Alex Terentiew

Alex Terentiew inquired about First Majestic Silver's strategy for capital allocation given the increasing cash balance, potential for additional capital returns to investors, and an update on Jerritt Canyon.

Answer

CEO Keith Neumeyer acknowledged the strong cash position, noting the pending tax issue as a key consideration. He mentioned the option for share buybacks and the recently increased dividend. Keith also stated that news regarding Jerritt Canyon would be released in the coming months. Mani Alkhafaji, President and Chief Corporate Development Officer, added that management is now focused on Jerritt Canyon, with a standalone update expected before the end of the quarter. Alex also asked about the realized silver price of $59 in Q4 2025 versus the average price of $54, questioning if it included provisional pricing settlements or timing of sales. Mani Alkhafaji confirmed that provisional pricing adjustments for concentrate sales and the mint's higher average selling price contributed to the difference.

Alex Terentiew inquired about the long-term implications of the Lucky Friday surface cooling project, specifically its potential to reduce costs and contribute to the mine's overall optimization. He also asked for an update on the 1-2 year plan for advancing the Midas project in Nevada, focusing on resource development and infrastructure utilization.

Answer

Rob Krcmarov, CEO and President, stated that the Lucky Friday surface cooling project, expected to be completed by mid-year, is primarily for worker health and safety but could also enhance productivity. Carlos Aguiar, Vice President in Operations, added that it's part of a continuous improvement plan for Lucky Friday, which has many levels to develop. For Midas, Rob Krcmarov explained the focus is on building a critical mass of high-grade resources (300,000-400,000 ounces) to restart production, leveraging existing mill and tailings infrastructure. Matt Blattman, Vice President, Technical Services, noted that data collection for geotechnical, metallurgical, and hydrogeological aspects will run in parallel with exploration to fast-track feasibility work.

Alex Terentiew asked about the Lucky Friday surface cooling project, its mid-year completion, opportunities for cost reduction, and its role in the mine's long-term optimization plan. He also sought an update on the Midas project, specifically the plans for the next 1-2 years to advance it, including building critical mass and parallel studies.

Answer

Rob Krcmarov, President and Chief Executive Officer, explained the Lucky Friday cooling project is primarily for health and safety, but also enhances worker productivity, setting a foundation for future deeper levels. Carlos Aguiar, Senior Vice President and Chief Operating Officer, added it's part of continuous improvement. For Midas, Rob Krcmarov noted the focus is on building a critical mass of 300,000-400,000 ounces of high-grade resources, leveraging existing infrastructure and new discoveries. Matt Blattman, Vice President of Technical Services, added that geotechnical, metallurgical, and hydrogeologic data collection and studies will run in parallel with exploration.

Alex Terentiew from National Bank Financial sought clarification on the Keno Hill financial model, asking if it assumed a gradual ramp-up. He also inquired about major capital spending needed to reach the 440 tpd rate, permitting risks for tailings capacity post-2028, and the potential to extend Casa Berardi's mine life given high gold prices.

Answer

SVP & CFO Russell Lawlar confirmed the Keno Hill model assumes a gradual ramp-up. SVP & COO Carlos Aguiar detailed upcoming investments in power distribution and infrastructure. VP of Technical Services Matt Blattman noted the tailings permit process is underway and underground backfill provides flexibility. President & CEO Rob Krcmarov stated Casa Berardi's underground life is extended to year-end and will be re-evaluated, while deferring guidance updates pending the strategic review.

Alex Terentiew sought clarification on the capital spending plan for the Culpa mine expansion, asking if the $13 million in guided expansion capital for the current year represents the total cost or if more spending will be required in 2026.

Answer

CEO Dan Dickson clarified that the $13 million in expansion capital, combined with elements of the $18 million sustaining capital budget, covers the major items needed to reach 2,500 tpd. COO Donald Gray added that while budgeting for next year is ongoing, the current focus is on completing this year's capital push. Management also noted some tailings facility work was brought forward into the current year's plan.

Alex Terentiew of National Bank Financial asked about the company's strategy for its share repurchase program and inquired about the potential constraints and opportunities for production growth at the Las Chispas mine.

Answer

President & CEO Mitchell Krebs affirmed the company's intent to fully utilize the buyback program, employing both discretionary purchases and a 10b5-1 plan. Regarding Las Chispas, Krebs, SVP - Exploration Aoife McGrath, and COO Michael Routledge explained the current focus is on near-mine exploration to maintain its mine life, adding that the processing plant has ample capacity for future upside.