily related to direct severance and demobilization costs at the Jerritt Canyon mine following the temporary suspension announced on March 20, 2023.
(3) Other costs for the nine months ended September 30, 2024 relate to $1.8 million incurred at San Dimas during the second quarter as a result of increased diesel consumption due to the use of back up energy sources following low water levels at the Las Truchas hydroelectric dam and damage to the power lines at the hydroelectric plant.

7. GENERAL AND ADMINISTRATIVE EXPENSES

General and administrative expenses are incurred to support the administration of the business that are not directly related to production. Significant components of general and administrative expenses are comprised of the following:
 Three Months Ended September 30,Nine Months Ended September 30,
 2024202320242023
Corporate administration$2,194 $2,178 $6,784 $6,761 
Salaries and benefits4,329 4,827 12,933 14,609 
Audit, legal and professional fees2,255 2,725 6,451 7,015 
Filing and listing fees153 150 459 464 
Directors' fees and expenses129 194 440 567 
Depreciation380 365 1,119 1,144 
 $9,440 $10,439 $28,186 $30,560 


The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2024 Third 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)
8. MINE HOLDING COSTS

The Company’s mine holding costs are primarily comprised of labour costs associated with care and maintenance staff, electricity, security, environmental and community support costs for the following mines which are currently under temporary suspension:
 Three Months Ended September 30,Nine Months Ended September 30,
 2024202320242023
La Parrilla(1)
$— $564 $— $3,477 
Del Toro508 869 1,917 2,192 
San Martin192 170 479 813 
La Guitarra(1)
— — — 514 
Santa Elena(2)
803 930 2,690 2,182 
Jerritt Canyon4,650 4,710 13,087 5,572 
 $6,153 $7,243 $18,173 $14,750 
(1) The La Guitarra and the La Parrilla mines, previously classified as assets held-for-sale, were sold during the first quarter and the third quarter of 2023, respectively (Note 14).
(2) During 2023 and 2024, the Company processed ore solely from the Ermitaño mine which is part of the Santa Elena operation. During the three and nine months ended September 30, 2024, the Company has incurred $0.8 and $2.7 million (2023 - $0.9 and $2.2 million) in holding costs relating to care and maintenance charges for the Santa Elena mine.

9. INVESTMENT AND OTHER INCOME (LOSS)

The Company’s investment and other income (loss) are comprised of the following:
 Three Months Ended September 30,Nine Months Ended September 30,
 2024202320242023
(Loss) gain from investment in silver futures derivatives($1,288)$434 ($1,036)$4,825 
Gain (loss) from investment in marketable securities (Note 13(a))
108 (685)205 (1,619)
Interest income and other1,708 1,526 4,917 4,938 
 $528 $1,275 $4,086 $8,144 

10. FINANCE COSTS

Finance costs are primarily related to interest and accretion expense on the Company’s debt facilities, lease liabilities and accretion of decommissioning liabilities. The Company’s finance costs in the periods are summarized as follows:
 Three Months Ended September 30,Nine Months Ended September 30,
 2024202320242023
Debt facilities(1) (Note 21)
$3,214 $3,368 $10,065 $9,256 
Accretion of decommissioning liabilities2,403 1,829 7,208 6,244 
Lease liabilities (Note 22)
537 660 1,775 1,944 
Interest and other704 882 2,229 2,244 
 $6,858 $6,739 $21,277 $19,688 
(1) During the three and nine months ended September 30, 2024, finance costs for debt facilities includes non-cash accretion expense of $2.5 and $7.5 million
(2023 - $2.4 and $7.1 million).



The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2024 Third 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)
11. EARNINGS OR LOSS PER SHARE

Basic earnings or loss per share is the net earnings or loss available to common shareholders divided by the weighted average number of common shares outstanding during the periods. Diluted net earnings or loss per share adjusts basic net earnings or loss per share for the effects of potential dilutive common shares. The calculations of basic and diluted earnings or loss per share for the periods ended September 30, 2024 and 2023 are as follows:
 Three Months Ended September 30,Nine Months Ended September 30,
 2024202320242023
Net loss for the period($26,593)($27,149)($88,407)($145,343)
Weighted average number of shares on issue - basic301,000,656 286,921,720 293,440,674 280,758,404 
Weighted average number of shares on issue - diluted(1)
301,000,656 286,921,720 293,440,674 280,758,404 
Loss per share - basic and diluted($0.09)($0.09)($0.30)($0.52)
(1)For the three and nine months ended September 30, 2024, diluted weighted average number of shares excluded 7,945,697 and 7,570,095 (2023 - 7,812,410 and 7,010,717) options, 5,000,000 (2023 - 5,000,000) warrants, 2,479,598 restricted and performance share units (2023 - 1,766,714) and 13,888,895 common shares issuable under the 2021 convertible debentures (2023 - 13,888,895) (Note 21(a)) that were anti-dilutive.

12. INVENTORIES

Inventories consist primarily of materials and supplies and products of the Company’s operations, in varying stages of the production process, and are presented at the lower of weighted average cost or net realizable value.
 September 30,
2024		December 31,
2023
Finished goods - doré $6,819 $3,529 
Work-in-process4,451 7,542 
Stockpile6,626 5,055 
Silver coins and bullion11,609 8,360 
Materials and supplies38,763 39,204 
 $68,268 $63,690 

The amount of inventories recognized as an expense during the period is equivalent to the total of cost of sales plus depletion, depreciation and amortization for the period. As at September 30, 2024, no write down was included in mineral inventories, which consist of stockpile, work-in-process and finished goods (2023 - $1.0 million and was recognized in cost of sales - Note 6).

13. OTHER FINANCIAL ASSETS

As at September 30, 2024, other financial assets consists of the Company’s investment in marketable securities comprised of the following:
 September 30,
2024		December 31,
2023
FVTPL marketable securities (a)$1,683 $6,279 
FVTOCI marketable securities (b)62,311 56,101 
Total other financial assets$63,994 $62,380 

(a)Fair Value through Profit or Loss ("FVTPL") Marketable Securities
Gain on marketable securities designated as FVTPL for the three and nine months ended September 30, 2024 was $0.1 and $0.2 million (September 30, 2023 - loss of $0.7 and $1.6 million) and was recorded through profit or loss.
The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2024 Third 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)
13. OTHER FINANCIAL ASSETS (continued)
(b)Fair Value through Other Comprehensive Income ("FVTOCI") Marketable Securities
Changes in fair value of marketable securities designated as FVTOCI for the three and nine months ended September 30, 2024 was a gain of $5.8 and $7.7 million (September 30, 2023 - loss of $11.0 and $25.9 million), net of tax, and were recorded through other comprehensive income and will not be transferred into earnings or loss upon disposition or impairment. The Company made the irrevocable election to designate these equity securities as FVTOCI because these financial assets are not held for trading and are not contingent consideration recognized in a business combination. As at September 30, 2024, the carrying value of all shares designated at FVTOCI was $62.3 million (December 2023 - $56.1 million).

14. DIVESTITURES

(a) La Guitarra Silver Mine

On May 24, 2022, the Company announced that it had entered into a share purchase agreement with Sierra Madre Gold and Silver Ltd. ("Sierra Madre"), to sell the Company's subsidiary, La Guitarra Compañia Minera S.A. de C.V. ("La Guitarra"), which owns the La Guitarra Silver Mine, to Sierra Madre for total consideration of approximately $35 million, consisting of 69,063,076 Sierra Madre common shares at a deemed price of $0.51 per share. Closing of the transaction was subject to customary closing conditions including approval of the Sierra Madre shareholders (which was obtained in December 2022), regulatory approval and that Sierra Madre raise a minimum of $7.7 million (CAD $10 million) in a private placement concurrent or prior to the sale.

On March 29, 2023, the Company completed the sale of La Guitarra to Sierra Madre and received total consideration of $33.2 million net of transaction costs, before working capital adjustments. Pursuant to the share purchase agreement, the purchase price increased to the extent the working capital of La Guitarra is greater than zero, and decreased to the extent the working capital is less than zero. Based on the carrying value of the asset at the time of disposal of $34.3 million, and the working capital adjustment of $0.2 million, the Company recorded a loss on disposition of $1.4 million. The Company began accounting for the common shares received from Sierra Madre as an equity security at FVTOCI (Note 13).

(b) La Parrilla Silver Mine

On December 7, 2022, the Company announced that it had entered into an asset purchase agreement with Silver Storm Mining Ltd. (formerly Golden Tag Resources Ltd.) (“Silver Storm”) to sell the La Parrilla Silver Mine for total consideration of up to $33.5 million, consisting of 143,673,684 common shares of Silver Storm at a deemed price of $0.16 per share, having an aggregate value as of the date of the agreement of $20 million, and up to $13.5 million in contingent consideration, in the form of three milestone payments, payable in either cash or Silver Storm shares, out of which $2.7 million is payable no later than 18 months following the closing date. The Company has also agreed to purchase $2.7 million of Silver Storm securities in a future Silver Storm equity financing of up to CAD $7.2 million. Closing the transaction was subject to customary closing conditions, including completion of such financing and receipt of all necessary regulatory approvals (which were obtained in May 2023). At March 31, 2023, the sale continued to be considered highly probable; therefore the assets and liabilities were presented as assets and liabilities held for sale and presented separately under current assets and current liabilities.

During the three months ended June 30, 2023, the Company recorded a write down on assets held-for-sale related to La Parrilla of $7.2 million, based on the change in value of Silver Storm's common shares at the end of the reporting period.

Of the $7.2 million write down related to La Parrilla, $3.7 million was allocated to depletable mining interest, $1.4 million was allocated to non-depletable mining interest, and the remaining $2.1 million was allocated to property, plant and equipment, resulting in a write down of $7.2 million, net of a $nil adjustment to the deferred tax liability. The recoverable amount of La Parrilla, being its FVLCD, was $14.9 million, net of estimated transaction costs, based on the expected proceeds from the sale.

On August 14, 2023, the Company completed the sale of La Parrilla to Silver Storm and received total consideration of $13.3 million net of transaction costs. Based on the price of Silver Storm’s common shares at the time of closing the transaction, the Company recorded a loss on disposition of $1.6 million. In addition, First Majestic participated in Silver Storm’s offering of subscription receipts (the “Subscription Receipts”) and purchased 18,009,000 Subscription Receipts at a price of CAD$0.20 per Subscription Receipt which, in accordance with their terms, have now converted into 18,009,000 Silver Storm common shares and 9,004,500 common share purchase warrants (the “Warrants”). Each Warrant is exercisable for one additional Silver Storm common share until August 14, 2026, at a price of CAD$0.34. The Company began accounting for the shares received from Silver Storm as an equity security at FVTOCI (Note 13).

The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2024 Third 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)
14. DIVESTITURES (continued)

(b) La Parrilla Silver Mine (continued)

On March 30, 2023 and August 14, 2023, the Company disposed of its interest in the La Guitarra and La Parrilla mines, respectively. The carrying value of the net assets of these mining interests at the date of disposal were as follows:
At date of dispositionMarch 30, 2023August 14, 2023
La Guitarra(1)
La Parrilla(2)
Cash and cash equivalents$5,401 $— 
Other Receivable427 — 
Inventory440 854 
Prepaid expenses and other35 — 
Mineral Property Interest34,089 13,891 
Property plant and equipment4,003 5,829 
Other assets40 680 
Total assets$44,435 $21,254 
Trade Payables and accrued liabilities$232 $— 
Leases21 519 
Deferred tax liabilities6,894 1,667 
Decommissioning liabilities2,951 4,167 
Total liabilities$10,098 $6,353 
Net assets disposed $34,337 $14,901 
Loss on disposal($1,378)($1,646)
Total non-cash consideration$33,172 $13,822 
(1) On March 29, 2023, the Company completed the sale of La Guitarra to Sierra Madre Gold and Silver Ltd. As such, the asset is no longer classified as held-for-sale, with the assets and liabilities derecognized after disposition.
(2) On August 14, 2023, the Company completed the sale of La Parrilla to Silver Storm Mining Ltd. (formerly Golden Tag Resources Ltd.). As such, the asset is no longer classified as held-for-sale, with the asset derecognized after disposition.

The La Guitarra and La Parrilla mines are presented in the non-producing properties reportable segment up to the date of disposition (Note 4, 15 and 16).




The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2024 Third 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)
15. MINING INTERESTS

Mining interests primarily consist of acquisition, development, exploration and exploration potential costs directly related to the Company’s operations and projects. Upon commencement of commercial production, mining interests for producing properties are depleted on a units-of-production basis over the estimated economic life of the mine. In applying the units of production method, depletion is determined using quantity of material extracted from the mine in the period as a portion of total quantity of material, based on reserves and resources, considered to be highly probable to be economically extracted over the life of mine plan.

The Company’s mining interests are comprised of the following:
 September 30,
2024		December 31,
2023
Depletable properties$785,796 $786,316 
Non-depletable properties (exploration and evaluation costs, exploration potential)242,782 212,519 
 $1,028,578 $998,835 

Depletable properties are allocated as follows:
Depletable propertiesSan DimasSanta ElenaLa EncantadaJerritt Canyon
Non-producing
Properties(1)
Total
Cost   
At December 31, 2022$315,129 $151,396 $124,740 $476,541 $212,838 $1,280,644 
Additions26,602 29,014 2,752 13,307 — 71,675 
Change in decommissioning liabilities(2,685)816 (634)(3,183)152 (5,534)
Transfer from non-depletable properties26,426 1,897 2,021 — — 30,344 
At December 31, 2023$365,472 $183,123 $128,879 $486,665 $212,990 $1,377,129 
Additions22,164 16,150 2,242 — — 40,556 
Transfer from non-depletable properties— 2,179 1,702 — — 3,881 
At September 30, 2024$387,636 $201,452 $132,823 $486,665 $212,989 $1,421,565 
Accumulated depletion, amortization and impairment   
At December 31, 2022($103,471)($41,302)($101,244)($51,383)($150,424)($447,824)
Depletion and amortization(34,059)(18,698)(5,454)(6,650)— (64,861)
Impairment (Note 18)
— — — (78,128)— (78,128)
At December 31, 2023($137,530)($60,000)($106,698)($136,161)($150,424)($590,813)
Depletion and amortization(23,612)(17,059)(4,285)— — (44,956)
At September 30, 2024($161,142)($77,059)($110,983)($136,161)($150,424)($635,769)
Carrying values   
At December 31, 2023$227,942 $123,123 $22,181 $350,504 $62,566 $786,316 
At September 30, 2024$226,494 $124,393 $21,839 $350,504 $62,566 $785,796 
(1) Non-producing properties include the San Martin, Del Toro, La Parrilla and La Guitarra mines. La Guitarra and La Parrilla were classified as assets held-for-sale up to the date of disposition on March 29, 2023 and August 14, 2023, respectively. As of December 31, 2023, the assets and liabilities have been derecognized (Note 14).









The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2024 Third 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)
15. MINING INTERESTS (continued)

Non-depletable properties costs are allocated as follows:
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, 2022$38,831 $41,731 $4,935 $93,680 $13,781 $23,489 $11,856 $228,304 
Exploration and evaluation expenditures12,291 10,649 1,547 6,353 623 695 — 32,158 
Change in decommissioning liabilities— — — — — (15)— (15)
Impairment (Note 14)
— — — (17,388)— — — (17,388)
Disposal of La Joya— — — — — (196)— (196)
Transfer to depletable properties(26,426)(1,897)(2,021)— — — — (30,344)
At December 31, 2023$24,696 $50,483 $4,461 $82,645 $14,404 $23,973 $11,856 $212,519 
Exploration and evaluation expenditures12,265 13,200 1,183 6,638 471 387 — 34,144 
Transfer to depletable properties— (2,179)(1,702)— — — — (3,881)
At September 30, 2024$36,962 $61,504 $3,942 $89,283 $14,875 $24,360 $11,856 $242,782 
(1) Non-producing properties include the San Martin, Del Toro, La Parrilla and La Guitarra mines. La Guitarra and La Parrilla were classified as assets held-for-sale up to the date of disposition on March 29, 2023 and August 14, 2023, respectively. As of December 31, 2023, the assets and liabilities have been derecognized (Note 14).
(2) Exploration projects include the La Luz, La Joya, Los Amoles, Jalisco Group of Properties and Jimenez del Tuel projects. The La Joya project was disposed during the second quarter of 2023.

(a)San Dimas Silver/Gold Mine, Durango State, Mexico

The San Dimas Mine is subject to a gold and silver streaming agreement with WPMI which entitles WPMI to receive 25% of the gold equivalent production (based on a fixed exchange ratio of 70 silver ounces to 1 gold ounce) at San Dimas in exchange for ongoing payments equal to the lesser of $600 (subject to a 1% annual inflation adjustment commencing in May 2019) and the prevailing market price for each gold ounce delivered. Should the average gold to silver ratio over a six-month period exceed 90:1 or fall below 50:1, the fixed exchange ratio would be increased to 90:1 or decreased to 50:1, respectively. The fixed gold to silver exchange ratio as of September 30, 2024, was 70:1.

(b)Santa Elena Silver/Gold Mine, Sonora State, Mexico

The Santa Elena Mine is subject to a gold streaming agreement with Sandstorm, which requires the mine to sell 20% of its life of mine gold production from its leach pad and a designated area of its underground operations of the Santa Elena mine to Sandstorm. The selling price to Sandstorm is currently the lesser of $450 per ounce, subject to a 1% annual inflation increase every April, and the prevailing market price.

The Santa Elena mine has a net smelter return ("NSR") royalty agreement with Orogen Royalties Inc. that provides them with a 2% NSR royalty from the production of the Ermitaño property. In addition, there is an underlying NSR royalty where Osisko Gold Royalties Ltd. retains a 2% NSR royalty from the sale of mineral products extracted from the Ermitaño property. During the three and nine months ended September 30, 2024, the Company has incurred $3.0 and $7.9 million (2023 - $2.3 and $5.9 million) in NSR royalty payments in connection with production from Ermitaño.



The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2024 Third 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)
15. MINING INTERESTS (continued)

(c) La Encantada Silver Mine, Coahuila State, Mexico

In December 2022, the Company sold a portfolio of its existing royalty interests to Metalla Royalty and Streaming Limited. Under the terms of the agreement, the Company is required to pay a 100% gross value royalty on the first 1,000 ounces of gold produced annually from the La Encantada property. For the three and nine months ended September 30, 2024, the Company has incurred $0.1 million and $0.3 million (2023 - $0.2 and $0.4 million) in royalty payments from gold production at La Encantada.

(d) Jerritt Canyon Gold Mine, Nevada, United States

The Jerritt Canyon Mine is subject to a 0.75% NSR royalty on production of gold and silver from the Jerritt Canyon mines and processing plant. The royalty is applied, at a fixed rate of 0.75%, against proceeds from gold and silver products after deducting treatment, refining, transportation, insurance, taxes and levies charges.

The Jerritt Canyon Mine is also subject to a 2.5% to 5% NSR royalty relating to the production of gold and silver within specific boundary lines at certain mining areas. The royalty is applied, at a fixed rate of 2.5% to 5.0%, against proceeds from gold and silver products.

For the three and nine months ended September 30,2024, the Company has incurred $nil in royalty payments from gold production at Jerritt Canyon (2023 - $nil and $0.6 million).

(e) Springpole Silver Stream, Ontario, Canada
In July 2020, the Company completed an agreement with First Mining Gold Corp. (“First Mining”) to purchase 50% of the life of mine payable silver produced from the Springpole Gold Project (the “Springpole Silver Stream”), a development-stage gold project located in Ontario, Canada. First Majestic agreed to pay First Mining consideration of $22.5 million in cash and shares, in three milestone payments, for the right to purchase silver at a price of 33% of the silver spot price per ounce, to a maximum of $7.50 per ounce (subject to annual inflation escalation of 2%, commencing at the start of the third anniversary of production). Commencing with its production of silver, First Mining must deliver 50% of the payable silver which it receives from the offtaker within five business days of the end of each quarter.

The transaction consideration paid and payable by First Majestic is summarized as follows:

•The first payment of $10.0 million, consisting of $2.5 million in cash and $7.5 million in First Majestic common shares (805,698 common shares), was paid to First Mining on July 2, 2020;
•The second payment of $7.5 million, consisting of $3.75 million in cash and $3.75 million in First Majestic common shares (287,300 common shares), was paid on January 21, 2021 upon the completion and public announcement by First Mining of the results of a Pre-Feasibility Study for Springpole; and
•The third payment, consisting of $2.5 million in cash and $2.5 million in First Majestic common shares (based on a 20-day volume weighted average price), will be paid upon receipt by First Mining of a Federal or Provincial Environmental Assessment approval for Springpole, which has not yet been received.

In connection with the streaming agreement, First Mining also granted First Majestic 30.0 million common share purchase warrants of First Mining (the “First Mining Warrants”), each of which will entitle the Company to purchase one common share of First Mining at CAD$0.40 over a period of five years. As a result of the distribution by First Mining of shares and warrants of Treasury Metals Inc. that was completed by First Mining on July 15, 2021, pursuant to the adjustment provisions of the First Mining Warrants, the exercise price of these warrants was reduced from CAD$0.40 to CAD$0.37, and the number of these warrants was increased from 30.0 million to 32.1 million. The fair value of the warrants was measured at $5.7 million using the Black-Scholes option pricing model. First Mining has the right to repurchase 50% of the silver stream from First Majestic for $22.5 million at any time prior to the commencement of production at Springpole, and if such a repurchase takes place, the Company will be left with a reduced silver stream of 25% of life of mine payable silver production from Springpole. First Mining is a related party with two independent board members who are also directors and/or officers of First Majestic.



The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2024 Third 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)
16. PROPERTY, PLANT AND EQUIPMENT

The majority of the Company's property, plant and equipment is used in the Company's operating mine segments. Property, plant and equipment is depreciated using either the straight-line or units-of-production method over the shorter of the estimated useful life of the asset or the expected life of mine. Where an item of property, plant and equipment comprises of major components with different useful lives, the components are accounted for as separate items of property, plant and equipment. Assets under construction are recorded at cost and re-allocated to land and buildings, machinery and equipment or other when they become available for use.

Property, plant and equipment are comprised of the following: 
Land and Buildings(1)
Machinery and Equipment
Assets under Construction(2)
OtherTotal
Cost
At December 31, 2022$237,246 $595,008 $73,927 $36,751 $942,932 
Additions14 2,719 33,749 655 37,137 
Reclassification to assets held-for-sale (Note 14)
(14)26 — — 12 
Transfers and disposals8,014 43,276 (58,938)1,039 (6,609)
At December 31, 2023$245,260 $641,029 $48,738 $38,445 $973,472 
Additions410 1,432 14,554 109 16,505 
Transfers and disposals8,113 6,770 (20,467)589 (4,995)
At September 30, 2024$253,783 $649,231 $42,825 $39,143 $984,982 
Accumulated depreciation, amortization and impairment reversal
At December 31, 2022($136,987)($330,728)$— ($23,882)($491,597)
Depreciation and amortization(13,303)(32,134)— (3,600)(49,037)
Impairment (Note 18)
(7,585)(21,979)— (120)(29,684)
Reclassification to assets held-for-sale (Note 14)
— (117)— — (117)
Transfers and disposals249 2,819 — 189 3,257 
At December 31, 2023($157,626)($382,139)$— ($27,413)($567,178)
Depreciation and amortization(12,612)(22,286)— (2,443)(37,341)
Transfers and disposals1,309 1,789 — 30 3,128 
At September 30, 2024($168,929)($402,636)$— ($29,826)($601,391)
Carrying values
At December 31, 2023$87,634 $258,890 $48,738 $11,032 $406,294 
At September 30, 2024$84,854 $246,595 $42,825 $9,317 $383,591 

(1) Included in land and buildings is $10.4 million (2023 - $10.4 million) worth of land which is not subject to depreciation.
(2) Assets under construction includes certain innovation projects, such as high-intensity grinding ("HIG") mills and related modernization, plant improvements, other mine infrastructures and equipment overhauls.


The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2024 Third 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)
16. PROPERTY, PLANT AND EQUIPMENT (continued)

Property, plant and equipment, including land and buildings, machinery and equipment, assets under construction and other assets above are allocated by mine as follow:
 San DimasSanta ElenaLa EncantadaJerritt Canyon
Non-producing
Properties(1)
Other(2)(3)
Total
Cost    
At December 31, 2022$164,796 $167,542 $157,923 $209,749 $165,018 $77,904 $942,932 
Additions(2)
10,765 9,399 4,309 8,453 14 4,197 37,137 
Reclassification to assets held-for-sale— — — — 12 — 12 
Transfers and disposals7,810 3,187 6,504 (1,534)(1,546)(21,030)(6,609)
At December 31, 2023$183,371 $180,128 $168,736 $216,668 $163,498 $61,071 $973,472 
Additions(2)
5,014 5,969 1,998 1,461 69 1,994 16,505 
Transfers and disposals559 934 (977)(775)(1,106)(3,630)(4,995)
At September 30, 2024$188,944 $187,031 $169,757 $217,354 $162,461 $59,435 $984,982 
Accumulated depreciation, amortization and impairment
At December 31, 2022($70,419)($67,563)($133,501)($42,971)($146,823)($30,320)($491,597)
Depreciation and amortization(15,577)(15,543)(4,889)(10,614)(165)(2,249)(49,037)
Impairment— — — (29,684)— — (29,684)
Reclassification to assets held-for-sale— — — — (117)— (117)
Transfers and disposals(263)1,491 (331)572 1,218 570 3,257 
At December 31, 2023($86,259)($81,615)($138,721)($82,697)($145,887)($31,999)($567,178)
Depreciation and amortization(11,668)(13,656)(5,721)(4,695)(75)(1,526)(37,341)
Transfers and disposals224 1,188 1,278 23 575 (160)3,128 
At September 30, 2024($97,703)($94,083)($143,164)($87,369)($145,387)($33,685)($601,391)
Carrying values    
At December 31, 2023$97,112 $98,513 $30,015 $133,971 $17,611 $29,072 $406,294 
At September 30, 2024$91,241 $92,948 $26,593 $129,985 $17,074 $25,750 $383,591 

(1) Non-producing properties include the San Martin, Del Toro, La Parrilla and La Guitarra mines. La Guitarra and La Parrilla were classified as assets held-for sale up to the date of their dispositions on March 29, 2023 and August 14, 2023, respectively. As of December 31, 2023, the assets and liabilities have been derecognized.
(2) Additions classified in "Other" primarily consist of innovation projects and construction-in-progress.
(3) Included in "Other" is property, plant and equipment of $4.1 million (2023 - $1.8 million) for First Mint which includes the Company's bullion store and its minting facility located in Nevada.

The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2024 Third 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)
17. RIGHT-OF-USE ASSETS

The Company entered into operating leases to use certain land, buildings, mining equipment and corporate equipment for its operations. The Company is required to recognize right-of-use assets representing its right to use these underlying leased assets over the lease term.

Right-of-use assets are initially measured at cost, equivalent to its obligation for payments over the term of the leases, and subsequently measured at cost less accumulated depreciation and impairment losses. Depreciation is recorded on a straight-line basis over the shorter period of lease term and useful life of the underlying asset.

Right-of-use assets are comprised of the following: 
Land and BuildingsMachinery and EquipmentOtherTotal
At December 31, 2022$8,424 $18,216 $9 $26,649 
Additions1,719 2,821 — 4,540 
Remeasurements131 6,020 — 6,151 
Depreciation and amortization(1,813)(8,301)(9)(10,123)
Transfer to asset held-for-sale47 10 — 57 
Disposals15 (5)— 10 
At December 31, 2023$8,523 $18,761 $— $27,284 
Additions299 2,982 — 3,281 
Remeasurements236 819 — 1,055 
Depreciation and amortization(1,502)(7,638)— (9,140)
At September 30, 2024$7,556 $14,924 $— $22,480 

18. IMPAIRMENT OF NON-CURRENT ASSET

On March 20, 2023, the Company announced the temporary suspension of operations at the Jerritt Canyon Gold mine. Having considered the facts and circumstances including the temporary suspension of operations, heightened costs, and operating mine performance, the Company determined that impairment indicators existed for the Jerritt Canyon Gold mine. IFRS accounting standards require an entity to assess its assets for indicators of impairment at the cash-generating unit level based on their individual recoverable amounts. After the Company identified an indicator of impairment for Jerritt Canyon, the Company assessed the recoverable value of the Jerritt Canyon Gold Mine based on its FVLCD.

Key Assumptions

The FVLCD for Jerritt Canyon was determined using a multiple-based valuation method to estimate the value per in-situ ounce based on comparable market transactions. Valuation multiples applied to mineral resources and property, plant and equipment in the CGU, subject to impairment testing were determined as follows:

•External valuation specialists were used to obtain a population of gold exploration, development and operating companies. The value of trading multiples for operating companies based on recent transactions was determined to be between $149 per ounce and $248 per ounce.
•Management considered the $165 per ounce multiple to be the most reasonable estimate of the fair value of Jerritt Canyon, as companies in this range included companies in operations that had invested significantly in exploration, capital structure, an operating plant and had significant exploration potential.


The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2024 Third 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)
18. IMPAIRMENT OF NON-CURRENT ASSET (continued)
The market approach used to determine FVLCD is significantly affected by changes in key assumptions of determining which population of comparable companies are most relevant and the price for these precedent transactions. In determining the comparability of public companies and precedent transactions, factors such as primary ore, location, stage of operations, reserves and resources, exploration potential, infrastructure, and accessibility for the underlying commodity were taken into consideration. The Company performed a sensitivity analysis on the key assumption being the population of comparable transactions and determined that a change in this assumption could lead to a different fair value of this asset. Management’s estimate of FVLCD is classified as a level 3 in the fair value hierarchy as the inputs are not based on observable market data.

In prior periods, management utilized the discounted cash flow method as the valuation technique to determine the recoverable amount. Recoverable values were determined with internal discounted cash flow economic models projected using management’s best estimate of recoverable mineral reserves and resources, future operating costs, capital expenditures and long-term foreign exchange rates and corroborated by in situ value of its Reserves and Resources. As Jerritt Canyon does not currently have a mine plan to estimate future cash flows, the market approach was used during the current period to determine the FVLCD.

Based on the Company's assessment, the Company concluded that the carrying value of the Jerritt Canyon mine had an estimated recoverable value, based on its FVLCD, below its carrying value at March 31, 2023. As a result, the following impairment charge was recognized during the first quarter of 2023:

Nine Months Ended September 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 

As at September 30, 2024, the Company determined there were no significant events or changes in circumstances to indicate that the carrying amount of its non-current assets may not be recoverable, nor indicators that the recoverable amount of its previously impaired assets will exceed its carrying value. As such, no impairment or impairment reversal was recognized during the three and nine months ended September 30, 2024 (three and nine months ended September 30, 2023 - $nil million (Note 14) and $125.2 million impairment, respectively).

The impairment charge recognized for the nine months ended September 30, 2023 with respect to the Jerritt Canyon operating segment, which was recorded during the first quarter of 2023, was allocated as follows:

Nine Months Ended September 30, 2023
Mining interest - producing properties$78,128 
Mining interests - exploration properties (non-depletable)17,388 
Property, plant and equipment29,684 
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. 2024 Third 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)
19. RESTRICTED CASH

Restricted cash is comprised of the following:

 September 30,
2024		December 31,
2023
Nevada Division of Environmental Protection(1)
$19,115 $18,408 
SAT Primero tax dispute(2)
84,751 107,165 
Non-Current Restricted Cash$103,866 $125,573 

(1) On November 2, 2021, the Company executed an agreement with the Nevada Division of Environmental Protection ("NDEP") relating to funds required to establish a trust agreement to cover post-closure water treatment cost at Jerritt Canyon. During the year ended December 31, 2022, the Company funded $17.7 million into a trust; these amounts along with interest earned on the balance are included within non-current restricted cash.
(2) In connection with the dispute between Primero Empresa Minera, S.A. de C.V. ("PEM") and the Servicio de Admistracion Tributaria ("SAT") relating to the advanced pricing agreement (Note 26), the SAT froze a PEM bank account as security for certain tax reassessments which are being disputed. The balance in this frozen account as at September 30, 2024 was $84.8 million (1,664 million MXN). This balance consists of Value Added Tax ("VAT") refunds due to PEM. The Company does not agree with SAT's position and has challenged it through the relevant legal channels, both domestically and internationally. On July 9, 2024, the Company received a transfer of $11.0 million (198.4 million MXN) from PEM’s frozen bank account to a new PEM bank account. The transfer of such funds was carried out by Mexico in furtherance of their obligations under the PM Decision (defined in Note 26 below).

20. TRADE AND OTHER PAYABLES

The Company’s trade and other payables are primarily comprised of amounts outstanding for purchases relating to mining operations, exploration and evaluation activities and corporate expenses. The normal credit period for these purchases is usually between 30 to 90 days.

Trade and other payables are comprised of the following items:
 September 30,
2024		December 31,
2023
Trade payables$30,024 $31,863 
Trade related accruals19,695 16,302 
Payroll and related benefits32,742 35,331 
Restructuring obligations764 1,456 
NSR royalty liabilities (Notes 15(b)(c))
3,104 2,850 
Environmental duty and net mineral sales proceeds tax1,918 3,023 
Other accrued liabilities4,019 3,588 
 $92,266 $94,413 




The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2024 Third 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)
21. DEBT FACILITIES

The movement in debt facilities during the nine months ended September 30, 2024 and year ended December 31, 2023, respectively, are comprised of the following:
Convertible Debentures
(a)		Revolving Credit Facility
(b)		Total
Balance at December 31, 2022$190,242 $20,120 $210,362 
Finance costs
Interest expense858 2,616 3,474 
Accretion9,170 — 9,170 
Repayments of finance costs(864)(2,330)(3,194)
Balance at December 31, 2023$199,406 $20,406 $219,812 
Finance costs
Interest expense632 2,221 2,853 
Accretion7,212 — 7,212 
Repayments of principal— (20,000)(20,000)
Repayments of finance costs(863)(2,217)(3,080)
Balance at September 30, 2024$206,387 $410 $206,797 
Statements of Financial Position Presentation
Current portion of debt facilities$426 $406 $832 
Non-current portion of debt facilities198,980 20,000 218,980 
Balance at December 31, 2023$199,406 $20,406 $219,812 
Current portion of debt facilities$197 $410 $607 
Non-current portion of debt facilities206,190 — 206,190 
Balance at September 30, 2024$206,387 $410 $206,797 

(a)Convertible Debentures
Senior Convertible Debentures

On December 2, 2021, the Company issued $230 million of unsecured senior convertible debentures (the “Notes”). The Company received net proceeds of $222.8 million after transaction costs of $7.2 million. The Notes mature on January 15, 2027 and bear an interest rate of 0.375% per annum, payable semi-annually in arrears in January and July of each year.

The Notes are convertible into common shares of the Company at any time prior to maturity at a conversion rate of 60.3865 common shares per $1,000 principal amount of Notes converted, representing an initial conversion price of $16.56 per common share, subject to certain anti-dilution adjustments. In addition, if certain fundamental changes occur, holders of the Notes may be entitled to an increased conversion rate.

The Company may not redeem the Notes before January 20, 2025 except in the event of certain changes in Canadian tax law. At any time on or after January 20, 2025 and until maturity, the Company may redeem all or part of the Notes for cash if the last reported share price of the Company’s common shares for 20 or more trading days in a period of 30 consecutive trading days exceeds 130% of the conversion price in effect on each such trading day. The redemption price is equal to the sum of: (i) 100% of the principal amount of the Notes to be redeemed and (ii) accrued and unpaid interest, if any, to the redemption date.
The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2024 Third 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)
21. DEBT FACILITIES (continued)

(a)Convertible Debentures (continued)

The Company is required to offer to purchase for cash all of the outstanding Notes upon a fundamental change, at a cash purchase price equal to 100% of the principal amount of the Notes to be purchased, plus accrued and unpaid interest, if any, up to the fundamental change purchase date.

The component parts of the convertible debentures, a compound instrument, are classified separately as financial liabilities and equity in accordance with the substance of the contractual arrangement and the definitions of a financial liability and an equity instrument. A conversion option that will be settled by the exchange of a fixed amount of cash or another financial asset for a fixed number of the Company's own equity instrument is an equity instrument.

At initial recognition, net proceeds of $222.8 million from the Notes were allocated into its debt and equity components. The fair value of the debt portion was estimated at $180.4 million using a discounted cash flow model method with an expected life of five years and a discount rate of 4.75%. This amount is recorded as a financial liability on an amortized cost basis using the effective interest method at an effective interest rate of 5.09% until extinguished upon conversion or at its maturity date.

The conversion option is classified as equity and was estimated based on the residual value of $42.3 million. This amount is not subsequently remeasured and will remain in equity until the conversion option is exercised, in which case, the balance recognized in equity will be transferred to share capital. Where the conversion option remains unexercised at the maturity date of the convertible note, the balance will remain in equity reserves. Deferred tax liability of $11.4 million related to taxable temporary difference arising from the equity portion of the convertible debenture was recognized in equity reserves.

Transaction costs of $7.2 million that relate to the issuance of the convertible debentures were allocated to the liability and equity components in proportion to the allocation of the gross proceeds. Transaction costs relating to the equity component are recognized directly in equity. Transaction costs relating to the liability component are included in the carrying amount of the liability component and are amortized over the life of the convertible debentures using the effective interest method.

(b)     Revolving Credit Facility

On June 28, 2024, the Company amended its senior secured revolving credit facility (the "Revolving Credit Facility") with the Bank of Montreal, BMO Harris Bank N.A., Bank of Nova Scotia, Toronto Dominion Bank and National Bank of Canada (the "syndicate") to amend the definition of indebtedness to exclude surety bonds, and to adjust the leverage covenant threshold from 3.00:1.00 (gross) to a 3.50:1.00 (net) leverage ratio. The maturity date of the credit facility continues to be June 29, 2026, with a credit limit of $175.0 million. Interest on the drawn balance will accrue at the Secured Overnight Financing Rate ("SOFR") plus an applicable range of 2.25% to 3.50% per annum while the undrawn portion is subject to a standby fee with an applicable range of 0.563% to 0.875% per annum, dependent on certain financial parameters of First Majestic. As at September 30, 2024, the applicable rates were 2.750% and 0.563% per annum, respectively.



The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2024 Third 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)
21. DEBT FACILITIES (continued)

(b) Revolving Credit Facility (continued)

These debt facilities are guaranteed by certain subsidiaries of the Company and are also secured by a first priority charge against the assets of the Company, and a first priority pledge of shares of the Company’s subsidiaries.

The Revolving Credit Facility includes financial covenants, to be tested quarterly on a consolidated basis, requiring First Majestic to maintain the following: (a) a net leverage ratio based on net indebtedness to rolling four quarters adjusted EBITDA of not more than 3.50 to 1.00; and (b) an interest coverage ratio, based on rolling four quarters adjusted EBITDA divided by interest payments, of not less than 4.00 to 1.00. The debt facilities also provide for negative covenants customary for these types of facilities and allows the Company to enter into finance leases, excluding any leases that would have been classified as operating leases in effect immediately prior to the implementation of IFRS 16 - Leases, of up to $50.0 million. As at September 30, 2024, the Company was in compliance with all of its debt covenants.

At September 30, 2024, the Company had letters of credit outstanding in the amount of $35.4 million (December 2023 - $30.4 million) as part of ongoing reclamation and mine closure obligations. As at September 30, 2024 the undrawn portion of the Revolving Credit Facility net of the letters of credit and drawdowns is $139.6 million (December 2023 - $124.6 million).

22. LEASE LIABILITIES

The Company has Category I leases, Category II leases and equipment financing liabilities for various mine and plant equipment, office space and land. Category I leases and equipment financing obligations require underlying assets to be pledged as security against the obligations and all of the risks and rewards incidental to ownership of the underlying asset being transferred to the Company. For Category II leases, the Company controls but does not have ownership of the underlying right-of-use assets.

Lease liabilities are initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company's incremental borrowing rate. Lease liabilities are subsequently measured at amortized cost using the effective interest rate method.

Certain lease agreements may contain lease and non-lease components, which are generally accounted for separately. For certain equipment leases, such as vehicles, the Company has elected to account for the lease and non-lease components as a single lease component.






















The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2024 Third 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)
22. LEASE LIABILITIES (continued)

The movement in lease liabilities during the periods ended September 30, 2024 and December 31, 2023 are comprised of the following:
Category I Leases(a)
Category II Leases(b)
Total
Balance at December 31, 2022$5,943 $31,640 $37,583 
Additions2,231 4,540 6,771 
Remeasurements— 6,151 6,151 
Disposals— (36)(36)
Finance costs388 2,217 2,605 
Repayments of principal(3,502)(11,736)(15,238)
Repayments of finance costs(389)(2,183)(2,572)
Transfer to asset held-for-sale (Note 14)
— (82)(82)
Foreign exchange— 1,520 1,520 
Balance at December 31, 2023$4,671 $32,031 $36,702 
Additions— 3,281 3,281 
Remeasurements— 1,055 1,055 
Finance costs176 1,599 1,775 
Repayment of principal(2,404)(10,141)(12,545)
Repayments of finance costs(176)(1,592)(1,768)
Foreign Exchange— (1,776)(1,776)
Balance at September 30, 2024$2,267 $24,457 $26,724 
Statements of Financial Position Presentation
Current portion of lease liabilities$3,144 $14,226 $17,370 
Non-current portion of lease liabilities1,527 17,805 19,332 
Balance at December 31, 2023$4,671 $32,031 $36,702 
Current portion of lease liabilities$1,797 $14,043 $15,840 
Non-current portion of lease liabilities470 10,414 10,884 
Balance at September 30, 2024$2,267 $24,457 $26,724 

(a) Category I leases
Category I leases primarily relate to financing arrangements entered into for the rental of vehicles and equipment. These leases have remaining lease terms of one to four years, some of which include options to terminate the leases within a year, with incremental borrowing rates ranging from 3.8% to 8.5% per annum.
(b) Category II leases
Category II leases primarily relate to equipment and building rental contracts, land easement contracts and service contracts that contain embedded leases for property, plant and equipment. These leases have remaining lease terms of one to seven years, some of which include options to terminate the leases within a year, with incremental borrowing rates ranging from 3.4% to 11.4% per annum.



The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2024 Third 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)
23. SHARE CAPITAL

(a)Authorized and issued capital

The Company has unlimited authorized common shares with no par value.

The movement in the Company’s issued and outstanding capital during the periods is summarized in the consolidated statements of changes in equity.
 Nine Months Ended September 30, 2024Nine Months Ended September 30, 2023
Number of SharesNet ProceedsNumber of SharesNet Proceeds
ATM program14,300,000 $93,89913,919,634$92,092

The Company files prospectus supplements to its short form base shelf prospectus, pursuant to which the Company may, at its discretion and from time-to-time, sell common shares of the Company. The sale of common shares has taken place through "at-the-market" ("ATM") distributions", as defined in National Instrument 44-102 Shelf Distributions, directly on the New York Stock Exchange. During the nine months ended September 30, 2023, the Company sold 1,719,634 common shares under its ATM program in existence at that time at an average price of $8.75 per common share for gross proceeds of $15.0 million, or net proceeds of $14.4 million. During the nine months ended September 30, 2023, the Company sold 12,200,000 common shares under its ATM program in existence at that time at an average price of $6.51 per common share for gross proceeds of $79.5 million, or net proceeds of $77.9 million. During the nine months ended September 30, 2024, no shares were sold under the 2022 or 2023 ATM program. As at September 30, 2024, the Company incurred $nil (2023 - $2.2 million) in transaction costs in relation to the 2022 and 2023 ATM programs.

On August 3, 2023, the Company filed a final short form base shelf prospectus in each province of Canada (other than Québec), and a registration statement on Form F-10 in the United States, which allows the Company to undertake offerings (including by way of an ATM) under one or more prospectus supplements of various securities listed in the shelf prospectus, up to an aggregate total of $500.0 million, over a 25-month period that ends on September 3, 2025.

On February 22, 2024, the Company entered into an equity distribution agreement with BMO Capital Markets Corp. and TD Securities (USA) LLC (collectively, the "Agents") and filed a prospectus supplement to its short form base shelf prospectus dated August 3, 2023, pursuant to which the Company may, at its discretion and from time-to-time sell through the Agents, common shares of the Company for aggregate gross proceeds of up to $150.0 million through an ATM program (the "2024 ATM Program"). During the nine months ended September 30, 2024, 14,300,000 common shares were sold under the 2024 ATM Program at an average price of $6.73 per share, for gross proceeds of $96.2 million or net proceeds of $93.9 million. As at September 30, 2024, the Company incurred $2.3 million in transaction costs in relation to the 2024 ATM Program.

On September 12, 2024 the Company renewed its ongoing share repurchase program (the “Share Repurchase Program”) which permits it to repurchase up to 10,000,000 shares (3.32% of the Company's issued and outstanding shares as at September 4, 2024) up to September 12, 2025 The Share Repurchase Program is a “normal course issuer bid” and will be carried out through the facilities of the Toronto Stock Exchange and alternative Canadian marketplaces. All common shares, if any, purchased pursuant to the Share Repurchase Program will be cancelled. The Company believes that from time to time, the market price of its common shares may not fully reflect the underlying value of the Company's business and its future business prospects. The Company believes that at such times, the purchase of common shares would be in the best interest of the Company. During the three months ended September 30, 2024, the Company repurchased an aggregate of nil common shares.








The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2024 Third 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)
23. SHARE CAPITAL (continued)

(b)Stock options
On May 26, 2022, the Company’s shareholders approved a new Long-Term Incentive Plan (the “2022 LTIP”). Under the terms of the 2022 LTIP, the maximum number of common shares of the Company reserved for issuance in respect of awards granted under the plan, together with any other security-based arrangements of the Company, cannot exceed 6% of the Company’s issued and outstanding shares at the time of granting the award. The Company may grant stock options (“Options”) to its directors, employees and consultants under the 2022 LTIP. Options may be granted for a period of time not to exceed ten years from the grant date, and the exercise price of all options will not be lower than the Market Price (as defined in the 2022 LTIP) of the Company’s common shares as of the grant date. All Options (other than those granted to the Company’s President & Chief Executive Officer) vest in equal portions over a period of 30 months, with 25% vesting on the first anniversary of the grant date, and an additional 25% vesting each six months thereafter. All Options granted to the President and Chief Executive Officer vest in equal portions over a period of five years, with 20% vesting on the first anniversary of the grant date, and an additional 20% vesting each 12 months thereafter. Any Options granted prior to May 26, 2022 will be governed by the terms of the plan under which they were granted, namely the 2017 Option Plan and the 2019 Long-Term Incentive Plan (the “2019 LTIP”), as applicable.


The following table summarizes information about Options outstanding as at September 30, 2024:

 
    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 - 10.003,717,999 8.29 7.53 1,541,647 8.62 5.10 
10.01 - 15.002,995,699 12.79 6.99 2,346,824 13.04 6.69 
15.01 - 20.00888,982 16.42 6.15 839,382 16.42 6.17 
20.01 - 250.00438,500 21.61 6.67 412,900 21.60 6.67 
8,041,180 11.59 7.13 5,140,753 12.96 6.13 
















The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2024 Third 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)
23. SHARE CAPITAL (continued)

(b)Stock options (continued)
The movements in Options issued for the nine months ended September 30, 2024 and year ended December 31, 2023 are summarized as follows:
 Nine Months Ended
September 30, 2024		Year Ended
December 31, 2023
 Number of
Options		Weighted Average Exercise Price (CAD $/Share)Number of
Options		Weighted Average Exercise Price (CAD $/Share)
Balance, beginning of the period7,366,252 12.32 7,275,744 13.19 
Granted1,408,726 8.08 1,881,297 9.15 
Exercised(6,000)8.81 (337,500)8.42 
Cancelled or expired(727,798)12.13 (1,453,289)13.51 
Balance, end of the period8,041,180 11.60 7,366,252 12.32 

During the nine months ended September 30, 2024, the aggregate fair value of Options granted was $3.9 million (December 31, 2023 - $6.1 million), or a weighted average fair value of $2.78 per Option granted (December 31, 2023 - $3.23).

During the nine months ended September 30, 2024, total share-based payments expense related to Options was $4.1 million (December 31, 2023 - $6.9 million).

The following weighted average assumptions were used in estimating the fair value of Options granted using the Black-Scholes Option Pricing Model:
 Nine Months EndedYear Ended
Assumption
Based on
September 30, 2024December 31, 2023
Risk-free interest rate (%)Yield curves on Canadian government zero- coupon bonds with a remaining term equal to the stock options’ expected life3.513.80
Expected life (years)Weighted average life of previously transacted awards4.044.06
Expected volatility (%)Historical volatility of the Company's stock58.0459.05
Expected dividend yield (%)Annualized dividend rate as of the date of grant0.28%0.35%

The weighted average closing price of the Company's common shares at date of exercise for the nine months ended September 30, 2024 was $10.27 (December 31, 2023 - CAD$9.78).


The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2024 Third 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)
23. SHARE CAPITAL (continued)
(c) Restricted Share Units
Under the 2022 LTIP, the Company may award to its directors, employees and consultants non-transferable Restricted Share Units ("RSUs") based on the Company's share price at the date of grant. Unless otherwise stated, the awards typically have a graded vesting schedule over a three-year period and can be settled either in cash or equity upon vesting at the discretion of the Company. Any RSUs granted prior to May 26, 2022 continue to be governed by the terms of the prior 2019 LTIP.

During the nine months ended September 30, 2024, a total of 1,127,330 RSUs were awarded by the Company to directors and employees under the 2022 LTIP, of which 264,280 RSUs may only be settled in cash resulting in a total expense of $0.6 million (2023 - $nil million). As at September 30, 2024, there were a total of 238,330 RSUs outstanding that may only be settled in cash, with a total liability of $0.6 million (2023 - $nil million).
The following table summarizes the changes in RSUs intended to be settled in equity for the nine months ended September 30, 2024 and the year ended December 31, 2023:
Nine Months Ended September 30, 2024
Year Ended
December 31, 2023
Number of sharesWeighted
Average
Fair Value
(CAD$)		Number of sharesWeighted
Average
Fair Value
(CAD$)
Outstanding, beginning of the period880,889 11.91 652,339 14.35 
Granted863,050 7.96 768,066 10.90 
Settled(202,956)13.07 (273,515)14.74 
Forfeited(55,155)9.15 (266,001)12.05 
Outstanding, end of the period1,485,828 9.56 880,889 11.92 

During the nine months ended September 30, 2024, total share-based payments expense for RSUs that the Company intends to settle in equity was $4.1 million (December 31, 2023 - $4.5 million).

(d) Performance Share Units
Under the 2022 LTIP the Company may award to its directors, employees and consultants non-transferable Performance Share Units ("PSUs"). The amount of units to be issued on the vesting date will vary from 0% to 200% of the number of PSUs granted, depending on the Company’s total shareholder return compared to the return of a selected group of peer companies over a three-year period commencing as of the grant date. Unless otherwise stated, the PSU awards typically vest three years from the grant date and can be settled either in cash or equity upon vesting at the discretion of the Company. The fair value of a PSU is based on the Company's share price at the date of grant and will be adjusted based on the number of common shares actually issuable in respect of the PSU, which shall be determined on the vesting date. Any PSUs granted prior to May 26, 2022 continue to be governed by the terms of the prior 2019 LTIP.

During the nine months ended September 30, 2024, a total of 500,930 PSUs were awarded by the Company to employees under the 2022 LTIP, of which 30,430 PSUs may only be settled in cash, resulting in a total expense of $45.4 thousand (2023 - $nil). As at September 30, 2024, there were a total of 30,430 PSUs outstanding that may only be settled in cash, with a total liability of $45.4 thousand (2023 - $nil).




The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2024 Third 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)
23. SHARE CAPITAL (continued)
(d) Performance Share Units (continued)

The following table summarizes the changes in PSUs intended to be settled in equity granted to employees and consultants for the nine months ended September 30, 2024 and the year ended December 31, 2023:    

Nine Months Ended September 30, 2024
Year Ended
December 31, 2023
Number of sharesWeighted
Average
Fair Value
(CAD$)		Number of sharesWeighted
Average
Fair Value
(CAD$)
Outstanding, beginning of the period624,968 12.86 474,654 14.82 
Granted470,500 7.98 384,653 11.12 
Settled(45,150)17.08 (38,087)15.47 
Forfeited(86,709)15.18 (196,252)13.69 
Outstanding, end of the period963,609 10.07 624,968 12.86 

During the nine months ended September 30, 2024, total share-based payments expense related to PSUs that the Company intends to settle in equity was $1.6 million (year ended December 31, 2023 - $1.5 million).

(e)     Deferred Share Units
The terms of the 2019 LTIP permitted the Company to grant to its directors, employees and consultants non-transferable Deferred Share Units ("DSUs"), among other awards. Unless otherwise stated, DSUs awarded under the 2019 LTIP typically vested immediately of the grant date. The fair value of DSUs granted under the 2019 LTIP is based on the Company's share price as at the date of grant. All DSUs awarded by the Company will be settled in common shares of the Company.

The following table summarizes the changes in DSUs granted to directors under the 2019 LTIP for the nine months ended September 30, 2024 and the year ended December 31, 2023:    
Nine Months Ended September 30, 2024
Year Ended
December 31, 2023
Number of sharesWeighted
Average
Fair Value
(CAD$)		Number of sharesWeighted
Average
Fair Value
(CAD$)
Outstanding, beginning of the period50,601 15.83 50,601 15.83 
Settled(20,440)15.59 — — 
Outstanding, end of the period30,161 15.99 50,601 15.83 

The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2024 Third 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)
23. SHARE CAPITAL (continued)
(e)     Deferred Share Units (continued)
On March 23, 2022, a revised standalone DSU plan was adopted by the Company (the "2022 DSU Plan"). All DSUs issued under the 2022 DSU Plan will be settled in cash only.
The following table summarizes the changes in DSUs granted to directors for the nine months ended September 30, 2024 and the year ended December 31, 2023 under the 2022 DSU plan:    

Nine Months Ended September 30, 2024
Year Ended
December 31, 2023
Number of sharesWeighted
Average
Fair Value
(CAD$)		Number of sharesWeighted
Average
Fair Value
(CAD$)
Outstanding, beginning of the period62,332 10.97 9,143 13.63 
Granted75,184 7.98 53,189 10.51 
Settled(36,372)9.03 — — 
Outstanding, end of the period101,144 9.44 62,332 10.97 

During the nine months ended September 30, 2024, total share-based payments expense related to DSU's under the 2022 DSU plan was $0.5 million (year ended December 31, 2023 - $0.3 million). As at September 30, 2024, there were a total of 101,144 DSUs outstanding, with a total liability of $0.6 million (2023 - $0.4 million).

(f)     Dividends
The Company declared the following dividends during the nine months ended September 30, 2024:
Declaration DateRecord DateDividend per Common Share
February 21, 2024March 14, 2024$0.0048
May 7, 2024May 17, 2024$0.0037
July 31, 2024August 16, 2024$0.0046
November 6, 2024 (1)
November 15, 2024$0.0048

(1) These dividends were declared subsequent to the period end and have not been recognized as distributions to owners during the period presented.

The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2024 Third 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)
24. FINANCIAL INSTRUMENTS AND RELATED RISK MANAGEMENT

The Company’s financial instruments and related risk management objectives, policies, exposures and sensitivity related to financial risks are summarized below.

(a)     Fair value and categories of financial instruments

Financial instruments included in the condensed interim consolidated statements of financial position are measured either at fair value or amortized cost. Estimated fair values for financial instruments are designed to approximate amounts for which the instruments could be exchanged in an arm’s-length transaction between knowledgeable and willing parties.

The Company uses various valuation techniques in determining the fair value of financial assets and liabilities based on the extent to which the fair value is observable. The following fair value hierarchy is used to categorize and disclose the Company’s financial assets and liabilities held at fair value for which a valuation technique is used.

Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities.
Level 2: All inputs which have a significant effect on the fair value are observable, either directly or indirectly, for substantially the full contractual term.
Level 3: Inputs which have a significant effect on the fair value are not based on observable market data.

During the three months ended June 30, 2023, marketable securities valued at $19.6 million were transferred from Level 3 to Level 1 due to the resumption of trading of Sierra Madre shares on the TSX Venture on June 5, 2023. Level 1 assets include those assets in which unadjusted quoted prices in active markets are accessible to the Company at the measurement date.

There were no transfers between levels 1, 2, and 3 during the nine months ended September 30, 2024.

The table below summarizes the valuation methods used to determine the fair value of each financial instrument:
Financial Instruments Measured at Fair ValueValuation Method
Marketable securities - common sharesMarketable 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 CostValuation Method
Cash and cash equivalentsApproximated carrying value due to their short-term nature.
Restricted cash
Trade and other receivables 
Trade and other payables 
Debt facilitiesApproximated carrying value as discount rate on these instruments approximate the Company's credit risk.



The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2024 Third 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)
24. FINANCIAL INSTRUMENTS AND RELATED RISK MANAGEMENT (continued)

(a)     Fair value and categories of financial instruments (continued)

The following table presents the Company’s fair value hierarchy for financial assets and financial liabilities that are measured at fair value:
 September 30, 2024December 31, 2023
  Fair value measurement Fair value measurement
 Carrying valueLevel 1Level 2Carrying valueLevel 1Level 2
Financial assets      
Marketable securities (Note 13)
$63,994 $63,859 $135 $62,380 $61,749 $631 

The Company’s objectives when managing capital are to maintain financial flexibility to continue as a going concern while optimizing growth and maximizing returns of investments from shareholders.

In 2023, an impairment was recorded for the Jerritt Canyon mine bringing the carrying value of the asset to its recoverable amount, being its FVLCD (Note 18). Management’s estimate of FVLCD is classified as a level 3 in the fair value hierarchy as the inputs are not based on observable market data. During the three months ended June 30, 2023, an additional write down was recorded for the La Parrilla mine (Note 14), bringing the carrying value of the asset to its recoverable amount, being its FVLCD. The valuation technique used in the calculation of the fair value of consideration receivable, is categorized as Level 2 as it is based on the selling price in the market.

(b) Capital risk management

The Company monitors its capital structure and based on changes in operations and economic conditions, may adjust the structure by repurchasing shares, issuing new shares, issuing new debt or retiring existing debt. The Company prepares annual budget and quarterly forecasts to facilitate the management of its capital requirements. The annual budget is approved by the Company’s Board of Directors.

The capital of the Company consists of equity (comprising of issued capital, equity reserves and retained earnings or accumulated deficit), debt facilities, lease liabilities, net of cash and cash equivalents as follows:

 September 30,
2024		December 31,
2023
Equity$1,377,310 $1,358,120 
Debt facilities206,797 219,812 
Lease liabilities26,724 36,702 
Less: cash and cash equivalents(154,730)(125,581)
 $1,456,101 $1,489,053 

The Company’s investment policy is to invest its cash in highly liquid short-term investments with maturities of 90 days or less, selected with regards to the expected timing of expenditures from operations. The Company expects that its available capital resources will be sufficient to carry out its development plans and operations for at least the next 12 months.

The Company is not subject to any externally imposed capital requirements with the exception of complying with covenants under the debt facilities (Note 21(b)) and lease liabilities (Note 22(b)). As at September 30, 2024, the Company was in compliance with all of its debt covenants.


The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2024 Third 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)
24. FINANCIAL INSTRUMENTS AND RELATED RISK MANAGEMENT (continued)
(c) Financial risk management
The Company thoroughly examines the various financial instruments and risks to which it is exposed and assesses the impact and likelihood of those risks. These risks may include credit risk, liquidity risk, currency risk, commodity price risk, and interest rate risk. Where material, these risks are reviewed and monitored by the Board of Directors.

Credit Risk
Credit risk is the risk of financial loss if a customer or counterparty fails to meet its contractual obligations. The Company’s credit risk relates primarily to chartered banks, trade receivables in the ordinary course of business, value added taxes receivable and other receivables.

As at September 30, 2024, net VAT receivable was $52.1 million (December 31, 2023 - $52.7 million), of which $13.9 million (December 31, 2023 - $27.5 million) relates to La Encantada, $12.2 million relates to Santa Elena (December 31, 2023 - $25.6 million), and $8.8 million (December 31, 2023 - $29.0 million) relates to San Dimas.

The Company sells and receives payment upon delivery of its silver doré and by-products primarily through four international customers. All of the Company’s customers have good ratings and payments of receivables are scheduled, routine and fully received within 60 days of submission; therefore, the balance of trade receivables owed to the Company in the ordinary course of business is not significant.

The carrying amount of financial assets recorded in the consolidated financial statements represents the Company’s maximum exposure to credit risk. With the exception to the above, the Company believes it is not exposed to significant credit risk.
Liquidity Risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they arise. The Company manages liquidity risk by monitoring actual and projected cash flows and matching the maturity profile of financial assets and liabilities. Cash flow forecasting is performed regularly to ensure that there is sufficient capital in order to meet short-term business requirements, after taking into account cash flows from operations and our holdings of cash and cash equivalents.

The following table summarizes the maturities of the Company’s financial liabilities and commitments as at September 30, 2024 based on the undiscounted contractual cash flows:
 
Contractual
Cash Flows
Less than
1 year		2 to 3
years		4 to 5
years		After 5 years
Trade and other payables$92,266 $92,266 $— $— $— 
Debt facilities235,456 2,620 232,836 — — 
Lease liabilities28,309 15,585 10,182 2,237 305 
Other liabilities6,029 — 340 5,689 — 
Commitments4,573 4,573 — — — 
 $366,633 $115,044 $243,358 $7,926 $305 

At September 30, 2024, the Company had working capital of $238.2 million (December 31, 2023 – $188.9 million). Total available liquidity at September 30, 2024 was $377.9 million (December 31, 2023 - $313.6 million), including $139.6 million of undrawn revolving credit facility (December 31, 2023 - $124.6 million).

The Company believes it has sufficient cash on hand, combined with cash flows from operations, to meet operating requirements as they arise for at least the next 12 months. If the Company needs additional liquidity to meet obligations, the Company may consider drawing on its debt facility, securing additional debt financing and/or equity financing.


The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2024 Third 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)
24. FINANCIAL INSTRUMENTS AND RELATED RISK MANAGEMENT (continued)
(c) Financial risk management (continued)
Currency Risk

The Company is exposed to foreign exchange risk primarily relating to financial instruments that are denominated in Canadian dollars or Mexican pesos, which would impact the Company’s net earnings or loss. To manage foreign exchange risk, the Company may occasionally enter into short-term foreign currency derivatives, such as forwards and options, to hedge its cash flows.

The sensitivity of the Company’s net earnings or loss and comprehensive income or loss due to changes in the exchange rates of the Canadian dollar and the Mexican peso against the U.S. dollar is included in the table below:
 September 30, 2024
 Cash and cash equivalentsRestricted cashValue added taxes receivableOther financial assetsTrade and other payablesEffect of +/- 10% change in currency
Canadian Dollar$8,312 $— $— $1,152 ($5,196)$427 
Mexican Peso14,667 84,751 51,983 — (54,671)9,673 
$22,979 $84,751 $51,983 $1,152 ($59,867)$10,100 

From time to time, the Company utilizes certain derivatives to manage its foreign exchange exposures to the Mexican Peso. During the three and nine months ended September 30, 2024, the Company had an unrealized gain of $nil (2023 - $nil) on fair value adjustments to its foreign currency derivatives. As at September 30, 2024, the Company does not hold any foreign currency derivatives (December 31, 2023 - $nil).

Commodity Price Risk

The Company is exposed to commodity price risk on silver and gold, which have a direct and immediate impact on the value of its related financial instruments, non-financial items and net earnings. The Company’s revenues are directly dependent on commodity prices that have shown volatility and are beyond the Company’s control. The Company does not use long-term derivative instruments to hedge its commodity price risk to silver or gold.

The following table summarizes the Company’s exposure to commodity price risk and their impact on net earnings:
 September 30, 2024
 Effect of +/- 10% change in metal prices
 SilverGoldTotal
Metals in inventory$2,383 $790 $3,173 
 $2,383 $790 $3,173 

Interest Rate Risk
The Company is exposed to interest rate risk on its short-term investments, debt facilities and lease liabilities. The Company monitors its exposure to interest rates and has not entered into any derivative contracts to manage this risk. The Company’s interest-bearing financial assets comprise of cash and cash equivalents which bear interest at a mixture of variable and fixed rates for pre-set periods of time.

As at September 30, 2024, the Company’s exposure to interest rate risk on interest bearing liabilities is limited to its debt facilities and lease liabilities. Based on the Company’s interest rate exposure at September 30, 2024, a 25 basis points increase or decrease in the market interest rate does not have a significant impact on net earnings or loss.





The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2024 Third 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)
25. SUPPLEMENTAL CASH FLOW INFORMATION
 Three Months Ended September 30,Nine Months Ended September 30,
 2024202320242023
Other adjustments to investing activities:
Loan to Sierra Madre(1)
$— $— ($5,000)$— 
Purchase of marketable securities(6,091)— (11,967)(1,065)
Proceeds from disposal of marketable securities6,420 25 18,178 1,276 
$329 $25 $1,211 $211 
Net change in non-cash working capital items:
    
(Increase) in trade and other receivables($3,856)($3,873)($2,981)($534)
(Increase) decrease in value added taxes receivable(2,115)3,198 594 5,940 
Decrease (Increase) in inventories11 (2,464)(3,361)2,514 
(Increase) in prepaid expenses and other(734)(646)(757)(4,049)
(Decrease) increase in income taxes payable(724)(860)(1,694)629 
Decrease in trade and other payables(3,258)(14,448)(3,681)(15,719)
Decrease in restricted cash (Note 19)
13,643 27,060 21,707 6,203 
 $2,967 $7,967 $9,827 ($5,016)
Non-cash investing and financing activities:
    
   Shares received from disposition of mining interest $— $13,822 $— $47,569 
   Disposition of La Guitarra— (16,043)— (50,593)
Transfer of share-based payments reserve upon settlement of RSU's, PSU's and DSU's1,363 137 2,769 2,124 
Transfer of share-based payments reserve upon exercise of options2 152 20 760 
Assets acquired by lease— — — (2,231)
  $1,365 ($1,932)$2,789 ($2,371)
(1) On April 29, 2024, the Company entered into an agreement to loan $5.0 million to Sierra Madre, to be used towards the development and progress of the La Guitarra Mine. The transaction closed on May 7, 2024 ("Closing Date") and will be repayable to the Company in 24 months ("Maturity Date"). The loan is subject to an interest rate of 15% per year, which will be due and payable starting six months from the Closing Date of the loan.
As at September 30, 2024, cash and cash equivalents include $1.3 million (December 31, 2023 - $1.9 million) that are held in-trust as bonds for tax audits in Mexico.

The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2024 Third 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)
26. CONTINGENCIES AND OTHER MATTERS
Due to the size, complexity and nature of the Company’s operations, various legal and tax matters arise in the ordinary course of business. The Company accrues for such items when a liability is probable and the amount can be reasonably estimated.

(a) Claims and Legal Proceedings Risks
The Company is subject to various claims and legal proceedings covering a wide range of matters that arise in the ordinary course of business activities. Each of these matters is subject to various uncertainties and it is possible that some of these other matters may be resolved in a manner that is unfavourable to the Company which may result in a material adverse impact on the Company's financial performance, cash flow or results of operations. First Majestic carries liability insurance coverage and establishes provisions for matters that are probable and can be reasonably estimated, however there can be no guarantee that the amount of such coverage is sufficient to protect against all potential liabilities. In addition, the Company may in the future be subjected to regulatory investigations or other proceedings and may be involved in disputes with other parties in the future which may result in a significant impact on our financial condition, cash flow and results of operations.

(b) Primero Tax Rulings

When Primero, the previous owner of San Dimas acquired the San Dimas Mine in August 2010, it assumed the obligations under a Silver Purchase Agreement (“Old Stream Agreement”) that required its subsidiary, PEM, to sell exclusively to Wheaton Precious Metals (“WPMI”) up to 6 million ounces silver produced from the San Dimas Mine, and 50% of silver produced thereafter, at the lower of: (i) the spot market price and (ii) $4.014 per ounce plus an annual increase of 1% (“PEM Realized Price”). In May 2018, the Old Stream Agreement was terminated between WPMI and Silver Trading (Barbados) Limited (“STB”) in connection with the Company entering into a new stream agreement with WPMI concurrent with the acquisition of Primero by the Company.

In order to reflect the commercial terms and the effects of the Old Stream Agreement, for Mexican income tax purposes, PEM recognized the revenue on these silver sales based on the PEM Realized Price instead of at spot market prices.

To obtain tax and legal assurance that the Mexican tax authority, Servicio de Administración Tributaria (“SAT”) would accept the PEM Realized Price as the transfer price to calculate Mexican income taxes payable by PEM, a mutually binding Advance Pricing Agreement (“APA”) was entered into with the SAT for taxation years 2010 to 2014. On October 4, 2012, the SAT confirmed that based on the terms of the APA, the PEM Realized Price could be used as PEM’s basis for calculating taxes owed for the silver sold under the Old Stream Agreement.

In August 2015, the SAT commenced a legal process seeking to retroactively nullify the APA.

In 2019, the SAT issued reassessments for the 2010 to 2012 tax years in the total amount of $317.0 million (6,222 million MXN) inclusive of interest, inflation, and penalties. In 2021, the SAT also issued a reassessment against PEM for the 2013 tax year in the total amount of $167.6 million (3,289 million MXN) and in 2023, the SAT issued reassessments for the 2014, 2015, and 2016 tax years in the total amount of $427.2 million (8,385 million MXN) inclusive of interest, inflation, and penalties (collectively, the “Reassessments”). For the 2017 and 2018 tax years, the SAT has initiated audits that have not yet been concluded, and therefore, tax assessments for these years have yet to be issued. The Company believes that the Reassessments fail to recognize the applicability of a valid transfer pricing methodology. The major items in the Reassessments include determination of revenue based on spot market prices of silver, denial of the deductibility of interest expense and service fees, SAT technical error related to double counting of taxes, and interest and penalties.

The Company continues to defend the APA in domestic legal proceedings in Mexico, and the Company has also requested resolution of the transfer pricing dispute pursuant to the Mutual Agreement Procedure (“MAP”), under the relevant avoidance of double taxation treaties, between the competent tax authorities of Mexico, Canada, Luxembourg and Barbados. The SAT has refused to take the necessary steps under the MAP processes contained in the three tax treaties. The Company believes that by its refusal, Mexico is in breach of its international obligations regarding double taxation treaties. Furthermore, the Company continues to believe that the APA remains valid and legally binding on the SAT.
The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2024 Third 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)
26. CONTINGENCIES AND OTHER MATTERS (continued)
(b) Primero Tax Rulings (continued)
The Company continues to pursue all available domestic and international remedies under the laws of Mexico and under the relevant tax treaties. Furthermore, as discussed further below, the Company has also made claims against Mexico under Chapter 11 of the North American Free Trade Agreement (“NAFTA”) for violation of its international law obligations.

Domestic Remedies

In September 2020, the Company was served with a decision of the Federal Tax Court seeking to nullify the APA granted to PEM. The Company filed an appeal of the decision to the Mexican Circuit Courts on November 30, 2020. As two writs of certiorari were filed before the Mexican Supreme Court of Justice, on April 15, 2021, the Plenary of the Supreme Court i) admitted one of those writs, ii) requested the Circuit Court to send the appeal file to them, and iii) assigned such writ to the Second Chamber of the Supreme Court for issuing the corresponding decision. Both writs of certiorari were withdrawn in December 2022. The challenge filed by the Company was returned to the Second Collegiate Court on February 14, 2023 and on December 5, 2023, the Second Collegiate Court issued a decision, which was formally notified to the Company on January 4, 2024.

In such decision, the Second Collegiate Court partially granted constitutional protection to the Company with respect to certain matters, but not others.

Accordingly, on January 18, 2024, PEM filed an extraordinary appeal to the Mexican Supreme Court of Justice with respect to PEM’s constitutional arguments that were not accepted in the Second Collegiate Court's decision, and following the admission of the appeal, the Second Chamber of the Supreme Court of Justice assumed jurisdiction over the appeal on June 20, 2024. On September 18, 2024, the Supreme Court issued its decision, which was formally notified to the Company on October 15, 2024. The Supreme Court dismissed the Company’s appeal regarding the constitutional arguments, but affirmed the validity of certain precedents of the Supreme Court which the Company believes are favourable to PEM and that were not considered by the Federal Tax Court in its original decision in September 2020. Accordingly, the case will be sent back to the Federal Tax Court to issue a new decision, taking into account such Supreme Court precedents. PEM is currently waiting for the case to be returned to the Federal Tax Court, and expects that a new decision by the Federal Tax Court will be issued in the second half of 2025.
International Remedies

i. NAFTA APA Claim

In respect of the APA, the Company submitted an Arbitration Request dated March 1, 2021 to the International Centre for Settlement of Investment Disputes ("ICSID"), on its own behalf and on behalf of PEM, pursuant to Chapter 11 of NAFTA (the “NAFTA APA Claim”). The NAFTA Arbitration Panel (the “Tribunal”) was fully constituted on August 20, 2021. Various procedural filings have since been made by the Company and Mexico.

Of note, on May 26, 2023, the Tribunal partially granted certain provisional measures requested by the Company, issuing an order for Mexico to permit the withdrawal of the Company’s VAT refunds for the period as of January 4, 2023 that had been deposited by the SAT into a frozen bank account, and to deposit all future VAT refunds into an account which shall remain freely accessible by the Company (the "PM Decision"). The PM Decision was upheld by the Tribunal on September 1, 2023, in response to a request from Mexico to revoke the decision. As a result, Mexico is obligated to comply with the PM Decision which requires payment of VAT refunds owing to PEM as of January 4, 2023 and into the future until the final award is rendered by the Tribunal. On July 9, 2024, the Company received a transfer of $11.0 million (198.4 million MXN) from the frozen bank account to a new bank account of PEM that the Company had opened in July 2023. The transfer of such funds was carried out by Mexico in furtherance of its obligations under the PM Decision.

In addition, in response to the Company’s counter-arguments to a jurisdictional objection filed by Mexico in late July 2023, the Tribunal dismissed Mexico’s objection, agreeing with the Company that the recovery of VAT refunds under the NAFTA VAT Claim (as defined in the section below) does not breach the waiver under NAFTA (i.e. the NAFTA APA Claim and the NAFTA VAT Claim are not in respect of the same measures).
The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2024 Third 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)
26. CONTINGENCIES AND OTHER MATTERS (continued)
(b) Primero Tax Rulings (continued)
On February 12, 2024, Mexico filed a request (the “Consolidation Request”) with ICSID pursuant to the procedure in Article 1126 of NAFTA to consolidate the NAFTA APA Claim and the NAFTA VAT Claim into one arbitration proceeding. A separate three-person tribunal to consider the Consolidation Request (the “Consolidation Tribunal”) was constituted on May 8, 2024, and the first procedural hearing of the Consolidation Tribunal took place on July 16, 2024.

In order to expedite the arbitration proceedings, the Company has advised the Consolidation Tribunal and Mexico that it is proposing to add claims covered by the NAFTA VAT Claim to the NAFTA APA Claim as ancillary claims. The Tribunal with jurisdiction over the NAFTA APA Claim has, as of July 15, 2024, granted the Company the right to introduce the ancillary claims to the NAFTA APA Claim, which will make it unnecessary for the NAFTA VAT Claim to proceed separately from the NAFTA APA Claim. On October 1, 2024, the Company submitted its request to the Secretary-General of ICSID to discontinue the NAFTA VAT Claim pursuant to Rule 56 of the 2022 ICSID Arbitration Rules. Mexico objected to the discontinuance on October 7, 2024, so pursuant to Rule 56, the proceedings with respect to the NAFTA VAT Claim will continue. In addition, Mexico filed its Memorial in support of the Consolidation Request on October 7, 2024. The Company is currently preparing its Counter-Memorial, which it is required to file by December 6, 2024.

We expect that the Consolidation Tribunal will make its decision in respect of the Consolidation Request in Q1 2025. Until such a decision has been made, proceedings in both the NAFTA APA Claim and the NAFTA VAT Claim have been suspended. However, any decisions rendered to date by the Tribunal in the NAFTA APA Claim, including but not limited to the PM Decision, remain in force during such suspension.

If the SAT’s attempts to retroactively nullify the APA are successful, the SAT can be expected to enforce any Reassessments for 2010 through 2014 against PEM in respect of its sales of silver pursuant to the Old Stream Agreement. Such an outcome would likely have a material adverse effect on the Company’s results of operations, financial condition and cash flows. Should the Company ultimately be required to pay tax on its silver revenues based on spot market prices without any mitigating adjustments, the incremental income tax for the years 2010-2019 would be $277.95 million (5,456 million MXN), before taking into consideration interest or penalties.

Based on the Company’s consultation with third party advisors, the Company believes PEM filed its tax returns in compliance with applicable Mexican law and that the APA is valid, therefore, at this time, no liability has been recognized in the financial statements with respect to this matter.

To the extent it is ultimately determined that the pricing for silver sales under the Old Stream Agreement is significantly different from the PEM Realized Price, and while PEM would have rights of appeal in connection with any reassessments, it is likely to have a materially adverse effect on the Company’s business, financial position and results of operations.

ii. NAFTA VAT Claim

On March 31, 2023, the Company filed a new Notice of Intent on its own behalf and on behalf of PEM under the "legacy investment" claim provisions contained in Annex 14-C of the Canada-United States-Mexico Agreement (“CUSMA”) and Chapter 11 of NAFTA to invite the Government of Mexico to engage in discussions to resolve the dispute regarding the ongoing denial of access to PEM’s VAT refunds ("NAFTA VAT Claim") within the stipulated 90-day consultation period. The Company submitted its Arbitration Request for the NAFTA VAT Claim to ICSID on June 29, 2023 in order to preserve its legacy claim within NAFTA's applicable limitation period, and the Arbitration Request was registered by ICSID on July 21, 2023. As a result of the Consolidation Request (described above), the NAFTA VAT Claim has been suspended. As discussed above, on October 1, 2024, the Company submitted its request to the Secretary-General of ICSID to discontinue the NAFTA VAT Claim pursuant to Rule 56 of the 2022 ICSID Arbitration Rules. Mexico objected to the discontinuance on October 7, 2024, so pursuant to Rule 56, the proceedings with respect to the NAFTA VAT Claim will continue.

While the Company remains confident in its position with regards to its two NAFTA claims, it continues to engage with the Government of Mexico in consultation discussions so as to amicably resolve these disputes.




The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2024 Third 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)
26. CONTINGENCIES AND OTHER MATTERS (continued)
(c) La Encantada Tax Re-assessments (continued)

In December 2019, as part of the ongoing annual audits of the tax returns of Minera La Encantada S.A. de C.V. (“MLE”) and Corporacion First Majestic S.A. de C.V. (“CFM”), the SAT issued tax assessments for fiscal 2012 and 2013 for corporate income tax in the amount of $36.9 million (724 million MXN) and $26.8 million (527 million MXN) including interest, inflation and penalties, respectively. In December 2022, the SAT issued tax assessments to MLE for fiscal years 2014 and 2015 for corporate
income tax in the amount of $16.8 million (329 million MXN) and $211.1 million (4,144 million MXN). In 2023, the SAT issued a tax assessment to MLE for the fiscal year 2016 for corporate income tax in the amount of $3.0 million (58 million MXN). The major items relate to forward silver purchase agreement and denial of the deductibility of mine development costs and service fees. The Company continues to defend the validity of the forward silver purchase agreement and will vigorously dispute the assessments that have been issued. The Company, based on advice from legal and financial advisors, believes MLE’s tax filings were appropriate and its tax filing position is correct, therefore no liability has been recognized in the financial statements.
(d) San Martin Tax Re-assessments

In 2023, as part of the ongoing annual audits of the tax returns of Minera El Pilon S.A. de C.V. (“MEP”), the SAT issued tax assessments for fiscal 2014, 2015 and 2016 for corporate income tax in the total amount of $25.1 million (493 million MXN) including interest, inflation and penalties. In 2024, the SAT issued a tax assessment for fiscal 2017 for corporate income tax in the amount of $3.2 million (63 million MXN) including interest, inflation, and penalties. The major items relate to forward silver purchase agreement and denial of the deductibility of mine development costs. The Company continues to defend the validity of the forward silver purchase agreement and will vigorously dispute the assessments that have been issued. The Company, based on advice from legal and financial advisors, believes MEP’s tax filings were appropriate and its tax filing position is correct, therefore no liability has been recognized in the financial statements.

(e) La Parrilla Tax Re-assessments

In 2023 and 2024, as part of the ongoing annual audits of the tax returns of First Majestic Plata S.A. de C.V. (“FMP”), the SAT issued tax assessment for fiscal 2014, 2015, and 2016 for corporate income tax in the total amount of $60.4 million (1,186 million MXN) including interest, inflation and penalties. The major items relate to forward silver purchase agreement and denial of the deductibility of mine development costs. The Company continues to defend the validity of the forward silver purchase agreement and will vigorously dispute the assessments that have been issued. The Company, based on advice from legal and financial advisors, believes FMP’s tax filings were appropriate and its tax filing position is correct, therefore no liability has been recognized in the financial statements.

(f) Del Toro Tax Re-assessments

In 2023, as part of the ongoing annual audits of the tax returns of First Majestic Del Toro S.A. de C.V. (“FMDT”), the SAT issued tax assessment for fiscal 2015 and 2016 for corporate income tax in the total amount of $25.1 million (493 million MXN) including interest, inflation and penalties. The major items relate to and denial of the deductibility of mine development costs, refining costs, and other expenses. The Company continues to defend the validity of the expenses and will vigorously dispute the assessments that have been issued. The Company, based on advice from legal and financial advisors, believes FMDT’s tax filings were appropriate and its tax filing position is correct, therefore no liability has been recognized in the financial statements.

(g) CFM Tax Re-assessments

In 2023, as part of the ongoing annual audits of the tax returns of CFM, the SAT issued tax assessment for fiscal 2016 for corporate income tax in the total amount of $73.8 million (1,449 million MXN) including interest, inflation and penalties. The major item relates to planning that took place post-acquisition of Santa Elena (via the acquisition of SilverCrest Mines Inc. on October 1, 2015) at the Canadian level. Mexico contends a right to tax a disposition of the shares of SilverCrest Mines Inc. by First Majestic Silver Corp. although the transaction in question involved the disposition of the shares of one Canadian company by another Canadian company and was reported for tax purposes in Canada. The Company continues to defend the validity of the transaction in question and will vigorously dispute the assessments that have been issued. The Company, based
The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2024 Third 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)
26. CONTINGENCIES AND OTHER MATTERS (continued)
(g) CFM Tax Re-assessments (continued)

on advice from legal and financial advisors, believes CFM’s tax filings were appropriate and its tax filing position is correct, therefore no liability has been recognized in the financial statements.

(h) First Silver Litigation

In April 2013, the Company received a positive judgment on the First Silver litigation from the Supreme Court of British Columbia (the “Court”), which awarded the sum of $93.8 million in favour of First Majestic against Hector Davila Santos (the “Defendant”) in connection with a dispute between the Company and the Defendant and his private company involving a mine in Mexico (the “Bolaños Mine”) as set out further below. The Company received a sum of $14.1 million in June 2013 as partial payment of the judgment, leaving an unpaid amount of $64.3 million (CAD$81.5 million). As part of the ruling, the Court granted orders restricting any transfer or encumbrance of the Bolaños Mine by the Defendant and limiting mining at the Bolaños Mine. The orders also require the Defendant to preserve net cash flow from the Bolaños Mine in a holding account and periodically provide to the Company certain information regarding the Bolaños Mine. After many years of domestic Mexican litigation, the enforceability of the British Columbia judgment was finally recognized by the Mexican Supreme Court in a written judgment on November 11, 2022. The Company has commenced collection actions in Mexico against the Defendant’s assets and continues to seek recovery of the balance against one of the Defendant’s assets located in the United States. Nonetheless, there can be no guarantee that the remainder of the judgment amount will be collected. Therefore, as at September 30, 2024, the Company has not accrued any of the remaining $64.3 million (CAD$81.5 million) unrecovered judgment in favour of the Company.

27. SUBSEQUENT EVENTS

Filing of F-4 Registration Statement in Connection with Gatos Silver Acquisition

Subsequent to quarter end, the Company filed a registration statement on Form F-4 with the Securities and Exchange Commission (“SEC”) in order to register the issuance of the common shares to be issued to shareholders of Gatos Silver, Inc. (“Gatos”) in connection with the Company’s acquisition of Gatos.

On September 5, 2024, the Company announced that it had entered into a definitive agreement (the "Merger Agreement") to acquire all of the issued and outstanding shares of Gatos, a silver dominant producer with a 70% interest in the Los Gatos Joint Venture, which owns the producing Cerro Los Gatos underground silver mine in Chihuahua, Mexico. Under the terms of the Merger Agreement, Gatos shareholders will receive 2.550 common shares of First Majestic for each share of Gatos common stock held.

The Company's acquisition of Gatos is expected to close in early 2025, subject to the satisfaction of customary closing conditions, including approvals of the shareholders of First Majestic and Gatos, clearance under Mexican anti-trust laws, and approval of the listing of the First Majestic common shares to be issued under the Merger Agreement on both the TSX and the NYSE. The Merger Agreement has been unanimously approved by the board of directors of each of First Majestic and Gatos, and in the case of Gatos, on the unanimous recommendation of a special committee of independent directors of Gatos.

Declaration of Quarterly Dividend
On November 6, 2024, the Company’s Board of Directors approved the declaration of its quarterly common share dividend of $0.0048 per share, payable on or after November 29, 2024, to common shareholders of record as at the close of business on November 15, 2024. This dividend was declared subsequent to the quarter-end and has not been recognized as a distribution to owners during the period ended September 30, 2024.


The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2024 Third Quarter Report
Page 45








image0b33.gif


MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE QUARTER ENDED SEPTEMBER 30, 2024









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. 2024 Third Quarter Report
Page 2
              

MANAGEMENT’S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION

This Management’s Discussion and Analysis of Results of Operations and Financial Condition (“MD&A”) should be read in conjunction with the unaudited consolidated financial statements of First Majestic Silver Corp. (“First Majestic” or the "Company”) for the three and nine months ended September 30, 2024 which are prepared in accordance with International Accounting Standard (“IAS”) 34, "Interim Financial Reporting", and the audited consolidated financial statements of the Company as at and for the year ended December 31, 2023, as some disclosures from the annual consolidated financial statements have been condensed or omitted. All dollar amounts are expressed in United States (“US”) dollars and tabular amounts are expressed in thousands of US dollars, unless otherwise indicated. Certain amounts shown in this MD&A may not add exactly to total amounts due to rounding differences.

This MD&A contains “forward-looking statements” that are subject to risk factors set out in a cautionary note contained at the end of this MD&A. All information contained in this MD&A is current and has been approved by the Board of Directors of the Company as of November 6, 2024 unless otherwise stated.

COMPANY OVERVIEW

First Majestic is a multinational mining company headquartered in Vancouver, Canada, focused on primary silver and gold production in North America, pursuing the exploration and development of its existing mineral properties and acquiring new assets. The Company owns three producing mines in Mexico consisting of the Santa Elena Silver/Gold Mine, the San Dimas Silver/Gold Mine, and the La Encantada Silver Mine. The Company also owns the Jerritt Canyon Gold Mine in Nevada, USA which the Company placed on temporary suspension on March 20, 2023 to focus on exploration, definition, and expansion of the mineral resources and optimization of mine planning and plant operations. The Company owns two additional mines currently in care and maintenance in Mexico: the San Martin Silver Mine and the Del Toro Silver Mine, as well as several exploration projects. In addition, the Company is the 100% owner and operator of its own minting facility, First Mint, LLC ("First Mint"). On September 5, 2024, the Company announced that it had entered into a merger agreement with Gatos Silver, Inc. (“Gatos”) pursuant to which it will, subject to the satisfaction of certain conditions, acquire all of the shares of Gatos common stock, which holds a 70% joint venture interest in the Cerro Los Gatos underground silver mine in Chihuahua, Mexico.

First Majestic is publicly listed on the New York Stock Exchange (“NYSE”) and the Toronto Stock Exchange (“TSX”) under the symbol “AG”, and on the Frankfurt Stock Exchange under the symbol “FMV”.



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First Majestic Silver Corp. 2024 Third Quarter Report
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2024 THIRD QUARTER HIGHLIGHTS
Key Performance Metrics2024-Q32024-Q2Change
Q3 vs Q2		2023-Q3Change
Q3 vs Q3		2024-YTD2023-YTDChange
Operational
Ore Processed / Tonnes Milled678,397 674,570 1 %670,203 1 %1,941,617 2,249,241 (14 %)
Silver Ounces Produced1,967,574 2,104,181 (6 %)2,461,868 (20 %)6,046,931 7,638,339 (21 %)
Gold Ounces Produced41,761 39,339 6 %46,720 (11 %)117,036 152,336 (23 %)
Silver Equivalent ("AgEq) Ounces Produced5,490,416 5,289,439 4 %6,285,790 (13 %)15,942,138 20,233,868 (21 %)
Cash Costs per Silver Equivalent Ounce(1)
$15.17 $15.29 (1 %)$14.13 7 %$15.15 $14.97 1 %
All-in Sustaining Cost per Silver Equivalent Ounce(1)
$21.03 $21.64 (3 %)$19.74 6 %$21.39 $20.70 3 %
Total Production Cost per Tonne(1)
$109.81 $113.16 (3 %)$125.81 (13 %)$116.56 $128.44 (9 %)
Average Realized Silver Price per Silver Equivalent Ounce(1)
$29.84 $27.81 7 %$22.41 33 %$27.25 $23.03 18 %
Financial (in $millions)
Revenues$146.1 $136.2 7 %$133.2 10 %$388.3 $436.9 (11 %)
Mine Operating Earnings$28.5 $15.5 84 %$13.0 119 %$43.7 $7.7 NM
Net Loss($26.6)($48.3)45 %($27.1)2 %($88.4)($145.3)39 %
Operating Cash Flows before Non-Cash Working Capital and Taxes
$39.8 $23.8 67 %$14.1 181 %$76.1 $62.9 21 %
Capital Expenditures$34.7 $28.3 23 %$32.2 8 %$91.2 $109.4 (17 %)
Cash and Cash Equivalents$154.7 $152.2 2 %$138.3 12 %$154.7 $138.3 12 %
Total Assets$1,977.5 $1,987.0 0 %$1,952.4 1 %$1,977.5 $1,952.4 1 %
Total Non-Current Financial Liabilities$482.8 $501.1 (4 %)$512.3 (6 %)$482.8 $512.3 (6 %)
Working Capital(1)
$238.2 $229.9 4 %$197.8 20 %$238.2 $197.8 20 %
Earnings before Interest, Tax, Depreciation and Amortization ("EBITDA")(1)
$36.9 $21.6 71 %$11.5 NM$65.1 ($76.9)NM
Adjusted EBITDA(1)
$39.8 $26.8 49 %$24.0 66 %$79.0 $105.6 (25 %)
Free Cash Flow(1)
$31.3 $6.4 NM$6.4 NM$38.6 ($12.9)NM
Shareholders
Loss per Share ("EPS") - Basic($0.09)($0.17)47 %($0.09)0 %($0.30)($0.52)42 %
Adjusted EPS(1)
($0.03)($0.07)57 %($0.04)21 %($0.17)($0.06)NM
NM - Not meaningful

(1)These measures do not have a standardized meaning under the Company's financial reporting framework and the methods used by the Company to calculate these measures may differ from methods used by other companies with similar descriptions. See “Non-GAAP Measures” on pages 42 to 52 for further details on these measures and a reconciliation of non-GAAP to GAAP measures.




















First Majestic Silver Corp. 2024 Third Quarter Report
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Third Quarter Production SummarySanta ElenaSan DimasLa Encantada
Jerritt Canyon(1)
Consolidated
Ore Processed / Tonnes Milled259,919 195,279 223,200 — 678,397 
Silver Ounces Produced376,203 1,046,340 545,031 — 1,967,574 
Gold Ounces Produced27,435 12,582 59 1,684 41,761 
Silver Equivalent Ounces Produced2,685,375 2,110,905 550,042 144,093 5,490,416 
Cash Costs per Silver Equivalent Ounce$11.96 $16.50 $25.24 $17.25 $15.17 
All-in Sustaining Cost per Silver Equivalent Ounce$14.38 $21.44 $30.10 $17.25 $21.03 
Total Production Cost per Tonne$107.80 $168.45 $60.86 $— $109.81 
(1) Jerritt Canyon was placed on temporary suspension in March 2023. In-circuit recovery efforts performed in Q3 2024 resulted in production of 1,684 gold ounces.

Third Quarter Operational Highlights

•Higher Q3 Silver Equivalent Production: The Company produced 5.5 million AgEq ounces in Q3 2024 representing a 4% increase when compared to 5.3 million AgEq ounces produced in the previous quarter primarily due to increased gold production at San Dimas and Santa Elena.
•Continued Active Exploration Program: The Company completed a total of 50,020 metres (“m”) of drilling across its mines in Mexico and its Jerritt Canyon Gold Mine in Nevada, U.S.A. during the third quarter, representing a continued increase in exploration compared to Q2. Throughout the quarter, 28 drill rigs were active consisting of 14 rigs at San Dimas, nine rigs at Santa Elena, three rigs at Jerritt Canyon and two rigs at La Encantada.
•High-Grade Gold and Silver Discovery: The Company announced the discovery of a new, high-grade gold and silver vein hosted system - the Navidad system - at the Santa Elena property (see the Company's news release dated July 30, 2024). The new discovery was made adjacent to the Company’s 100%-owned, and currently producing, Ermitaño mine. First Majestic is focusing its exploration efforts on Navidad as seven of the nine drill rigs currently active at Santa Elena have been allocated to drilling this new vein system.
•Inventory: The Company held 767,386 silver ounces in finished goods inventory as at September 30, 2024, inclusive of coins and bullion. The fair value of this inventory at September 30, 2024 was $23.8 million, which was not included in revenue during the third quarter.
•Jerritt Canyon Exploration Program Commenced: Jerritt Canyon’s 2024 exploration program commenced at the beginning of the third quarter. The exploration program is focused on unexplored targets on the recently permitted U.S. Forest Lands on First Majestic’s large Nevada land package (30,821 hectares, 119 square miles).
•Record Safety Performance: In Q3 2024, the consolidated year-to-date Total Reportable Incident Frequency Rate (“TRIFR”) was 0.50, consistent with the previous quarter and well below the Company’s target key performance indicator (“KPI”) of <0.90, while the Lost Time Incident Frequency Rate (“LTIFR”) remained positive at 0.12 and below the Company’s target KPI of <0.30 for 2024. Safety performance at the Company remains at “world class” levels and continues to be a top priority for First Majestic.
•San Dimas Hydroelectric plant, Las Truchas, at Full Capacity: As a result of a period of continued rain this year following extended drought conditions, the Company’s Las Truchas hydroelectric plant in Durango has returned to full capacity. Las Truchas provides reliable, efficient and renewable energy at low costs, and with no carbon footprint, to the San Dimas mine.
•Conversion to Liquefied Natural Gas (“LNG”) at San Dimas: As part of its ongoing cost reduction and carbon reduction initiatives, First Majestic is actively reviewing the replacement of the diesel generators used for on-site back-up power at San Dimas with LNG units. This will generate substantial cost-savings and will result in a reduction in carbon emissions of up to 25% when back-up power is required.
•Improved Sustainability Score: Majestic achieved a score of 37 in the S&P Global Corporate Sustainability Assessment (“CSA”) published on October 31, 2024, a 32% improvement over our 2023 performance. Our 2024 score places the Company in the top third of the mining and metals industry. Improvements were equally reflected across all three categories of the CSA - Environmental, Social, and Governance & Economic. The assessment noted significant improvements in First Majestic’s Risk & Crisis Management, Business Ethics, IT Security, Water Management, Human Rights and Labour Practices.






First Majestic Silver Corp. 2024 Third Quarter Report
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•Acquisition of Gatos Silver, Inc.: On September 5, 2024, the Company announced that it had entered into a definitive agreement (the “Merger Agreement”) to acquire all of the issued and outstanding shares of Gatos common stock pursuant to a merger under Delaware law (the “Merger”). The Merger is expected to close in early 2025, subject to the satisfaction of customary closing conditions, including approvals of the shareholders of First Majestic and Gatos, clearance under Mexican anti-trust laws, and approval of the listing of the First Majestic common shares to be issued under the Merger on both the TSX and the NYSE. The Merger Agreement has been unanimously approved by the board of directors of each of First Majestic and Gatos, and in the case of Gatos, on the unanimous recommendation of a special committee of independent directors of Gatos.
•First Mint Inauguration: First Mint, LLC, the Company's 100%-owned and operated minting facility in Nevada, USA, celebrated its Inauguration on September 26, 2024. While commissioning and silver bullion sales commenced in March, the inauguration celebrated the mint's progress to-date on implementing innovative production and fulfillment processes at the state-of-the-art facility. The mint commissioned several pieces of new equipment including coin presses, lasers, and etching equipment for coin manufacturing and is on track to receiving ISO 9001 certification. Once received, this certification will allow First Mint’s products to be eligible for Individual Retirement Accounts (IRA). First Mint enables First Majestic to turn its mined silver into an array of finished bullion products for direct sale to the public and offers manufacturing capacity for third-party demand. More information is available at www.firstmint.com.
•Cash Cost per AgEq Ounce: Cash cost per AgEq ounce for the quarter was $15.17 per ounce, a decrease from $15.29 per ounce in the previous quarter. The decrease in cash costs was primarily attributable to the continued strong performance and increase in gold production at Santa Elena and San Dimas, along with the softening of the Mexican Peso which averaged 10% weaker than the previous quarter. This was partially offset by a decrease in production at La Encantada due to lower tonnes and silver grades, partially offset by an increase in silver recoveries.
•All-In Sustaining Cost (“AISC”) per AgEq Ounce: AISC per AgEq ounce in the third quarter was $21.03 per ounce, representing a 3% decrease from $21.64 per ounce in the previous quarter. This was primarily attributable to lower cash costs along with lower worker participation costs.
Third Quarter Financial Highlights
•Strengthened Cash Position and Liquidity: The Company ended the quarter with a strong cash and cash equivalents position of $154.7 million compared to $138.3 million in the third quarter of 2023, while working capital increased to $238.2 million compared to $197.8 million in the third quarter of 2023. Cash and cash equivalents exclude an additional $103.9 million that is held in restricted cash.
•Increased Revenue: In the third quarter, the Company generated revenues of $146.1 million, a 10% increase compared to $133.2 million in the third quarter of 2023. This was primarily attributed to a 33% increase in the average realized silver price, which was $29.84 per ounce during the quarter compared to $22.41 per ounce during the third quarter of 2023, as well as the recovery of 1,684 gold ounces at Jerritt Canyon achieved through in-circuit recovery efforts. This was partially offset by a 23% decrease in payable AgEq ounces sold primarily due to lower production levels at San Dimas and higher inventory levels held at the end of the third quarter of 2024.
•Improved Mine Operating Earnings: The Company realized mine operating earnings of $28.5 million compared to $13.0 million in the third quarter of 2023, representing a 119% improvement. The increase in consolidated mine operating earnings was primarily attributed to a 67% increase in operating earnings at Santa Elena when compared to the third quarter of 2023, driven by higher average realized silver prices in Q3 2024.
•Increased Cash Flow from Operations: Operating cash flow before changes in working capital and taxes in the quarter was $39.8 million compared to $14.1 million in the third quarter of 2023. This was primarily driven by a $15.5 million increase in mine operating earnings compared to the third quarter of 2023, resulting from strong performance at Santa Elena which generated a $13.1 million increase in mine operating earnings compared to the third quarter of 2023.
•Earnings Before Income Tax Depreciation and Amortization (“EBITDA”)1: EBITDA for the quarter was $36.9 million compared to $11.5 million in the third quarter of 2023. The increase in EBITDA was primarily attributable to the increase in mine operating earnings and lower restructuring costs compared to the third quarter of 2023.
•Adjusted EBITDA1: Adjusted EBITDA normalized for non-cash or non-recurring items such as share-based payments and unrealized losses on marketable securities for the quarter ended September 30, 2024 was $39.8 million compared to $24.0 million in the third quarter of 2023.

1 This measure does not have a standardized meaning under the Company's financial reporting framework and the methods used by the Company to calculate this measure may differ from methods used by other companies with similar descriptions. See “Non-GAAP Measures” on pages 42 to 52 for further details on these measures and a reconciliation of non-GAAP to GAAP measures.






First Majestic Silver Corp. 2024 Third Quarter Report
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•Net Loss: Net loss for the quarter was $26.6 million (EPS of ($0.09)) compared to a net loss of $27.1 million (EPS of ($0.09)) in the third quarter of 2023. Net loss for the quarter includes non-cash foreign exchange loss of $5.8 million (EPS of ($0.02)) and non-cash deferred income tax expense of $13.2 million (EPS of ($0.04)), relating primarily to the weakening of the Mexican Peso at the end of the quarter compared to 2023. The decrease in net loss was primarily attributed to a $15.5 million increase in mine operating earnings compared to the third quarter of 2023, partially offset by a $20.9 million increase in the income tax expense in the quarter as compared to the same quarter of the prior year. Costs in 2023 were also impacted by restructuring efforts and holding costs at La Parrilla along with a one-time loss on the sale of mining interest incurred in the third quarter of 2023 following the disposition of La Parrilla.
•Adjusted Net Loss1: Adjusted net loss normalized for non-cash or non-recurring items such as share-based payments, unrealized losses on marketable securities, and deferred income tax for the quarter ended September 30, 2024 was $10.5 million (Adjusted EPS of ($0.03)) compared to adjusted net loss of $10.9 million (Adjusted EPS of ($0.04)) in the third quarter of 2023.
•Capital Expenditures: The Company’s total capital expenditures in the third quarter were $34.7 million (2023 - $32.2 million) consisting of $13.8 million for underground development (2023 - $14.8 million), $14.8 million in exploration (2023 - $8.1 million), and $6.1 million in property, plant and equipment (2023 - $9.3 million).
Corporate Development and Other:
On September 5, 2024, the Company announced that it had entered into the Merger Agreement to acquire all of the issued and outstanding shares of Gatos common stock. The Merger will be effected by way of a reverse triangular merger under Delaware law, whereby a wholly-owned Delaware subsidiary of the Company will merge with and into Gatos, with Gatos surviving the Merger as a direct, wholly-owned subsidiary of the Company. Gatos is a silver dominant producer with a 70% interest in the Los Gatos Joint Venture, which owns the producing Cerro Los Gatos underground silver mine in Chihuahua, Mexico. Under the terms of the Merger Agreement, Gatos shareholders will receive 2.550 common shares of First Majestic for each share of Gatos common stock held and former Gatos shareholders will hold approximately 38% of the issued and outstanding common shares of the Company on a fully diluted basis. Gatos is expected to contribute approximately $70 million in annual free cash flow to the combined entity.

The Company's acquisition of Gatos is expected to close in early 2025, subject to the satisfaction of customary closing conditions, including approvals of the shareholders of First Majestic and Gatos, clearance under Mexican anti-trust laws, and approval of the listing of the First Majestic common shares to be issued under the Merger Agreement on both the TSX and the NYSE. The Merger Agreement has been unanimously approved by the board of directors of each of First Majestic and Gatos, and in the case of Gatos, on the unanimous recommendation of a special committee of independent directors of Gatos. Information relating to the proposed transaction can be found on the Company’s website and a copy of the Merger Agreement can be found on the Company’s profile on SEDAR+ at www.sedarplus.ca. The Company cautions that there is no certainty that the Merger will be completed in a timely fashion or at all.

Subsequent to quarter end, the Company filed a registration statement on Form F-4 with the United States Securities & Exchange Commission (“SEC”) in order to register the issuance of the common shares to be issued to shareholders of Gatos in connection with the Company’s acquisition of Gatos.














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1 This measure does not have a standardized meaning under the Company's financial reporting framework and the methods used by the Company to calculate this measure may differ from methods used by other companies with similar descriptions. See “Non-GAAP Measures” on pages 42 to 52 for further details on these measures and a reconciliation of non-GAAP to GAAP measures.






First Majestic Silver Corp. 2024 Third Quarter Report
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OVERVIEW OF OPERATING RESULTS

Selected Production Results for the Past Eight Quarters
202420232022
PRODUCTION HIGHLIGHTS
Q3(3)
Q2(3)
Q1(3)
Q4(2)
Q3(2)
Q2(2)
Q1(2)
Q4
Ore processed/tonnes milled
Santa Elena259,919 256,427 224,394 233,601 226,292 213,878 208,821 207,188 
San Dimas195,279 183,188 178,957 215,232 213,681 227,065 219,367 210,108 
La Encantada223,200 234,955 185,298 203,898 230,230 260,986 271,278 254,766 
Jerritt Canyon— — — — — 31,240 146,403 179,502 
Consolidated678,397 674,570 588,651 652,731 670,203 733,170 845,868 851,564 
Silver equivalent ounces produced
Santa Elena2,685,375 2,580,497 2,280,739 3,008,449 2,669,411 1,788,596 2,105,336 2,302,904 
San Dimas2,110,905 2,114,072 2,364,875 3,110,677 3,010,458 3,372,418 3,296,367 3,054,098 
La Encantada550,042 589,060 459,110 521,424 573,458 806,789 843,951 813,649 
Jerritt Canyon144,093 5,811 57,559 — 32,463 353,168 1,381,452 1,388,140 
Consolidated5,490,416 5,289,439 5,162,283 6,640,550 6,285,790 6,320,971 7,627,105 7,558,791 
Silver ounces produced
Santa Elena376,203 376,947 355,205 582,484 347,941 142,037 104,129 199,388 
San Dimas1,046,340 1,141,906 1,163,792 1,513,791 1,548,203 1,690,831 1,602,483 1,392,506 
La Encantada545,031 585,329 456,179 516,141 565,724 800,543 836,448 804,802 
Consolidated1,967,574 2,104,181 1,975,176 2,612,416 2,461,868 2,633,411 2,543,059 2,396,696 
Gold ounces produced
Santa Elena27,435 27,176 21,713 28,056 28,367 20,073 24,039 25,830 
San Dimas12,582 12,043 13,543 18,468 17,863 20,509 20,124 20,257 
Jerritt Canyon1,684 74 647 — 396 4,364 16,341 16,845 
Consolidated41,701 39,293 35,903 46,524 46,626 44,946 60,504 62,932 
Cash cost per Ounce(1)
Santa Elena (per AgEq Ounce)$11.96 $12.25 $12.13 $10.42 $11.72 $14.45 $11.93 $11.20 
San Dimas (per AgEq Ounce)$16.50 $16.66 $15.81 $13.21 $14.07 $12.07 $10.86 $11.54 
La Encantada (per AgEq Ounce)$25.24 $23.69 $25.22 $26.19 $25.63 $16.90 $15.48 $15.48 
Jerritt Canyon (per Au Ounce)$1,491 $1,186 $1,260 $— $1,478 $4,181 $2,540 $2,519 
Consolidated (per AgEq Ounce)$15.17 $15.29 $15.00 $13.01 $14.13 $15.58 $15.16 $15.36 
All-in sustaining cost per Ounce(1)
Santa Elena (per AgEq Ounce)$14.38 $15.07 $14.70 $12.82 $14.68 $18.00 $15.18 $12.75 
San Dimas (per AgEq Ounce)$21.44 $21.78 $20.49 $17.80 $17.76 $15.89 $14.67 $16.79 
La Encantada (per AgEq Ounce)$30.10 $27.87 $31.64 $34.14 $29.86 $19.83 $18.64 $19.39 
Jerritt Canyon (per Au Ounce)$1,491 $1,186 $1,260 $— $1,730 $4,205 $3,055 $2,865 
Consolidated (per AgEq Ounce)$21.03 $21.64 $21.53 $18.50 $19.74 $21.52 $20.90 $20.69 
Production cost per tonne
Santa Elena$107.80 $107.47 $120.22 $117.36 $125.05 $109.88 $108.74 $114.29 
San Dimas$168.45 $193.02 $200.72 $183.61 $193.41 $173.62 $157.39 $162.68 
La Encantada$60.86 $57.11 $67.80 $64.70 $61.35 $49.91 $46.27 $47.69 
Jerritt Canyon$— $— $— $— $— $577.83 $278.57 $233.39 
Consolidated$109.81 $113.16 $128.23 $122.76 $125.81 $128.21 $130.71 $131.41 
(1) These measures do not have a standardized meaning under the Company's financial reporting framework and the methods used by the Company to calculate these measures may differ from methods used by other companies with similar descriptions. See “Non-GAAP Measures” on pages 42 to 52 for further details on these measures and a reconciliation of non-GAAP to GAAP measures.
(2) At Jerritt Canyon, the Company incurred costs related to mining activities for only 79 days during the first quarter of 2023. Jerritt Canyon production during the second quarter comprised of processing most of its remaining ore stockpiles and work-in-process ("WIP") inventory throughout April and May 2023. Jerritt Canyon production during the third quarter of 2023 comprised of pouring ounces from its in-process inventory. Refer to Jerritt Canyon operational highlights for further details.
(3) Jerritt Canyon was placed on temporary suspension in March 2023. In-circuit recovery efforts performed in 2024 resulted in production of 1,684 gold ounces in Q3 2024, 74 gold ounces in Q2 2024 and 647 gold ounces in Q1 2024.






First Majestic Silver Corp. 2024 Third Quarter Report
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Operating Results – Consolidated Operations
CONSOLIDATED2024-Q32024-Q22024-Q12024-YTD2023-YTDChange
Q3 vs Q2		Change
'24 vs '23
Ore processed/tonnes milled678,397674,570588,6511,941,6172,249,2411 %(14 %)
Production
Silver ounces produced1,967,5742,104,1811,975,1766,046,9317,638,339(6 %)(21 %)
Gold ounces produced 41,76139,33935,936117,036152,3366 %(23 %)
Silver equivalent ounces produced5,490,4165,289,4395,162,28315,942,13820,233,8684 %(21 %)
Cost
Cash cost per AgEq Ounce(1)
$15.17$15.29$15.00$15.15$14.97(1 %)1 %
All-in sustaining costs per AgEq Ounce(1)
$21.03$21.64$21.53$21.39$20.70(3 %)3 %
Total production cost per tonne(1)
$109.81$113.16$128.23$116.56$128.44(3 %)(9 %)
Underground development (m)8,4978,1356,70123,33327,3714 %(15 %)
Exploration drilling (m)50,02047,44736,274133,741110,5845 %21 %
(1) These measures do not have a standardized meaning under the Company's financial reporting framework and the methods used by the Company to calculate these measures may differ from methods used by other companies with similar descriptions.See “Non-GAAP Measures” on pages 42 to 52 for further details on these measures and a reconciliation of non-GAAP to GAAP measures.

Production
Total production in the third quarter of 2024 was 5.5 million AgEq ounces consisting of 2.0 million ounces of silver and 41,761 ounces of gold. This represented a 6% decrease in silver and a 6% increase in gold, when compared to the previous quarter, primarily due to increased gold production at San Dimas and Santa Elena. Santa Elena continued its strong performance in 2024 driven by continuous operational optimization of the new dual-circuit plant which helped achieve strong quarterly throughput levels, while maintaining robust metal recoveries, in consecutive quarters.

At San Dimas, negotiations with the National Union continued to progress in the third quarter with an agreement reached in August. Labour and operating efficiencies have improved as a result, and management anticipates further improved production levels in Q4 at San Dimas. Additionally, at La Encantada, the successful identification of a new water source earlier in the year has led to water inventory levels reaching targeted levels by the end of the third quarter, which enabled the mill throughput to meet or exceed budgeted levels. Management expects Q4 production to revert to historical levels.

Total ore processed during the quarter amounted to 678,397 tonnes, representing a 1% increase compared to the prior quarter, primarily due to continued strong performance at Santa Elena.







First Majestic Silver Corp. 2024 Third Quarter Report
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Cash Cost and All-In Sustaining Cost per AgEq Ounce
Cash cost for the quarter was $15.17 per ounce, a decrease from $15.29 per ounce in the previous quarter. The decrease in cash costs was primarily attributable to the continued strong performance and increase in gold production at Santa Elena and San Dimas, along with the softening of the Mexican Peso which averaged 10% weaker than the previous quarter. This was partially offset by a decrease in production at La Encantada due to lower tonnes and silver grades, partially offset by an increase in silver recoveries.
AISC in the third quarter was $21.03 per ounce, representing a 3% decrease from $21.64 per ounce in the previous quarter. This was primarily attributable to lower cash costs along with lower worker participation costs and improved AgEq ounce production.
Management continues to undertake a series of cost reduction initiatives across the organization aimed at improving efficiencies, lowering production costs, capital spending, care and maintenance holding costs and corporate G&A costs while also increasing production. Current initiatives for 2024 include:
•Negotiating workforce improvement processes with the employee union at San Dimas;
•Reducing remnant pillar extraction at San Dimas within the mine plan and confirming remaining pillars using ore control (termita) drilling processes;
•Managing over-break and under-break to reduce ore dilution impacts and optimize ore extraction at San Dimas and Santa Elena;
•Increasing mine development rates at San Dimas and La Encantada to access additional ore reserves;
•Renegotiating consumable contracts and reducing the use of external consultants;
•Restructuring to optimize the workforce and reduce labour costs;
•Optimizing use of reagent and grinding media consumption;
•Implementing changes in shift line-up and other changes aimed at increasing productivity at San Dimas;
•Utilizing quality assurance and quality control on operating drilling methods to verify stope positioning, grade and tonnage while also increasing the rates of development, which are expected to open additional ore stopes at San Dimas;
•Optimizing mining sequencing with the goal of improving ore extraction at San Dimas, Santa Elena and La Encantada;
•Adding an additional haulage contractor at La Encantada to increase mining rates and ore extraction;
•Increasing ore blending options at La Encantada including the addition of lead nitrate to improve recovery rates;
•Shifting all cemented rock fill operations underground to increase backfill efficiencies and reduce backfill costs at Santa Elena;
•Increasing the capacity of the tailing filtration of the new press filters at Santa Elena by adding a higher capacity offtake conveyor system, with a goal to increase plant throughput rates;
•Lowering holding costs at the Company’s suspended operations including the Jerritt Canyon Gold Mine; and
•Continuing the carbon-in-leach clean out process at Jerritt Canyon to generate additional gold production.

Development and Exploration
During the quarter, the Company completed 8,497 m of underground development and 50,020 m of exploration drilling, compared to 8,135 m and 47,447 m, respectively, in the previous quarter. Throughout the third quarter, up to 28 drill rigs were active consisting of 14 rigs at San Dimas, nine rigs at Santa Elena, three rigs at Jerritt Canyon and two rigs at La Encantada. Jerritt Canyon’s 2024 exploration program commenced at the beginning of the third quarter. The exploration program is focused on unexplored targets on the recently permitted U.S. Forest Lands on First Majestic’s large Nevada land package.






First Majestic Silver Corp. 2024 Third Quarter Report
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Santa Elena Silver/Gold Mine, Sonora, Mexico

The Santa Elena Silver/Gold Mine is located approximately 150 kilometres northeast of the city of Hermosillo, Sonora, Mexico. The operating plan for Santa Elena involves the processing of ore in a 3,000 tons per day (“tpd”) cyanidation circuit from underground reserves. Santa Elena consists of a central processing plant that can receive ore from two separate underground mining operations, Santa Elena and Ermitaño. The Company owns 100% of the Santa Elena Silver/Gold Mine including mining concessions totaling 102,244 hectares.
Santa Elena2024-Q32024-Q22024-Q12024-YTD2023-YTDChange
Q3 vs Q2		Change
'24 vs '23
Total ore processed/tonnes milled259,919256,427224,394740,740648,9911 %14 %
Average silver grade (g/t)6869726949(1 %)41 %
Average gold grade (g/t)3.503.523.163.403.74(1 %)(9 %)
Silver recovery (%)67 %66 %69 %67 %58 %2 %16 %
Gold recovery (%)94 %94 %95 %94 %93 %0 %1 %
Production
Silver ounces produced376,203376,947355,2051,108,355594,1070 %87 %
Gold ounces produced27,43527,17621,71376,32472,4791 %5 %
Silver equivalent ounces produced2,685,3752,580,4972,280,7397,546,6116,563,3434 %15 %
Cost
Cash cost per AgEq Ounce(1)
$11.96$12.25$12.13$12.11$12.53(2 %)(3 %)
All-In sustaining costs per AgEq Ounce(1)
$14.38$15.07$14.70$14.71$15.75(5 %)(7 %)
Total production cost per tonne(1)
$107.80$107.47$120.22$111.45$114.800 %(3 %)
Underground development (m)2,2632,3292,2506,8428,274(3 %)(17 %)
Exploration drilling (m)14,79615,5919,91140,29840,109(5 %)0 %
(1)These measures do not have a standardized meaning under the Company's financial reporting framework and the methods used by the Company to calculate these measures may differ from methods used by other companies with similar descriptions. See “Non-GAAP Measures” on pages 42 to 52 for further details on these measures and a reconciliation of non-GAAP to GAAP measures.

Santa Elena produced 2,685,375 AgEq ounces, 4% above the prior quarter, consisting of 376,203 ounces of silver and 27,435 ounces of gold.

The mill processed a total of 259,919 tonnes of ore, slightly higher than the prior quarter with average silver and gold head grades relatively consistent at 68 g/t and 3.50 g/t, respectively.

Silver and gold recoveries averaged 67% and 94%, respectively, during the quarter. Silver recovery increased 1% while gold recovery remained consistent at 94% when compared to the prior quarter. Metallurgical recoveries remained strong due to the continuous operational optimization of the new dual-circuit plant and fine grinding strategy.

Cash cost per AgEq ounce in the third quarter was $11.96, representing a 2% decrease compared to $12.25 per AgEq ounce in the previous quarter, which was primarily attributed to a 4% increase in AgEq ounces produced. This was partially offset by higher royalty payments during the third quarter primarily due to higher earnings.

AISC per AgEq ounce for the quarter was $14.38, representing a 5% decrease compared to $15.07 per AgEq ounce in the prior quarter. This was primarily attributable to the decrease in cash costs and lower profit sharing allocated to Santa Elena as compared to the prior quarter.







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The Santa Elena mine is subject to a gold streaming agreement with Sandstorm Gold Ltd. (“Sandstorm”), which requires the Company to sell to Sandstorm 20% of its gold production over the life of mine from its leach pad and a designated area of its underground operations. The selling price to Sandstorm is the lesser of the prevailing market price or $450 per ounce, subject to a 1% annual inflation adjustment. During the three and nine months ended September 30, 2024, the Company delivered nil ounces and 21 ounces (2023 - nil and 1,071 ounces) of gold to Sandstorm at an average price of $nil per ounce and $482 per ounce (2023 - $nil and $473 per ounce).

The Santa Elena mine has a net smelter return (“NSR”) royalty agreement with Orogen Royalties Inc. that provides them with a 2% NSR royalty from production from Ermitaño. In addition, there is an underlying NSR royalty where Osisko Gold Royalties Ltd. retains a 2% NSR royalty from the sale of mineral products extracted from Ermitaño. During the three and nine months ended September 30, 2024, the Company incurred $3.0 and $7.9 million (2023 - $2.3 and $5.9 million) in NSR royalty payments in connection with production from Ermitaño.
During the quarter, a total of 2,263 m of underground development was completed at the Ermitaño mine at Santa Elena, compared to 2,329 m in the previous quarter. During the quarter, nine drill rigs consisting of seven surface rigs and two underground rigs, completed 14,796 m of drilling on the property, following on the 15,591 m and 9,911 m drilled in Q2 and Q1 this year, respectively. Total exploration costs in the third quarter were $2.9 million compared to $2.1 million in the previous quarter.

During the quarter, the Company announced the discovery of the Navidad vein system, a new significant, vein-hosted gold and silver mineralized system adjacent to the Company’s currently producing Ermitaño mine. Please refer to the Company’s news release dated July 30, 2024 for further details.






First Majestic Silver Corp. 2024 Third Quarter Report
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San Dimas Silver/Gold Mine, Durango, Mexico

The San Dimas Silver/Gold Mine is located approximately 130 kilometres northwest of the city of Durango, Durango State, Mexico and consists of 71,868 hectares of mining claims located in the states of Durango and Sinaloa, Mexico. San Dimas is the largest producing underground mine in the state of Durango with over 250 years of operating history. The San Dimas operating plan involves processing ore from several underground mining areas with a 2,500 tpd capacity milling operation that produces silver/gold doré bars. The mine is accessible via a 40-minute flight from the Durango International Airport to a private airstrip in the town of Tayoltita, or by improved roadway. The Company owns 100% of the San Dimas mine.
San Dimas2024-Q32024-Q22024-Q12024-YTD2023-YTDChange
Q3 vs Q2		Change
'24 vs '23
Total ore processed/tonnes milled195,279183,188178,957557,424660,1137 %(16 %)
Average silver grade (g/t)188210220205241(10 %)(15 %)
Average gold grade (g/t)2.122.152.452.232.87(1 %)(22 %)
Silver recovery (%)89 %92 %92 %91 %95 %(3 %)(4 %)
Gold recovery (%)95 %95 %96 %95 %96 %0 %(1 %)
Production
Silver ounces produced1,046,3401,141,9061,163,7923,352,0384,841,517(8 %)(31 %)
Gold ounces produced12,58212,04313,54338,16858,4964 %(35 %)
Silver equivalent ounces produced2,110,9052,114,0722,364,8756,589,8529,679,2440 %(32 %)
Cost
Cash cost per AgEq Ounce(1)
$16.50$16.66$15.81$16.30$12.28(1 %)33 %
All-In sustaining costs per AgEq Ounce(1)
$21.44$21.78$20.49$21.21$16.06(2 %)32 %
Total production cost per tonne(1)
$168.45$193.02$200.72$186.89$174.63(13 %)7 %
Underground development (m)5,4524,8593,70914,02013,92812 %1 %
Exploration drilling (m)29,17231,24926,36386,78453,107(7 %)63 %
(1)These measures do not have a standardized meaning under the Company's financial reporting framework and the methods used by the Company to calculate these measures may differ from methods used by other companies with similar descriptions. See “Non-GAAP Measures” on pages 42 to 52 for further details on these measures and a reconciliation of non-GAAP to GAAP measures.

San Dimas produced 2,110,905 AgEq ounces during the quarter consisting of 1,046,340 ounces of silver and 12,582 ounces of gold. Silver production decreased by 8%, while gold production increased by 4%, when compared to the prior quarter. The decrease in silver production was driven by lower silver grades and silver recoveries partially offset by an increase in ore tonnes processed. The increase in gold production was driven by an increase in processed ore, offset by a slightly lower gold grade.

The mill processed a total of 195,279 tonnes of ore, an increase of 7% compared to the prior quarter, with average silver and gold grades of 188 g/t and 2.12 g/t, respectively, compared with 210 g/t and 2.15 g/t in the prior quarter.

Silver and gold recoveries during the quarter averaged 89% and 95%, respectively, compared to 92% and 95% in the previous quarter. Metallurgical lab testing of ores from the Perez vein indicated additional cyanide dosing positively impacted silver recoveries and provisions were constructed in late Q3 2024 to inject cyanide pre-milling to raise cyanide concentrations and improve recovery rates for Q4 2024.

The West Block, Central Block and Sinaloa Graben areas contributed approximately 29%, 40% and 31%, respectively, of the total production during the quarter.







First Majestic Silver Corp. 2024 Third Quarter Report
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Negotiations with the unionized workers continued throughout the quarter and an agreement was reached in August on certain matters, the most significant being the payment for the 2023 annual bonus. Labour and operating efficiencies have improved as a result, and management anticipates further improved production levels in Q4 at San Dimas.

In the third quarter, cash cost per AgEq ounce was $16.50, a decrease compared to $16.66 per AgEq ounce in the prior quarter. This was primarily due to the weakening of the Mexican Peso and lower energy costs as compared to the prior quarter.

AISC per AgEq ounce for the quarter was $21.44, a decrease compared to $21.78 per AgEq ounce in the prior quarter. This was primarily due to lower cash costs and sustaining development costs during the quarter.

As a result of a period of continued rain this year following extended drought conditions, the Company's Las Truchas hydroelectric plant, in Durango, is back at full capacity. Las Truchas provides reliable, efficient and renewable energy at lower costs, and with a lower carbon footprint to the San Dimas mine. Additionally, as part of its ongoing cost reduction and carbon reduction initiatives, First Majestic is actively reviewing the replacement of the diesel generators used for on-site back-up power at San Dimas with LNG units. This will generate substantial cost-savings and will result in a reduction in carbon emissions of up to 25%, when back-up power is required.

The San Dimas mine is subject to a gold and silver streaming agreement with Wheaton Precious Metals Corp. (“Wheaton” or “WPMI”), which entitles Wheaton to receive 25% of the gold equivalent production (based on a fixed exchange ratio of 70 silver ounces to 1 gold ounce) at San Dimas in exchange for ongoing payments equal to the lesser of $600 (subject to a 1% annual inflation adjustment commencing in May 2019) and the prevailing market price for each gold equivalent ounce delivered. Should the average gold to silver ratio over a six-month period exceed 90:1 or fall below 50:1, the fixed exchange ratio would be increased to 90:1 or decreased to 50:1, respectively. The fixed gold to silver exchange ratio as of September 30, 2024, was 70:1. During the three and nine months ended September 30, 2024, the Company delivered 7,022 and 21,756 ounces (2023 - 9,695 and 31,700 ounces) of gold to WPMI at $637 and $634 per ounce (2023 - $631 and $628 per ounce).

A total of 5,452 m of underground development was completed in the third quarter, compared to 4,859 m in the prior quarter. During the quarter, a total of 14 drill rigs consisting of four surface rigs and 10 underground rigs, completed 29,172 m of drilling on the property, following on the 31,249 m and 26,363 m drilled in Q2 and Q1 this year, respectively. Total exploration costs were $3.3 million compared to $2.9 million in the prior quarter.














First Majestic Silver Corp. 2024 Third Quarter Report
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La Encantada Silver Mine, Coahuila, Mexico

The La Encantada Silver Mine is an underground mine located in the northern Mexico State of Coahuila, 708 kilometres northeast of Torreon. La Encantada has 4,076 hectares of mineral concessions and surface land ownership of 1,343 hectares. La Encantada also has a 4,000 tpd cyanidation plant, a camp with 120 houses as well as administrative offices, laboratory, general store, hospital, airstrip and all the necessary infrastructure required for such an operation. The mine is accessible via a two-hour flight from the Durango International Airport to the mine’s private airstrip, or via an improved road from the closest city, Muzquiz, Coahuila State, which is 225 kilometres away. The Company owns 100% of the La Encantada Silver Mine.
La Encantada2024-Q32024-Q22024-Q12024-YTD2023-YTDChange
Q3 vs Q2		Change
'24 vs '23
Ore processed/tonnes milled223,200234,955185,298643,453762,494(5 %)(16 %)
Average silver grade (g/t)110129123120123(15 %)(2 %)
Silver recovery (%)69 %60 %62 %64 %73 %15 %(12 %)
Production
Silver ounces produced545,031585,329456,1791,586,5392,202,715(7 %)(28 %)
Gold ounces produced 59463313825928 %(47 %)
Silver equivalent ounces produced550,042589,060459,1101,598,2122,224,198(7 %)(28 %)
Cost
Cash cost per AgEq Ounce(1)
$25.24$23.69$25.22$24.66$18.617 %33 %
All-In sustaining costs per AgEq Ounce(1)
$30.10$27.87$31.64$29.72$21.978 %35 %
Total production cost per tonne(1)
$60.86$57.11$67.80$61.49$52.077 %18 %
Underground development (m)7819477422,4702,328(18 %)6 %
Exploration drilling (m)1,86260702,4693,812NM(35%)
NM - Not meaningful
(1)These measures do not have a standardized meaning under the Company's financial reporting framework and the methods used by the Company to calculate these measures may differ from methods used by other companies with similar descriptions. See “Non-GAAP Measures” on pages 42 to 52 for further details on these measures and a reconciliation of non-GAAP to GAAP measures.

During the quarter, La Encantada produced 545,031 ounces of silver, representing a 7% decrease compared to the prior quarter primarily due to a decrease in silver grade offset by an increase in silver recovery.

Water inventory levels at the plant achieved capacity by the end of the quarter, enabling plant ore throughput rates to return to targeted levels. As a result, in the month of September alone, La Encantada produced 232,968 ounces of silver, or approximately 43% of the total Q3 silver production at the mine. Management anticipates Q4 production at La Encantada to revert to historical levels.

The mill processed a total of 223,200 tonnes of ore with an average silver grade of 110 g/t. Stope production from the Beca Zone contributed 88,444 tonnes with average silver grades of 111 g/t.

Silver recovery for the quarter was 69%, representing a 15% increase when compared to 60% recovery in the prior quarter. Metallurgical testing indicated that the addition of lead nitrate to the leaching circuit will provide positive recovery results for La Encantada ores. Installation of the lead nitrate system was completed at the end of the third quarter and continued improved recovery rates are anticipated for Q4 2024.

Cash cost per AgEq ounce for the quarter was $25.24, representing a 7% increase compared to $23.69 per AgEq ounce in the prior quarter, primarily due to a 7% decrease in AgEq ounces produced along with slightly higher energy costs due to a temporary failure in one of the LNG power generators, which has since been repaired.






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AISC per AgEq ounce for the quarter was $30.10, representing an 8% increase compared to $27.87 per AgEq ounce in the previous quarter. The higher AISC per AgEq ounce was primarily due to the higher cash costs compared to the prior quarter.

In 2022, the Company sold a portfolio of its existing royalty interests to Metalla Royalty and Streaming Limited (“Metalla”). Under the agreement, the Company has granted Metalla a 100% gross value royalty for the first 1,000 ounces of gold produced annually from the La Encantada property. For the three and nine months ended September 30, 2024, the Company has incurred $0.1 million and $0.3 million, respectively (September 30, 2023 - $0.2 and $0.4 million) in NSR royalty payments from production at La Encantada.

A total of 781 m of underground development was completed in the third quarter at La Encantada, compared to 947 m in the prior quarter. During the quarter, two surface drill rigs completed 1,862 m of drilling on the property, representing a 207% increase when compared to the prior quarter. The 2024 exploration program commenced in the second quarter after securing a new water source. Total exploration costs in the third quarter were $0.5 million, compared to $0.3 million in the prior quarter.







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First Mint LLC, Nevada, United States

First Mint, LLC ("First Mint") is the Company’s operating minting facility located in Nevada, United States. First Mint expands upon the Company’s existing bullion sales through vertically integrating the production of investment-grade fine silver bullion and allows the Company to sell a greater portion of its silver production directly to its shareholders and bullion customers. First Mint operates some of the most innovative processing equipment in the precious metals industry, including an environmentally friendly flameless tunnel, which is a zero-emission facility and uses significantly less electricity when compared to traditional minting processes. This will enable the Company to turn its own silver into an array of finished bullion products, as well as offer manufacturing capacity for third-party demand. The Company owns 100% of First Mint, LLC.

First Mint(1)
2024-Q32024-Q2Q1 20242024-YTD2023-YTDChange
Q3 vs Q2		Change
'24 vs '23
Ounces sold83,852106,89036,959227,701300,587 (22 %)(24 %)
Financial Results
Revenues ($ thousands)$2,665 $3,298 $987 $6,950 $7,808(19 %)(11 %)
Average realized price per ounce - Bullion(2)
$31.78 $30.86 $26.71 $30.52 $25.97 3 %18 %
(1) This table is inclusive of the Company's bullion store and its minting facility in Nevada, United States.
(2) Average realized price per ounce is disclosed on the Company's financial statements in Note 4 - Segmented Information.

During the third quarter, First Mint sold 83,852 ounces of silver, compared to 106,890 ounces in the previous quarter. These ounces were inclusive of sales through the Company’s bullion store in Vancouver Canada, along with the newly opened minting facility, which allowed First Mint to commence bullion sales on March 26, 2024. The ounces sold through First Mint accounted for 4% of the Company’s total silver production during the third quarter of 2024.

First Mint celebrated its Inauguration on September 26, 2024. While commissioning and silver bullion sales commenced in March, the inauguration celebrated the mint’s progress to-date on implementing innovative production and fulfillment processes at the state-of-the-art facility. The mint commissioned several pieces of new equipment including coin presses, lasers, etching equipment for bar and coin manufacturing and is on track to receiving ISO 9001 certification. Once received, this certification will allow First Mint’s products to be eligible for Individual Retirement Accounts (IRA). First Mint enables First Majestic to turn its mined silver into an array of finished bullion products for direct sale to the public and offers manufacturing capacity for third-party demand.

Total revenues for the quarter were $2.7 million at an average realized price of $31.78 per ounce, compared to revenues of $3.3 million at an average realized price of $30.86 per ounce in the prior quarter.













First Majestic Silver Corp. 2024 Third Quarter Report
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Jerritt Canyon Gold Mine, Nevada, United States
The Jerritt Canyon Gold Mine is an underground mining complex located in northern Nevada, United States. Jerritt Canyon was discovered in 1972 and has been in production since 1981 having produced over 9.5 million ounces of gold over its 40-year production history. The operation, which was purchased by the Company on April 30, 2021, has one of only three permitted gold processing plants in Nevada that uses roasting in its treatment of ore. This processing plant has a capacity of 4,000 tpd.

On March 20, 2023, the Company temporarily suspended mining activities at Jerritt Canyon to reduce overall costs and refocus mining and exploration plans at the mine. The property consists of a large, under-explored land package consisting of 30,821 hectares (119 square miles). Jerritt Canyon is 100% owned by the Company.
Jerritt Canyon2024-Q32024-Q22024-Q12024-YTD2023-YTDChange
Q3 vs Q2		Change
'24 vs '23
Ore processed/tonnes milled— — — — 177,6430 %(100 %)
Average gold grade (g/t)— — — — 4.190 %(100 %)
Gold recovery (%)— — — — 87 %0 %(100 %)
Production
Gold ounces produced1,68474 647 2,40521,101NM(89 %)
Silver equivalent ounces produced144,0935,811 57,559 207,4631,767,083NM(88 %)
Underground development (m)— — — —2,8410 %(100 %)
Exploration drilling (m)4,199 — — 4,19913,556100 %(69 %)

Operations at the Jerritt Canyon mine were placed on temporary suspension in March 2023. As of April 24, 2023, all activities at the Jerritt Canyon processing plant were fully suspended. In-circuit recovery efforts performed in the third quarter of 2024 resulted in the recovery of 1,684 ounces of gold, compared to 74 ounces of gold in the previous quarter.

During the quarter, the Company incurred $4.7 million in holding costs at Jerritt Canyon, primarily for care and maintenance activities such as water management and treatment, maintaining environmental permits and controls, keeping the plant well-maintained for future processing and maintaining land access. The Company continues to focus on optimizing holding costs and completing technical studies that will support an eventual restart of the mine in the future.

Jerritt Canyon’s 2024 exploration program commenced at the beginning of the third quarter. The exploration program is focused on unexplored targets on the recently permitted U.S. Forest Lands on First Majestic’s large Nevada land package. During the quarter, a total of three drill rigs completed 4,199 m of surface drilling on the property, which is less than the Company had budgeted due to delayed startup and negative weather conditions. Total exploration costs were $3.8 million in the third quarter of 2024.








First Majestic Silver Corp. 2024 Third Quarter Report
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La Parrilla Silver Mine, Durango, Mexico

The La Parrilla Silver Mine, located approximately 65 kilometres southeast of the city of Durango in Durango State, Mexico, is a complex of underground operations consisting of the Rosarios, La Blanca and San Marcos mines which are inter-connected through underground workings, and the Vacas and Quebradillas mines which are connected via above-ground gravel roads. La Parrilla includes a 2,000 tpd sequential processing plant consisting of a 1,000 tpd cyanidation circuit and a 1,000 tpd flotation circuit, metallurgical pilot plant, buildings, offices and associated infrastructure.

Operations at the La Parrilla mine were placed on care and maintenance in September 2019.

On December 7, 2022, the Company announced that it had entered into an asset purchase agreement with Silver Storm Mining Ltd. (formerly Golden Tag Resources Ltd.) (“Silver Storm”) to sell the La Parrilla Silver Mine for total consideration of up to $33.5 million, consisting of 143,673,684 common shares of Silver Storm at a deemed price of $0.16 per share, having an aggregate value as of the date of the agreement of $20 million, and up to $13.5 million in contingent consideration, in the form of three milestone payments, payable in either cash or Silver Storm shares, out of which $2.7 million is payable no later than 18 months following the closing date.

On August 14, 2023, the Company completed the sale of La Parrilla to Silver Storm and received total consideration of $13.3 million net of transaction costs. Based on the price of Silver Storm’s common shares at the time of closing the transaction, the Company recorded a loss on disposition of $1.6 million. In addition, First Majestic participated in Silver Storm’s offering of subscription receipts (the “Subscription Receipts”) and purchased 18,009,000 Subscription Receipts at a price of CAD$0.20 per Subscription Receipt which, in accordance with their terms, have now converted into 18,009,000 Silver Storm common shares and 9,004,500 common share purchase warrants (the “Warrants”). Each Warrant is exercisable for one additional Silver Storm common share until August 14, 2026, at a price of CAD$0.34. The Company began accounting for the shares received from Silver Storm as an equity security at fair value through other comprehensive income (“FVTOCI”).

La Guitarra Silver Mine, Mexico State, Mexico

The La Guitarra Silver Mine is located in the Temascaltepec Mining District in the State of Mexico, Mexico, approximately 130 kilometres southwest from Mexico City.

The La Guitarra milling and mining operations were placed under care and maintenance in August 2018.

On May 24, 2022, the Company announced that it had entered into a share purchase agreement with Sierra Madre Gold and Silver Ltd. (“Sierra Madre”), to sell the Company’s subsidiary La Guitarra Compañia Minera S.A. de C.V. (“La Guitarra”), which owned the La Guitarra Silver Mine, to Sierra Madre for total consideration of approximately $35 million, consisting of 69,063,076 Sierra Madre common shares at a deemed price of $0.51 per share.

On March 29, 2023, the Company completed the sale of La Guitarra to Sierra Madre and received total consideration of $33.2 million net of transaction costs (paid in common shares of Sierra Madre), before working capital adjustments. Based on the carrying value of the asset at the time of disposal of $34.3 million, and the working capital adjustment of $0.2 million, the Company recorded a loss on disposition of $1.4 million. The Company began accounting for the common shares received from Sierra Madre as an equity security at FVTOCI.






First Majestic Silver Corp. 2024 Third Quarter Report
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Del Toro Silver Mine, Zacatecas, Mexico

The Del Toro Silver Mine is located 60 kilometres to the southeast of the La Parrilla mine and consists of 3,815 hectares of mining concessions and 219 hectares of surface rights. The Del Toro operation represents the consolidation of three historical silver mines, the Perseverancia, San Juan and Dolores mines, which are approximately one and three kilometres apart, respectively. Del Toro includes a 2,000 tpd flotation circuit and a 2,000 tpd cyanidation circuit. First Majestic owns 100% of the Del Toro Silver Mine.

Operations at the Del Toro mine have been on care and maintenance since January 2020.

San Martin Silver Mine, Jalisco, Mexico

The San Martin Silver Mine is an underground mine located near the town of San Martin de Bolaños in the Bolaños river valley, in the northern portion of the State of Jalisco, Mexico. San Martin has 33 contiguous mining concessions in the San Martin de Bolaños mining district covering mineral rights for 12,795 hectares, plus an application of a new mining concession covering 24,723 hectares to be granted. In addition, the mine includes 160 hectares of surface land where the processing plant, camp, office facilities, maintenance shops, and tailings dams are located, and an additional 640 hectares of surface rights. The 1,300 tpd mill and processing plant consists of crushing, grinding and conventional cyanidation by agitation in tanks and a Merrill-Crowe doré production system. The mine can be accessed via small plane, 150 kilometres from Durango, or 250 kilometres by paved road north of Guadalajara, Jalisco. The San Martin Silver Mine is 100% owned by the Company.

In July 2019, the Company suspended all mining and processing activities at the San Martin operation due to growing insecurity in the area. Increasing violence and safety concerns resulted in the Company removing all of its remaining employees from the area in 2021 and the mine and plant have been occupied and are currently under the de facto control of an organized criminal group. Due to this situation, the Company has been unable to carry out proper care and maintenance of the mine and plant and tailings storage facilities and the Company has limited information as to the current state of repair at the mine, including the tailings storage facility. The Company has repeatedly requested all applicable governmental authorities to take action to secure the area but, to date, the Mexican government has failed to take any such action and the Company’s own efforts have been unsuccessful. The Company is continuing its efforts to work with governmental authorities to take action to secure the area, although it is not known when that might, if ever, occur.

Springpole Silver Stream, Ontario, Canada

In July 2020, the Company completed an agreement with First Mining Gold Corp. (“First Mining”) to purchase 50% of the life of mine payable silver produced from the Springpole Gold Project (the “Springpole Silver Stream”), a development-stage gold project located in Ontario, Canada. First Majestic agreed to pay First Mining consideration of $22.5 million in cash and shares, in three milestone payments, for the right to purchase silver at a price of 33% of the silver spot price per ounce, to a maximum of $7.50 per ounce (subject to annual inflation escalation of 2%, commencing at the start of the third anniversary of production). Commencing with its production of silver, First Mining must deliver 50% of the payable silver which it receives from the offtaker within five business days of the end of each quarter.

The transaction consideration paid and payable by First Majestic is summarized as follows:

•The first payment of $10.0 million, consisting of $2.5 million in cash and $7.5 million in First Majestic common shares (805,698 common shares), was paid to First Mining on July 2, 2020;
•The second payment of $7.5 million, consisting of $3.75 million in cash and $3.75 million in First Majestic common shares (287,300 common shares), was paid on January 21, 2021 upon the completion and public announcement by First Mining of the results of a Pre-Feasibility Study for Springpole; and
•The third payment, consisting of $2.5 million in cash and $2.5 million in First Majestic common shares (based on a 20-day volume weighted average price), will be paid upon receipt by First Mining of a Federal or Provincial Environmental Assessment approval for Springpole, which has not yet been received.

In connection with the streaming agreement, First Mining also granted First Majestic 30.0 million common share purchase warrants of First Mining (the “First Mining Warrants”), each of which will entitle the Company to purchase one common share of First Mining at CAD$0.40 over a period of five years. As a result of the distribution by First Mining of shares and warrants of Treasury Metals Inc. that was completed by First Mining on July 15, 2021, pursuant to the adjustment






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provisions of the First Mining Warrants, the exercise price of these warrants was reduced from CAD$0.40 to CAD$0.37, and the number of these warrants was increased from 30.0 million to 32.1 million. The fair value of the warrants was measured at $5.7 million using the Black-Scholes option pricing model.

First Mining has the right to repurchase 50% of the silver stream from First Majestic for $22.5 million at any time prior to the commencement of production at Springpole, and if such a repurchase takes place, the Company will be left with a reduced silver stream of 25% of life of mine payable silver production from Springpole.

Springpole is one of Canada’s largest, undeveloped gold projects with permitting underway. In January 2021, First Mining announced results of its Pre-Feasibility Study (“PFS”) which supports a 30,000 tpd open pit mining operation over an 11-year mine life. First Mining announced resources of 24.3 million ounces of silver in the Indicated category and 1.4 million ounces of silver in the Inferred category, plus 4.6 million ounces of gold in the Indicated category and 0.3 million ounces of gold in the Inferred category. A draft Environmental Impact Statement for Springpole was published in June 2022, and the Federal and Provincial Environment Assessment processes for the project are in progress.

The Springpole Project also includes large land holdings of 41,913 hectares which are fully encompassed under the silver streaming agreement.

Keith Neumeyer, our President & Chief Executive Officer, and Raymond Polman, a director of the Company, are each directors of First Mining and accordingly may be considered to have a conflict of interest with respect to First Mining and the Springpole Silver Stream Agreement.







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OVERVIEW OF FINANCIAL PERFORMANCE
For the quarters ended September 30, 2024 and 2023 (in thousands of dollars, except for per share amounts):
Third QuarterThird Quarter
20242023Variance %
Revenues$146,087 $133,211 10 %(1)
Mine operating costs
Cost of sales85,694 92,187 (7 %)(2)
Depletion, depreciation and amortization31,871 27,998 14 %(3)
117,565 120,185 (2 %)
Mine operating earnings28,522 13,026 119 %
General and administrative expenses9,440 10,439 (10 %)(4)
Share-based payments2,935 2,762 6 %
Mine holding costs6,153 7,243 (15 %)(5)
Restructuring costs— 6,428 (100 %)(6)
Loss on sale of mining interest— 1,646 (100 %)(7)
Foreign exchange loss5,848 2,642 121 %
Operating earnings (loss)4,146 (18,134)123 %
Investment and other income 528 1,275 (59 %)(8)
Finance costs(6,858)(6,739)2 %
Loss before income taxes(2,184)(23,598)91 %
Current income tax expense (recovery)11,174 (178)NM
Deferred income tax expense13,235 3,729 NM
Income tax expense24,409 3,551 NM(9)
Net loss for the period($26,593)($27,149)2 %(10)
Loss per share (basic and diluted)($0.09)($0.09)0 %(10)

NM - Not meaningful

1.Revenues in the quarter increased $12.9 million compared to the same quarter of the prior year primarily attributed to:
•a 33% increase in the average realized silver price, which was $29.84 per ounce during the quarter, compared to $22.41 per ounce in the third quarter of 2023 as well as increased recovered gold ounces at Jerritt Canyon achieved through in-circuit recovery efforts. This resulted in a $33.9 million increase in revenue compared to the same quarter of the prior year
Partially offset by:
•a 23% decrease in the total number of payable AgEq ounces sold compared to the third quarter of 2023 which resulted in a decrease in revenues of $20.7 million compared to the third quarter of 2023. This was primarily driven by lower production levels at San Dimas as well as higher inventory levels held at the end of third quarter of 2024.

2.Cost of sales in the quarter decreased $6.5 million compared to the same quarter of the prior year primarily due to:
•a weaker Mexican Peso against the U.S. dollar, which averaged 11% lower compared to the same quarter of 2023;
•a $7.7 million decrease in labour costs primarily due to the reduction in workforce cross the organization following restructuring efforts to optimize the workforce during the same quarter of the prior year; and
•a $2.8 million decrease in consumables and materials, energy and insurance costs.







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Partially offset by:
•a $2.2 million increase in change in inventory expense compared to the same quarter of 2023;
•a $1.0 million increase in worker participation costs in Mexico; and
•a $0.9 million increase in other costs primarily due to an increase in environmental duties and royalties.
3.Depletion, depreciation and amortization in the quarter increased $3.9 million compared to the same quarter of the previous year, primarily as a result of:
•a $3.3 million increase in depletion and depreciation from the Mexican operations primarily due to an increase in production at Santa Elena as well as higher fixed asset depreciation at San Dimas and La Encantada; and
•an increase of $0.4 million in depletion from in-circuit inventory recovery at Jerritt Canyon during the quarter.
4.General and administrative expense in the quarter decreased $1.0 million compared to the same quarter of the previous year. Costs in the third quarter of 2023 were higher primarily due to increased restructuring efforts to optimize the Company’s workforce, along with higher legal and professional fees during Q3 2023 related to the Company’s ongoing NAFTA proceedings. This decrease compared to the same quarter of the previous year was offset by higher due diligence costs incurred in the months prior to the Company’s announcement on September 5, 2024 that it has agreed to acquire Gatos.
5.Mine holding costs decreased by $1.1 million compared to the same quarter of 2023, primarily driven by lower holding costs from La Parrilla, which was sold in the third quarter of 2023, and lower holding costs for the Del Toro mine.
6.Restructuring Costs decreased by $6.4 million compared to the same quarter of 2023. In 2023, restructuring costs were related to the Company optimizing its workforce primarily at San Dimas, as well as at the Durango regional office and Santa Elena.
7.Loss on sale of mining interest decreased by $1.6 million compared to the prior year. In the third quarter of 2023, the Company recorded a write-down related to La Parrilla based on the change in value of the shares of Silver Storm Mining (formerly Golden Tag Resources) at the end of the reporting period.
8.Investment and other income decreased by $0.7 million compared to the third quarter of 2023, primarily due to a loss from investment in silver future derivatives of $1.3 million, compared to a $0.4 million gain in the same quarter of the prior year. This was partially offset by interest income of $1.9 million compared to $1.5 million in the same quarter of the prior year, along with a gain on the sale of marketable securities of $0.1 million compared to a $0.7 million loss in the same quarter of the prior year.
9.During the quarter, the Company recorded an income tax expense of $24.4 million compared to a $3.6 million income tax expense in the third quarter of 2023. The increase in income tax expense was primarily related to the non-cash foreign exchange impact on available Mexican tax pools to account for the strengthening of the US Dollar against the Mexican Peso resulting in an increased deferred tax expense as well as an increased current tax expense driven by higher earnings at Santa Elena.
10.As a result of the foregoing, net loss for the quarter was $26.6 million (EPS of ($0.09)) compared to a net loss of $27.1 million (EPS of ($0.09)) in the same quarter of the prior year.

















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For the years to date ended September 30, 2024 and 2023 (in thousands of dollars, except for per share amounts):
Year to DateYear to DateVariance %
2024202324 vs '23
Revenues$388,267 $436,855 (11 %)(1)
Mine operating costs
Cost of sales255,279 320,662 (20 %)(2)
Cost of sales - standby costs— 13,438 (100 %)(2)
Depletion, depreciation and amortization89,325 95,014 (6 %)(3)
344,604 429,114 (20 %)
Mine operating earnings43,663 7,741 NM
General and administrative28,186 30,560 (8 %)(4)
Share-based payments10,895 10,711 2 %
Mine holding costs18,173 14,750 23 %(5)
Write down on asset held-for-sale— 7,229 (100 %)(6)
Restructuring costs— 6,428 (100 %)(7)
Impairment of non-current asset— 125,200 (100 %)(8)
Loss on sale of mining interest— 3,024 (100 %)(9)
Foreign exchange loss (gain)15,824 (8,953)NM
Operating loss(29,415)(181,208)(84 %)
Investment and other income 4,086 8,144 (50 %)(10)
Finance costs(21,277)(19,688)8 %
Loss before income taxes(46,606)(192,752)(76 %)
Current income tax expense16,707 5,235 NM
Deferred income tax expense (recovery)25,094 (52,644)(148 %)
Income tax expense (recovery) 41,801 (47,409)(188 %)(11)
Net loss for the period($88,407)($145,343)39 %(12)
Loss per common share
     Basic and diluted($0.30)($0.52)42 %(12)

NM - Not meaningful
1.Revenues in the nine months ended September 30, 2024 decreased $48.6 million or 11% compared to the same period in the previous year, primarily attributed to:
•a 25% decrease in the total number of payable AgEq ounces sold compared to the prior year which resulted in a decrease in revenues of $100.1 million. This was primarily driven by higher inventory levels held, lower production levels at San Dimas, and the temporary suspension of mining activities at Jerritt Canyon in 2023 which contributed $40.5 million toward revenue during the same period in the previous year.
Partially offset by:
•an 18% increase in the realized silver price per ounce sold, which averaged $27.25 year-to-date compared to $23.03 in the prior year. This resulted in a $51.7 million increase in revenue compared to the prior year; and
•a 15% increase in payable AgEq ounces produced at Santa Elena.








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2.Cost of sales in the year decreased $78.8 million or 24% compared to the same period in the previous year, primarily as a result of the following factors:
•a $66.6 million decrease in labour costs due to the reduction in workforce in Jerritt Canyon and across the organization, a decrease in consumables and energy costs during the year along with a decrease in other costs including insurance, services, selling and maintenance costs. This was primarily due to the temporary suspension of operations at the Jerritt Canyon Mine during the first quarter of 2023 along with reduced production at San Dimas during the year;
•a $13.4 million decrease in one-time standby costs primarily related to one-time severance and demobilization costs following the temporary suspension of mining activities at Jerritt Canyon; and
•a $6.9 million decrease due to changes in inventory expense compared to the prior year primarily due to the inventory drawdown at Jerritt Canyon in 2023.
Partially offset by:
•a $1.8 million increase in abnormal costs at San Dimas during the second quarter as the Company had to use higher cost diesel from back up energy sources due to low water levels at the Company’s Las Truchas hydroelectric dam and damage to the power lines from the hydroelectric plant;
•a $1.5 million increase in worker participation costs in Mexico;
•a $1.2 million increase in environmental duties and royalties due to increased production at Ermitaño which resulted in increased royalties paid; and
•a stronger Mexican Peso against the U.S. dollar, which averaged 1% higher compared to the same period of 2023.
3.Depletion, depreciation and amortization in the year decreased $5.7 million or 6% compared to the same period of the previous year, primarily as a result of:
•an $11.7 million decrease related to lower depletion at Jerritt Canyon due to the temporary suspension of mining activities.
Partially offset by:
•a $5.7 million increase in depletion and depreciation from the Mexican operations primarily due to an increase in production at Santa Elena as well as higher fixed asset depreciation at Santa Elena and La Encantada.
4.General and administrative expense in the year decreased $2.4 million or 8% compared to the same period in the previous year, primarily attributed to higher severance costs incurred in 2023 related to restructuring efforts to optimize the Company’s workforce. This was offset by higher due diligence costs incurred in the months prior to the Company’s announcement on September 5, 2024 that it has agreed to acquire Gatos.
5.Mine holding costs increased by $3.4 million compared to the same period in the previous year, primarily related to the temporary suspension of Jerritt Canyon and care and maintenance activities at Santa Elena. This was partially offset by lower holding costs due to the sale of La Guitarra and La Parrilla in the first and third quarters of 2023, respectively.
6.Write down on asset held-for-sale decreased by $7.2 million compared to the same period in the previous year. In 2023, the Company recorded a write-down related to La Parrilla based on the change in value of shares of Silver Storm Mining (formerly Golden Tag Resources) at the end of the reporting period.
7.Restructuring costs decreased by $6.4 million compared to the same period in the previous year. In 2023, restructuring costs were related to the Company optimizing its workforce primarily at San Dimas, as well as the Durango regional office and Santa Elena.
8.Impairment decreased by $125.2 million compared to the same period in the previous year. In March 2023, the Company recorded a $125.2 million impairment in respect of its Jerritt Canyon mine following the temporary suspension of mining operations.
9.Loss on sale of mining interest for the year decreased by $3.0 million compared to the same period in the previous year. This was due to the sale of La Guitarra to Sierra Madre Gold and Silver Ltd. on March 29, 2023. Based on the carrying value of the asset at the time of disposal of $34.3 million, and the working capital adjustment of $0.2 million, the Company had recorded a loss on disposition of $1.4 million in the first quarter of the prior year.
10.Investment and other income for the year totaled $4.1 million compared $8.0 million in income for the same period in the previous year. The decrease in the investment and other income was primarily due to an unrealized loss on silver futures of $1.0 million, compared to a $4.8 million gain in the prior year, and interest income of $4.7 million, compared






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to interest income of $5.1 million in the prior year. This was partially offset by an unrealized gain on marketable securities of $0.2 million, compared to a $1.6 million loss in the prior year.
11.During the nine months ended September 30, 2024, the Company recorded an income tax expense of $41.8 million, compared to an income tax recovery of $47.4 million during the same period in the previous year primarily due to an increase in deferred income tax expense. The deferred income tax expense during the year was primarily related to the foreign exchange impact on available Mexican tax pools to account for the strengthening of the US Dollar against the Mexican Peso. The income tax recovery in 2023 was primarily driven by an impairment on non-current assets during the first quarter of 2023 along with foreign exchange and inflationary adjustments.
12.As a result of the foregoing, net loss for the nine months ended September 30, 2024 was $88.4 million (EPS of ($0.30)), compared to a net loss of $145.3 million (EPS of ($0.52)) during the same period in the previous year.






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SUMMARY OF QUARTERLY RESULTS

The following table presents selected financial information for each of the most recent eight quarters:
202420232022
Selected Financial InformationQ3Q2Q1Q4Q3Q2Q1Q4
Revenue$146,087 $136,166 $106,014 $136,946 $133,211 $146,692 $156,952 $148,189 
Cost of sales$85,694 $89,096 $80,489 $89,395 $92,187 $104,607 $123,868 $126,148 
Depletion, depreciation and amortization$31,871 $31,608 $25,846 $29,650 $27,998 $32,587 $34,429 $35,307 
Mine operating earnings (loss)$28,522 $15,462 ($321)$17,901 $13,026 $1,138 ($6,423)($13,266)
Net (loss) earnings after tax($26,593)($48,251)($13,563)$10,231 ($27,149)($17,534)($100,660)($16,819)
(Loss) earnings per share – basic($0.09)($0.17)($0.05)$0.04 ($0.09)($0.06)($0.37)($0.06)
(Loss) earnings per share – diluted($0.09)($0.17)($0.05)$0.04 ($0.09)($0.06)($0.37)($0.06)

During the third quarter of 2024, mine operating earnings were $28.5 million compared to earnings of $15.5 million in the previous quarter. The increase in mine operating earnings was primarily due to a higher average realized silver price, an increase in payable AgEq ounces sold, and lower cash costs compared to the prior quarter.

The net loss for the quarter was $26.6 million compared to a net loss of $48.3 million in the prior quarter. The decrease in net loss was primarily attributed a $13.1 million increase in mine operating earnings compared to the prior quarter, a non-cash foreign exchange loss of $5.8 million compared to a $11.1 million loss in the prior quarter, and a $6.1 million decrease in income tax expense compared to the prior quarter. This was partially offset by the $3.4 million decrease in investment income in the quarter as compared to the second quarter of 2024.

LIQUIDITY, CAPITAL RESOURCES AND CONTRACTUAL OBLIGATIONS

Liquidity

As at September 30, 2024, the Company had cash and cash equivalents of $154.7 million, comprised primarily of cash held with reputable financial institutions and invested in cash accounts and highly liquid short-term investments with maturities of three months or less. With the exception of $1.3 million held in-trust for tax audits in Mexico, the Company's cash and cash equivalents are not exposed to liquidity risk and there are no restrictions on the ability of the Company to use these funds to meet its obligations. Cash and cash equivalents excludes $103.9 million of restricted cash as at September 30, 2024.
On August 3, 2023, the Company filed and obtained a receipt for a final short form base shelf prospectus in each province of Canada (other than Québec), and a registration statement on Form F-10 in the United States, which will allow the Company to undertake offerings (including by way of “at-the-market distributions”) under one or more prospectus supplements of various securities listed in the shelf prospectus, up to an aggregate total of $500.0 million, over a 25-month period commencing as of the filing date of the base shelf prospectus.

On February 22, 2024, the Company entered into an equity distribution agreement with BMO Capital Markets Corp. and TD Securities (USA) LLC (collectively, the “Agents”) and filed a prospectus supplement to its short form base shelf prospectus dated August 3, 2023, pursuant to which the Company may, at its discretion and from time-to-time, sell through the Agents common shares of the Company for aggregate gross proceeds of up to $150.0 million through the ATM program (the “2024 ATM Program”). During the nine months ended September 30, 2024, 14,300,000 common shares were sold under the 2024 ATM Program at an average price of $6.73 per share, for gross proceeds of $96.2 million or net proceeds of $93.9 million. As at September 30, 2024, the Company incurred $2.3 million in transaction costs in relation to the 2024 ATM Program.

Working capital as at September 30, 2024 was $238.2 million compared to $188.9 million as at December 31, 2023. Total available liquidity as at September 30, 2024 was $377.9 million, including $238.2 of working capital and $139.6 million of undrawn revolving credit facility, and excluding $103.9 million held in restricted cash.







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The following table summarizes the Company’s cash flow activity during the year:
 Three Months Ended September 30,Nine Months Ended September 30,
 2024202320242023
Cash flow    
Cash generated in operating activities$41,038 $19,980 $70,316 $35,689 
Cash (used in) investing activities(32,720)(32,643)(89,797)(122,485)
Cash (used in) provided by financing activities(5,743)(8,265)50,465 71,465 
Increase (decrease) in cash and cash equivalents$2,575 ($20,928)$30,984 ($15,331)
Effect of exchange rate on cash and cash equivalents held in foreign currencies (18)(976)(1,835)2,228 
Cash and cash equivalents, beginning of the period152,173 160,239 125,581 151,438 
Cash and cash equivalents, end of the period$154,730 $138,335 $154,730 $138,335 

The Company’s cash flows from operating, investing and financing activities during the nine months ended September 30, 2024 are summarized as follows:
•Cash generated by operating activities of $70.3 million, primarily due to:
•$76.1 million in cash flows from operating activities before movements in working capital and taxes;
net of:
•$9.8 million net change in non-cash working capital items during the period, including a $21.7 million decrease in restricted cash and a $0.6 million decrease in value added tax (“VAT”) receivables, partially offset by a $3.7 million decrease in trade payables, a $3.4 million increase in inventories, a $3.0 million increase in trade and other receivables, a $1.7 million decrease in income taxes payable, and a $0.8 increase in prepaid expenses; and
•$15.7 million in income tax installments paid during the period.

•Cash used in investing activities of $89.8 million, primarily related to:
•$72.6 million spent on mine development and exploration activities;
•$17.9 million spent on the purchase of property, plant and equipment;
•$12.0 million spent on the purchase of marketable securities;
•$5.0 million loaned to Sierra Madre Gold; and
•$0.5 million spent on deposits on non-current assets.
net of:
•$18.2 million in proceeds from the disposal of marketable securities.
•Cash provided in financing activities of $50.5 million, primarily related to the following:
•$93.9 million of proceeds from common shares of the Company sold under the 2024 ATM Program.
net of:
•$20.0 million repayment of the Revolving Credit Facility;
•$12.5 million repayment of lease obligations;
•$7.1 million payment of financing costs; and
•$3.8 million for the payment of dividends during the period.

During the nine months ended September 30, 2024, the Company received $40.3 million (790.7 million MXN) related to VAT filings. In connection with the tax ruling relating to Primero Empresa Minera, S.A. de C.V. (“PEM”), the Servicio de Administracion Tributaria (the “SAT”), the Mexican tax authority, has frozen a PEM bank account which contains approximately $84.8 million as security for certain tax re-assessments that are currently being disputed by PEM, and this






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amount is reflected in the Company’s restricted cash accounts. The Company does not agree with the SAT’s position regarding its tax re-assessments, which were issued as a result of the SAT unilaterally declaring that the Company’s APA was not valid, and is challenging Mexico’s actions with respect to the APA through various legal actions, both domestically in Mexico and internationally through NAFTA arbitration proceedings.

Capital Resources

The Company’s objective when managing capital is to maintain financial flexibility to continue as a going concern while optimizing growth and maximizing returns of investments from shareholders.

The Company continually monitors its capital structure and, based on changes in operations and economic conditions, it may from time to time adjust the structure by repurchasing shares, issuing new shares, issuing new debt or retiring existing debt. The Company prepares an annual budget and quarterly forecasts to facilitate the management of its capital requirements. The annual budget is approved by the Company’s Board of Directors.

The Company is not subject to any externally imposed capital requirements with the exception of complying with banking covenants defined in its debt facilities. As at September 30, 2024, the Company was in compliance with all of its debt covenants.

Contractual Obligations and Commitments

As at September 30, 2024, the Company’s contractual obligations and commitments are summarized as follows:
Contractual
Cash Flows		Less than
1 year		2 to 3
years		4 to 5
years		After 5 years
Trade and other payables$92,266 $92,266 $— $— $— 
Debt facilities235,456 2,620 232,836 — — 
Lease liabilities28,309 15,585 10,182 2,237 305 
Other liabilities6,029 — 340 5,689 — 
Purchase obligations and commitments4,573 4,573 — — — 
$366,633 $115,044 $243,358 $7,926 $305 

As at September 30, 2024, the Company had working capital of $238.2 million (December 2023 - $188.9 million) and total available liquidity of $377.9 million (December 2023 - $313.6 million), including $139.6 million (December 2023 - $124.6 million) of undrawn revolving credit facility.

The Company believes it has sufficient cash on hand, combined with cash flows from operations, to meet operating requirements as they arise for at least the next 12 months.

MANAGEMENT OF RISKS AND UNCERTAINTIES

The Company thoroughly examines the various financial instruments and risks to which it is exposed and assesses the impact and likelihood of those risks. These risks may include credit risk, liquidity risk, currency risk, commodity price risk, and interest rate risk. Where material, these risks are reviewed and monitored by the Board of Directors. Some of these risks and uncertainties are detailed below. For a comprehensive list of the Company’s risks and uncertainties, see the Company’s most recently filed AIF under the heading "Risk Factors". The AIF is available under the Company’s SEDAR+ profile at www.sedarplus.ca, and on EDGAR as an exhibit to the Company’s recently filed Form 40-F.

Credit Risk

Credit risk is the risk of financial loss if a customer or counterparty fails to meet its contractual obligations. The Company’s credit risk relates primarily to chartered banks, trade receivables in the ordinary course of business, value added taxes receivable and other receivables.







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As at September 30, 2024, net VAT receivable was $52.1 million (December 31, 2023 - $52.7 million), of which $13.9 million (December 31, 2023 - $27.5 million) relates to La Encantada, $12.2 million relates to Santa Elena (December 31, 2023 - $25.6 million), and $8.8 million (December 31, 2023 - $29.0 million) relates to San Dimas.

The Company sells and receives payment upon delivery of its silver doré and by-products primarily through four international customers. All of the Company’s customers have good ratings and payments of receivables are scheduled, routine and fully received within 60 days of submission; therefore, the balance of trade receivables owed to the Company in the ordinary course of business is not significant.

The carrying amount of financial assets recorded in the consolidated financial statements represents the Company’s maximum exposure to credit risk. With the exception to the above, the Company believes it is not exposed to significant credit risk.

Liquidity Risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they arise. The Company manages liquidity risk by monitoring actual and projected cash flows and matching the maturity profile of financial assets and liabilities. Cash flow forecasting is performed regularly to ensure that there is sufficient capital in order to meet short-term business requirements, after taking into account cash flows from operations and our holdings of cash and cash equivalents.

Indebtedness

As at September 30, 2024, the Company’s total consolidated indebtedness was $206.8 million, $0.4 million of which was secured indebtedness.

The Company may be required to use a portion of its cash flow to service principal and interest owing thereunder, which will limit the cash flow available for other business opportunities. The Company may in the future determine to borrow additional funds from lenders. For further details regarding this risk, see the section in the Company’s most recently filed AIF entitled “Risk Factors – Financial Risks – Indebtedness”.

Currency Risk

The Company is exposed to foreign exchange risk primarily relating to financial instruments that are denominated in Canadian dollars or Mexican pesos, which would impact the Company’s net earnings or loss. To manage foreign exchange risk, the Company may occasionally enter into short-term foreign currency derivatives, such as forwards and options, to hedge its cash flows.

The sensitivity of the Company’s net earnings or loss and comprehensive income or loss due to changes in the exchange rates of the Canadian Dollar and the Mexican Peso against the U.S. Dollar is included in the table below:
 September 30, 2024
 Cash and cash equivalentsRestricted cashValue added taxes receivableOther financial assetsTrade and other payablesNet assets (liabilities) exposureEffect of +/- 10% change in currency
Canadian Dollar$8,312 $— $— $1,152 ($5,196)$4,268 $427 
Mexican Peso14,667 84,751 51,983 — (54,671)96,730 9,673 
 $22,979 $84,751 $51,983 $1,152 ($59,867)$100,998 $10,100 



Commodity Price Risk

The Company is exposed to commodity price risk on silver and gold, which have a direct and immediate impact on the value of its related financial instruments, non-financial items and net earnings. The Company’s revenues are directly dependent on commodity prices that have shown volatility and are beyond the Company’s control. The Company does not use long-term derivative instruments to hedge its commodity price risk to silver or gold.








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The following table summarizes the Company’s exposure to commodity price risk and their impact on net earnings:
  September 30, 2024
 
 Effect of +/- 10% change in metal prices
 SilverGoldTotal
Metals in inventory$2,383 $790 $3,173 
 $2,383 $790 $3,173 

Interest Rate Risk
The Company is exposed to interest rate risk on its short-term investments, debt facilities and lease liabilities. The Company monitors its exposure to interest rates and has not entered into any derivative contracts to manage this risk. The Company’s interest-bearing financial assets comprise of cash and cash equivalents which bear interest at a mixture of variable and fixed rates for pre-set periods of time.

As at September 30, 2024, the Company’s exposure to interest rate risk on interest bearing liabilities is limited to its debt facilities and lease liabilities. Based on the Company’s interest rate exposure at September 30, 2024, a 25 basis points increase or decrease in the market interest rate does not have a significant impact on net earnings or loss.

Political and Country Risk

First Majestic currently conducts foreign operations in Mexico and the United States, and as such the Company’s operations are exposed to various levels of political and economic risks by factors outside of the Company’s control. These potential factors include, but are not limited to: royalty and tax increases or claims by governmental bodies, the ongoing hostilities in Ukraine and the Middle East, expropriation or nationalization, foreign exchange controls, high rates of inflation, fluctuations in foreign currency exchange rates, import and export tariffs and regulations, lawlessness, cancellation or renegotiation of contracts and environmental and permitting regulations, illegal mining operations by third parties on the Company's properties, labour unrest and surface access issues. The Company currently has no political risk insurance coverage against these risks.

The Company is unable to determine the impact of these risks on its future financial position or results of operations. Changes, if any, in mining or investment policies or shifts in political attitude in foreign countries may substantively affect the Company’s exploration, development and production activities.

Uncertainty in the Estimation of Mineral Resources and Mineral Reserves, and Metal Recoveries

There is a degree of uncertainty attributable to the estimation of Mineral Resources and Mineral Reserves (as defined in the Canadian Institute of Mining's Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines and included by reference in the Canadian Securities Administrators' National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”)). Until Mineral Reserves or Mineral Resources are actually mined, extracted and processed, the quantity of minerals and their grades must be considered estimates only. In addition, the quantity of Mineral Reserves and Mineral Resources may vary depending on, among other things, applicable metal prices, exchange rate assumptions used, underground stability conditions, the ability to maintain constant underground access to all working areas, geological variability, mining methods assumptions used and operating cost escalation. Any material change in the quantity of Mineral Reserves, Mineral Resources, grade or dimensions of the geological structures may affect the economic viability of some or all of the Company’s mineral properties and may have a material adverse effect on the Company's operational results and financial condition. Mineral Reserves on the Company’s properties have been estimated on the basis of economic factors at the time of calculation, including commodity prices and operating costs; variations in such factors may have an impact on the amount of the Company’s Mineral Reserves. In addition, there can be no assurance that metal recoveries in small scale laboratory tests will be replicated in larger scale tests under on-site conditions or during production, or that the existing known and experienced recoveries will continue.

Governmental Regulations, Licenses and Permits

On May 8, 2023, the Mexican Government enacted a decree amending several provisions of the Mining Law, the Law on National Waters, the Law on Ecological Equilibrium and Environmental Protection and the General Law for the Prevention and Integral Management of Waste (the "Decree"), which became effective on May 9, 2023. The Decree amends the mining and water laws, including: (i) the duration of the mining concession titles, (ii) the process to obtain new mining concessions






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(through a public tender), (iii) imposing conditions on water use and availability for the mining concessions, (iv) the elimination of “free land and first applicant” scheme; (iv) new social and environmental requirements in order to obtain and keep mining concessions, (v) the authorization by the Ministry of Economy of any mining concession’s transfer, (vi) new penalties and cancellation of mining concessions grounds due to non-compliance with the applicable laws, (vii) the automatic dismissal of any application for new concessions, and (viii) new financial instruments or collaterals that should be provided to guarantee the preventive, mitigation and compensation plans resulting from the social impact assessments, among other amendments.

These amendments are expected to have an impact on our current and future exploration activities and operations in Mexico and the extent of such impact is yet to be determined but could be material for the Company. On June 7, 2023, the Senators of the opposition parties (PRI, PAN and PRD) filed a constitutional action against the Decree, which is pending to be decided by Plenary of the Supreme Court of Justice. Additionally, during the second quarter of 2023, the Company filed amparo lawsuits challenging the constitutionality of the Decree. As of the date of this MD&A, these amparos filed by First Majestic, along with numerous amparos in relation to the Decree that have been filed by other companies, are still pending before the District or Collegiate Courts. On July 15, 2024, the Supreme Court of Justice in Mexico suspended all on-going amparo lawsuits against the Decree whilst the aforementioned constitutional action is being considered by the Supreme Court. Once the Supreme Court has provided its ruling on the constitutional action, such ruling will set a precedent that will enable the on-going amparo lawsuits to be resolved.

For further details regarding risks relating to government regulations, licenses and permits, see the section in the Company’s most recently filed AIF entitled “Risk Factors – Operational Risks – Governmental Regulations, Licenses and Permits”.

Public Health Crises

Global financial conditions and the global economy in general have, at various times in the past and may in the future, experience extreme volatility in response to economic shocks or other events. Many industries, including the mining industry, are impacted by volatile market conditions in response to the widespread outbreak of epidemics, pandemics, or other health crises. Such public health crises and the responses of governments and private actors can result in disruptions and volatility in economies, financial markets, and global supply chains as well as declining trade and market sentiment and reduced mobility of people, all of which could impact commodity prices, interest rates, credit ratings, credit risk and inflation.

Any public health crises could materially and adversely impact the Company's business, including without limitation, employee health, workforce availability and productivity, limitations on travel, supply chain disruptions, increased insurance premiums, increased costs and reduced efficiencies, the availability of industry experts and personnel, restrictions on the Company's exploration and drilling programs and/or the timing to process drill and other metallurgical testing and the slowdown or temporary suspension of operations at some or all of the Company's properties, resulting in reduced production volumes. Any such disruptions could have an adverse effect on the Company’s production, revenue, net income and business.

Environmental and Health and Safety Risks

The Company’s activities are subject to extensive laws and regulations governing environmental protection and employee health and safety. Environmental laws and regulations are complex and have tended to become more stringent over time. The Company is required to obtain governmental permits and in some instances air, water quality, waste disposal, hazardous substances and mine reclamation rules and permits. Although the Company makes provisions for environmental compliance and reclamation costs, it cannot be assured that these provisions will be adequate to discharge its future obligations for these costs. Failure to comply with applicable environmental and health and safety laws may result in injunctions, damages, suspension or revocation of permits and imposition of penalties. There can be no assurance that First Majestic has been or will be at all times in complete compliance with such laws, regulations and permits, or that the costs of complying with current and future environmental and health and safety laws and permits will not materially and adversely affect the Company’s business, results of operations or financial condition.

On August 26, 2021, the NDEP issued 10 Notices of Alleged Violation (collectively the “NOAV”) that alleged the Company doing business as Jerritt Canyon Gold, LLC had violated various air permit conditions and regulations applicable to operations at the Jerritt Canyon in Elko County, Nevada. The NOAV are related to compliance with emission monitoring, testing, recordkeeping requirements, and emission and throughput limits.







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The Company filed a Notice of Appeal on September 3, 2021, challenging the NOAV before the Nevada State Environmental Commission (“NSEC”). The Company raised various defenses to the NOAV, including that the Company is not liable for the violations because it was never the owner/operator of Jerritt Canyon during the period the alleged violations began (on April 30, 2021, the Company acquired Jerritt Canyon Canada Ltd, which, through subsidiaries, owns and operates Jerritt Canyon). There is currently no hearing scheduled or any scheduling order in the matter, and the parties have yet to engage in discovery.

On March 8, 2022, NDEP issued an additional four Notices of Alleged Violations to Jerritt Canyon Gold, LLC for alleged exceedances and violations of an Air Quality Operating permit and Mercury Operating Permit to Construct. The new NOAVs relate to alleged exceedances of mercury emission limitations, exceedances of operating parameters, installation of equipment, and recordkeeping requirements. The Company filed a Request for Hearing with the Nevada State Environmental Commission on March 18, 2022, that challenged the bases for the alleged NOAVs and any potential penalties associated with the NOAVs. JCG and NDEP agreed to waive the 20-day hearing requirement for the NOAVs and the parties request that the NSEC withhold schedule a hearing for the NOAVs at this time. At this time the estimated amount cannot be reliably determined.

The Company intends to, and attempts to, fully comply with all applicable environmental regulations, however the Company's ability to conduct adequate maintenance and safety protocols may be considerably constrained or even prevented in areas where its control is impacted by criminal activities, such as the San Martin mine. Although the Company has repeatedly requested all applicable governmental authorities to take action to secure the area, to date, the Mexican government has failed to take any such action and the Company's own efforts have been unsuccessful. Due to this situation, the Company has been unable to conduct care and maintenance activities at San Martin since its remaining employees were withdrawn in 2021 and the Company has limited information as to the current state of repair at the mine, including the tailing storage facility. As a result, there may be an increased risk that an environmental incident may occur at this operation and, as applicable Mexican laws impose strict liability on the property owner, the Company could incur material financial liabilities and suspension of authorizations as a result.

While responsible environmental stewardship is a top priority for the Company, there can be no assurance that the Company has been or will be at all times in complete compliance with applicable environmental laws, regulations and permits, or that the costs of complying with current and future environmental laws and permits will not materially and adversely affect the Company’s business, results of operations or financial condition.

Natural Protected Areas Risk

Pursuant to the General Law of Ecological Equilibrium and Environmental Protection (the “General Law”), the Government of Mexico may, from time to time, establish Natural Protected Areas. There are a variety of different levels of environmental protection provided under the General Law which limit the economic activity that may be undertaken in any particular Natural Protected Area. The Mexican government has announced its intention to create additional Natural Protected Areas in Mexico. Although there are currently no Natural Protected Areas in effect in the vicinity of the Company’s mining operations in Mexico, there can be no assurance that any such area will not be established in the future. In the event that a Natural Protected Area is established over land which is a part of or is nearby to any of the Company’s mineral properties in Mexico, the Company’s activities on such properties may be restricted or prevented entirely which may have a material adverse impact on the Company’s business.

Climate Related Risks

A number of governments have introduced or are moving to introduce climate change legislation and treaties at the international, national, state/provincial and local levels. Regulation relating to emission levels (such as carbon taxes) and energy efficiency is becoming more stringent. If the current regulatory trend continues, this may result in increased costs at some or all of the Company’s operations. In addition, the physical risks of climate change may also have an adverse effect on the Company’s operations. These risks include the following:

•Changes in sea levels could affect ocean transportation and shipping facilities that are used to transport supplies, equipment and workforce and products from the Company's operations to world markets.
•Extreme weather events (such as prolonged drought, flooding or freezing conditions) have the potential to disrupt operations at the Company’s mines and may require the Company to make additional expenditures to mitigate the impact of such events. Extended disruptions to supply lines could result in interruption to production.






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•The Company’s facilities depend on regular supplies of consumables (diesel, tires, sodium cyanide, etc.) and reagents to operate efficiently. In the event that the effects of climate change or extreme weather events cause prolonged disruption to the delivery of essential commodities, production levels at the Company’s operations may be reduced.

There can be no assurance that efforts to mitigate the risks of climate changes will be effective and that the physical risks of climate change will not have an adverse effect on the Company’s operations and profitability.

Claims and Legal Proceedings Risks

The Company is subject to various claims and legal proceedings covering a wide range of matters that arise in the ordinary course of business activities. Each of these matters is subject to various uncertainties and it is possible that some of these other matters may be resolved in a manner that is unfavourable to the Company which may result in a material adverse impact on the Company's financial performance, cash flow or results of operations. First Majestic carries liability insurance coverage and establishes provisions for matters that are probable and can be reasonably estimated, however there can be no guarantee that the amount of such coverage is sufficient to protect against all potential liabilities. In addition, the Company may in the future be subjected to regulatory investigations or other proceedings and may be involved in disputes with other parties in the future which may result in a significant impact on our financial condition, cash flow and results of operations.

Title of Properties
The validity of mining or exploration titles or claims or rights, which constitute most of the Company’s property holdings, can be uncertain and may be contested. The Company has used reasonable commercial efforts to investigate the Company’s title or claim to its various properties, however, no assurance can be given that applicable governments will not revoke or significantly alter the conditions of the applicable exploration and mining titles or claims and that such exploration and mining titles or claims will not be challenged or impugned by third parties. Mining laws are continually developing and changes in such laws could materially impact the Company’s rights to its various properties or interests therein. The Company has obtained title insurance for its Jerritt Canyon Mine but there is a risk that such insurance could be insufficient, or the Company could not be successful in any claim against its insurer. Accordingly, the Company may have little or no recourse as a result of any successful challenge to title to any of its properties. The Company’s properties may be subject to prior unregistered liens, agreements or transfers, land claims or undetected title defects which may have a material adverse effect on the Company’s ability to develop or exploit the properties.

In Mexico, legal rights applicable to mining concessions are different and separate from legal rights applicable to surface lands; accordingly, title holders of mining concessions must obtain agreement from surface landowners to obtain suitable access to mining concessions and for the amount of compensation in respect of mining activities conducted on such land. If the Company is unable to agree to terms of access with the holder of surface rights with respect to a particular claim, the Company may be able to gain access through a regulatory process in Mexico, however there is no guarantee that such process will be successful or timely or that the terms of such access will be favorable to the Company. In any such event, access to the Company's properties may be curtailed, which may result in reductions in production and corresponding reductions in revenue. Any such reductions could have a material adverse effect on the Company, its business and its results of operations.

Primero Tax Rulings
When Primero, the previous owner of San Dimas acquired the San Dimas Mine in August 2010, it assumed the obligations under a Silver Purchase Agreement (“Old Stream Agreement”) that required its subsidiary, PEM, to sell exclusively to Wheaton Precious Metals (“WPMI”) up to 6 million ounces silver produced from the San Dimas Mine, and 50% of silver produced thereafter, at the lower of: (i) the spot market price and (ii) $4.014 per ounce plus an annual increase of 1% (“PEM Realized Price”). In May 2018, the Old Stream Agreement was terminated between WPMI and Silver Trading (Barbados) Limited (“STB”) in connection with the Company entering into a new stream agreement with WPMI concurrent with the acquisition of Primero by the Company.

In order to reflect the commercial terms and the effects of the Old Stream Agreement, for Mexican income tax purposes, PEM recognized the revenue on these silver sales based on the PEM Realized Price instead of at spot market prices.







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To obtain tax and legal assurance that the Mexican tax authority, Servicio de Administración Tributaria (“SAT”) would accept the PEM Realized Price as the transfer price to calculate Mexican income taxes payable by PEM, a mutually binding Advance Pricing Agreement (“APA”) was entered into with the SAT for taxation years 2010 to 2014. On October 4, 2012, the SAT confirmed that based on the terms of the APA, the PEM Realized Price could be used as PEM’s basis for calculating taxes owed for the silver sold under the Old Stream Agreement.

In August 2015, the SAT commenced a legal process seeking to retroactively nullify the APA.

In 2019, the SAT issued reassessments for the 2010 to 2012 tax years in the total amount of $317.0 million (6,222 million MXN) inclusive of interest, inflation, and penalties. In 2021, the SAT also issued a reassessment against PEM for the 2013 tax year in the total amount of $167.6 million (3,289 million MXN) and in 2023, the SAT issued reassessments for the 2014, 2015, and 2016 tax years in the total amount of $427.2 million (8,385 million MXN) inclusive of interest, inflation, and penalties (collectively, the “Reassessments”). For the 2017 and 2018 tax years, the SAT has initiated audits that have not yet been concluded, and therefore, tax assessments for these years have yet to be issued. The Company believes that the Reassessments fail to recognize the applicability of a valid transfer pricing methodology. The major items in the Reassessments include determination of revenue based on spot market prices of silver, denial of the deductibility of interest expense and service fees, SAT technical error related to double counting of taxes, and interest and penalties.

The Company continues to defend the APA in domestic legal proceedings in Mexico, and the Company has also requested resolution of the transfer pricing dispute pursuant to the Mutual Agreement Procedure (“MAP”), under the relevant avoidance of double taxation treaties, between the competent tax authorities of Mexico, Canada, Luxembourg and Barbados. The SAT has refused to take the necessary steps under the MAP processes contained in the three tax treaties. The Company believes that by its refusal, Mexico is in breach of its international obligations regarding double taxation treaties. Furthermore, the Company continues to believe that the APA remains valid and legally binding on the SAT.

The Company continues to pursue all available domestic and international remedies under the laws of Mexico and under the relevant tax treaties. Furthermore, as discussed further below, the Company has also made claims against Mexico under Chapter 11 of the North American Free Trade Agreement (“NAFTA”) for violation of its international law obligations.

Domestic Remedies

In September 2020, the Company was served with a decision of the Federal Tax Court seeking to nullify the APA granted to PEM. The Company filed an appeal of the decision to the Mexican Circuit Courts on November 30, 2020. As two writs of certiorari were filed before the Mexican Supreme Court of Justice, on April 15, 2021, the Plenary of the Supreme Court i) admitted one of those writs, ii) requested the Circuit Court to send the appeal file to them, and iii) assigned such writ to the Second Chamber of the Supreme Court for issuing the corresponding decision. Both writs of certiorari were withdrawn in December 2022. The challenge filed by the Company was returned to the Second Collegiate Court on February 14, 2023 and on December 5, 2023, the Second Collegiate Court issued a decision, which was formally notified to the Company on January 4, 2024.

In such decision, the Second Collegiate Court partially granted constitutional protection to the Company with respect to certain matters, but not others.

Accordingly, on January 18, 2024, PEM filed an extraordinary appeal to the Mexican Supreme Court of Justice with respect to PEM’s constitutional arguments that were not accepted in the Second Collegiate Court's decision, and following the admission of the appeal, the Second Chamber of the Supreme Court of Justice assumed jurisdiction over the appeal on June 20, 2024. On September 18, 2024, the Supreme Court issued its decision, which was formally notified to the Company on October 15, 2024. The Supreme Court dismissed the Company’s appeal regarding the constitutional arguments, but affirmed the validity of certain precedents of the Supreme Court which the Company believes are favourable to PEM and that were not considered by the Federal Tax Court in its original decision in September 2020. Accordingly, the case will be sent back to the Federal Tax Court to issue a new decision, taking into account such Supreme Court precedents. PEM is currently waiting for the case to be returned to the Federal Tax Court, and expects that a new decision by the Federal Tax Court will be issued in the second half of 2025.










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International Remedies

i. NAFTA APA Claim

In respect of the APA, the Company submitted an Arbitration Request dated March 1, 2021 to the International Centre for Settlement of Investment Disputes ("ICSID"), on its own behalf and on behalf of PEM, pursuant to Chapter 11 of NAFTA (the “NAFTA APA Claim”). The NAFTA Arbitration Panel (the “Tribunal”) was fully constituted on August 20, 2021. Various procedural filings have since been made by the Company and Mexico.

Of note, on May 26, 2023, the Tribunal partially granted certain provisional measures requested by the Company, issuing an order for Mexico to permit the withdrawal of the Company’s VAT refunds for the period as of January 4, 2023 that had been deposited by the SAT into a frozen bank account, and to deposit all future VAT refunds into an account which shall remain freely accessible by the Company (the "PM Decision"). The PM Decision was upheld by the Tribunal on September 1, 2023, in response to a request from Mexico to revoke the decision. As a result, Mexico is obligated to comply with the PM Decision which requires payment of VAT refunds owing to PEM as of January 4, 2023 and into the future until the final award is rendered by the Tribunal. On July 9, 2024, the Company received a transfer of $11.0 million (198.4 million MXN) from the frozen bank account to a new bank account of PEM that the Company had opened in July 2023. The transfer of such funds was carried out by Mexico in furtherance of its obligations under the PM Decision.

In addition, in response to the Company’s counter-arguments to a jurisdictional objection filed by Mexico in late July 2023, the Tribunal dismissed Mexico’s objection, agreeing with the Company that the recovery of VAT refunds under the NAFTA VAT Claim (as defined in the section below) does not breach the waiver under NAFTA (i.e. the NAFTA APA Claim and the NAFTA VAT Claim are not in respect of the same measures).

On February 12, 2024, Mexico filed a request (the “Consolidation Request”) with ICSID pursuant to the procedure in Article 1126 of NAFTA to consolidate the NAFTA APA Claim and the NAFTA VAT Claim into one arbitration proceeding. A separate three-person tribunal to consider the Consolidation Request (the “Consolidation Tribunal”) was constituted on May 8, 2024, and the first procedural hearing of the Consolidation Tribunal took place on July 16, 2024.

In order to expedite the arbitration proceedings, the Company has advised the Consolidation Tribunal and Mexico that it is proposing to add claims covered by the NAFTA VAT Claim to the NAFTA APA Claim as ancillary claims. The Tribunal with jurisdiction over the NAFTA APA Claim has, as of July 15, 2024, granted the Company the right to introduce the ancillary claims to the NAFTA APA Claim, which will make it unnecessary for the NAFTA VAT Claim to proceed separately from the NAFTA APA Claim. On October 1, 2024, the Company submitted its request to the Secretary-General of ICSID to discontinue the NAFTA VAT Claim pursuant to Rule 56 of the 2022 ICSID Arbitration Rules. Mexico objected to the discontinuance on October 7, 2024, so pursuant to Rule 56, the proceedings with respect to the NAFTA VAT Claim will continue. In addition, Mexico filed its Memorial in support of the Consolidation Request on October 7, 2024. The Company is currently preparing its Counter-Memorial, which it is required to file by December 6, 2024.

We expect that the Consolidation Tribunal will make its decision in respect of the Consolidation Request in Q1 2025. Until such a decision has been made, proceedings in both the NAFTA APA Claim and the NAFTA VAT Claim have been suspended. However, any decisions rendered to date by the Tribunal in the NAFTA APA Claim, including but not limited to the PM Decision, remain in force during such suspension.

If the SAT’s attempts to retroactively nullify the APA are successful, the SAT can be expected to enforce any Reassessments for 2010 through 2014 against PEM in respect of its sales of silver pursuant to the Old Stream Agreement. Such an outcome would likely have a material adverse effect on the Company’s results of operations, financial condition and cash flows. Should the Company ultimately be required to pay tax on its silver revenues based on spot market prices without any mitigating adjustments, the incremental income tax for the years 2010-2019 would be $277.95 million (5,456 million MXN), before taking into consideration interest or penalties.

Based on the Company’s consultation with third party advisors, the Company believes PEM filed its tax returns in compliance with applicable Mexican law and that the APA is valid, therefore, at this time, no liability has been recognized in the financial statements with respect to this matter.

To the extent it is ultimately determined that the pricing for silver sales under the Old Stream Agreement is significantly different from the PEM Realized Price, and while PEM would have rights of appeal in connection with any reassessments, it is likely to have a materially adverse effect on the Company’s business, financial position and results of operations.






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ii. NAFTA VAT Claim

On March 31, 2023, the Company filed a new Notice of Intent on its own behalf and on behalf of PEM under the "legacy investment" claim provisions contained in Annex 14-C of the Canada-United States-Mexico Agreement (“CUSMA”) and Chapter 11 of NAFTA to invite the Government of Mexico to engage in discussions to resolve the dispute regarding the ongoing denial of access to PEM’s VAT refunds ("NAFTA VAT Claim") within the stipulated 90-day consultation period. The Company submitted its Arbitration Request for the NAFTA VAT Claim to ICSID on June 29, 2023 in order to preserve its legacy claim within NAFTA's applicable limitation period, and the Arbitration Request was registered by ICSID on July 21, 2023. As a result of the Consolidation Request (described above), the NAFTA VAT Claim has been suspended. As discussed above, on October 1, 2024, the Company submitted its request to the Secretary-General of ICSID to discontinue the NAFTA VAT Claim pursuant to Rule 56 of the 2022 ICSID Arbitration Rules. Mexico objected to the discontinuance on October 7, 2024, so pursuant to Rule 56, the proceedings with respect to the NAFTA VAT Claim will continue.

While the Company remains confident in its position with regards to its two NAFTA claims, it continues to engage with the Government of Mexico in consultation discussions so as to amicably resolve these disputes.

La Encantada Tax Re-assessments

In December 2019, as part of the ongoing annual audits of the tax returns of Minera La Encantada S.A. de C.V. (“MLE”) and Corporacion First Majestic S.A. de C.V. (“CFM”), the SAT issued tax assessments for fiscal 2012 and 2013 for corporate income tax in the amount of $36.9 million (724 million MXN) and $26.8 million (527 million MXN) including interest, inflation and penalties, respectively. In December 2022, the SAT issued tax assessments to MLE for fiscal years 2014 and 2015 for corporate income tax in the amount of $16.8 million (329 million MXN) and $211.1 million (4,144 million MXN). In 2023, the SAT issued a tax assessment to MLE for the fiscal year 2016 for corporate income tax in the amount of $3.0 million (58 million MXN). The major items relate to forward silver purchase agreement and denial of the deductibility of mine development costs and service fees. The Company continues to defend the validity of the forward silver purchase agreement and will vigorously dispute the assessments that have been issued. The Company, based on advice from legal and financial advisors, believes MLE’s tax filings were appropriate and its tax filing position is correct, therefore no liability has been recognized in the financial statements.

San Martin Tax Re-assessments

In 2023, as part of the ongoing annual audits of the tax returns of Minera El Pilon S.A. de C.V. (“MEP”), the SAT issued tax assessments for fiscal 2014, 2015 and 2016 for corporate income tax in the total amount of $25.1 million (493 million MXN) including interest, inflation and penalties. In 2024, the SAT issued a tax assessment for fiscal 2017 for corporate income tax in the amount of $3.2 million (63 million MXN) including interest, inflation, and penalties. The major items relate to forward silver purchase agreement and denial of the deductibility of mine development costs. The Company continues to defend the validity of the forward silver purchase agreement and will vigorously dispute the assessments that have been issued. The Company, based on advice from legal and financial advisors, believes MEP’s tax filings were appropriate and its tax filing position is correct, therefore no liability has been recognized in the financial statements.

La Parrilla Tax Re-assessments

In 2023 and 2024, as part of the ongoing annual audits of the tax returns of First Majestic Plata S.A. de C.V. (“FMP”), the SAT issued tax assessment for fiscal 2014, 2015, and 2016 for corporate income tax in the total amount of $60.4 million (1,186 million MXN) including interest, inflation and penalties. The major items relate to forward silver purchase agreement and denial of the deductibility of mine development costs. The Company continues to defend the validity of the forward silver purchase agreement and will vigorously dispute the assessments that have been issued. The Company, based on advice from legal and financial advisors, believes FMP’s tax filings were appropriate and its tax filing position is correct, therefore no liability has been recognized in the financial statements.

Del Toro Tax Re-assessments

In 2023, as part of the ongoing annual audits of the tax returns of First Majestic Del Toro S.A. de C.V. (“FMDT”), the SAT issued tax assessment for fiscal 2015 and 2016 for corporate income tax in the total amount of $25.1 million (493 million MXN) including interest, inflation and penalties. The major items relate to and denial of the deductibility of mine development costs, refining costs, and other expenses. The Company continues to defend the validity of the expenses and will vigorously dispute the assessments that have been issued. The Company, based on advice from legal and financial






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advisors, believes FMDT’s tax filings were appropriate and its tax filing position is correct, therefore no liability has been recognized in the financial statements.

CFM Tax Re-assessments

In 2023, as part of the ongoing annual audits of the tax returns of CFM, the SAT issued tax assessment for fiscal 2016 for corporate income tax in the total amount of $73.8 million (1,449 million MXN) including interest, inflation and penalties. The major item relates to planning that took place post-acquisition of Santa Elena (via the acquisition of SilverCrest Mines Inc. on October 1, 2015) at the Canadian level. Mexico contends a right to tax a disposition of the shares of SilverCrest Mines Inc. by First Majestic Silver Corp. although the transaction in question involved the disposition of the shares of one Canadian company by another Canadian company and was reported for tax purposes in Canada. The Company continues to defend the validity of the transaction in question and will vigorously dispute the assessments that have been issued. The Company, based on advice from legal and financial advisors, believes CFM’s tax filings were appropriate and its tax filing position is correct, therefore no liability has been recognized in the financial statements.

First Silver litigation

In April 2013, the Company received a positive judgment on the First Silver litigation from the Supreme Court of British Columbia (the “Court”), which awarded the sum of $93.8 million in favour of First Majestic against Hector Davila Santos (the “Defendant”) in connection with a dispute between the Company and the Defendant and his private company involving a mine in Mexico (the “Bolaños Mine”) as set out further below. The Company received a sum of $14.1 million in June 2013 as partial payment of the judgment, leaving an unpaid amount of $64.3 million (CAD$81.5 million). As part of the ruling, the Court granted orders restricting any transfer or encumbrance of the Bolaños Mine by the Defendant and limiting mining at the Bolaños Mine. The orders also require the Defendant to preserve net cash flow from the Bolaños Mine in a holding account and periodically provide to the Company certain information regarding the Bolaños Mine. After many years of domestic Mexican litigation, the enforceability of the British Columbia judgment was finally recognized by the Mexican Supreme Court in a written judgment on November 11, 2022. The Company has commenced collection actions in Mexico against the Defendant’s assets and continues to seek recovery of the balance against one of the Defendant’s assets located in the United States. Nonetheless, there can be no guarantee that the remainder of the judgment amount will be collected. Therefore, as at September 30, 2024, the Company has not accrued any of the remaining $64.3 million (CAD$81.5 million) unrecovered judgment in favour of the Company.

OTHER FINANCIAL INFORMATION

Off-Balance Sheet Arrangements

As at September 30, 2024, the Company had no material off-balance sheet arrangements such as contingent interest in assets transferred to an entity, derivative instruments obligations or any obligations that generate financing, liquidity, market or credit risk to the Company, other than contingent liabilities and vendor liability and interest, as disclosed in this MD&A and the consolidated financial statements and the related notes.

Share Repurchase Program

On September 12, 2024, the Company established a share repurchase program (the “Share Repurchase Program”) which permits it to repurchase up to 10,000,000 common shares (3.32% of the Company’s issued and outstanding common shares as at September 4, 2024) up to September 12, 2025. The Share Repurchase Program is a “normal course issuer bid” and will be carried out through the facilities of the Toronto Stock Exchange and alternative Canadian marketplaces. All common shares, if any, purchased pursuant to the Share Repurchase Program will be cancelled. The Company believes that from time to time, the market price of its common shares may not fully reflect the underlying value of the Company’s business and its future business prospects. The Company believes that at such times, the purchase of common shares under the Share Repurchase Program would be in the best interest of the Company. During the three months ended September 30, 2024, the Company did not repurchase any common shares under the Share Repurchase Program.







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Related Party Disclosures

In July 2020, the Company entered into a streaming agreement with First Mining to purchase 50% of the payable silver produced over the life of the Springpole Gold Project for total consideration of $22.5 million in cash and shares, over three payments. Keith Neumeyer, our President & Chief Executive Officer, and Raymond Polman, a director of the Company, are each directors of First Mining and accordingly may be considered to have a conflict of interest with respect to First Mining and the Springpole Silver Stream Agreement.

With the exception of the agreement with First Mining, there were no significant transactions with related parties during the nine months ended September 30, 2024.

Outstanding Share Data

As at November 6, 2024, the Company has 301,764,216 common shares issued and outstanding. In addition, the following awards that were granted under the Company’s long-term incentive plan were outstanding as at November 6, 2024:

Stock options 7,965,744 
Restricted share units (share-settled)1,451,747 
Deferred share units (share-settled)30,161 
Performance share units (share-settled)962,259 
Total10,409,911 

On December 2, 2021, the Company issued an aggregate of $230 million principal amount of 0.375% unsecured convertible senior notes due January 15, 2027 (the “Notes”). The Notes may be converted by the holders, in whole or in part, at any time. The initial conversion rate for the Notes is 60.3865 common shares per $1,000 principal amount of Notes, equivalent to an initial conversion price of approximately $16.56 per common share (subject to certain adjustment provisions, one of which requires an adjustment in connection with the payment of any dividends by the Company).

SUBSEQUENT EVENTS

The following significant events have occurred subsequent to September 30, 2024:

Filing of F-4 Registration Statement in connection with the Acquisition of Gatos

Subsequent to quarter end, the Company filed a registration statement on Form F-4 with the SEC in order to register the issuance of the common shares to be issued to shareholders of Gatos in connection with the Company’s acquisition of Gatos. The Company’s acquisition of Gatos is expected to close in early 2025, subject to the satisfaction of customary closing conditions, including approvals of the shareholders of First Majestic and Gatos, clearance under Mexican anti-trust laws, and approval of the listing of the First Majestic common shares to be issued under the Merger Agreement on both the TSX and the NYSE.

Declaration of Quarterly Dividend

On November 6, 2024, the Company’s Board of Directors approved the declaration of its quarterly common share dividend of $0.0048 per share, payable on or after November 29, 2024, to common shareholders of record as at the close of business on November 15, 2024. This dividend was declared subsequent to the quarter-end and has not been recognized as a distribution to owners during the period ended September 30, 2024.















First Majestic Silver Corp. 2024 Third Quarter Report
Page 39
              

ACCOUNTING POLICIES, JUDGMENTS AND ESTIMATES

Critical Accounting Judgments and Estimates

The preparation of consolidated financial statements in conformity with IFRS as issued by the International Accounting Standards Board (“IASB”) requires management to make judgments, estimates and assumptions about future events that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Although these estimates are based on management’s best knowledge of the amount, events or actions, actual results may differ from these estimates.

Within the Company’s condensed interim consolidated financial statements for the three and nine months ended September 30, 2024, there were no changes in critical accounting judgments and estimates that were significantly different from those disclosed in the Company’s annual MD&A as at and for the year ended December 31, 2023. These were applied in conjunction with the following accounting policies, critical judgments and estimates:

New and amended IFRS standards that are effective for the current year

In the current year, the Company has applied the below amendments to IFRS Standards and Interpretations issued by the IASB that were effective for annual periods that begin on or after January 1, 2024. Their adoption has not had any material impact on the disclosures or on the amounts reported in these financial statements.

Classification of Liabilities as Current or Non-Current with Covenants (Amendments to IAS 1)

The amendments aim to promote consistency in applying the requirements by helping companies determine whether, in the statement of financial position, debt and other liabilities with an uncertain settlement date should be classified as current (due or potentially due to be settled within one year) or non-current.

In addition, the amendment requires entities to disclose information to enable users of the financial statements to understand the risk that non-current liabilities with covenants could become repayable within twelve months. The amendments were applied effective January 1, 2024 and did not have a material impact on the Company’s consolidated financial statements.

Lease Liability in a Sale and Leaseback (Amendments to IFRS 16)

The amendments require a seller-lessee to subsequently measure lease liabilities arising from a leaseback in a way that it does not recognize any amount of the gain or loss that relates to the right of use it retains. The new requirements do not prevent a seller-lessee from recognizing in profit or loss any gain or loss relating to the partial or full termination of a lease. A seller-lessee applies the amendments retrospectively in accordance with IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors to sale and leaseback transactions entered into after the date of initial application. The amendments were applied effective January 1, 2024 and did not have a material impact on the Company’s consolidated financial statements.

Supplier Financing Arrangements (Amendments to IAS 7 and IFRS 7)

The amendments require disclosures regarding the effects of supplier finance arrangements on their liabilities, cash flows and exposure to liquidity risk. Entities are required to disclose the following:

•The terms and conditions;
•The amount of the liabilities that are part of the arrangements, breaking out the amounts for which the suppliers have already received payment from the finance providers, and stating where the liabilities are reflected in the balance sheet;
•Ranges of payment due dates; and
•Liquidity risk information.

The amendments were applied effective January 1, 2024 and did not have a material impact on the Company’s consolidated financial statements.








First Majestic Silver Corp. 2024 Third Quarter Report
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Future Changes in Accounting Policies Not Yet Effective as at September 30, 2024:

At the date of authorization of these financial statements, the Company has not applied the following new and revised IFRS Accounting Standards that have been issued but are not yet effective. Management does not expect that the adoption of the standards listed below will have a material impact on the financial statements of the Company in future periods, except if indicated.

Lack of Exchangeability (Amendments to IAS 21)

The amendments clarify how an entity should assess whether a currency is exchangeable and how it should determine a spot exchange rate when exchangeability is lacking. In addition, the amendments require the disclosure of information that enables users of financial statements to understand the impact of a currency not being exchangeable.

The amendments are effective for annual reporting periods beginning on or after January 1, 2025, although earlier application is permitted. This amendment is not expected to have a material impact on the Company’s consolidated financial statements.

Presentation and Disclosure in Financial Statements (Amendment to IFRS 18)

In April 2024, the IASB released IFRS 18 Presentation and Disclosure in Financial Statements. IFRS 18 replaces IAS 1 Presentation of Financial Statements while carrying forward many of the requirements in IAS 1. IFRS 18 introduces new requirements to: i) present specified categories and defined subtotals in the statement of earnings, ii) provide disclosures on management-defined performance measures (MPMs) in the notes to the financial statements, iii) improve aggregation and disaggregation. Some of the requirements in IAS 1 are moved to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors and IFRS 7 Financial Instruments: Disclosures. The IASB also made minor amendments to IAS 7 Statement of Cash Flows and IAS 33 Earnings per Share in connection with the new standard. IFRS 18 requires retrospective application with specific transition provisions.

The amendments are effective for annual reporting periods beginning on or after January 1, 2027, although earlier application is permitted. The Company is currently evaluating the impact of IFRS 18 on its Company’s consolidated financial statements.


































First Majestic Silver Corp. 2024 Third Quarter Report
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NON-GAAP MEASURES

The Company has included certain non-GAAP measures including “Cash costs per silver equivalents ounce”, “All-in sustaining cost (“AISC”) per silver equivalent ounce”, “AISC per gold ounce”, “Production cost per tonne”, “Average realized silver price per silver equivalent ounce”, “Average realized gold price”, “Adjusted net earnings”, “Adjusted earnings per share”, “Earnings before interest, tax, depreciation and amortization” (“EBITDA”), “Adjusted EBITDA”, “Free cash flow” and “Working capital” to supplement its consolidated financial statements, which are presented in accordance with IFRS. The terms IFRS and generally accepted accounting principles (“GAAP”) are used interchangeably throughout this MD&A.

The Company believes that these measures, together with measures determined in accordance with IFRS, provide investors with an improved ability to evaluate the underlying performance of the Company. Non-GAAP measures do not have any standardized meaning prescribed under IFRS and the methods used by the Company to calculate such measures may differ from methods used by other companies with similar descriptions, therefore they may not be comparable to similar measures employed by other companies. The data is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.

Cash Cost per AgEq Ounce, AISC per AgEq Ounce, AISC per Au Ounce, and Production Cost per Tonne

Cash costs per AgEq ounce and total production cost per tonne are non-GAAP performance measures used by the Company to manage and evaluate operating performance at each of the Company’s operating mining units, in conjunction with the related GAAP amounts. These metrics are widely reported in the mining industry as benchmarks for performance but do not have a standardized meaning and are disclosed in addition to IFRS measures. Management and investors use these metrics for comparing the costs against peers in the industry and for assessing the performance of each mine within the portfolio.

Management calculates the cash costs per ounce and production costs per tonne by:
•starting with the production costs (GAAP) from the income statement;
•adding back duties and royalties, smelting and refining costs as well as transportation and selling costs, which form a part of the cost of sales on the financial statements and provide a better representation of total costs incurred;
•cash costs are divided by the payable silver equivalent ounces produced; and
•production costs are divided by the total tonnes milled.

AISC is a non-GAAP performance measure and was calculated based on guidance provided by the World Gold Council (“WGC”). WGC is not a regulatory industry organization and does not have the authority to develop accounting standards for disclosure requirements. Other mining companies may calculate AISC differently as a result of differences in underlying accounting principles and policies applied, as well as differences in definitions of sustaining versus expansionary capital expenditures. AISC is a more comprehensive measure than cash cost per ounce and is useful for investors and management to assess the Company’s operating performance by providing greater visibility, comparability and representation of the total costs associated with producing silver from its current operations, in conjunction with related GAAP amounts. AISC helps investors to assess costs against peers in the industry and help management assess the performance of each mine within the portfolio in a standardized manner.

The Company defines sustaining capital expenditures as “costs incurred to sustain and maintain existing assets at current productive capacity and constant planned levels of productive output without resulting in an increase in the life of assets, future earnings, or improvements in recovery or grade. Sustaining capital includes costs required to improve/enhance assets to minimum standards for reliability, environmental or safety requirements. Sustaining capital expenditures excludes all expenditures at the Company’s new projects and certain expenditures at current operations which are deemed expansionary in nature.”

Expansionary capital expenditures are defined by the Company as "costs incurred to extend existing assets beyond their current productive capacity and beyond their planned levels of productive output, resulting in an increase in the life of the assets, increasing their future earnings potential, or improving their recoveries or grades which would serve to increase the value of the assets over their useful lives". Development and exploration work which moves inferred resources to measured or indicated resources and adds to the Net Present Value of the assets is considered expansionary in nature. Expansionary capital also includes costs required to improve/enhance assets beyond their minimum standard for reliability, environmental or safety requirements.







First Majestic Silver Corp. 2024 Third Quarter Report
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Consolidated AISC includes total production costs (GAAP measure) incurred at the Company’s mining operations, which forms the basis of the Company’s total cash costs. Additionally, the Company includes sustaining capital expenditures, corporate general and administrative expenses, share-based payments, operating lease payments and reclamation cost accretion. AISC by mine does not include certain corporate and non-cash items such as general and administrative expense and share-based payments. The Company believes this measure represents the total sustainable costs of producing silver from current operations and provides additional information of the Company’s operational performance and ability to generate cash flows. As the measure seeks to reflect the full cost of silver production from current operations, new projects and expansionary capital at current operations are not included. Certain other cash expenditures, including tax payments, dividends and financing costs are also not included.






First Majestic Silver Corp. 2024 Third Quarter Report
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The following tables provide detailed reconciliations of these measures to cost of sales, as reported in notes to our consolidated financial statements.
(expressed in thousands of U.S. Dollars,
except ounce and per ounce amounts)		Three Months Ended September 30, 2024
Santa ElenaSan DimasLa EncantadaJerritt CanyonConsolidated
Mining cost$12,313 $13,667 $4,511 $— $30,491 
Milling cost 10,156 7,177 5,411 — 22,744 
Indirect cost 5,550 12,103 3,661 — 21,314 
Total production cost (A)$28,019 $32,947 $13,583 $— $74,549 
Add: transportation and other selling cost280 283 78 — 632 
Add: smelting and refining cost115 316 106 368 905 
Add: environmental duty and royalties cost3,376 392 132 — 3,900 
Add: change in inventory277 854 (76)2,017 3,072 
Total cash cost (B)$32,067 $34,792 $13,823 $2,385 $83,058 
Workers’ participation752 3,902 292 — 4,946 
General and administrative expenses— — — — 9,060 
Share-based payments— — — — 2,935 
Accretion of decommissioning liabilities307 343 284 — 934 
Sustaining capital expenditures2,779 5,799 1,020 — 9,750 
Operating lease payments2,657 364 1,068 — 4,442 
All-In Sustaining Costs (C)$38,562 $45,200 $16,487 $2,385 $115,125 
Payable silver equivalent ounces produced (D)2,681,347 2,105,627 547,712 138,330 5,473,016 
Payable gold ounces produced (E)N/AN/AN/A1,600 N/A
Tonnes milled (F)259,919 195,279 223,200 — 678,397 
Cash cost per AgEq ounce (B/D)$11.96 $16.50 $25.24 $17.25 $15.17 
AISC per AgEq ounce (C/D)$14.38 $21.44 $30.10 $17.25 $21.03 
Cash cost per Au ounce (B/E)N/AN/AN/A$1,491 N/A
AISC per Au ounce (C/E)N/AN/AN/A$1,491 N/A
Production cost per tonne (A/F)$107.80 $168.45 $60.86 N/A$109.81 









First Majestic Silver Corp. 2024 Third Quarter Report
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(expressed in thousands of U.S. Dollars,
except ounce and per ounce amounts)		Three Months Ended September 30, 2023
Santa ElenaSan DimasLa EncantadaJerritt CanyonConsolidated
Mining cost $12,480 $17,381 $4,055 $459 $34,374 
Milling cost 9,507 8,297 6,017 108 23,929 
Indirect cost 6,312 15,651 4,053 — 26,018 
Total production cost (A)$28,299 $41,329 $14,126 $568 $84,322 
Add: transportation and other selling cost238 290 124 4 533 
Add: smelting and refining cost108 352 121 6 587 
Add: environmental duty and royalties cost2,595 288 263 7 3,153 
Total cash cost (B)$31,240 $42,259 $14,634 $585 $88,595 
Workers’ participation959 2,747 272 — 3,977 
General and administrative expenses— — — — 10,074 
Share-based payments— — — — 2,762 
Accretion of decommissioning liabilities201 285 209 695 
Sustaining capital expenditures4,059 7,882 1,049 100 13,544 
Operating lease payments2,671 156 887 — 4,103 
All-In Sustaining Costs (C)$39,130 $53,329 $17,051 $685 $123,831 
Payable silver equivalent ounces produced (D)2,665,332 3,002,851 570,963 32,386 6,271,532 
Payable gold ounces produced (E)N/AN/AN/A396 N/A
Tonnes milled (F)226,292 213,681 230,230 — 670,203 
Cash cost per AgEq ounce (B/D)$11.72 $14.07 $25.63 $18.08 $14.13 
AISC per AgEq ounce (C/D)$14.68 $17.76 $29.86 $21.16 $19.91 
Cash cost per Au ounce (B/E)N/AN/AN/A$1,477 N/A
AISC per Au ounce (C/E)N/AN/AN/A$1,730 N/A
Production cost per tonne (A/F)$125.05 $193.41 $61.35 N/A$125.81 






























First Majestic Silver Corp. 2024 Third Quarter Report
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(expressed in thousands of U.S. Dollars,
except ounce and per ounce amounts)		Nine Months Ended September 30, 2024
Santa ElenaSan DimasLa EncantadaJerritt CanyonConsolidated
Mining cost$37,090 $42,757 $12,805 $— $92,652 
Milling cost 29,357 23,153 15,735 20 68,264 
Indirect cost 16,107 38,311 11,025 — 65,443 
Total production cost (A)$82,554 $104,221 $39,565 $20 $226,360 
Add: transportation and other selling cost800 824 163 — 1,921 
Add: smelting and refining cost340 983 324 377 2,024 
Add: environmental duty and royalties cost8,950 911 455 12 10,328 
Add: change in inventory(1,394)258 (1,257)2,875 482 
Total cash cost (B)$91,250 $107,197 $39,250 $3,284 $241,115 
Workers’ participation3,007 11,407 992 — 15,406 
General and administrative expenses— — — — 27,067 
Share-based payments— — — — 10,895 
Accretion of decommissioning liabilities921 1,030 853 — 2,804 
Sustaining capital expenditures9,563 18,816 3,066 — 31,676 
Operating lease payments6,130 1,017 3,142 — 11,396 
All-In Sustaining Costs (C)$110,871 $139,467 $47,303 $3,288 $340,359 
Payable silver equivalent ounces produced (D)7,535,292 6,573,377 1,591,516 201,410 15,901,595 
Payable gold ounces produced (E)N/AN/AN/A2,321 N/A
Tonnes milled (F)740,740 557,424 643,453 — 1,941,617 
Cash cost per AgEq ounce (B/D)$12.11 $16.31 $24.66 $16.30 $15.15 
AISC per AgEq ounce (C/D)$14.71 $21.22 $29.72 $16.30 $21.39 
Cash cost per Au ounce (B/E)N/AN/AN/A$1,415 N/A
AISC per Au ounce (C/E)N/AN/AN/A$1,415 N/A
Production cost per tonne (A/F)$111.45 $186.89 $61.49 – $116.56 









First Majestic Silver Corp. 2024 Third Quarter Report
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(expressed in thousands of U.S. Dollars, except ounce and per ounce amounts)Nine Months Ended September 30, 2023
Santa ElenaSan DimasLa EncantadaJerritt CanyonConsolidated
Mining cost$30,278 $48,663 $12,104 $27,297 $118,340 
Milling cost 27,835 25,120 16,746 26,853 96,554 
Indirect cost 16,393 41,494 10,854 5,252 73,995 
Total production cost (A)$74,506 $115,276 $39,704 $59,402 $288,888 
Add: transportation and other selling cost715 1,133 455 34 2,337 
Add: smelting and refining cost212 1,141 444 57 1,854 
Add: environmental duty and royalties cost6,701 1,030 624 787 9,142 
Total cash cost (B)$82,134 $118,580 $41,227 $60,280 $302,221 
Workers’ participation1,862 11,099 941 — 13,902 
General and administrative expenses— — — — 29,416 
Share-based payments— — — — 10,711 
Accretion of decommissioning liabilities774 1,100 807 514 3,196 
Sustaining capital expenditures12,792 23,741 3,040 8,094 48,543 
Operating lease payments5,626 505 2,634 — 9,987 
All-In Sustaining Costs (C)$103,188 $155,025 $48,649 $68,889 $417,970 
Payable silver equivalent ounces produced (D)6,553,498 9,655,045 2,214,743 1,765,316 20,188,602 
Payable gold ounces produced (E)N/AN/AN/A21,080 N/A
Tonnes milled (F)648,991 660,113 762,494 177,643 2,249,241 
Cash cost per AgEq ounce (B/D)$12.53 $12.28 $18.61 $34.15 $14.97 
AISC per AgEq ounce (C/D)$15.75 $16.06 $21.97 $39.02 $20.70 
Cash cost per Au ounce (B/E)N/AN/AN/A$2,860 N/A
AISC per Au ounce (C/E)N/AN/AN/A$3,268 N/A
Production cost per tonne (A/F)$114.80 $174.63 $52.07 $334.39 $128.44 

























First Majestic Silver Corp. 2024 Third Quarter Report
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Average Realized Silver Price per Silver Equivalent Ounce

Revenues are presented as the net sum of invoiced revenues related to delivered shipments of silver or gold doré bars, including associated metal by-products of lead and zinc after having deducted refining and smelting charges, and after elimination of intercompany shipments of silver, silver being minted into coins, ingots and bullion products.

The average realized silver price is a non-GAAP performance measure that allows management and investors to assess the Company’s ability to sell ounces produced, in conjunction with related GAAP amounts. Management calculates this measure by taking total revenue reported under GAAP and adding back smelting and refining charges to arrive at the gross reportable revenue for the period. Gross revenues are divided into payable silver equivalent ounces sold to calculate the average realized price per ounce of silver equivalents sold. The streaming and royalty agreements in place between the Company and Sandstorm as well as Wheaton, impacts the total revenues reported on the financial statements given the reduced prices provided to these vendors in line with the terms of the agreements. Therefore, management adjusts revenue to exclude smelting and refining charges as well as revenues earned through agreements with these vendors. This provides management with a better picture regarding its ability to convert ounces produced to ounces sold and provides the investor with a clear picture of the price that the Company can currently sell the inventory for, excluding pre-arranged agreements.
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Revenues as reported$146,087 $133,211 $388,267 $436,855 
Add back: smelting and refining charges905 587 2,024 1,854 
Gross revenues146,992 133,798 390,291 438,709 
Less: Sandstorm gold revenues— (3)(10)(507)
Less: Wheaton gold revenues(4,472)(6,114)(13,794)(19,895)
Gross revenues, excluding Sandstorm, Wheaton (A)$142,520 $127,682 $376,487 $418,306 
Payable silver equivalent ounces sold5,377,377 6,975,493 15,665,979 20,910,221 
Less: Payable silver equivalent ounces sold to Sandstorm— — (1,837)(88,543)
Less: Payable silver equivalent ounces sold to Wheaton(601,660)(1,277,748)(1,846,753)(2,655,553)
Payable silver equivalent ounces sold, excluding Sandstorm and Wheaton (B)4,775,717 5,697,745 13,817,389 18,166,125 
Average realized silver price per silver equivalent ounce (A/B)$29.84 $22.41 $27.25 $23.03 
Average market price per ounce of silver per COMEX$29.46 $23.56 $27.22 $23.44 


















First Majestic Silver Corp. 2024 Third Quarter Report
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Average Realized Gold Price per Ounce

Revenues are presented as the net sum of invoiced revenues related to delivered shipments of silver or gold doré bars, including associated metal by-products of lead and zinc after having deducted refining and smelting charges, and after elimination of intercompany shipments of silver, silver being minted into coins, ingots and bullion products.

The average realized gold price is a non-GAAP performance measure that allows management and investors to assess the Company’s ability to sell ounces produced, in conjunction with related GAAP amounts. Management calculates this measure by taking total revenue reported under GAAP and adding back smelting and refining charges to arrive at the gross reportable revenue for the period. Silver revenues are deducted from the reportable revenue for the period in order to arrive at the gold revenue for the period. Gross gold revenues are divided into gold ounces sold to calculate the average realized price per ounce of gold sold. The streaming and royalty agreements in place between the Company and Sandstorm as well as Wheaton, impacts the total revenues reported on the financial statements given the reduced prices provided to these vendors in line with the terms of the agreements. Therefore, management adjusts revenue to exclude smelting and refining charges as well as revenues earned through agreements with these vendors. This provides management with a better picture regarding its ability to convert ounces produced to ounces sold and provides the investor with a clear picture of the price that the Company can currently sell the inventory for, excluding pre-arranged agreements.

Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Gross revenue, excluding Sandstorm, Wheaton $142,520 $127,682 $376,487 $418,306 
Less: Silver revenues(57,654)(59,021)(158,560)(186,998)
Gross gold revenues, excluding Sandstorm, Wheaton (A)$84,866 $68,661 $217,927 $231,308 
Gold ounces sold41,258 44,866 116,228 154,513 
Less: Gold ounces sold to Wheaton(7,022)(9,695)(21,756)(31,700)
Less: Gold ounces sold to Sandstorm— (5)(21)(1,071)
Gold ounces sold, excluding Sandstorm and Wheaton (B)34,236 35,166 94,451 121,742 
Average realized gold price per ounce (A/B)$2,479 $1,952 $2,307 $1,900 
Average market price per ounce of gold$2,477 $1,977 $2,296 $1,932 

Free Cash Flow

Free cash flow is a non-GAAP liquidity measure which is determined based on operating cash flows less sustaining capital expenditures. Management uses free cash flow as a critical measure in the evaluation of liquidity in conjunction with related GAAP amounts. It also uses the measure when considering available cash, including for decision-making purposes related to dividends and discretionary investments. Further, it helps management, the Board of Directors and investors evaluate a Company’s ability to generate liquidity from operating activities.

Three Months Ended September 30,Nine Months Ended September 30, 2023
2024202320242023
Operating cash flows $41,038 $19,980 $70,316 $35,689 
Less: Sustaining capital expenditures9,750 13,544 31,676 48,543 
Free cash flow$31,288 $6,436 $38,640 ($12,854)











First Majestic Silver Corp. 2024 Third Quarter Report
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Adjusted Earnings per Share (“Adjusted EPS”)

The Company uses the financial measure “Adjusted EPS” which is a non-GAAP measure, to supplement earnings per share (GAAP) information in its consolidated financial statements. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, the Company and certain investors and analysts use this information to evaluate the Company’s performance.

Management uses adjusted earnings per share as a critical measure of operating performance in conjunction with the related GAAP amounts. The only items considered in the adjusted earnings-per-share calculation are those that management believes (1) may affect trends in underlying performance from year to year and (2) are not considered normal recurring cash operating expenses.

Adjusted earnings per share is used for forecasting, operational and strategic decision making, evaluating current Company and management performance, and calculating financial covenants. Management believes that excluding certain non-cash and non-recurring items from the calculation increases comparability of the metric from period to period, which makes it useful for management, the audit committee and investors, to evaluate the underlying core operations. The presentation of Adjusted EPS is not meant to be a substitute for EPS presented in accordance with IFRS, but rather should be evaluated in conjunction with such IFRS measure.

To calculate adjusted earnings per share, management adjusts from net earnings (GAAP), the per-share impact, net of the tax effects of adjustments, of the following:
•share based payments;
•realized and unrealized gains and losses from investment in derivatives and marketable securities; and
•other infrequent or non-recurring losses and gains.

The following table provides a detailed reconciliation of net earnings (losses) as reported in the Company’s condensed interim consolidated financial statements to adjusted net earnings and Adjusted EPS:
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Net loss as reported($26,593)($27,149)($88,407)($145,343)
Adjustments for non-cash or unusual items:
Impairment of non-current assets— — — 125,200 
Deferred income tax expense (recovery)13,235 3,729 25,094 (52,644)
(Gain) loss from investment in marketable securities(108)685 (205)1,619 
Loss on divestiture of mining interest— 1,646 — 3,024 
Share-based payments2,935 2,762 10,895 10,711 
Standby costs— — — 13,438 
Abnormal costs (1)
— — 1,759 — 
Restructuring costs — 6,428 — 6,428 
Write-down on assets held-for-sale— — — 7,229 
Write-down of mineral inventory— 972 1,465 14,841 
Adjusted net loss($10,531)($10,927)($49,399)($15,497)
Weighted average number of shares on issue - basic301,000,656 286,921,720 293,440,674 280,758,404 
Adjusted EPS($0.03)($0.04)($0.17)($0.06)

(1) Abnormal costs include $1.8 million incurred at San Dimas as a result of increased diesel consumption due to the use of back up energy sources following low water levels at the Company's Las Truchas hydroelectric dam and damage to the power lines at the hydroelectric plant.







First Majestic Silver Corp. 2024 Third Quarter Report
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Earnings before interest, taxes, depreciation and amortization (“EBITDA”) and Adjusted EBITDA

The Company started using the financial measures “EBITDA” and “Adjusted EBITDA” in the third quarter of 2024, which are both non-GAAP measures, to supplement net earnings (GAAP) information in its consolidated financial statements. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, the Company and certain investors and analysts use this information to evaluate the Company’s performance.

Management uses EBITDA and Adjusted EBITDA as a critical measure of operating performance in conjunction with the related GAAP amounts. EBITDA is profit before net finance expense, provision for income taxes, and depreciation and amortization. The only items considered in the Adjusted EBITDA calculation are those that management believes (1) may affect trends in underlying performance from year to year and (2) are not considered normal recurring cash operating expenses.

EBITDA and Adjusted EBITDA is used for forecasting, operational and strategic decision making and evaluating current Company and management performance. Management believes that excluding certain non-cash and non-recurring items from the EBITDA calculation increases comparability of the metric from period to period, which makes it useful for management, the audit committee and investors, to evaluate the underlying core operations. The presentation of EBITDA and Adjusted EBITDA is not meant to be a substitute for net earnings presented in accordance with IFRS, but rather should be evaluated in conjunction with such IFRS measure.

To calculate EBITDA, management adjusts from net earnings (GAAP) by adding back finances costs, depletion, depreciation and amortization, and income taxes. To calculate Adjusted EBITDA, management adjusts from EBITDA, net of the tax effects of adjustments, the following:
•share-based payments;
•realized and unrealized gains and losses from investment in derivatives and marketable securities; and
•other infrequent or non-recurring losses and gains.

The following table provides a detailed reconciliation of net earnings (losses) as reported in the Company’s condensed interim consolidated financial statements to EBITDA and Adjusted EBITDA:

Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Net loss as reported($26,593)($27,149)($88,407)($145,343)
Add back:
Finance costs6,858 6,739 21,277 19,688 
Depletion, depreciation and amortization32,251 28,363 90,444 96,158 
Income taxes24,409 3,551 41,801 (47,409)
EBITDA36,925 11,504 65,115 (76,906)
Adjustments for non-cash or unusual items:
Impairment of non-current assets— — — 125,200 
(Gain) loss from investment in marketable securities(108)685 (205)1,619 
Loss on divestiture of mining interest— 1,646 — 3,024 
Share-based payments2,935 2,762 10,895 10,711 
Standby costs— — — 13,438 
Abnormal costs (1)
— — 1,759 — 
Restructuring costs — 6,428 — 6,428 
Write-down on assets held-for-sale— — — 7,229 
Write-down of mineral inventory— 972 1,465 14,841 
Adjusted EBITDA$39,752 $23,997 $79,029 $105,584 
(1) Abnormal costs include $1.8 million incurred at San Dimas as a result of increased diesel consumption due to the use of back up energy sources following low water levels at the Company's Las Truchas hydroelectric dam and damage to the power lines at the hydroelectric plant.






First Majestic Silver Corp. 2024 Third Quarter Report
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Working Capital and Available Liquidity

Working capital is determined based on current assets and current liabilities as reported in the Company’s consolidated financial statements. The Company uses working capital as a measure of the Company’s short-term financial health and operating efficiency. Available liquidity includes the Company’s working capital and undrawn revolving credit facility.
September 30, 2024December 31, 2023
Current Assets$355,594 $309,057 
Less: Current Liabilities(117,370)(120,138)
Working Capital$238,224 $188,919 
Available Undrawn Revolving Credit Facility139,640 124,640 
Available Liquidity$377,864 $313,559 

MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

Disclosure Controls and Procedures

The Company’s management, with the participation of its President & Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), has evaluated the effectiveness of the Company’s disclosure controls and procedures. Based upon the results of that evaluation, the Company’s CEO and CFO have concluded that, as at September 30, 2024, the Company’s disclosure controls and procedures were effective to provide reasonable assurance that the information required to be disclosed by the Company in reports it files is recorded, processed, summarized and reported, within the appropriate time periods and is accumulated and communicated to management, including the CEO and CFO, as appropriate to allow timely decisions regarding required disclosure.

Internal Control over Financial Reporting

The Company’s management, with the participation of its CEO and CFO, is responsible for establishing and maintaining adequate internal control over financial reporting as such term is defined in the rules of the United States Securities and Exchange Commission and the Canadian Securities Administrators. The Company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with IFRS as issued by the IASB. The Company’s internal control over financial reporting includes policies and procedures that:

•maintain records that accurately and fairly reflect, in reasonable detail, the transactions and dispositions of assets of the Company;
•     provide reasonable assurance that transactions are recorded as necessary for preparation of financial statements in accordance with IFRS as issued by IASB;
•provide reasonable assurance that the Company’s receipts and expenditures are made only in accordance with authorizations of management and the Company’s Directors; and
• provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company’s assets that could have a material effect on the Company’s consolidated financial statements.

The Company’s internal control over financial reporting may not prevent or detect all misstatements because of inherent limitations. Additionally, projections of any evaluation of effectiveness for future periods are subject to the risk that controls may become inadequate because of changes in conditions or deterioration in the degree of compliance with the Company’s policies and procedures.

The Company’s management evaluated the effectiveness of our internal controls over financial reporting based upon the criteria set forth in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on management’s evaluation, our CEO and CFO concluded that our internal controls over financial reporting was effective as of September 30, 2024. There have been no significant changes in our internal controls during the quarter ended September 30, 2024 that have materially affected, or are reasonably likely to materially affect, internal control over financial reporting.






First Majestic Silver Corp. 2024 Third Quarter Report
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Limitations of Controls and Procedures

The Company’s management, including the President and CEO and CFO, believes that any disclosure controls and procedures or internal control over financial reporting, no matter how well conceived and operated, may not prevent or detect all misstatements because of inherent limitations. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, they cannot provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been prevented or detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of simple errors or mistakes. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by unauthorized override of the control. The design of any control system also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Accordingly, because of the inherent limitations in a cost effective control system, misstatements due to error or fraud may occur and not be detected.

CAUTIONARY STATEMENTS

Cautionary Note regarding Forward-Looking Statements

Certain information contained herein this MD&A constitutes forward-looking statements under applicable securities laws (collectively, “forward-looking statements”). These statements relate to future events or the Company’s future performance, business prospects or opportunities. Forward-looking statements include, but are not limited to: commercial mining operations; anticipated mineral recoveries; projected quantities of future mineral production; statements with respect to the Company’s business strategy; completion of the Merger and the timing and terms thereto including the anticipated impact of the Merger on the Company's free cash flow; future planning processes; interpretation of drill results and other technical data; anticipated development, expansion, exploration activities and production rates and costs and mine plans and mine life; the security situation at the San Martin mine; the estimated cost and timing of plant improvements at the Company’s operating mines and development of the Company’s development projects; construction and operations of the replacement well at La Encantada; statements with respect to water source development and water inventory levels at La Encantada; the timing of completion of exploration programs and drilling programs; the restarting of operations or potential plans at the Company's temporarily suspended and/or non-operating mines; the temporary suspension of processing activities at Jerritt Canyon; future exploration activities at the Jerritt Canyon Gold Mine and the costs thereof; anticipated reclamation and decommissioning activities and associated costs; conversion of mineral resources to proven and probable mineral reserves; analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable; statements with respect to the Company’s future financial position including operating efficiencies, cash flow, capital budgets, costs and expenditures, cost savings, allocation of capital, and statements with respect to the recovery of value added tax receivables and the tax regime in Mexico; the implementation and effect of cost reduction initiatives; the preparation of technical reports and completion of preliminary economic assessments; the repurchase of the Company’s shares; viability of the Company’s projects; potential metal recovery rates; sales of bullion direct to customers; payment of dividends; the impact of amendments to accounting policies; effectiveness of internal controls and procedures; the validity of the APA; statements with respect to the recovery of value added tax receivables and the tax regime in Mexico; the conduct or outcome of outstanding litigation, regulatory proceedings, negotiations or proceedings under NAFTA or other claims and the compliance by counterparties with judgments or decisions; the continued development and future operations of the Company’s minting facility; the Share Repurchase Program (as defined herein); future regulatory trends, future market conditions, future staffing levels and needs and assessment of future opportunities of the Company; the Company’s plans with respect to enforcement of certain judgments in favour of the Company and the likelihood of collection under those judgments; the Company’s ability to comply with future legislation or regulations including amendments to Mexican mining legislation and the Company’s intent to comply with future regulatory and compliance matters; expectations regarding the effects of public health crises including pandemics such as COVID‐19 on the Company's operations, the global economy and the market for the Company's products; and other statements identified as such in the documents incorporated by reference herein. All statements other than statements of historical fact may be forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “seek”, “anticipate”, “plan”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “predict”, “forecast”, “potential”, “targeting”, “intend”, “could”, “might”, “should”, “believe” and similar expressions) are not statements of historical fact and may be “forward-looking statements”.







First Majestic Silver Corp. 2024 Third Quarter Report
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Forward-looking statements are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management made in light of management's experience and perception of historical trends, current conditions and expected future developments at the dates the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include, without limitation: satisfaction or waiver of all applicable closing conditions for the Merger on a timely basis or at all including, without limitation, receipt of all necessary shareholder, stock exchange and regulatory approvals or consents and lack of material changes with respect to First Majestic and Gatos and their respective businesses, all as more particularly set forth in the Merger Agreement, global economic conditions including public health threats, the inherent risks involved in the mining, exploration and development of mineral properties, the uncertainties involved in interpreting drilling results and other geological data, fluctuating commodity prices, fluctuating currency exchange rates, the possibility of project delays or cost overruns or unanticipated excessive operating costs and expenses, uncertainties related to the necessity of financing, the availability of and costs of financing needed in the future, uninsured risks, defects in title, availability and costs of materials and equipment, climate change events including, but not limited to, drought conditions, changes in national or local governments, changes in applicable legislation or application thereof, timeliness of government approvals, actual performance of facilities, equipment, and processes relative to specifications and expectations and unanticipated environmental impacts on operations, availability of time on court calendars in Canada and elsewhere; the recognition of Canadian judgments under Mexican law; the possibility of settlement discussions; the risk of appeal of judgment; and the insufficiency of the defendant's assets to satisfy the judgment amount and other factors described in the Company’s most recently filed AIF under the heading “Risk Factors”.

The Company believes that the expectations reflected in any such forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included herein this MD&A should not be unduly relied upon. These statements speak only as of the date of this MD&A. The Company does not intend, and does not assume any obligation, to update these forward-looking statements, except as required by applicable laws. Actual results may differ materially from those expressed or implied by such forward-looking statements.

Technical Information

Scientific and technical information contained in this MD&A has been reviewed and approved by Gonzalo Mercado, P. Geo., the Company’s Vice President of Exploration and Technical Services and a “Qualified Person” as defined under NI 43-101. For more detailed information regarding the Company’s material mineral properties, please refer to the Company’s most recently filed AIF which is available under our SEDAR+ profile at www.sedarplus.ca, and on EDGAR as an exhibit to our most recently filed Form 40-F.

Cautionary Note to United States Investors Concerning Estimates of Mineral Reserves and Resources

This Management’s Discussion and Analysis has been prepared in accordance with the requirements of the securities laws in effect in Canada, which differ materially from the requirements of United States securities laws applicable to U.S. companies. Information concerning our mineral properties has been prepared in accordance with the requirements of Canadian securities laws, which differ in material respects from SEC requirements applicable to domestic United States issuers. Accordingly, the disclosure in this Management’s Discussion and Analysis regarding our mineral properties is not comparable to the disclosure of United States issuers subject to the SEC’s mining disclosure requirements.

Additional Information

Additional information on the Company, including the Company’s most recently filed AIF and the Company’s audited consolidated financial statements for the year ended December 31, 2023, is available under the Company’s profile on SEDAR+ at www.sedarplus.ca and on the Company’s website at www.firstmajestic.com.







First Majestic Silver Corp. 2024 Third Quarter Report
Page 54
              

Exhibit 99.3




Form 52-109F2
Certification of Interim Filings
Full Certificate

I, Keith Neumeyer, President & Chief Executive Officer of First Majestic Silver Corp., certify the following:

1.Review: I have reviewed the interim financial report and interim MD&A (together, the “interim filings”) of First Majestic Silver Corp. (the “issuer”) for the interim period ended September 30, 2024.

2.No misrepresentations: Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, for the period covered by the interim filings.

3.Fair presentation: Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.

4.Responsibility: The issuer’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim filings, for the issuer.

5.Design: Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer’s other certifying officer(s) and I have, as at the of the period covered by the interim filings:

(a)designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that

(i)material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and

(ii)information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and

(b)designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer’s GAAP.

5.1Control framework: The control framework the issuer’s other certifying officer(s) and I used to design the issuer’s ICFR is the 2013 Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

5.2N/A.


5.3    N/A.

6.Reporting changes in ICFR: The issuer has disclosed in its interim MD&A any change in the issuer’s ICFR that occurred during the period beginning on July 1, 2024 and ended on September 30, 2024 that has materially affected, or is reasonably likely to materially affect, the issuer’s ICFR.



Date: November 7, 2024
(signed) "Keith Neumeyer"
Keith Neumeyer
President & Chief Executive Officer



Exhibit 99.4




Form 52-109F2
Certification of Interim Filings
Full Certificate


I, David Soares, Chief Financial Officer of First Majestic Silver Corp., certify the following:

1.Review: I have reviewed the interim financial report and interim MD&A (together, the “interim filings”) of First Majestic Silver Corp. (the “issuer”) for the interim period ended September 30, 2024.

2.No misrepresentations: Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, for the period covered by the interim filings.

3.Fair presentation: Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.

4.Responsibility: The issuer’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim filings, for the issuer.

5.Design: Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer’s other certifying officer(s) and I have, as at the of the period covered by the interim filings:

(a)designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that

(i)material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and

(ii)information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and

(b)designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer’s GAAP.

5.1Control framework: The control framework the issuer’s other certifying officer(s) and I used to design the issuer’s ICFR is the 2013 Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

5.2N/A.

5.3    N/A.

6.Reporting changes in ICFR: The issuer has disclosed in its interim MD&A any change in the issuer’s ICFR that occurred during the period beginning on July 1, 2024 and ended on September 30, 2024 that has materially affected, or is reasonably likely to materially affect, the issuer’s ICFR.




Date: November 7, 2024
(signed) "David Soares"
David Soares
Chief Financial Officer


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