First Majestic Silver Q1 2026: 3.5M oz Output Signals Production Reset Amidst Operational Transitions

First Majestic produced 3.5 million silver ounces in Q1 2026, a step down from the 4.2 million ounces delivered in Q4 2025. That quarter-over-quarter decline of roughly 17% marks a meaningful reset in output, bringing production back toward the company's historical baseline before last year's surge.

The four producing underground mines-Santa Elena, San Dimas, Los Gatos, and La Encantada-remain the core production engine. In Q4 2025, these operations delivered 4.2 million silver ounces, including 1.5 million attributable ounces from Los Gatos, where First Majestic holds a 70% joint venture interest from the Los Gatos Joint Venture. That same quarter saw total silver equivalent production reach 7.8 million AgEq ounces, driven by strong performance across the portfolio including contributions from Los Gatos.

Viewed against that backdrop, the Q1 2026 figure of 3.5 million ounces signals a return to more modest output levels. The drop reflects either operational transitions, planned maintenance, or the natural variability that follows a record-setting quarter. What matters for the forward view is whether this represents a temporary dip during transitions or the start of a new production trajectory. For now, the four mines continue to anchor First Majestic's silver supply, with Los Gatos remaining a material contributor to the portfolio's output.

Production Context: What Drove the Q1 Output

The 3.5 million silver ounces produced in Q1 2026 represent a sequential pullback from the record 4.2 million ounces delivered in Q4 2025-a quarter that itself posted a 77% year-over-year surge in Q4 2025 silver production. That exceptional Q4 performance set an elevated base, making the Q1 decline as much a matter of statistical reversion as operational change.

Looking at the full-year picture provides context. First Majestic produced 31.1 million silver equivalent ounces in 2025, including 15.4 million silver ounces, beating its upwardly revised guidance for the full year 2025. The company announced its 2026 production outlook in January, establishing the annual framework against which Q1 results should be measured. Without the specific 2026 guidance numbers in hand, the Q1 output of 3.5 million ounces can be viewed as a reset toward the company's historical baseline-before last year's surge-rather than a breakdown in production capability. The four producing underground mines remain the core engine. Q4 2025 saw strong contributions across the portfolio, including 1.5 million attributable ounces from the Los Gatos Joint Venture from the Los Gatos Joint Venture. The Q1 decline likely reflects the natural variability that follows a record-setting quarter, possibly combined with planned maintenance or operational transitions at one or more properties.

On the capital front, the company has been active. The December 2025 completion of a US$350 million convertible notes offering and the proposed sale of the Del Toro Silver Mine for up to US$60M signal deliberate balance sheet management Del Toro Silver Mine sale. These moves provide liquidity that could support future production investment, though neither directly explains the Q1 output level. The key question is whether the 3.5 million ounce figure represents a temporary dip during transitions or the start of a new, lower trajectory. For now, the production engine remains intact-the four mines continue to anchor supply, and the portfolio retains its growth optionality through ongoing exploration.

Strategic Implications and Forward Outlook

The Q1 output signals a deliberate pause rather than a breakdown, positioning First Majestic to leverage upcoming growth catalysts. The key question for investors is whether this represents a temporary dip during transitions or the start of a new trajectory-and the answer will become clearer over the next two quarters.

Growth Catalysts on the Horizon

The Santo Niño discovery at Santa Elena, announced in May 2025, represents a material optionality play. This high-grade gold-silver vein has expanded the mineralization footprint beyond currently declared resources, and preliminary mine planning studies are underway to integrate both Santo Niño and Navidad into the district's Life of Mine preliminary mine planning studies. If these studies validate the discovery's economic potential, Santa Elena's production profile could meaningfully enhance in coming years.

Meanwhile, the Jerritt Canyon restart in Nevada signals First Majestic's intent to expand beyond its core Mexican mining district. The company announced a restart plan in April 2026, building on the 2025 drilling program that defined the project's resource base Jerritt Canyon restart plan. This represents a greenfield-style growth option that could add non-Mexican production to the portfolio.

Key Watchpoints

Q2 2026 production will be the first real test of whether the Q1 pullback was a seasonal adjustment or reflects more structural challenges. The four producing underground mines-Santa Elena, San Dimas, Los Gatos, and La Encantada-remain the production engine, but their combined output in Q1 suggested a reset toward historical baselines rather than the elevated levels seen in Q4 2025.

The Los Gatos integration continues to be a factor. First Majestic holds a 70% interest in the Los Gatos Joint Venture, and Q4 2025 saw 1.5 million silver ounces attributable to that operation from the Los Gatos Joint Venture. How this contribution evolves in 2026 will materially impact total portfolio output.

The Del Toro transaction also warrants monitoring. The proposed sale for up to US$60 million, announced in December 2025, would remove a past-producing asset from the portfolio while providing liquidity Del Toro Silver Mine sale. The transaction's timing and terms could affect near-term production metrics.

Investor Considerations

The December 2025 convertible notes offering and the Del Toro transaction provide balance sheet flexibility that could support future production investment. The company's strong safety performance in 2025-with a TRIFR of 0.55, below target-suggests operational discipline remains intact consolidated TRIFR for 2025.

The production reset creates a lower baseline against which 2026 growth can be measured. If the Santo Niño and Jerritt Canyon catalysts materialize, the company could post meaningful year-over-year improvement from here. If not, the portfolio's reliance on the four core mines becomes more pronounced. The next two quarters will clarify which path First Majestic is on.