First Majestic Silver (AG) Soars 7.89% to 2025 High on Q2 Earnings, Silver Price Surge

First Majestic Silver Corp. (AG) surged 7.89% intraday, reaching its highest level since October 2025, as renewed investor confidence lifted the stock to a multi-year peak. The rally reflects a confluence of operational strength and favorable market dynamics.

The company’s second-quarter 2025 results underscored its turnaround, with revenue soaring 94% year-over-year to $264.2 million. A 24% rise in silver prices and the Los Gatos Silver Mine acquisition drove record production of 7.9 million silver equivalent ounces. Free cash flow of $77.9 million and a $510.1 million treasury position highlighted improved financial flexibility, while net earnings jumped to $56.6 million from a $48.3 million loss in the prior-year period.

Analysts have increasingly endorsed AG’s momentum, with price targets revised upward and a “Strong Buy” rating from Zacks Investment Research in October. Optimism centers on Los Gatos’ integration, which contributed 54% of revenue from silver sales, and the company’s ability to capitalize on the 13-year high in silver prices driven by industrial demand and geopolitical factors.

Sustainability initiatives further bolster investor appeal, including a Prime ESG rating from ISS ESG and reduced carbon emissions at key operations. These efforts align with growing demand for responsible mining practices, enhancing AG’s competitive edge in a sector under environmental scrutiny.

While the stock’s gains suggest optimism, risks remain. Silver price volatility and operational costs at San Dimas could pressure margins. However, management’s focus on cost efficiency and a dividend policy tied to quarterly net revenues signals confidence in sustaining cash flow. AG’s performance outpaced broader market benchmarks, with a 126.62% total return over the past year, positioning it as a key player in the silver sector.