Can First Majestic's Higher Silver Production Boost Its Long-Term Growth?

First Majestic Silver Corp. AG is benefiting from strong growth in silver production, supported by higher prices. In fourth-quarter 2025, the company produced 7.8 million silver-equivalent (AgEq) ounces, reflecting an increase of 37% year over year.

The major driver behind the production growth was the acquisition of Gatos Silver (in January 2025), which added a 70% interest in the Cerro Los Gatos underground mine. The asset contributed 2.09 million AgEq ounces in the quarter, significantly enhancing First Majestic’s production base. The company’s core operations also delivered encouraging results. The San Dimas mine produced 2.45 million AgEq ounces of silver in the fourth quarter.

For 2025, First Majestic met its upwardly revised production outlook (provided in July 2025), with full-year production of 31.1 million AgEq ounces. The figure includes a robust 15.4 million silver ounces, 147,433 gold ounces, 56.7 million lbs of zinc and 32.3 million lbs of lead.

In Mexico, AG is performing strongly, achieving record production across its sites. In the fourth quarter, contributions from AG’s Santa Elena, Los Gatos, San Dimas and La Encantada mines to its total silver-equivalent ounces production were 29.1%, 26.7%, 31.2% and 12.8%, respectively. Higher silver production, successful asset integration and continued exploration investments position AG well to sustain growth momentum going forward.

Snapshot of AG’s Peers

Among its major peers, Hecla Mining Company HL is strengthening its position as a leading North American precious metals producer. In 2025, the company produced 17 million ounces of silver (up 5% year over year), with all three major mines driving the annual growth. Hecla Mining’s revenues rose to $1.4 billion, up 53% year over year, driven by higher metal prices and increased precious-metals sales volumes.

Its another peer, Pan American Silver Corp.’s PAAS 2025 silver production reached 22.8 million ounces, up 8.5% compared with the prior-year period. The solid increase in output was driven by the strong performance from its stake in the Juanicipio mine, which was acquired last year.

First Majestic's Price Performance, Valuation and Estimates

Shares of First Majestic have gained 117.7% in the past three months compared with the industry’s growth of 62.8%.

From a valuation standpoint, First Majestic is trading at a forward price-to-earnings ratio of 72.15X, above the industry’s average of 20.72X. AG carries a Value Score of F.

The Zacks Consensus Estimate for AG’s 2025 earnings has been on the rise over the past 60 days.

First Majestic currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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

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