First Majestic Silver Shareholder Letter July 2025
July 22, 2025
Keith Neumeyer
President & CEO
First Majestic Silver Corp.
1800 – 925 West Georgia Street
Vancouver, BC V6C 3L2
Dear Mr. Neumeyer,
As a significant and long-standing shareholder of First Majestic Silver, I am writing to urge the Board and management team to take bold, decisive action in the coming quarters to reinforce investor confidence and maximize long-term value creation.
The market has already demonstrated how it responds favorably when First Majestic commits to meaningful capital returns. The September 2024 buyback announcement of $50 million drove a measurable re-rating of our shares and renewed institutional interest. That reaction underscores the market’s desire for consistent, visible capital allocation that aligns management’s optimism—particularly your well-known conviction in triple-digit silver prices—with tangible shareholder benefits.
Yet despite silver now trading solidly above $30/oz and approaching levels last seen when it briefly touched $39/oz, First Majestic’s shares remain near $8–$9 per share. By contrast, at the last $39/oz silver peak (2011), First Majestic traded near $20 per share (adjusted for splits). This stark disconnect highlights the urgency of taking direct, shareholder-focused measures—most notably, expanding the pace and scale of buybacks—to bridge the valuation gap and drive a market re-rating.
At current share prices near $9, every million shares repurchased reduces the float by roughly 0.34% and allows remaining shareholders to own a proportionately greater share of our silver reserves and cash flow at a steep discount to intrinsic value. Simply put, buybacks at these levels are immediately accretive and represent one of the highest-return investments the company can make.
In addition, First Majestic trades at a material discount to peers like Pan American and Hecla on both NAV and EV/EBITDA metrics, despite similar silver leverage. This relative undervaluation has persisted for several quarters and can be partially corrected through a disciplined and transparent buyback strategy that demonstrates management’s commitment to shareholder alignment.
With free cash flow now tracking over $170 million on an annualized basis, First Majestic has ample capacity to materially expand its buyback program without jeopardizing growth investments or balance sheet strength. Even allocating $100 million to repurchases by year-end would leave sufficient cash to fund Los Gatos integration and ongoing capital projects, while signaling a strong commitment to shareholder returns.
Finally, a visible and predictable buyback schedule—such as monthly reporting of shares repurchased and a clearly communicated annual target—would materially boost institutional confidence, reduce volatility, and attract new capital to the stock as silver prices continue to advance.
I encourage you and the Board to accelerate and expand the current NCIB program, with a transparent and ambitious framework that reflects First Majestic’s strong financial position and bullish silver outlook. Such a move would help close the valuation gap, reward long-term investors, and establish First Majestic as the sector’s leader in both growth and disciplined capital returns.
Thank you for your continued leadership and vision. I am confident that, with a decisive capital return strategy, First Majestic can unlock substantial shareholder value while positioning the company for outsized upside as silver advances.
Sincerely,
Brandon Osborne
Founder, Aequus Capital and Aequus Ventures
Email: Bosborne@aequuscapitalUS.com
Submitted this 24th day of July, 2025
Grid Metals Corporation
Grid Metals (TSXV: GRDM / OTCQB: MSMGF) is trading near $0.06 yet is no longer a speculative junior. It now combines institutional capital, binding offtake agreements, a Tier-1 JV partner, strategic proximity to Detroit and the Big 3 Automakers, rare-earth element upside, and a seasoned management team. Peer Analysis suggests, that the company will see a significant re-rating that appears to have just begun.
1. Rare Earth Elements in Current Assays
Grid’s Falcon West and Donner pegmatite systems host spodumene-rich lithium, cesium, and tantalum mineralization, typical of highly fractionated LCT pegmatites where rare earth elements (REEs) such as neodymium, praseodymium, and dysprosium are often present. Early intercepts such as 3.3 meters at 10.3% cesium and 1.8% lithium resemble systems like Tanco, known to host REEs alongside tantalum and cesium. Pending assays could reveal a hidden and lucrative value stream.
2. Mirroring MP Materials (NYSE: MP)' Path
MP Materials (NYSE: MP) became America’s only rare-earth producer by vertically integrating its Mountain Pass mine (mining, separation, magnet-making) and securing offtake agreements with Apple, GM, and the U.S. Department of Defense. Grid echoes this blueprint:
Multi-commodity assets (lithium, cesium, tantalum, nickel), with Likely Rare Earths
Binding offtake and mill deal with Tanco
Fully funded JV with Teck de-risking its nickel deposits.
The next step is REE confirmation and OEM supply deals that will only accelerate its valuation.
3. Strategic Partners
Tanco Mine: Advanced USD $0.89 million and secured rights to buy 10,000 tonnes of ≥5% cesium oxide at ~USD $1,110/t, and operates the only cesium mill in the Western World..
Teck Resources JV: Funding USD $4.22 million exploration and USD $0.3 million upfront to earn 51%, with an option to 70% via USD $7.4 million plus equity.
Waratah Capital Advisors: Waratah’s backing signals not just capital.. but credibility, as the multi-billion-dollar asset manager typically targets growth-stage resource plays with potential for institutional syndication. Their board presence ensures strict financial discipline, which can also pave the way for strategic co-investors or buyouts. Additionally, the flow-through share structure used for the raise, classified under Canada’s Critical Mineral Exploration Tax Credit program, effectively reduced the after-tax cost for investors by up to 30%, creating an additional layer of value and leverage for Grid Metals’ shareholders. This designation not only improved the economics of the financing but also elevated Grid’s visibility as a federally recognized critical minerals project.
Waratah Capital Advisors’ multi‑million‑dollar investment in Grid Metals is more than just funding, it transforms how the market views the company. Waratah is a multi‑billion‑dollar alternative asset manager known for backing growth‑stage resource companies with near‑term catalysts such as joint venture funding, resource definition, and offtakes. Their involvement signals that Grid is moving beyond retail speculation and into institutional territory, attracting more sophisticated capital.Waratah’s stake brings five key advantages:1. Institutional Validation – Their participation signals to other funds, OEMs, and strategic partners that Grid is credible critical minerals play, not just a microcap gamble.2. Board Oversight – Through their board representative Grant McAdam, Waratah enforces financial discipline, minimizing unnecessary dilution and aligning Grid’s strategy toward scalable growth or a premium buyout.3. Tax-Advantaged Capital – The raise utilized flow‑through shares under Canada’s Critical Mineral Exploration Tax Credit program, giving Waratah an effective 30% after‑tax cost reduction. This lowers their entry risk and elevates Grid as a federally recognized critical minerals project, improving its visibility.4. Network Leverage – Waratah’s network of funds, resource financiers, and industrial partners can open doors for additional joint ventures, better debt/equity terms, and strategic offtake deals — potentially with battery manufacturers, automakers like Tesla (NASDAQ: TSLA), or defense-related buyers.5. Positioning for an Exit – Waratah often helps portfolio companies build toward strategic acquisitions, whether by major miners like Teck Resources or downstream players in EV, battery storage, and data center infrastructure.In short, Waratah’s involvement de‑risks Grid’s financing and governance, elevates its credibility, and sets the company on a path toward larger strategic deals or a premium exit as resources are defined.
4. Strategic Location
Tesla (NASDAQ: TSLA) and other EV manufacturers rely heavily on domestic lithium supply for both vehicles and energy storage products, underscoring Grid’s value as a potential supplier. Furthermore, as North America expands data centers and upgrades the electrical grid to support AI-driven computing, energy storage, and EV infrastructure, Grid’s lithium, cesium, and nickel assets gain additional strategic relevance.
Grid’s projects in Manitoba and Ontario are within trucking distance to Detroit, the Big 3 automakers (GM, Ford, Stellantis), and multiple Midwest and Ontario gigafactories. This proximity strengthens its appeal as a domestic critical minerals supplier, aligned with Inflation Reduction Act incentives.
5. Leadership and History
Founded in 1995 as Mustang Minerals (rebranded 2018), Grid blends legacy nickel, copper, and platinum group metals assets with lithium and cesium exposure. CEO Robin Dunbar (since 1996) anchors the team, supported by Brandon Smith (ex-Cormark, Chief Development Officer) and Arif Shivji (27-year finance veteran, CFO). Board members include Constantine Karayannopoulos (USD $1B+ exit at Neo Material and Neo Lithium) plus institutional representation from Teck, Waratah, and AMCI.
6. Valuation and Upside (USD)
Scenario
USD Valuation (Millions)
Price per Share (USD)
Current Market Cap
9.62
~$0.06
Funded & Partnered Fair Value
48.1 – 76.96
$0.32 – 0.51
Resource & JV Milestones
76.96 – 115.44
$0.51 – 0.76
Development Scenarios
96.2 – 144.3
$0.64 – 0.95
Peer Comparison (Market Cap in USD)
Company
Stage
Mkt Cap (USD Millions)
Grid Metals (GRDM)
Funded Explorer (Lithium, Cesium, Nickel)
9.6
Power Metals (PWM.V)
Near-term Lithium-Cesium Resource
15
Avalon Advanced (AVL.TO)
Developer (Lithium, Cesium, Rare Earths)
120
Discounted Peer-Derived Valuation Sensitivity
Company
Land Area (ha)
Implied $/ha
Implied Land Value (USD M)
Avalon Advanced Materials (TSX: AVL)
10000
$12.00
$120M
Power Metals (TSXV: PWM)
5000
$3.00
$15M
Grid Metals* (TSXV: GRDM) – Peer Adjusted
61200
$7.50
$459M
Grid Metals* (Discounted, Early Stage)
61200
$1.50
$91.8M
*Note: This peer comparison uses market capitalization and land area to derive an implied per-hectare valuation, but it is not a pure land-value comparison. Avalon Advanced Materials (TSX: AVL) and Power Metals (TSXV: PWM) both have declared resources and more advanced project development than Grid Metals, while Grid’s holdings are primarily early-stage exploration licenses. The figures help illustrate potential upside if Grid’s ground progresses to a comparable stage, but current market pricing reflects a steep discount due to early stage and lack of resource definition.
7. Catalysts
1. Pending rare earth element assays from Falcon West and Donner drill core (Q3 2025).2. Lithium, cesium, and tantalum drill results.3. Teck-funded nickel exploration.4. Maiden NI 43-101 resource estimate including REEs.5. Potential OEM or Tier-1 supply agreements.
Bottom Line
Grid Metals resembles MP Materials (NYSE: MP) in its early stages: multi-asset critical minerals exposure, domestic supply chain positioning, and backing from Tier-1 partners and institutional capital. With rare earth assays pending and cesium monetization already secured, a 5–8× re-rating is a realistic base case, with upside to 10–15× as milestones are achieved.
Disclosure
I am currently Long Grid Metals Corp and continue to build my position for the long term.
SweetBunFactory