CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED MARCH 31, 2021 AND 2020
(UNAUDITED)
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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.
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Keith Neumeyer
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Raymond Polman, CPA, CA
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President & CEO
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Chief Financial Officer
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May 5, 2021
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May 5, 2021
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TABLE OF CONTENTS
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CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
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General
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Statements of Earnings (Loss)
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Statements of Financial Position
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Other items
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CONDENSED INTERIM CONSOLIDATED STATEMENTS OF EARNINGS (LOSS)
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FOR THE THREE MONTHS ENDED MARCH 31, 2021 and 2020
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Condensed Interim Consolidated Financial Statements - Unaudited
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(In thousands of US dollars, except share and per share amounts)
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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.
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Three Months Ended March 31,
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Note
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2021
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2020
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Revenues
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$100,522
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$86,065
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Mine operating costs
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Cost of sales
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57,061
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49,835
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Cost of sales - standby costs
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—
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946
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Depletion, depreciation and amortization
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15,345
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14,169
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72,406
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64,950
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Mine operating earnings
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28,116
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21,115
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General and administrative expenses
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6,961
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6,284
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Share-based payments
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3,594
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2,378
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Mine holding costs
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3,868
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4,779
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Loss on divestiture of exploration projects
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—
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10,106
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Foreign exchange gain
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(1,797)
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(2,826)
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Operating earnings
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15,490
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394
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Unrealized loss on foreign currency derivatives
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—
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(22,654)
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Investment and other income
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(3,150)
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(540)
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Finance costs
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(3,773)
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(3,856)
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Earnings (loss) before income taxes
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8,567
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(26,656)
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Income taxes
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Current income tax expense
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8,537
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1,214
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Deferred income tax (recovery) expense
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(1,825)
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4,566
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6,712
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5,780
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Net earnings (loss) for the period
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$1,855
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($32,436)
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Earnings (loss) per common share
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Basic
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$0.01
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($0.15)
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Diluted
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$0.01
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($0.15)
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Weighted average shares outstanding
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Basic
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222,544,712
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209,396,052
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Diluted
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225,772,720
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209,396,052
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Approved by the Board of Directors
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Keith Neumeyer, Director
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Douglas Penrose, Director
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The accompanying notes are an integral part of the condensed interim consolidated financial statements
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First Majestic Silver Corp. 2021 First Quarter Report
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Page 1
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CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
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FOR THE THREE MONTHS ENDED MARCH 31, 2021 and 2020
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Condensed interim Consolidated Financial Statements - Unaudited
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(In thousands of US dollars)
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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.
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Note
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Three Months Ended March 31,
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2021
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2020
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Net earnings (loss) for the period
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$1,855
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($32,436)
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Other comprehensive (loss) income
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Items that will not be subsequently reclassified to net earnings (loss):
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Unrealized (loss) gain on fair value of investments in marketable securities, net of tax
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(4,726)
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293
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Realized loss on investments in marketable securities, net of tax
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(651)
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—
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Remeasurement of retirement benefit plan
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—
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(455)
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Other comprehensive loss
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(5,377)
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(162)
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Total comprehensive loss
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($3,522)
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($32,598)
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The accompanying notes are an integral part of the condensed interim consolidated financial statements
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First Majestic Silver Corp. 2021 First Quarter Report
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Page 2
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CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
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FOR THE THREE MONTHS ENDED MARCH 31, 2021 and 2020
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Condensed Interim Consolidated Financial Statements - Unaudited
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(In thousands of US dollars)
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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.
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Three Months Ended March 31,
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Note
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2021
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2020
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Operating Activities
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Net earnings (loss) for the period
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$1,855
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($32,436)
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Adjustments for:
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Depletion, depreciation and amortization
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15,805
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14,625
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Share-based payments
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3,594
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2,378
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Income tax expense
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6,712
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5,780
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Finance costs
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3,773
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3,856
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Write-down on assets held-for-sale
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2,081
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—
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Loss on divestiture of exploration projects
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—
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10,176
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Fair value adjustment on foreign currency derivatives
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—
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22,654
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Unrealized loss from marketable securities and silver futures derivatives
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1,289
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1,079
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Unrealized foreign exchange gain
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(3,980)
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(4,799)
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Operating cash flows before movements in working capital and taxes
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31,129
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23,313
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Net change in non-cash working capital items
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(13,766)
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(10,763)
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Income taxes paid
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(9,932)
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(502)
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Cash generated by operating activities
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7,431
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12,048
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Investing Activities
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Expenditures on mining interests
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(33,416)
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(19,772)
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Acquisition of property, plant and equipment
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(10,806)
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(12,016)
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Deposits paid for acquisition of non-current assets
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(2,292)
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(1,518)
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Proceeds from sale of marketable securities
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250
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—
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Cash used in investing activities
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(46,264)
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(33,306)
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Financing Activities
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Proceeds from prospectus offerings, net of share issue costs
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—
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13,792
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Proceeds from exercise of stock options
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4,363
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1,841
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Repayment of lease liabilities
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(1,328)
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(1,779)
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Finance costs paid
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(1,759)
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(1,956)
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Repayment of debt facilities
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—
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(10,000)
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Shares repurchased and cancelled
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—
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(1,694)
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Cash provided by financing activities
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1,276
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204
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Effect of exchange rate on cash and cash equivalents held in foreign currencies
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663
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(2,768)
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Decrease in cash and cash equivalents
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(37,557)
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(21,054)
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Cash and cash equivalents, beginning of the period
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238,578
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169,009
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Cash and cash equivalents, end of period
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$201,684
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$145,187
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Cash
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$169,818
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$138,065
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Short-term investments
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31,866
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7,122
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Cash and cash equivalents, end of period
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$201,684
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$145,187
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Supplemental cash flow information
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The accompanying notes are an integral part of the condensed interim consolidated financial statements
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First Majestic Silver Corp. 2021 First Quarter Report
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Page 3
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CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
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AS AT MARCH 31, 2021 AND DECEMBER 31, 2020
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Condensed Interim Consolidated Financial Statements - Unaudited
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(In thousands of US dollars)
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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.
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Note
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March 31, 2021
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December 31, 2020
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Assets
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Current assets
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Cash and cash equivalents
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$201,684
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$238,578
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Trade and other receivables
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3,780
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4,271
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Value added taxes receivable
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48,256
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41,641
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Inventories
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36,079
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32,512
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Other financial assets
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31,681
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36,319
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Prepaid expenses and other
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4,826
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2,725
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Assets held-for-sale
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3,432
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—
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Total current assets
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329,738
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356,046
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Non-current assets
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Mining interests
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537,547
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509,730
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Property, plant and equipment
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257,717
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258,220
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Right-of-use assets
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13,297
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14,330
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Deposits on non-current assets
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11,349
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14,246
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Non-current value added taxes receivable
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17,036
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15,301
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Deferred tax assets
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68,014
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69,644
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Total assets
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$1,234,698
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$1,237,517
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Liabilities and Equity
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Current liabilities
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Trade and other payables
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$69,344
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$76,002
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Advance for assets held-for-sale
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4,449
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—
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Unearned revenue
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2,025
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2,717
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Current portion of debt facilities
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10,400
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10,975
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Current portion of lease liabilities
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4,944
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5,358
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Income taxes payable
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5,741
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6,574
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Total current liabilities
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96,903
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101,626
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Non-current liabilities
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Debt facilities
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143,314
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141,733
|
|
Lease liabilities
|
|
|
14,272
|
|
|
15,217
|
|
Decommissioning liabilities
|
|
|
50,347
|
|
|
51,471
|
|
Other liabilities
|
|
|
5,503
|
|
|
5,406
|
|
Non-current income taxes payable
|
|
|
21,707
|
|
|
23,099
|
|
Deferred tax liabilities
|
|
|
43,505
|
|
|
48,729
|
|
Total liabilities
|
|
|
$375,551
|
|
|
$387,281
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
Share capital
|
|
|
1,097,140
|
|
|
1,087,139
|
|
Equity reserves
|
|
|
99,052
|
|
|
101,997
|
|
Accumulated deficit
|
|
|
(337,045)
|
|
|
(338,900)
|
|
Total equity
|
|
|
$859,147
|
|
|
$850,236
|
|
Total liabilities and equity
|
|
|
$1,234,698
|
|
|
$1,237,517
|
|
|
|
|
|
|
|
Commitments (Note 14; Note 21(c)); Subsequent event (Note 24)
|
|
|
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of the condensed interim consolidated financial statements
|
|
First Majestic Silver Corp. 2021 First Quarter Report
|
Page 4
|
|
|
|
|
|
|
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
|
FOR THE THREE MONTHS ENDED MARCH 31 2021 AND 2020
|
Condensed Interim Consolidated Financial Statements - Unaudited
|
(In thousands of US dollars, except share and per share amounts)
|
The 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, 2019
|
208,112,072
|
|
|
$933,182
|
|
|
$74,060
|
|
|
($2,532)
|
|
|
$19,164
|
|
|
$90,692
|
|
|
($361,553)
|
|
$662,321
|
|
Net loss for the period
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(32,436)
|
|
(32,436)
|
|
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
(162)
|
|
|
—
|
|
|
(162)
|
|
|
—
|
|
(162)
|
|
Total comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
(162)
|
|
|
—
|
|
|
(162)
|
|
|
(32,436)
|
|
(32,598)
|
|
Share-based payments
|
—
|
|
|
—
|
|
|
2,378
|
|
|
—
|
|
|
—
|
|
|
2,378
|
|
|
—
|
|
2,378
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares issued for:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prospectus offerings (Note 20(a))
|
1,304,338
|
|
|
13,792
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
13,792
|
|
Exercise of stock options (Note 20(b))
|
295,816
|
|
|
2,549
|
|
|
(708)
|
|
|
—
|
|
|
—
|
|
|
(708)
|
|
|
—
|
|
1,841
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Settlement of restricted share units
|
112,000
|
|
|
879
|
|
|
(879)
|
|
|
—
|
|
|
—
|
|
|
(879)
|
|
|
—
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares repurchased and cancelled (Note 20(f))
|
(275,000)
|
|
|
(1,260)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(434)
|
|
(1,694)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at March 31, 2020
|
209,549,226
|
|
|
$949,142
|
|
|
$74,851
|
|
|
($2,694)
|
|
|
$19,164
|
|
|
$91,321
|
|
|
($394,423)
|
|
$646,040
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at December 31, 2020
|
221,965,011
|
|
|
$1,087,139
|
|
|
$75,420
|
|
|
$7,413
|
|
|
$19,164
|
|
|
$101,997
|
|
|
($338,900)
|
|
$850,236
|
|
Net earnings for the period
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,855
|
|
1,855
|
|
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,377)
|
|
|
—
|
|
|
(5,377)
|
|
|
—
|
|
(5,377)
|
|
Total comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,377)
|
|
|
—
|
|
|
(5,377)
|
|
|
1,855
|
|
(3,522)
|
|
Share-based payments
|
—
|
|
|
—
|
|
|
4,345
|
|
|
—
|
|
|
—
|
|
|
4,345
|
|
|
—
|
|
4,345
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares issued for:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exercise of stock options (Note 20(b))
|
543,864
|
|
|
6,146
|
|
|
(1,783)
|
|
|
—
|
|
|
—
|
|
|
(1,783)
|
|
|
—
|
|
4,363
|
|
Acquisition of Springpole Silver Stream (Note 14(c))
|
287,300
|
|
|
3,750
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
3,750
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Settlement of restricted share units
|
8,301
|
|
|
105
|
|
|
(130)
|
|
|
—
|
|
|
—
|
|
|
(130)
|
|
|
—
|
|
(25)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at March 31, 2021
|
222,804,476
|
|
|
$1,097,140
|
|
|
$77,852
|
|
|
$2,036
|
|
|
$19,164
|
|
|
$99,052
|
|
|
($337,045)
|
|
$859,147
|
|
(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 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") 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 $26.3 million, net of deferred tax effect of $7.1 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. 2021 First 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 silver 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: the San Dimas Silver/Gold Mine, the Santa Elena Silver/Gold Mine and the La Encantada Silver Mine, four mines in suspension: the San Martin Silver Mine, the Del Toro Silver Mine, the La Parrilla Silver Mine and the La Guitarra Silver/Gold Mine, and several exploration stage projects. The Company acquired the Jerritt Canyon Gold Mine in Nevada, USA on April 30, 2021.
First Majestic is incorporated in Canada with limited liability under the legislation of the Province of British Columbia and is publicly listed on the New York Stock Exchange under the symbol “AG”, on the Toronto Stock Exchange under the symbol “FR” and on the Frankfurt Stock Exchange under the symbol “FMV”. The Company’s head office and principal address is located at 925 West Georgia Street, Suite 1800, Vancouver, British Columbia, Canada, V6C 3L2.
2. BASIS OF PRESENTATION
These condensed interim consolidated financial statements have been prepared in accordance with International Accounting Standard (“IAS”) 34, “Interim Financial Reporting”. 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, 2020, 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 21(a)) 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, 2020 except as outlined in Note 3.
3. SIGNIFICANT ACCOUNTING POLICIES, 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 to 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 months ended March 31, 2021, 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, 2020 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. 2021 First 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. SIGNIFICANT ACCOUNTING POLICIES, ESTIMATES AND JUDGMENTS (continued)
New and amended IFRS standards that are effective for the current year:
Interest Rate Benchmark Reform — Phase 2 (Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16)
The amendments in Interest Rate Benchmark Reform — Phase 2 (Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16) introduce a practical expedient for modifications required by the reform, clarify that hedge accounting is not discontinued solely because of the IBOR reform, and introduce disclosures that allow users to understand the nature and extent of risks arising from the IBOR reform to which the entity is exposed to and how the entity manages those risks as well as the entity’s progress in transitioning from IBORs to alternative benchmark rates, and how the entity is managing this transition.
The amendments were applied effective January 1, 2021 and did not have a material impact on the Company’s financial statements.
Future Changes in Accounting Policies Not Yet Effective as at March 31, 2021:
Property, Plant and Equipment — Proceeds before Intended Use (Amendments to IAS 16)
The amendments prohibit deducting from the cost of an item of property, plant and equipment any proceeds from selling items produced while bringing that asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Instead, an entity recognises the proceeds from selling such items, and the cost of producing those items, in profit or loss.
The amendments are applied on or after the first annual reporting period beginning on or after January 1, 2022, with early application permitted. The amendments are applied retrospectively, but only to items of property, plant and equipment that are brought to the location and condition necessary for them to be capable of operating in the manner intended by management on or after the beginning of the earliest period presented in the financial statements in which the Company first applies the amendments. The Company will recognise the cumulative effect of initially applying the amendments as an adjustment to the opening balance of retained earnings at the beginning of that earliest period presented. This amendment will impact the Company’s accounting for proceeds from mineral sales prior to reaching commercial production levels intended by management.
Classification of Liabilities as Current or Non-Current (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.
The amendments are applied on or after the first annual reporting period beginning on or after January 1, 2023, with early application permitted. This amendment is not expected to have a material impact on the Company’s financial statements.
4. SEGMENTED INFORMATION
All of the Company’s operations are within the mining 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.
A reporting 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 three months ended March 31, 2021, the Company's reporting segments includes its three operating mines in Mexico and its "non-producing properties" which include the La Parrilla, Del Toro, San Martin and La Guitarra mines, which have been placed on suspension, as significant reporting segments. “Others” consists primarily of the Company’s corporate assets including cash and cash equivalents, other development and exploration properties (Note 14), debt facilities (Note 18), coins and bullion sales, 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. 2021 First 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)
|
4. SEGMENTED INFORMATION (continued)
Significant information relating to the Company’s reportable operating segments is summarized in the tables below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2021 and 2020
|
|
|
Revenue
|
|
Cost of sales
|
|
Depletion, depreciation, and amortization
|
|
Mine operating earnings (loss)
|
|
Capital expenditures
|
Mexico
|
|
|
|
|
|
|
|
|
|
|
|
San Dimas
|
2021
|
|
$61,789
|
|
|
$31,323
|
|
|
$9,804
|
|
|
$20,662
|
|
|
$14,482
|
|
|
2020
|
|
48,065
|
|
|
26,067
|
|
|
8,781
|
|
|
13,217
|
|
|
12,802
|
|
Santa Elena
|
2021
|
|
22,183
|
|
|
17,885
|
|
|
3,112
|
|
|
1,186
|
|
|
14,334
|
|
|
2020
|
|
22,635
|
|
|
13,928
|
|
|
2,791
|
|
|
5,916
|
|
|
7,402
|
|
La Encantada
|
2021
|
|
19,702
|
|
|
10,043
|
|
|
1,833
|
|
|
7,826
|
|
|
2,729
|
|
|
2020
|
|
15,294
|
|
|
9,318
|
|
|
2,140
|
|
|
3,836
|
|
|
2,791
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-producing Properties
|
2021
|
|
—
|
|
|
17
|
|
|
123
|
|
|
(140)
|
|
|
932
|
|
|
2020
|
|
183
|
|
|
1,361
|
|
|
191
|
|
|
(1,369)
|
|
|
2,095
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Others(1)
|
2021
|
|
4,793
|
|
|
1,720
|
|
|
473
|
|
|
2,600
|
|
|
12,583
|
|
|
2020
|
|
239
|
|
|
321
|
|
|
266
|
|
|
(348)
|
|
|
4,966
|
|
Intercompany elimination(2)
|
2021
|
|
(7,945)
|
|
|
(3,927)
|
|
|
—
|
|
|
(4,018)
|
|
|
—
|
|
|
2020
|
|
(351)
|
|
|
(214)
|
|
|
—
|
|
|
(137)
|
|
|
—
|
|
Consolidated
|
2021
|
|
$100,522
|
|
|
$57,061
|
|
|
$15,345
|
|
|
$28,116
|
|
|
$45,060
|
|
|
2020
|
|
$86,065
|
|
|
$50,781
|
|
|
$14,169
|
|
|
$21,115
|
|
|
$30,056
|
|
(1) The "Others" segment includes revenues of $4.8 million from coins and bullion sales of 146,827 silver ounces at an average price of $32.65 per ounce.
(2) Effective January 1, 2021, the Company is presenting its segment revenue, cost of sales and mine operating earnings (loss) on a gross basis, with a new line item to reflect intercompany eliminations. The segmented information for the comparative periods have been adjusted to reflect this change for consistency.
During the three months ended March 31, 2021, the Company had three (March 31, 2020 - three) customers that accounted for 100% (2020 - 100%) of its sales revenue, with one major metal broker accounting for 88% of total revenue (2020 - 90%).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At March 31, 2021 and December 31, 2020
|
|
|
Mining Interests
|
|
Property, plant and equipment
|
|
Total
mining assets
|
|
|
|
Total
assets
|
|
Total liabilities
|
|
Producing
|
|
Exploration
|
|
|
|
|
|
Mexico
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
San Dimas
|
2021
|
|
$208,452
|
|
|
$20,485
|
|
|
$109,903
|
|
|
$338,840
|
|
|
|
|
$447,150
|
|
|
$106,561
|
|
|
2020
|
|
204,592
|
|
|
17,179
|
|
|
112,105
|
|
|
333,876
|
|
|
|
|
439,145
|
|
|
105,462
|
|
Santa Elena
|
2021
|
|
67,458
|
|
|
30,717
|
|
|
51,430
|
|
|
149,605
|
|
|
|
|
180,719
|
|
|
36,182
|
|
|
2020
|
|
52,892
|
|
|
33,951
|
|
|
49,245
|
|
|
136,088
|
|
|
|
|
166,525
|
|
|
33,467
|
|
La Encantada
|
2021
|
|
27,076
|
|
|
2,393
|
|
|
17,466
|
|
|
46,935
|
|
|
|
|
97,908
|
|
|
26,642
|
|
|
2020
|
|
25,865
|
|
|
2,955
|
|
|
16,555
|
|
|
45,375
|
|
|
|
|
99,185
|
|
|
29,354
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-producing Properties
|
2021
|
|
108,837
|
|
|
37,893
|
|
|
28,258
|
|
|
174,989
|
|
|
|
|
217,685
|
|
|
34,683
|
|
|
2020
|
|
108,837
|
|
|
37,004
|
|
|
29,888
|
|
|
175,730
|
|
|
|
|
219,109
|
|
|
40,274
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Others
|
2021
|
|
—
|
|
|
34,235
|
|
|
50,660
|
|
|
84,895
|
|
|
|
|
291,235
|
|
|
171,483
|
|
|
2020
|
|
—
|
|
|
26,455
|
|
|
50,427
|
|
|
76,882
|
|
|
|
|
313,553
|
|
|
178,724
|
|
Consolidated
|
2021
|
|
$411,823
|
|
|
$125,724
|
|
|
$257,717
|
|
|
$795,263
|
|
|
|
|
$1,234,698
|
|
|
$375,551
|
|
|
2020
|
|
$392,185
|
|
|
$117,545
|
|
|
$258,220
|
|
|
$767,950
|
|
|
|
|
$1,237,517
|
|
|
$387,281
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of the condensed interim consolidated financial statements
|
|
First Majestic Silver Corp. 2021 First 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)
|
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 of silver and gold. Revenues from 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 March 31,
|
|
|
|
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross revenue from payable metals:
|
|
|
|
|
|
|
|
|
|
|
|
Silver
|
|
|
|
|
|
|
$72,852
|
|
72
|
%
|
|
$52,014
|
|
60
|
%
|
Gold
|
|
|
|
|
|
|
28,338
|
|
28
|
%
|
|
34,702
|
|
40
|
%
|
Lead
|
|
|
|
|
|
|
—
|
|
—
|
%
|
|
74
|
|
—
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross revenue
|
|
|
|
|
|
|
101,190
|
|
100
|
%
|
|
86,790
|
|
100
|
%
|
Less: smelting and refining costs
|
|
|
|
|
|
|
(668)
|
|
|
|
(725)
|
|
|
Revenues
|
|
|
|
|
|
|
$100,522
|
|
|
|
$86,065
|
|
|
As at March 31, 2021, the Company had $2.0 million of unearned revenue (December 31, 2020 - $2.7 million) that has not satisfied performance obligations.
(a)Gold Stream Agreement with Sandstorm Gold Ltd.
The Santa Elena mine has a purchase agreement with Sandstorm Gold Ltd. (“Sandstorm”), which requires the Company to sell 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. During the three months ended March 31, 2021, the Company delivered 1,201 ounces (2020 - 2,161 ounces) of gold to Sandstorm at an average price of $464 per ounce (2020 - $459 per ounce).
(b) 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 at March 31, 2021 was 70:1.
During the three months ended March 31, 2021, the Company delivered 10,273 ounces (2020 - 11,357 ounces) of gold to WPMI at $612 (2020 - $606) per ounce.
|
|
|
|
|
|
The accompanying notes are an integral part of the condensed interim consolidated financial statements
|
|
First Majestic Silver Corp. 2021 First 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)
|
6. COST OF SALES
Cost of sales excludes depletion, depreciation and amortization and are costs that are directly related to production and generation of revenues at the operating segments. Significant components of cost of sales are comprised of the following:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
|
|
2021
|
|
2020
|
Consumables and materials
|
|
|
|
|
$10,776
|
|
|
$9,920
|
|
Labour costs
|
|
|
|
|
32,847
|
|
|
27,323
|
|
Energy
|
|
|
|
|
8,632
|
|
|
7,778
|
|
Other costs
|
|
|
|
|
3,040
|
|
|
4,361
|
|
Production costs
|
|
|
|
|
$55,295
|
|
|
$49,382
|
|
Transportation and other selling costs
|
|
|
|
|
662
|
|
|
522
|
|
Workers participation costs
|
|
|
|
|
3,667
|
|
|
1,998
|
|
Environmental duties and royalties
|
|
|
|
|
573
|
|
|
396
|
|
Inventory changes
|
|
|
|
|
(3,136)
|
|
|
(2,463)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Sales
|
|
|
|
|
$57,061
|
|
|
$49,835
|
|
|
|
|
|
|
|
|
|
Cost of Sales - Standby Costs(1)
|
|
|
|
|
$—
|
|
|
$946
|
|
(1) Standby costs in the prior period relates to mine holding costs for the San Martin mine, which was temporarily suspended effective from July 2019 due to a growing insecurity in the area and safety concerns for its workforce. The Company is working with authorities to secure the area and is uncertain of a restart date. From April 1, 2020, such costs were classified as mine holding costs (Note 8) due to continued uncertainty with respect to the timing of restart at San Martin.
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 March 31,
|
|
|
|
|
|
2021
|
|
2020
|
Corporate administration
|
|
|
|
|
$1,484
|
|
|
$1,277
|
|
Salaries and benefits
|
|
|
|
|
3,096
|
|
|
3,165
|
|
Audit, legal and professional fees
|
|
|
|
|
1,656
|
|
|
1,047
|
|
Filing and listing fees
|
|
|
|
|
88
|
|
|
155
|
|
Directors fees and expenses
|
|
|
|
|
177
|
|
|
184
|
|
Depreciation
|
|
|
|
|
460
|
|
|
456
|
|
|
|
|
|
|
$6,961
|
|
|
$6,284
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of the condensed interim consolidated financial statements
|
|
First Majestic Silver Corp. 2021 First 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)
|
8. MINE HOLDING COSTS
The Company’s mine holding costs are primarily comprised of labour costs associated with care and maintenance staffs, electricity, security, environmental and community support costs for the following mines which are currently under temporary suspension:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
|
|
|
2021
|
|
2020
|
Del Toro
|
|
|
|
|
|
$969
|
|
|
$2,182
|
|
La Parrilla
|
|
|
|
|
|
1,033
|
|
|
1,719
|
|
San Martin
|
|
|
|
|
|
1,019
|
|
|
—
|
|
La Guitarra
|
|
|
|
|
|
848
|
|
|
878
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$3,868
|
|
|
$4,779
|
|
9. INVESTMENT AND OTHER (LOSS) INCOME
The Company’s investment and other (loss) income are comprised of the following:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
|
|
|
2021
|
|
2020
|
Loss from investment in marketable securities (Note 13(a))
|
|
|
|
|
|
($1,289)
|
|
|
($1,368)
|
|
Loss on write-down of assets held-for-sale(1)
|
|
|
|
|
|
(2,081)
|
|
|
—
|
|
Gain from investment in silver futures derivatives
|
|
|
|
|
|
—
|
|
|
290
|
|
Interest income and other
|
|
|
|
|
|
220
|
|
|
538
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($3,150)
|
|
|
($540)
|
|
(1) In March 2021, the Company entered into an agreement with Condor Gold PLC ("Condor") to sell its AG Mill equipment for gross proceeds of $6.5 million, including $3.5 million in cash and $3.0 million in common shares of Condor. The transaction is expected to close in the second quarter of 2021 upon shipment of all related equipment to Condor's la India Project in Nicaragua. During the three months ended March 31, 2021, the Company recognized a loss of $2.1 million, being the difference between the proceeds of disposal and the carrying amount of the project's net assets, as loss on write-down of assets held-for-sale. As at March 31, 2021, the Company has reclassified $3.4 million of its non-current assets as assets held-for-sale, and $4.4 million of proceeds from Condor as advance on assets held-for-sale.
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 period are summarized as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
|
|
|
2021
|
|
2020
|
Debt facilities(1) (Note 18)
|
|
|
|
|
|
$2,670
|
|
|
$2,640
|
|
Lease liabilities (Note 19)
|
|
|
|
|
|
371
|
|
|
403
|
|
Accretion of decommissioning liabilities
|
|
|
|
|
|
640
|
|
|
623
|
|
Silver sales and other
|
|
|
|
|
|
92
|
|
|
190
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$3,773
|
|
|
$3,856
|
|
(1) Finance costs for debt facilities include $1.8 million of non-cash accretion expense for the period ended March 31, 2021 (2020 - $1.7 million).
|
|
|
|
|
|
The accompanying notes are an integral part of the condensed interim consolidated financial statements
|
|
First Majestic Silver Corp. 2021 First 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)
|
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 period. Diluted net earnings or loss per share adjusts basic net earnings per share for the effects of potential dilutive common shares.
The calculations of basic and diluted earnings or loss per share for the period ended March 31, 2021 and 2020 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
|
|
|
2021
|
|
2020
|
Net earnings (loss) for the period
|
|
|
|
|
|
$1,855
|
|
|
($32,436)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares on issue - basic
|
|
|
|
|
|
222,544,712
|
|
|
209,396,052
|
|
Impact of effect on dilutive securities:
|
|
|
|
|
|
|
|
|
Stock options
|
|
|
|
|
|
2,477,161
|
|
|
—
|
|
Restricted, performance and deferred share units
|
|
|
|
|
|
750,847
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares on issue - diluted(1)
|
|
|
|
|
|
225,772,720
|
|
|
209,396,052
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per share - basic and diluted
|
|
|
|
|
|
$0.01
|
|
|
($0.15)
|
|
(1)For the three months ended March 31, 2021, diluted weighted average number of shares excluded 588,773 (2020 - 8,763,331) options, nil restricted and performance share units (2020 - 345,243) and 16,327,598 (2020 - 16,327,598) common shares issuable under the convertible debentures (Note 18(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.
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
2021
|
|
December 31,
2020
|
Finished goods - doré
|
$2,642
|
|
|
$2,812
|
|
Work-in-process
|
2,615
|
|
|
2,780
|
|
Stockpile
|
2,136
|
|
|
1,336
|
|
Silver coins and bullion
|
5,025
|
|
|
956
|
|
Materials and supplies
|
23,661
|
|
|
24,628
|
|
|
$36,079
|
|
|
$32,512
|
|
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.
13. OTHER FINANCIAL ASSETS
As at March 31, 2021, other financial assets consists of the Company’s investment in marketable securities and foreign exchange derivatives comprised of the following:
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
2021
|
|
December 31,
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FVTPL marketable securities (a)
|
$12,702
|
|
|
$13,876
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FVTOCI marketable securities (b)
|
16,187
|
|
|
22,443
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other financial assets
|
$31,681
|
|
|
$36,319
|
|
(a)Fair Value through Profit or Loss ("FVTPL") Marketable Securities
Loss in marketable securities designated as FVTPL for the three months ended March 31, 2021 was $1.3 million (2020 - loss of $1.4 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. 2021 First 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)
|
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 months ended March 31, 2021 was $5.4 million (2020 - $0.3 million), net of tax, and was recorded through other comprehensive income and will not be transferred into earnings or loss upon disposition or impairment.
14. MINING INTERESTS
Mining interests primarily consist of acquisition, development and exploration 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:
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
2021
|
|
December 31,
2020
|
Depletable properties
|
$411,823
|
|
|
$392,185
|
|
Non-depletable properties (exploration and evaluation costs)
|
125,724
|
|
|
117,545
|
|
|
$537,547
|
|
|
$509,730
|
|
Depletable properties are allocated as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depletable properties
|
San Dimas
|
|
Santa Elena
|
|
La Encantada
|
|
|
|
|
|
|
|
|
|
Non-producing
Properties(1)
|
|
Total
|
Cost
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At December 31, 2019
|
$220,658
|
|
|
$61,654
|
|
|
$111,590
|
|
|
|
|
|
|
|
|
|
|
$494,132
|
|
|
$888,034
|
|
Additions
|
21,263
|
|
|
6,218
|
|
|
4,201
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
31,682
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in decommissioning liabilities
|
4,527
|
|
|
1,191
|
|
|
2,049
|
|
|
|
|
|
|
|
|
|
|
3,059
|
|
|
10,826
|
|
Transfer from exploration properties
|
3,645
|
|
|
4,229
|
|
|
472
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
8,346
|
|
At December 31, 2020
|
$250,093
|
|
|
$73,292
|
|
|
$118,312
|
|
|
|
|
|
|
|
|
|
|
$497,191
|
|
|
$938,888
|
|
Additions
|
10,001
|
|
|
4,530
|
|
|
895
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
15,426
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transfer from exploration properties
|
—
|
|
|
11,402
|
|
|
1,293
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
12,695
|
|
At March 31, 2021
|
$260,094
|
|
|
$89,223
|
|
|
$120,500
|
|
|
|
|
|
|
|
|
|
|
$497,191
|
|
|
$967,009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated depletion, amortization and impairment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At December 31, 2019
|
($27,225)
|
|
|
($16,608)
|
|
|
($88,499)
|
|
|
|
|
|
|
|
|
|
|
($388,354)
|
|
|
($520,686)
|
|
Depletion and amortization
|
(18,277)
|
|
|
(3,792)
|
|
|
(3,948)
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
(26,017)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At December 31, 2020
|
($45,502)
|
|
|
($20,400)
|
|
|
($92,447)
|
|
|
|
|
|
|
|
|
|
|
($388,354)
|
|
|
($546,703)
|
|
Depletion and amortization
|
(6,141)
|
|
|
(1,365)
|
|
|
(977)
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
(8,483)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At March 31, 2021
|
($51,643)
|
|
|
($21,765)
|
|
|
($93,424)
|
|
|
|
|
|
|
|
|
|
|
($388,354)
|
|
|
($555,186)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carrying values
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At December 31, 2020
|
$204,592
|
|
|
$52,892
|
|
|
$25,865
|
|
|
|
|
|
|
|
|
|
|
$108,837
|
|
|
$392,185
|
|
At March 31, 2021
|
$208,452
|
|
|
$67,458
|
|
|
$27,076
|
|
|
|
|
|
|
|
|
|
|
$108,837
|
|
|
$411,823
|
|
(1) Non-producing properties include the San Martin, Del Toro, La Parrilla and La Guitarra mines.
|
|
|
|
|
|
The accompanying notes are an integral part of the condensed interim consolidated financial statements
|
|
First Majestic Silver Corp. 2021 First 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)
|
14. MINING INTERESTS (continued)
Non-depletable properties costs are allocated as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-depletable properties
|
San Dimas(a)
|
|
Santa Elena(b)
|
|
La Encantada
|
|
|
|
|
|
|
|
|
|
Non-producing
Properties(1)
|
|
Exploration Projects(2)
|
|
Springpole
Stream(c)
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At December 31, 2019
|
$8,699
|
|
|
$18,592
|
|
|
$1,104
|
|
|
|
|
|
|
|
|
|
|
$32,938
|
|
|
$34,710
|
|
|
$—
|
|
|
$96,043
|
|
Exploration and evaluation expenditures
|
12,125
|
|
|
19,588
|
|
|
2,323
|
|
|
|
|
|
|
|
|
|
|
4,066
|
|
|
1,142
|
|
|
4,356
|
|
|
43,601
|
|
Change in decommissioning liabilities (Note 20)
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
59
|
|
|
—
|
|
|
59
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sale of exploration project
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
(13,812)
|
|
|
—
|
|
|
(13,812)
|
|
Transfer to producing properties
|
(3,645)
|
|
|
(4,229)
|
|
|
(472)
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8,346)
|
|
At December 31, 2020
|
$17,179
|
|
|
$33,951
|
|
|
$2,955
|
|
|
|
|
|
|
|
|
|
|
$37,004
|
|
|
$22,099
|
|
|
$4,356
|
|
|
$117,545
|
|
Exploration and evaluation expenditures
|
3,306
|
|
|
8,168
|
|
|
731
|
|
|
|
|
|
|
|
|
|
|
889
|
|
|
280
|
|
|
7,500
|
|
|
20,874
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transfer to producing properties
|
—
|
|
|
(11,402)
|
|
|
(1,293)
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(12,695)
|
|
At March 31, 2021
|
$20,485
|
|
|
$30,717
|
|
|
$2,393
|
|
|
|
|
|
|
|
|
|
|
$37,893
|
|
|
$22,379
|
|
|
$11,856
|
|
|
$125,724
|
|
(1) Non-producing properties include the San Martin, Del Toro, La Parrilla and La Guitarra mines.
(2) Exploration projects include the La Luz, La Joya, Los Amoles, Jalisco Group of Properties and Jimenez del Tuel projects, as well as the Plomosas project which was sold during 2020.
(a)San Dimas Silver/Gold Mine, Durango State
In 2018, 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 at March 31, 2021 was 70:1.
(b)Santa Elena Silver/Gold Mine, Sonora State
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 to Sandstorm. The selling price to Sandstorm is currently the lesser of $464 per ounce, subject to a 1% annual inflation increase every April, and the prevailing market price.
(c) Springpole Silver Stream, Ontario, Canada
On July 2, 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 ("Springpole Silver Stream"), a development stage mining project located in Ontario, Canada. Pursuant to the agreement, 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 accompanying notes are an integral part of the condensed interim consolidated financial statements
|
|
First Majestic Silver Corp. 2021 First 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)
|
14. MINING INTERESTS (continued)
(c) Springpole Silver Stream, Ontario, Canada (continued)
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 shares (805,698 common shares) was paid to First Mining on July 2, 2020;
•The second payment consisting of $3.75 million in cash and $3.75 million in First Majestic 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 shares (based on 20 days volume weighted average price) will be paid upon receipt by First Mining of a Federal or Provincial Environmental Assessment approval for Springpole.
In connection with the agreement, First Mining also granted First Majestic 30 million common share purchase 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. The fair value of the warrants was measured at $5.7 million using the Black-Scholes model.
First Mining shall have the right to repurchase 50% of the silver stream for $22.5 million at any time prior to the commencement of production at Springpole leaving the Company with a reduced silver stream of 25% of life of mine payable silver production.
As at March 31, 2021, the Company has paid $17.5 million in consideration to First Mining as part of the agreement, of which $5.7 million was allocated to other financial assets and $11.8 million was allocated to the Springpole Silver Stream recognized within exploration and evaluation assets.
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. 2021 First 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)
|
15. 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)
|
|
Other
|
|
Total
|
Cost
|
|
|
|
|
|
|
|
|
|
At December 31, 2019
|
$198,412
|
|
|
$456,655
|
|
|
$27,645
|
|
|
$24,438
|
|
|
$707,150
|
|
Additions
|
—
|
|
|
2,096
|
|
|
47,266
|
|
|
391
|
|
|
49,753
|
|
|
|
|
|
|
|
|
|
|
|
Transfers and disposals
|
917
|
|
|
9,873
|
|
|
(19,242)
|
|
|
3,822
|
|
|
(4,630)
|
|
At December 31, 2020
|
$199,329
|
|
|
$468,624
|
|
|
$55,669
|
|
|
$28,651
|
|
|
$752,273
|
|
Additions
|
—
|
|
|
344
|
|
|
8,363
|
|
|
53
|
|
|
8,760
|
|
|
|
|
|
|
|
|
|
|
|
Transfers and disposals
|
1,005
|
|
|
1,355
|
|
|
(4,988)
|
|
|
2,237
|
|
|
(391)
|
|
At March 31, 2021
|
$200,334
|
|
|
$470,323
|
|
|
$59,044
|
|
|
$30,941
|
|
|
$760,642
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated depreciation, amortization and impairment
|
|
|
|
|
|
|
At December 31, 2019
|
($129,040)
|
|
|
($326,300)
|
|
|
$—
|
|
|
($15,171)
|
|
|
($470,511)
|
|
Depreciation and amortization
|
(4,188)
|
|
|
(19,833)
|
|
|
—
|
|
|
(2,555)
|
|
|
(26,576)
|
|
|
|
|
|
|
|
|
|
|
|
Transfers and disposals
|
72
|
|
|
2,754
|
|
|
—
|
|
|
208
|
|
|
3,034
|
|
At December 31, 2020
|
($133,156)
|
|
|
($343,379)
|
|
|
$—
|
|
|
($17,518)
|
|
|
($494,053)
|
|
Depreciation and amortization
|
(1,227)
|
|
|
(4,959)
|
|
|
—
|
|
|
(748)
|
|
|
(6,934)
|
|
Transfers and disposals
|
—
|
|
|
119
|
|
|
—
|
|
|
24
|
|
|
143
|
|
Write-down on assets-held-for-sale
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,081)
|
|
|
(2,081)
|
|
At March 31, 2021
|
($134,383)
|
|
|
($348,219)
|
|
|
$—
|
|
|
($20,323)
|
|
|
($502,925)
|
|
|
|
|
|
|
|
|
|
|
|
Carrying values
|
|
|
|
|
|
|
|
|
|
At December 31, 2020
|
$66,173
|
|
|
$125,245
|
|
|
$55,669
|
|
|
$11,133
|
|
|
$258,220
|
|
At March 31, 2021
|
$65,951
|
|
|
$122,104
|
|
|
$59,044
|
|
|
$10,618
|
|
|
$257,717
|
|
(1) Included in land and buildings is $11.2 million (2020 - $11.2 million) 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. 2021 First 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)
|
15. 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 Dimas
|
|
Santa Elena
|
|
La Encantada
|
|
|
|
|
|
|
|
|
|
Non-producing
Properties(1)
|
|
Other
|
|
Total
|
Cost
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At December 31, 2019
|
$136,303
|
|
|
$90,762
|
|
|
$137,302
|
|
|
|
|
|
|
|
|
|
|
$297,240
|
|
|
$45,543
|
|
|
$707,150
|
|
Additions
|
10,384
|
|
|
7,933
|
|
|
4,209
|
|
|
|
|
|
|
|
|
|
|
272
|
|
|
26,955
|
|
|
49,753
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transfers and disposals
|
41
|
|
|
(1,364)
|
|
|
1,999
|
|
|
|
|
|
|
|
|
|
|
(3,751)
|
|
|
(1,555)
|
|
|
(4,630)
|
|
At December 31, 2020
|
$146,728
|
|
|
$97,331
|
|
|
$143,510
|
|
|
|
|
|
|
|
|
|
|
$293,761
|
|
|
$70,943
|
|
|
$752,273
|
|
Additions(2)
|
1,175
|
|
|
1,636
|
|
|
1,102
|
|
|
|
|
|
|
|
|
|
|
43
|
|
|
4,804
|
|
|
8,760
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transfers and disposals
|
1,646
|
|
|
4,732
|
|
|
836
|
|
|
|
|
|
|
|
|
|
|
(5,733)
|
|
|
(1,872)
|
|
|
(391)
|
|
At March 31, 2021
|
$149,549
|
|
|
$103,699
|
|
|
$145,448
|
|
|
|
|
|
|
|
|
|
|
$288,071
|
|
|
$73,875
|
|
|
$760,642
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated depreciation,
amortization and impairment
|
|
|
|
|
|
|
|
|
|
|
|
|
At December 31, 2019
|
($19,747)
|
|
|
($42,975)
|
|
|
($122,566)
|
|
|
|
|
|
|
|
|
|
|
($266,190)
|
|
|
($19,033)
|
|
|
($470,511)
|
|
Depreciation and amortization
|
(15,032)
|
|
|
(6,451)
|
|
|
(2,646)
|
|
|
|
|
|
|
|
|
|
|
(592)
|
|
|
(1,855)
|
|
|
(26,576)
|
|
Transfers and disposals
|
156
|
|
|
1,340
|
|
|
(1,743)
|
|
|
|
|
|
|
|
|
|
|
2,909
|
|
|
372
|
|
|
3,034
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At December 31, 2020
|
($34,623)
|
|
|
($48,086)
|
|
|
($126,955)
|
|
|
|
|
|
|
|
|
|
|
($263,873)
|
|
|
($20,516)
|
|
|
($494,053)
|
|
Depreciation and amortization
|
(3,949)
|
|
|
(1,608)
|
|
|
(647)
|
|
|
|
|
|
|
|
|
|
|
(66)
|
|
|
(664)
|
|
|
(6,934)
|
|
Transfers and disposals
|
(1,074)
|
|
|
(2,575)
|
|
|
(380)
|
|
|
|
|
|
|
|
|
|
|
4,126
|
|
|
46
|
|
|
143
|
|
Write-down on assets held-for-sale
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
(2,081)
|
|
|
(2,081)
|
|
At March 31, 2021
|
($39,646)
|
|
|
($52,269)
|
|
|
($127,982)
|
|
|
|
|
|
|
|
|
|
|
($259,813)
|
|
|
($23,215)
|
|
|
($502,925)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carrying values
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At December 31, 2020
|
$112,105
|
|
|
$49,245
|
|
|
$16,555
|
|
|
|
|
|
|
|
|
|
|
$29,888
|
|
|
$50,427
|
|
|
$258,220
|
|
At March 31, 2021
|
$109,903
|
|
|
$51,430
|
|
|
$17,466
|
|
|
|
|
|
|
|
|
|
|
$28,258
|
|
|
$50,660
|
|
|
$257,717
|
|
(1) Non-producing properties include the San Martin, Del Toro, La Parrilla and La Guitarra mines.
(2) Additions classified in "Other" primarily consist of innovation projects and construction-in-progress.
|
|
|
|
|
|
The accompanying notes are an integral part of the condensed interim consolidated financial statements
|
|
First Majestic Silver Corp. 2021 First 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)
|
16. RIGHT-OF-USE ASSETS
The Company entered into operating leases to use certain land, building, 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 asset over the lease term.
Right-of-use asset is 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 Buildings
|
|
Machinery and Equipment
|
|
Other
|
|
Total
|
At December 31, 2019
|
$4,207
|
|
|
$7,812
|
|
|
$15
|
|
|
$12,034
|
|
|
|
|
|
|
|
|
|
Additions
|
1,939
|
|
|
554
|
|
|
—
|
|
|
2,494
|
|
Remeasurements
|
2,789
|
|
|
(10)
|
|
|
—
|
|
|
2,779
|
|
Depreciation and amortization
|
(848)
|
|
|
(2,106)
|
|
|
(7)
|
|
|
(2,961)
|
|
Impairment
|
—
|
|
|
(16)
|
|
|
—
|
|
|
(16)
|
|
At December 31, 2020
|
$8,087
|
|
|
$6,234
|
|
|
$8
|
|
|
$14,330
|
|
|
|
|
|
|
|
|
|
Remeasurements
|
45
|
|
|
(115)
|
|
|
—
|
|
|
(70)
|
|
Depreciation and amortization
|
(247)
|
|
|
(399)
|
|
|
(2)
|
|
|
(648)
|
|
|
|
|
|
|
|
|
|
Disposals
|
(186)
|
|
|
(130)
|
|
|
—
|
|
|
(315)
|
|
At March 31, 2021
|
$7,700
|
|
|
$5,590
|
|
|
$7
|
|
|
$13,297
|
|
17. 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:
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
2021
|
|
December 31,
2020
|
Trade payables
|
$18,523
|
|
|
$31,262
|
|
Trade related accruals
|
23,503
|
|
|
18,635
|
|
Payroll and related benefits
|
25,221
|
|
|
21,427
|
|
Environmental duty
|
584
|
|
|
2,156
|
|
Other accrued liabilities
|
1,513
|
|
|
2,522
|
|
|
$69,344
|
|
|
$76,002
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of the condensed interim consolidated financial statements
|
|
First Majestic Silver Corp. 2021 First 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)
|
18. DEBT FACILITIES
The movement in debt facilities during the three months ended March 31, 2021 and year ended December 31, 2020, respectively, are comprised of the following:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Convertible Debentures
(a)
|
|
Revolving Credit Facility
(b)
|
|
|
|
|
|
Total
|
Balance at December 31, 2019
|
|
$136,607
|
|
|
$19,211
|
|
|
|
|
|
|
$155,818
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance costs
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
2,984
|
|
|
763
|
|
|
|
|
|
|
3,747
|
|
Accretion
|
|
6,168
|
|
|
678
|
|
|
|
|
|
|
6,846
|
|
Proceeds from drawdown of Revolving Credit Facility
|
|
—
|
|
|
10,000
|
|
|
|
|
|
|
10,000
|
|
Repayments of principal
|
|
—
|
|
|
(19,969)
|
|
|
|
|
|
|
(19,969)
|
|
Payments of finance costs
|
|
(2,934)
|
|
|
(800)
|
|
|
|
|
|
|
(3,734)
|
|
Balance at December 31, 2020
|
|
$142,825
|
|
|
$9,883
|
|
|
|
|
|
|
$152,708
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance costs
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
733
|
|
|
183
|
|
|
|
|
|
|
916
|
|
Accretion
|
|
1,582
|
|
|
172
|
|
|
|
|
|
|
1,754
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payments of finance costs
|
|
(1,467)
|
|
|
(197)
|
|
|
|
|
|
|
(1,664)
|
|
Balance at March 31, 2021
|
|
$143,673
|
|
|
$10,041
|
|
|
|
|
|
|
$153,714
|
|
|
|
|
|
|
|
|
|
|
|
|
Statements of Financial Position Presentation
|
|
|
|
|
|
|
|
|
|
|
Current portion of debt facilities
|
|
$1,092
|
|
|
$9,883
|
|
|
|
|
|
|
$10,975
|
|
Non-current portion of debt facilities
|
|
141,733
|
|
|
—
|
|
|
|
|
|
|
141,733
|
|
Balance at December 31, 2020
|
|
$142,825
|
|
|
$9,883
|
|
|
|
|
|
|
$152,708
|
|
Current portion of debt facilities
|
|
$359
|
|
|
$10,041
|
|
|
|
|
|
|
$10,400
|
|
Non-current portion of debt facilities
|
|
143,314
|
|
|
—
|
|
|
|
|
|
|
143,314
|
|
Balance at March 31, 2021
|
|
$143,673
|
|
|
$10,041 |