First Majestic Silver Corp. — Investor‑Ready Overview (2025)

Company Overview

First Majestic Silver Corp. (ticker: AG on NYSE / TSX) is a Canadian precious‑metals mining company, founded in 2002. (Wikipedia)

Headquarters: Vancouver, British Columbia, Canada. (Wikipedia)
Leadership: The company is led by President & CEO Keith Neumeyer (also a founder), with other senior executives including its CFO. (Wikipedia)
Core business activities: Primary focus on silver production, also producing gold, lead, zinc and selling refined silver via its own minting business. (firstmajestic.com)

In addition to mining, First Majestic owns a bullion‑minting subsidiary through which it sells silver bars, coins, and medallions directly to the public — creating vertical integration from extraction to retail bullion supply. (firstmajestic.com)

Operations and Assets

First Majestic currently operates four producing underground mines in Mexico. (firstmajestic.com)

Mines:
- Cerro Los Gatos Silver Mine (70% interest by First Majestic, via a joint venture) (firstmajestic.com)
- Santa Elena Silver/Gold Mine (firstmajestic.com)
- San Dimas Silver/Gold Mine (firstmajestic.com)
- La Encantada Silver Mine (firstmajestic.com)
Production (recent performance, 2025):
- In Q3 2025: 7.7 million attributable silver equivalent (AgEq) ounces. This includes 3.9 million ounces of silver, 35,681 ounces of gold, plus zinc and lead production. (firstmajestic.com)
- The Q3 2025 result marks the highest quarterly silver production in company history. (firstmajestic.com)
- For 2025 overall, First Majestic has given 2025 guidance of 27.8 to 31.2 million AgEq ounces, including 13.6 to 15.3 million pure silver ounces, reflecting the boost from acquiring Cerro Los Gatos. (finance.yahoo.com)
Exploration and growth pipeline:
- During Q3 2025, the company completed 79,481 metres of drilling across its mines in Mexico and the U.S., with up to 30 drill rigs active. (firstmajestic.com)
- Notable positive exploration results: near‑mine extensions at San Dimas (Elia, Sinaloa, Roberta, Santa Teresa veins), a new high‑grade intercept at the Coronado vein (West Block), and expansionary drilling at Los Gatos in several “Deeps” zones (South‑East Deeps, Central Deeps, North‑West Deeps). (firstmajestic.com)

This portfolio and pipeline give First Majestic both stable production base and optionality for future growth, thanks to aggressive exploration and recent acquisitions.

Financial Performance

First Majestic’s 2025 financials so far show strong momentum.

Q1 2025:
- Revenue: US$243.9 million — up 130% year‑over‑year. (firstmajestic.com)
- Silver production in Q1 rose 88% YoY to 3.7 million ounces, thanks in part to Cerro Los Gatos contribution. (firstmajestic.com)
- Cash cost per AgEq ounce was US$13.68, down from US$15.00 in Q1 2024. (firstmajestic.com)
- All-in sustaining cost (AISC) per AgEq ounce was US$19.24. (firstmajestic.com)
- Operating cash flow before working capital/taxes jumped to US$110.0 million (from US$12.6 m in Q1 2024). (firstmajestic.com)
- Net earnings: US$6.2 million (vs. loss of US$13.6 million in Q1 2024). (firstmajestic.com)
Q2 2025: The company produced 7.9 million AgEq ounces (3.7 million silver ounces + 33,865 gold ounces + base metals). (firstmajestic.com)
Q3 2025: Revenue of US$285.1 million (95% increase vs. Q3 2024), with mine operating earnings of US$99.1 million. (firstmajestic.com)
2024 (full year): Revenue of US$560.6 million. Mine operating earnings reached US$91.9 million — up from US$25.6 million in 2023. Operating cash flow (before working capital/taxes) was US$138.6 million. (firstmajestic.com)

These figures illustrate a company that — after integrating new assets and benefiting from favorable silver prices — is regaining profitability, generating strong cash flow, and maintaining disciplined cost control.

Market Position

First Majestic is among the more prominent intermediate silver producers with a diversified portfolio of underground silver and gold mines. (Wikipedia)
By owning multiple producing mines in Mexico (a major silver‑production jurisdiction), plus a U.S. exploration asset in Nevada (Jerritt Canyon Gold Mine), the company balances geographic/regulatory risk and has growth optionality. (firstmajestic.com)
The recent acquisition of Los Gatos significantly enhances its output capacity — which should improve its competitive position vs. other silver miners, and help leverage higher silver prices. (finance.yahoo.com)
Through its own bullion‑minting operation, First Majestic also has a unique retail/precious‑metals distribution channel (via its subsidiary First Mint, LLC), giving it an additional revenue stream beyond mining. (firstmajestic.com)

Given current market conditions (elevated silver and base‑metals prices, growing global demand for silver, and constrained global silver supply), First Majestic is well positioned to benefit.

Investment Metrics & Valuation (as of December 2025)

Current share price (AG): ~US$15.06.
Recent performance: According to a 2025 report, the stock has “risen approximately 189% year-to-date” at one point, reflecting a strong rebound. (investors.com)
Analysts’ sentiment: Some coverage (e.g., from Investor’s Business Daily) identifies First Majestic as a top growth stock, citing expanding profits and momentum. (investors.com)
Dividend policy: The company announced a quarterly dividend payment in 2025 (per its Q1 2025 results). (firstmajestic.com)
Costs & margins: Cash costs per AgEq ounce around US$13–14, with AISC around US$19–20 per ounce. Given silver prices significantly above those levels in 2025, this yields healthy margins. (firstmajestic.com)
2025 guidance: 13.6–15.3 million silver ounces (plus equivalent from other metals) at manageable costs — meaning scaling up production while maintaining cost discipline. (finance.yahoo.com)

(Note: more detailed valuation metrics like P/E, EV/EBITDA, P/B will depend heavily on silver price assumptions and updated balance‑sheet data — investors should compute these based on latest financial statements.)

Risks and Challenges

As with any mining company, and particularly a silver‑focused one, First Majestic carries a number of risks:

Commodity price volatility: Silver (and to a lesser extent gold, lead, zinc) prices fluctuate — a significant drop could erode margins quickly.
Operational risk: Underground mining has inherent risks — geological surprises, mining accidents, ore-grade variability, cost overruns, delays. For example, in Q3 2025, production at La Encantada was impacted by lower ore grades and ground‑condition difficulties, requiring contracting a mining contractor to accelerate development. (firstmajestic.com)
Regulatory / geopolitical risk: The majority of production is in Mexico. Changes in mining regulation, tax regimes, environmental laws, or social/community pressures could impact operations.
Currency risk: With costs in Mexican pesos but reporting in US dollars, fluctuations in exchange rates (e.g. MXN/USD) can impact profitability; in Q3 2025, First Majestic cited a strengthening peso as a partial offset to improved operations. (firstmajestic.com)
Environmental / ESG risk: As an underground miner producing silver, gold, base metals and operating a minting facility, the company may face environmental scrutiny, water‑use concerns, community relations, regulatory compliance — particularly under evolving ESG standards.
Concentration risk: While the company has multiple mines, a large portion of recent production growth is tied to the newly acquired Cerro Los Gatos. Dependence on a few major assets can lead to higher risk if one underperforms.

Opportunities and Growth Drivers

First Majestic has several levers that could support continued growth and a compelling investment case:

Acquisition & consolidation gains: The acquisition of Cerro Los Gatos significantly expanded the production base and expects to lift total output in 2025 to ~30 + million AgEq ounces. (finance.yahoo.com)
Exploration upside: With aggressive drilling (tens of thousands of metres annually) at multiple sites (San Dimas, Los Gatos, Santa Elena, Jerritt Canyon), there’s potential for new high‑grade discoveries or extensions — which could materially enhance reserves and future production. (firstmajestic.com)
Cost advantage: Low cash costs (US$13–14/oz) and relatively low AISC (US$19–20/oz) provide cushion even if silver prices fall, and offer leverage if silver prices rise — a margin advantage vs. higher‑cost producers. (firstmajestic.com)
Silver price environment: At times of bullish silver demand — e.g., for industrial uses (electronics, photovoltaics), jewelry, and as a hedge — First Majestic stands to benefit significantly. Some analysts view the company as a leveraged silver play with upside tied to rising silver prices. (investors.com)
Vertical integration via bullion sales: Through its minting business, First Majestic can capture additional value, selling refined silver directly — potentially improving margins and diversifying revenue beyond mining. (firstmajestic.com)

Recent News & Developments (2025)

In Q3 2025, First Majestic reported record quarterly production — 7.7 million AgEq ounces — including a record 3.9 million silver ounces. (firstmajestic.com)
Revenue in Q3 reached US$285.1 million (up 95% vs. prior-year quarter), with mine operating earnings rising to US$99.1 million. (firstmajestic.com)
The company’s 2025 production guidance was updated: expecting 27.8–31.2 million AgEq ounces (13.6–15.3 million silver ounces). (finance.yahoo.com)
Exploration remains active: in Q3 2025, 79,481 metres drilled; expansionary drilling at Los Gatos, near‑mine and deep zones; high‑grade vein intercepts at San Dimas and other sites. (firstmajestic.com)
On ESG and safety, First Majestic reported favourable metrics: for example, in Q3 2025, Total Reportable Incident Frequency Rate (TRIFR) was 0.61 (below the 2025 target of 0.70), and sustainability ratings by major firms (e.g. ESG risk rating by a top agency) placed the company in the “Medium risk” category — marking an improvement in environmental/social governance standing. (firstmajestic.com)

Conclusion & Investment Outlook

First Majestic Silver stands out as a compelling silver‑focused mining company with a diversified asset base, strong recent performance, aggressive growth strategy, and attractive cost structure. The 2025 acquisition of Cerro Los Gatos and robust production growth — combined with low production costs and favourable silver market — position the company well for both near-term cash flow and long-term upside, especially if silver prices remain elevated or rise further.

However, the investment isn’t without risks: silver‑price volatility, dependence on a few major mines, geopolitical and currency exposure (given operations in Mexico), and operational / environmental challenges all require careful monitoring.

Bottom line: For investors bullish on silver and metals demand (industrial, monetary, or inflation-hedge driven), First Majestic offers a leveraged, relatively low-cost, diversified bet — with potential upside from exploration and bullion sales. For those more cautious about commodity cycles or geopolitical/regulatory risk, this remains a higher‑risk, higher‑reward position.