AG Stock Soars 205% in a Year: What's Aiding Its Performance?

First Majestic Silver Corp. AG shares have skyrocketed 205.1% over the past year compared with the industry's upsurge of 201.7%.

What’s Aiding First Majestic?

Portfolio Optimization Efforts: In Mid-December, First Majestic announced that it inked a definitive agreement with Sierra Madre Gold & Silver Ltd. to sell the Del Toro Silver Mine. The Del Toro Mine, located in Mexico, is a past-producing silver, gold and lead mine fully owned by First Majestic and was placed under care and maintenance by it in January 2020.

The deal is inked for total consideration in cash and shares of up to $60 million. Sierra Madre will give $20 million in cash and $10 million in common shares to AG at a closing price of $1.30 per share. First Majestic will receive $10 million within 18 months of closing.

Strategic 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.

Surge in Silver Prices: Silver prices have soared more than 157% 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 $75, driven by expectations of a rate cut, which bodes well for prices.

AG’s Zacks Rank & Stocks to Consider

First Majestic currently has a Zacks Rank #3 (Hold).

Some better-ranked stocks from the basic materials space are Agnico Eagle Mines AEM, Kinross Gold Corporation KGC and Fortuna Mining Corp. FSM. AEM and KGC sport a Zacks Rank #1 (Strong Buy), while FSM has a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus estimate for Agnico Eagle Mines’ 2025 earnings is pegged at $7.77 per share. The estimate indicates year-over-year growth of 83.6%. It has an average trailing four-quarter earnings surprise of 11.6%. Agnico Eagle Mines’ shares have surged 107.6% in a year.

The Zacks Consensus Estimate for Kinross Gold’s 2025 earnings is pegged at $1.67 per share, suggesting year-over-year growth of 145%. Kinross Gold’s shares jumped 135% last year.

The consensus estimate for Fortuna Mining’s 2025 earnings is pegged at 76 cents per share. The estimate implies year-over-year growth of 65.2%. Fortuna Mining’s shares have surged 145.6% in a year.

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

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