First Majestic has delivered a remarkable 205% gain over the past 12 months, largely fueled by the divestiture of noncore assets totaling $250 million and the transformative acquisition of Gatos Silver for $2.75 billion. Proceeds from three royalty sales and a joint-venture stake sale in Mexico bolstered the balance sheet, reducing net debt by 40% to $600 million. The Gatos transaction added an expected 4.5 million ounces of silver equivalent in annual production, lifting total output guidance for 2026 to between 20 and 22 million ounces of silver equivalent.

In the third quarter, First Majestic achieved all-time quarterly highs with production reaching 5.2 million ounces of silver equivalent, up 35% year-over-year. Revenue climbed 48% to $290 million, driven by a 42% increase in silver sales volume and a 27% rise in gold output. Cash costs per ounce of silver equivalent fell 15% to $12.90, while all-in sustaining costs dropped 12% to $18.50 per ounce. Free cash flow for the period was $85 million, marking the fourth consecutive quarter of positive cash generation and providing ample funding for capital projects and debt reduction.

Silver prices surged from roughly $30 per ounce a year ago to a peak near $83, providing a powerful tailwind for First Majestic’s revenue and margins. Although the metal experienced a recent pullback of 14% from its high, current levels remain more than double those of the prior year. This volatility has translated into a 21.7x multiple on operating cash flow, compared with a five-year average of 24.9x, suggesting that further upside could materialize if silver stabilizes above $65. Analysts note that the company’s high-grade San Dimas and Santa Elena mines will continue to benefit disproportionately from any sustained price recovery.