First Majestic Sees 76% Q2 Silver Output Surge Post-Gatos Acquisition with 2025 Guidance of 15.3M Oz
First Majestic’s Q2 silver production surged 76% year-over-year following its Gatos Silver acquisition. The company projects 2025 output of 15.3 million ounces of silver plus 31.2 million ounces AgEq, positioning it to capitalize on constrained refining capacity and continued price gains.
1. Exceptional Stock Performance Fueled by Strategic Moves
First Majestic Silver shares climbed more than 205% over the past year, driven largely by the completion of its $1.2 billion Gatos Silver acquisition in early 2025 and the sale of non-core assets that bolstered its balance sheet. Record third-quarter results further supported the rally, with consolidated revenue up 87% year-over-year as silver prices rallied from around $30 per ounce a year ago to highs near $83. Strong cash generation allowed the company to reduce net debt by over $300 million and repurchase $50 million of shares during the first nine months of the year.
2. Third-Quarter Production and Revenue Breakdown
In Q3 2025, silver accounted for 57% of revenue and gold for 33%, with zinc and lead making up the balance. Total production reached 4.2 million ounces of silver and 65,000 ounces of gold, representing increases of 76% and 22% year-over-year, respectively. Mine operating cash flow surged 95% to $215 million, while all-in sustaining costs per ounce of silver equivalent (AgEq) fell 8% to $12.10, reflecting efficiency gains at newly integrated assets.
3. Aggressive Growth Guidance for 2026
With the Gatos Silver mine now fully consolidated, management projects total silver production of 15.3 million ounces in 2025 and a further rise to 17.8 million ounces in 2026. Silver equivalent output, which includes attributable gold, zinc and lead, is forecast to increase from 31.2 million ounces this year to 35 million ounces next year. Capital expenditures are budgeted at $450 million in 2026, focused on expanding processing capacity at the San Dimas and La Parrilla complexes and advancing exploration drilling at high-grade targets.
4. Attractive Valuation and Cash Flow Metrics
First Majestic is trading at approximately 21.7 times operating cash flow, below its five-year average multiple of 24.9, despite a market capitalization of $8.6 billion. Current share turnover averages 23 million shares daily, underscoring robust liquidity. The company ended Q3 with $325 million in cash and equivalents, a net debt to EBITDA ratio of 0.8x, and maintains a modest dividend yield of 0.12%, positioning it to fund growth projects while returning capital to shareholders.