First Majestic Posts Strong 2025 Output: Can the Momentum Sustain?

First Majestic Silver Corp. AG has been capitalising on strong silver prices, with increase in silver production. In fourth-quarter 2025, the company produced 7.8 million silver-equivalent (AgEq) ounces, reflecting an increase of 37% year over year.

The production growth was supported by the Gatos Silver buyout (in January 2025), which added a 70% interest in the Cerro Los Gatos underground mine. In the fourth quarter, the asset contributed 2.09 million AgEq ounces, significantly enhancing First Majestic’s production base. The company’s core operations also delivered encouraging results. The San Dimas mine produced 2.45 million AgEq ounces of silver in the fourth quarter.

For the full-year 2025, AG met its upwardly revised production outlook (provided in July 2025), with full-year production of 31.1 million AgEq ounces. The figure includes a robust 15.4 million silver ounces, 147,433 gold ounces, 56.7 million lbs of zinc and 32.3 million lbs of lead.

AG’s strong operational foothold in Mexico through four operating mines, including the likes of Santa Elena Silver/Gold mine, Los Gatos Silver mine, San Dimas Silver/Gold mine and La Encantada Silver mine, holds positive. Despite AG experiencing major tax-related issues in the country, all these sites are performing strongly, achieving record production. In the fourth quarter, contributions from AG’s Santa Elena, Los Gatos, San Dimas and La Encantada mines to its total silver-equivalent ounces production were 29.1%, 26.7%, 31.2% and 12.8%, respectively.

Snapshot of AG’s Peers

Among its major peers, Avino Silver & Gold Mines ASM is strengthening its position as a leading silver-producer. In 2025, the company produced 2,606,155 AgEq ounces, within its guidance of 2.5 to 2.8 million AgEq ounces. Also, in the fourth quarter, Avino produced 345,298 AgEq ounces, reflecting a significant increase on a year-over-year basis.

Its another peer, Pan American Silver Corp.’s PAAS 2025 silver production totaled 22.8 million ounces, up 8.5% compared with the prior-year period. The increase in output was driven by the strong performance from its stake in the Juanicipio mine, which was acquired last year.

First Majestic's Price Performance, Valuation and Estimates

Shares of First Majestic have gained 6.1% in the past three months against the industry’s decline of 8.3%.

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From a valuation standpoint, First Majestic is trading at a forward price-to-earnings ratio of 25.57X, above the industry’s average of 14.11X. AG carries a Value Score of D.

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The Zacks Consensus Estimate for AG’s 2025 earnings has been on the rise over the past 60 days.

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First Majestic currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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