First Majestic Silver Corp.
Company Overview
& First Majestic Silver Corp. (NYSE/TSX: AG) is an intermediate silver and gold producer with four operating mines in Mexico: Santa Elena, San Dimas, La Encantada and a 70% interest in the Los Gatos joint venture. The company has raised 2026 attributable production guidance to 14.6–15.5 million ounces of silver and 128,000–135,000 ounces of gold, reflecting strong first-half performance and successful progress on throughput expansions across the portfolio. Consolidated AISC guidance stands at US$27.69–28.77 per AgEq ounce. Q2 2026 results included 3.80 million ounces of silver and 34,660 ounces of gold, revenue of US$415.5 million (+57% year-over-year), free cash flow of US$194.6 million and AISC of US$25.68 per AgEq ounce. Cash and cash equivalents reached approximately US$1.09 billion at June 30, 2026 (plus restricted cash), supporting a substantial net cash position. Market capitalization is approximately US$9.3 billion.
Investment Thesis
First Majestic offers leveraged exposure to silver prices through a multi-mine Mexican production base with improving throughput, a low-cost contribution from Los Gatos, and a fortress balance sheet built on exceptional free-cash-flow generation at elevated metal prices. The raised production guidance and ongoing capital programs (including planning for the Jerritt Canyon restart in the United States) support medium-term growth optionality. Key risks include Mexican operating, fiscal and community jurisdiction, silver-price volatility, delivery of AISC within the raised guidance range, and successful execution of growth projects. Relative to pure explorers or single-asset developers, AG ranks lower risk by virtue of cash flow, reserves and liquidity. Relative to larger senior silver or diversified precious-metals producers, scale and single-country concentration remain the primary differentiating risk factors.
