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First Majestic Reports First Quarter Financial Results

VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 10, 2016) - FIRST MAJESTIC SILVER CORP. (AG)(FR.TO)(FMV.F)(AG) (the "Company" or "First Majestic") is pleased to announce the unaudited interim consolidated financial results of the Company for the first quarter ended March 31, 2016. The full version of the financial statements and the management discussion and analysis can be viewed on the Company's web site at www.firstmajestic.com or on SEDAR at www.sedar.com and on EDGAR at www.sec.gov. All amounts are in U.S. dollars unless stated otherwise.

FIRST QUARTER 2016 HIGHLIGHTS

  • Silver equivalent production of 5.1 million ounces, representing a 30% increase compared Q1 2015.
  • Silver production of 3.1 million ounces, representing an 11% increase compared to Q1 2015.
  • Revenues totaled $66.5 million, representing a 22% increase compared to Q1 2015, primarily due to a 30% increase in total production.
  • Operating cash flows before working capital and taxes of $25.0 million or $0.16 per share (non-GAAP).
  • Mine operating earnings of $9.4 million compared to $5.0 million in Q1 2015.
  • Earnings before income taxes of $1.4 million compared to $0.7 million in Q1 2015.
  • Adjusted earnings of $4.6 million (EPS of $0.03) compared to a loss of $0.3 million in Q1 2015.
  • All-in sustaining costs ("AISC") of $8.97 per payable silver ounce, representing a significant 35% reduction compared to Q1 2015 and a 20% reduction compared to the prior quarter.
  • General and administrative expenses of $3.9 million, representing an 11% decrease compared to $4.3 million in Q1 2015.
  • Cash and cash equivalents totaled $61.7 million at the end of the quarter, representing a $10.7 million increase compared to the previous quarter.

"Profit margins increased in the first quarter due to additional cost savings and various operational improvements across the business," stated Keith Neumeyer, President and CEO of First Majestic. "Even with relatively flat silver prices compared to the previous quarter, we generated strong free cash flow due to lower operating costs and higher production at the mines. Our new mine, Santa Elena, had another great quarter and continues to exceed our expectations. Due to the significant cash flows now coming into the business combined with the recently announced C$50 million financing, we are beginning to evaluate internal growth projects, starting with increasing development and exploration at each of our operations in the coming quarters."

OPERATIONAL AND FINANCIAL HIGHLIGHTS

Key Performance Metrics 2016-Q1 2015-Q4 Change 2015-Q1 Change
Operational
Ore Processed / Tonnes Milled 789,591 883,377 (11% ) 631,609 25%
Silver Ounces Produced 3,074,173 3,055,442 1% 2,776,855 11%
Silver Equivalent Ounces Produced 5,083,095 4,820,408 5% 3,905,270 30%
Cash Costs per Ounce(1) $5.00 $6.04 (17% ) $8.22 (39% )
All-in Sustaining Cost per Ounce(1) $8.97 $11.28 (20% ) $13.88 (35% )
Total Production Cost per Tonne(1) $42.72 $41.44 3% $46.90 (9% )
Average Realized Silver Price per Ounce ($/eq. oz.)(1) $15.08 $15.21 (1% ) $17.05 (12% )
Financial (in $millions)
Revenues $66.5 $66.0 1% $54.6 22%
Mine Operating Earnings(2) $9.4 $3.9 141% $5.0 88%
Earnings (loss) before income taxes $1.4 ($115.9 ) 101% $0.7 85%
Income taxes (expense) recovery, current and deferred(3) ($8.8 ) $12.9 (168% ) ($1.8 ) (378% )
Net Loss ($7.4 ) ($103.0 ) 93% ($1.1 ) (573% )
Operating Cash Flows before Working Capital and Taxes(2) $25.0 $17.5 42% $17.3 44%
Cash and Cash Equivalents $61.7 $51.0 21% $22.4 176%
Working Capital (Deficit)(1) $57.8 $15.6 271% ($12.6 ) 559%
Shareholders
Loss per Share ("EPS") - Basic ($0.05 ) ($0.66 ) 93% ($0.01 ) (408% )
Adjusted EPS(1) $0.03 ($0.02 ) 250% ($0.00 ) 1177%
Cash Flow per Share(1) $0.16 $0.11 42% $0.15 9%
(1) The Company reports non‐GAAP measures which include cash costs per ounce, all‐in sustaining cost per ounce, total production cost per ounce, total production cost per tonne, average realized silver price per ounce, working capital, adjusted EPS and cash flow per share. These measures are widely used in the mining industry as a benchmark for performance, but do not have a standardized meaning and may differ from methods used by other companies with similar descriptions.
(2) The Company reports additional GAAP measures which include mine operating earnings and operating cash flows before movements in working capital and income taxes. These additional financial measures are intended to provide additional information and do not have a standardized meaning prescribed by IFRS.
(3) Income tax expense in the current quarter includes a one-time non-cash deferred tax expense of $6.7 million related to an election to apply historical loss carryforwards against the deconsolidation tax liability during the period.

FINANCIAL REVIEW

The Company realized an average silver price of $15.08 per ounce during the first quarter of 2016, which is 12% lower compared with the first quarter of 2015 and a 1% decrease compared to the prior quarter.

Revenues generated in the first quarter totaled $66.5 million, an increase of $11.9 million or 22% compared to $54.6 million in the first quarter of 2015. The increase in revenue was primarily due to a 36%...


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