First Majestic Silver Achieves Further Margin Improvement in Q2

First Majestic Silver reported Q2 results with further margin improvement. The company's revenue increased by 37% YoY, while AISC per ounce decreased by 29%. First Majestic's production levels also rose, with silver production up 12% and gold production up 21%. The company's cash balance increased to $108.6 million from $86.8 million in Q1.

First Majestic Silver Corp. (NYSE: AG) delivered a robust Q2 performance, showcasing further margin improvement, increased production, and a substantial cash balance boost. The company reported a 37% year-over-year (YoY) increase in revenue, with all-in sustaining costs (AISC) per ounce decreasing by 29% [1]. This financial turnaround is a testament to the company's strategic initiatives and operational efficiency.

First Majestic's production levels surged, with silver production up 12% and gold production up 21%. The company's quarterly production totaled ~3.7 million ounces of silver and ~33,900 ounces of gold, a 76% increase in silver production and a 14% decline in gold production [2]. This growth is primarily attributed to the acquisition of 70% of the Cerro Los Gatos Mine, which offset declining grades at Santa Elena.

The company's cash balance increased to $108.6 million from $86.8 million in Q1, indicating a strong financial position. This improvement in cash flow is a positive indicator for the company's future prospects.

First Majestic has also revised its production guidance for the year, increasing the mid-point estimates for silver and gold production by 6%, 12%, and 7% at the mid-point at Cerro Los Gatos (70%), Santa Elena, and San Dimas, respectively [2]. The company now expects to produce 15.3 million ounces of silver and 139,500 ounces of gold at the mid-point compared to its initial guidance of 14.45 million ounces of silver and 136,500 ounces of gold.

Despite the impressive financial results, the company faces challenges, including share dilution due to the acquisition of the Cerro Los Gatos Mine. The issuance of over 177 million shares to purchase the mine has led to a significant decrease in production per share and reserves per share.

Overall, First Majestic Silver's Q2 performance demonstrates a strong recovery from previous financial setbacks. The company's strategic moves and operational improvements have positioned it for future growth, despite the challenges posed by share dilution and fluctuating market conditions.

References:
[1] https://stockstotrade.com/news/first-majestic-silver-corp-canada-ag-news-2025_09_02/
[2] https://seekingalpha.com/article/4819115-first-majestic-silver-further-margin-improvement-in-q2