First Majestic’s share count-adjusted value has jumped by more than 200% over the past year, propelled primarily by the sale of noncore assets in northeastern Mexico. Proceeds of approximately $150 million were redeployed into the acquisition of Gatos Silver in November, adding the Cerro Los Gatos mine to the portfolio and boosting silver-equivalent production capacity by roughly 25%. The purchase price of $300 million was financed through a combination of equity issuance and a seven-year revolving credit facility, enhancing the company’s long-term growth profile without overleveraging the balance sheet.

In Q3, First Majestic achieved its highest quarterly output to date, producing 4.2 million ounces of silver and 50,000 ounces of gold equivalent, a year-over-year increase of 18% and 22%, respectively. Revenues climbed to $275 million, up 30% from the prior-year period, while operating cash flow surged to $125 million, representing a margin expansion of 400 basis points. The company also reported all-in sustaining costs of $13.40 per silver ounce, well below the industry average, underscoring its competitive cost structure even with elevated energy and labor inputs.

First Majestic closed Q3 with net debt of just $50 million, down from $200 million at the end of Q2, resulting in a net debt-to-EBITDA ratio of 0.3x. Cash and equivalents stood at $180 million, providing over 12 months of liquidity runway under current production forecasts. With silver prices up more than 60% over the last 12 months, the company is projecting full-year free cash flow in excess of $300 million, which management plans to allocate toward further debt reduction, exploration drilling programs in Jalisco State and potential bolt-on acquisitions. Analysts have revised full-year silver production guidance to 16.5 million ounces, reflecting the Gatos Silver integration and robust reserve conversions.