First Majestic Silver (NYSE:AG) management highlighted what it called a “transformational” 2025 during the company’s fourth-quarter and year-end results conference call, pointing to higher production, record revenue, growing free cash flow, and a strengthened balance sheet. Executives also discussed 2026 guidance, ongoing plant expansions, a planned increase to the company’s dividend framework, and upcoming updates related to the Jerritt Canyon asset.
2025 production, revenue, and pricing highlights
President and Chief Corporate Development Officer Mani Alkhafaji said the company produced 4.2 million “pure silver ounces” in the fourth quarter and just over 15 million for the full year. On a silver-equivalent basis, First Majestic reported just over 31 million silver-equivalent ounces for 2025, which Alkhafaji said was higher than the company’s revised guidance.
During Q&A, management attributed part of the realized-price outperformance to concentrate sales adjustments and also to results from the company’s mint business. Chief Executive Officer Keith Neumeyer noted the mint recognized a $69 average price and said about 12% of Q4 doré production went through the mint.
Free cash flow, costs, and the silver-equivalent ratio
Alkhafaji described a “step change” in free cash flow during Q4 2025, attributing the improvement to operational discipline, higher metal prices, and cost containment. He added that the trend provided increased flexibility for capital allocation, including exploration and plant expansion.
On costs and guidance performance, Alkhafaji said the company came in “pretty much at or better than guidance” on silver and gold, with silver-equivalent production “right in the middle.” He noted, however, that all-in sustaining costs missed guidance due to changes in the conversion of byproduct metals to silver-equivalent ounces. He said the silver-equivalent ratio “collapsed towards the end,” reflecting silver outperforming gold and base metals, and that this reduced reported production by about 1.0 million to 1.4 million silver-equivalent ounces and increased all-in sustaining costs by about $1. He added that without that effect, all-in sustaining costs “would have been in the $20” range and closer to guidance assumptions.
2026 guidance and operating plans
Looking ahead, management said First Majestic is targeting 13 million to 14 million pure silver ounces in 2026, along with 110,000 to 130,000 ounces of gold, plus lead and zinc production. Alkhafaji said the company will “lock in” a 75:1 conversion ratio in 2026 to reduce the volatility and “noise” seen in 2025 from changing metal-price relationships.
Alkhafaji reviewed operational highlights across the portfolio:
- Gatos: Management said it closed the transaction in January 2025 and spent about half the year integrating the asset. Alkhafaji described the transition as smooth and said integration is now fully completed. He added that the company is targeting “low-hanging fruit” in cost reduction and near-mine reserve and resource growth. The company is also targeting a sustainable throughput increase to about 4,000 tons per day from roughly 3,500, with a contractor engaged starting late last year.
- Santa Elena: Alkhafaji reiterated exploration success in the district, referencing multiple discoveries over the past 10 years and noting a maiden resource on the Navidad discovery released late last year. He said Santa Elena’s plant is being expanded from about 3,100–3,200 tons per day to 3,500 tons per day at a sustainable level, with the target to reach that level in the second half of 2026.
- San Dimas: Management pointed to ongoing exploration success and said details will be discussed in the company’s annual reserve and resource update.
- La Encantada: Alkhafaji called the mine an “exciting turnaround” and noted it is the company’s smallest operation but its “purest silver producer,” producing 100% silver. He said La Encantada produced about 1 million ounces in Q4 and has improved following prior water and haulage challenges. The company is internalizing hauling and expects additional cost improvements and efficiencies.
Balance sheet, dividends, exploration, and key upcoming updates
Management said the company ended the period with “just under $940 million” in cash between unrestricted and restricted balances, and working capital of $733 million, which includes marketable securities. Alkhafaji also noted that the company’s marketable securities increased by about $140 million during the year, which he said is reflected on the balance sheet but “not included” in the income statement.
Alkhafaji said First Majestic recognized a previously disclosed provision in its income statement and noted that the amount had not been paid as the company continues discussions with Mexico’s SAT, adding that management is “cautiously optimistic.” He also noted there would be cash payments related to 2025 that would be made in Q1 and delivered in Q2.
On financing, Alkhafaji said the company closed a convertible note offering in December with what he described as “the best terms in the mining industry,” citing a 1/8 coupon rate.
The company also discussed its dividend policy. Management said it declared dividends for Q4 and has “effectively doubled” its dividend policy effective 2026, moving from 1% of the top line to 2% of revenue, to be reflected on revenue earned for Q1 2026.
Exploration remains a key focus, with Alkhafaji citing more than 250 kilometers of drilling completed in 2025 and outlining 266 kilometers of planned drilling across operations. In response to a question about rig availability and costs, management said it uses long-term contracts with a primary drilling contractor and indicated no concerns about accessing rigs.
During Q&A, Neumeyer addressed questions about market conditions, saying refinery financing has been suspended amid tightness and volatility, but added it does not affect First Majestic because the company does not finance its metal and can “wait for our turn.” He also said the company does not hedge, emphasizing that it remains fully exposed to metal prices. Neumeyer added that the company has been contacted by direct buyers and said it assisted one U.S. buyer with ounces in Q4, but described direct-to-market selling as not a typical strategy.
Management also flagged upcoming news related to Jerritt Canyon. Neumeyer said a “standalone update” is planned once plans and numbers are finalized and that the company hopes to provide it before the end of the quarter.
About First Majestic Silver (NYSE:AG)
First Majestic Silver Corp. (NYSE:AG) engages in the production of silver from its wholly owned operations in Mexico. Headquartered in Vancouver, British Columbia, the company focuses on acquiring, developing and operating high-grade silver projects. Established in 2002, First Majestic has built a multi-mine portfolio to supply silver primarily for the global industrial and investment markets while generating by-products such as gold, lead and zinc concentrates.
First Majestic’s principal operations are located in the historic Mexican Silver Belt, with producing mines including La Encantada in Coahuila, Santa Elena in Sonora and La Parrilla in Durango.
