🧾 What This Document Is

This is First Majestic Silver Corp.'s Annual Information Form (AIF) for the year ended December 31, 2025. Think of it as the company's comprehensive annual report, required by regulators. It's a deep dive into everything from its mines and financials to the major legal battles it's fighting. It’s packed with details that go beyond a standard earnings report.

👉 Why it matters: This document is the ultimate "homework" sheet for anyone wanting to understand the company's true health, its assets, and the serious risks it faces.

🏢 What The Company Does

In simple terms, First Majestic is a primary silver producer that owns and operates several mines, mostly in Mexico. They dig up silver and gold, and sell it to the market.

Their business is built around five key mines: four in Mexico (San Dimas, Santa Elena, Los Gatos, La Encantada) and one in Nevada, USA (Jerritt Canyon, which is currently on hold). They've also vertically integrated by opening their own mint, First Mint, to sell silver bullion directly to investors.

💰 Financial Highlights

The company had a stellar 2025. For the year ended December 31, 2025:

Record Revenue: Approximately US$1.25 billion.
Record Cash Position: US$937.7 million in the treasury as of December 31, 2025.

👉 Why it matters: These record numbers show strong operational performance and a very healthy cash pile, giving them significant financial flexibility.

🚀 Key Moves & Developments

First Majestic was very active in 2023-2025. Here are the biggest moves:

Acquired Los Gatos: In January 2025, they completed the acquisition of Gatos Silver, gaining full control of the high-grade Los Gatos Silver Mine in Mexico. This was a massive deal, adding a major asset to their portfolio.
Selling & Streamlining: They sold two older mines (La Guitarra and La Parrilla) and are in the process of selling another (Del Toro). They also placed their Jerritt Canyon gold mine on suspension in April 2023 to reassess its economics.
New Mint & Dividend Hike: They opened their First Mint facility in 2023/24. In January 2026, they increased their dividend policy to 2% of net quarterly revenues (up from 1%).

⚖️ The Legal & Regulatory Battle

This is a critical section. First Majestic is locked in major disputes with the Government of Mexico:

VAT Refunds: Mexico has been blocking access to tens of millions in Value-Added Tax (VAT) refunds owed to the company. First Majestic won a NAFTA arbitration order in May 2023 for access, and a tribunal recently (July 2025) restarted the proceedings after Mexico tried to consolidate them.
New Mining Laws: In May 2023, Mexico enacted a sweeping decree that shortens concession timelines and adds new social/environmental hurdles. The company is challenging its constitutionality in court. The Supreme Court has suspended these challenges while it considers a broader action.
Tax Dispute: A separate, long-running battle over a 2012 tax reassessment took a bad turn in October 2025, when the Mexican Supreme Court refused to hear the company's appeal, upholding a prior negative decision.

👉 Why it matters: These legal issues create significant uncertainty and financial risk. The outcomes could impact the company's cash flow, operational costs, and ability to explore in Mexico.

📦 Operational Portfolio

Here’s a snapshot of their key mines as of late 2025:

San Dimas (Mexico): A historic, high-grade silver-gold mine. Their flagship.
Santa Elena (Mexico): Another major silver-gold producer. Recently made exciting new discoveries (Navidad and Santo Niño veins) with expansion potential.
Los Gatos (Mexico): The newly acquired mine. A major producer of silver, zinc, lead, and some gold. Reported on a 70% attributable basis to First Majestic.
La Encantada (Mexico): A primary silver mine.
Jerritt Canyon (Nevada, USA): Currently suspended. The focus is on exploration and re-evaluation.

🔮 What's Next (Guidance & Strategy)

Growing Production: They are focused on optimizing their four producing mines in Mexico and exploring the new discoveries at Santa Elena.
Financial Strategy: They raised $350 million through convertible senior notes in December 2025. They also have an active share buyback program.
Dividend Policy: The new revenue-based dividend signals a commitment to returning cash to shareholders as the company grows.
Legal Continuation: They will continue pursuing their arbitration claims against Mexico in international forums.

⚖️ Big Picture: Strengths & Risks

👍 Strengths:
- Strong balance sheet with a record cash pile.
- Diversified, high-quality portfolio of silver mines.
- Active exploration delivering new discoveries (e.g., Santa Elena).
- Strategic M&A (like Los Gatos) adding significant resources.
⚠️ Risks:
- Extreme Regulatory & Legal Risk in Mexico (the lawsuits and new laws are the company's #1 risk).
- Exposure to volatile silver and gold prices.
- Operational challenges (water shortages, mine suspensions).
- Integration risks from large acquisitions like Los Gatos.

🧠 The Analogy

Investing in First Majestic right now is like owning a very productive, well-funded orchard that’s located in a region where the local government keeps changing the rules about water rights and land ownership. The fruit (silver & gold) is plentiful and high-quality, and the orchard owner has a lot of cash saved up. But, a huge amount of management's time and the orchard's future value depends on winning court cases against the local government to keep operating freely.

📇 Key Contacts & People

Corporate Office: Suite 1800 – 925 West Georgia Street, Vancouver, B.C. V6C 3L2, Canada
Phone: 604.688.3033
Toll Free: 1.866.529.2807
Email: [email protected]
Website: www.firstmajestic.com
Key Executive (as of Jan 1, 2026): Keith Neumeyer, Chief Executive Officer
Key Executive (as of Jan 1, 2026): Mani Alkhafaji, President & Chief Corporate Development Officer
Board of Directors: Includes Ayesha Hira (elected May 2025).

🧩 Final Takeaway

First Majestic is a stronger, bigger company after acquiring Los Gatos and building a massive cash reserve, but its future is deeply entangled with uncertain legal and regulatory battles in Mexico. Its impressive operational performance and new discoveries are currently balanced against this significant country-level risk.

FIRST MAJESTIC SILVER CORP — 40-F Filing