First Majestic Silver (AG) is currently valued at a steep premium relative to both its peer group and its own historical trading multiples. Analysts note that AG trades at roughly 1.5 times the enterprise value to silver equivalent production multiple observed for mid-tier silver producers. This premium reflects investor confidence in the company’s robust production growth but also raises concerns about valuation risk if operational or macro factors intervene.

In the fourth quarter of 2025, AG reported record quarterly silver production of 4.2 million ounces, up 77% year-over-year from 2.4 million ounces in Q4 2024. Total attributable silver equivalent output across its four underground Mexican operations reached 7.8 million ounces (up 37% Y/Y), including 41,417 ounces of gold, 14.2 million pounds of zinc, 8.1 million pounds of lead and 235,886 pounds of copper. These gains were driven by strong performance at San Dimas and material contributions from the newly integrated Los Gatos mine.

AG delivered 31.1 million silver equivalent ounces in 2025, exceeding its upwardly revised guidance range of 29.8–31.1 million ounces. Annual silver output reached 15.4 million ounces (up 84% Y/Y), gold production totaled 147,433 ounces and zinc output climbed to 56.7 million pounds. The board responded by increasing the annual dividend by 15%, rewarding shareholders after surpassing both original and July-revised targets and integrating the Gatos Silver acquisition seamlessly.

Looking ahead, management forecasts further growth driven by a Santa Elena mill expansion, throughput improvements at Los Gatos and continued exploration across its Mexican portfolio. The company has budgeted over 200,000 metres of drilling for 2026, targeting extensions at Santo Niño and Navidad, where recent results expanded the mineralized footprint. A maiden resource estimate for Santo Niño is expected in Q1, while the newly appointed President & Chief Corporate Development Officer will oversee corporate strategy to maintain operational momentum.