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

First Majestic Silver Corp. AG scaled a new 52-week high of $16.28 yesterday before ending the session at $15.69. The upside is driven by near-record silver prices and solid third-quarter 2025 results.

First Majestic currently has a market capitalization of $7.81 billion and a Zacks Rank #2 (Buy).

What’s Aiding First Majestic's Stock?

Acquisition: In January 2025, AG 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 third quarter included a contribution of 1.4 million ounces from Cerro Los Gatos.

Solid Q3 Performance: AG’s total production reached 7.7 million silver-equivalent (AgEq) ounces in the third quarter of 2025. The figure includes a record 3.9 million silver ounces and 35,681 gold ounces. It also includes 13.9 million pounds of zinc and 7.7 million pounds of lead. The AgEq ounces produced marked a solid 39% year-over-year increase, attributed to a 96% surge in silver production.

First Majestic achieved a record quarterly free cash flow in the third quarter. The company’s cash flow surged 67.5% year over year to $98.8 million, with liquidity reaching $682 million. AG reported a record working capital of $542.4 million.

Positive Exploration Results: In September 2025, the company announced positive drilling results from its 2024/2025 exploration efforts at its Los Gatos Silver Mine. The drilling programs aimed to extend metal mineralization in the South-East Deeps, Central Deeps and North-West Deeps zones, yielding significant intersections of silver and base metal mineralization.

This follows encouraging drilling results from the ongoing exploration program at its San Dimas Mine, announced on Aug. 18. The 2025 exploration results at San Dimas further enhance the mine’s status as a top-tier asset in First Majestic's portfolio.

First Majestic has started its 2025 drilling program at the Jerritt Canyon mine in the third quarter of 2025. The company has completed 12,522 meters of drilling on two surface drill rigs and expects to have full drilling results by the year-end.

Near-Record Silver Prices: Silver prices have surged more than 100% year to date, supported by strong safe-haven demand, geopolitical tensions and escalating trade conflicts. Silver has benefited from resilient industrial demand and mounting supply deficits. Demand for solar energy, electronics and electrification now accounts for more than half of global silver demand. Currently, silver is trading at around a near-record of $58, driven by expectations of a rate cut, which bodes well for prices.

AG Stock’s Price Performance

Shares of the company have surged a whopping 151% over the past year, outperforming the industry's 127.3% rally.

Other Stocks to Consider

Some other top-ranked stocks from the basic materials space are OR Royalties Inc. OR, Newmont Corporation NEM and Agnico Eagle Mines Limited AEM. OR, NEM and AEM sport a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus estimate for OR Royalties’ 2025 earnings is pegged at 82 cents per share. The estimate indicates year-over-year growth of 57.7%. OR Royalties’ shares have surged 76.9% in a year.

The consensus estimate for Newmont’s 2025 earnings is pegged at $6.05 per share. The estimate suggests year-over-year growth of 73.8%. It has an average trailing four-quarter earnings surprise of 41.6%. Newmont’s shares have soared 120.2% in a year.

The consensus estimate for Agnico Eagle Mines’ 2025 earnings is pegged at $7.77 per share. The estimate implies a year-over-year rally of 83.6%. It has an average trailing four-quarter earnings surprise of 11.6%. Agnico Eagle Mines’ shares have surged 100.4% in a year.

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

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