First Majestic Hits 52-Week High: What's Aiding Its Performance?

First Majestic Silver Corp. AG scaled a new 52-week high of $9.48 yesterday before ending the session at $9.15. The upside comes following the news of strong silver-equivalent (AgEq) production in the second quarter of 2025 and a rise in metal prices. 

First Majestic currently has a market capitalization of $4.5 billion and a Zacks Rank #3 (Hold).

What’s Aiding First Majestic Stock?

Rise in Q2 Silver-Equivalent Production: On July 8, 2025, the company announced that its total production reached 7.9 million AgEq ounces in the second quarter of 2025. The figure includes 3.7 million silver ounces and 33,865 gold ounces. The AgEq ounces produced marked a solid 48% year-over-year increase, attributed to a 76% surge in silver production.

The upside was driven by increased production from the San Dimas mine and La Encantada mine, and contributions from the Cerro Los Gatos mine. 

Strategic Acquisition:  In January 2025, First Majestic completed the deal to acquire Gatos Silver, under which AG will gain a 70% interest in the high-quality and long-life Cerro Los Gatos Silver underground mine.

The Cerro Los Gatos mine, combined with First Majestic’s existing San Dimas Silver/Gold mine and the Santa Elena Silver/Gold mine, will boost AG’s annual production to 30-32 million ounces of silver equivalent. This includes silver ounces of 15-16 million.

The combined entity, with a pro-forma market capitalization of around $3 billion, will have an enhanced production profile with a strong balance sheet and margins. Meaningful synergies are expected through corporate cost savings, and supply-chain and procurement efficiencies. Acceleration and optimization of internal projects and exploration programs are expected to deliver meaningful value creation for its shareholders.

AG’s total silver production in the second quarter included a contribution of 1.5 million ounces from Cerro Los Gatos.

Increased Outlook: Backed by a strong second-quarter performance, the company increased its full-year consolidated production guidance to 30.6-32.6 million AgEq ounces from the previously announced 27.8-31.2 million AgEq ounces.

Rising Trend in Metal Prices: Silver prices have gained 28% so far this year, with gold prices up 29%, supported by strong safe-haven demand, geopolitical tensions and escalating trade conflicts. Silver has benefited from resilient industrial demand and mounting supply deficits. Currently, silver prices are around $38 per ounce.

Gold prices are also gaining from several factors that have contributed to its upward trajectory, including increased geopolitical tensions, a depreciating U.S. dollar, the potential for monetary policy easing and continuous purchasing by central banks. Backed by these, the yellow metal broke through the $3,500-per-ounce threshold for the first time in April 2025 and is currently around $3,361.

AG Stock’s Price Performance

The company’s shares have risen 42.2% in the past year compared with the industry's 15.5% growth.

Stocks to Consider

Some better-ranked stocks from the basic materials space are ATI Inc. ATI, Carpenter Technology Corporation CRS and MAG Silver Corp. MAG. ATI currently carries a Zacks Rank #1 (Strong Buy), and CRS and MAG have a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Carpenter Technology has an average trailing four-quarter earnings surprise of 11.1%. The Zacks Consensus Estimate for CRS’ 2025 earnings is pegged at $7.28 per share, which indicates year-over-year growth of 53.6%. Carpenter Technology shares skyrocketed 139.5% last year.

MAG Silver has an average trailing four-quarter earnings surprise of 2%. The Zacks Consensus Estimate for MAG’s 2025 earnings is pegged at 96 cents per share. MAG’s shares surged 69% last year.

ATI has an average trailing four-quarter earnings surprise of 12.5%. The Zacks Consensus Estimate for ATI’s 2025 earnings is pegged at $3.02 per share, indicating year-over-year growth of 22.8%. ATI shares jumped 52.8% last year.

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

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