Record Silver Output and Dividend Hike Signal Resilient Growth at First Majestic
First Majestic Silver Corp. (NYSE: AG) has just reported a transformative 2025, with annual silver production reaching an all-time high and headline-grabbing dividend growth. The company’s four underground mines in Mexico delivered a record 15.4 million silver ounces—an 84% jump from the prior year—sharply beating both its original and upwardly revised guidance on the back of the strategic Los Gatos acquisition and improved operating performance across the board.
Production Surges on Strategic Asset Integration
The cornerstone of this surge was the 2025 acquisition and seamless integration of the Los Gatos mine, which alone contributed 1.5 million ounces of silver in Q4, and over 4.2 million silver ounces for the quarter overall—a 77% year-over-year gain. Notably, the company also met or surpassed guidance for gold, zinc, and lead, underlining its execution and the value of diversified by-products.
| Quarter | Silver Prod. (Moz) | Gold Prod. (koz) | Zinc (Mlbs) | Lead (Mlbs) | Silver Eq. Prod. (Moz) |
|---|---|---|---|---|---|
| Q4 2025 | 4.17 | 41.42 | 14.24 | 8.11 | 7.85 |
| Q4 2024 | 2.35 | 39.51 | N/A | N/A | 5.71 |
Exploration and Expansion: New Discoveries Extend Life-of-Mine Potential
Behind the numbers, the company continues to invest heavily in the future. In 2025, more than 265,000 metres of drilling led to significant new discoveries at both Santa Elena (Santo Niño zone) and Navidad. Both areas are now subject to early-stage mine planning, signifying further production upside. In 2026, capital expenditures are forecast at $213–236 million—a 16% increase—with a notable tilt toward expansion: plant and throughput upgrades at Santa Elena and Los Gatos headline upcoming operational catalysts.
| Area | Sustaining ($M) | Expansionary ($M) | Total ($M) |
|---|---|---|---|
| Underground Development | 19–22 | 66–73 | 85–94 |
| Exploration | 0 | 41–45 | 41–45 |
| Property, Plant & Equipment | 37–41 | 34–38 | 71–79 |
| Corporate Projects | 2–3 | 13–15 | 16–18 |
| Total | 58–66 | 154–171 | 213–236 |
Guidance Points to Slight Production Dip, But Strong Economics
First Majestic projects 2026 silver production of 13.0–14.4 million ounces and gold of 116,000–129,000 ounces—a modest pullback from 2025 highs, largely due to lower forecast metal grades offset by higher mill throughput. Yet, with silver prices at multi-year highs and by-product economics still favorable, the company expects underlying financial performance to remain robust, even as reported cash costs and AISC per silver-equivalent ounce appear higher under new conversion ratios.
| Operation | 2026 Silver (Moz) | 2026 Gold (koz) | Cash Costs ($/AgEq oz) | AISC ($/AgEq oz) |
|---|---|---|---|---|
| Los Gatos (70%) | 4.8–5.4 | 2.9–3.1 | 14.88–15.62 | 18.01–19.04 |
| Santa Elena | 1.3–1.5 | 64–71 | 20.04–21.06 | 24.90–26.40 |
| San Dimas | 4.0–4.4 | 49–55 | 18.55–19.56 | 24.63–26.30 |
| La Encantada | 2.8–3.1 | 0 | 24.20–25.52 | 30.54–32.50 |
| TOTAL | 13.0–14.4 | 116–129 | 18.64–19.62 | 26.15–27.91 |
Dividend Growth Reflects Confident Outlook
Perhaps the clearest indicator of management confidence is the freshly announced increase in the company’s quarterly dividend. The payout will double, from 1% to 2% of net quarterly revenues (attributable to AG shareholders), with the first higher-rate dividend to hit in May 2026. The policy is designed to scale with silver price strength, rewarding shareholders and signaling a belief in sustainable cash flow ahead.
Shareholder Takeaway: Delivering on Cost, Growth, and Exploration
First Majestic’s 2025 story blends record production and operational progress with aggressive exploration and capital investment. While 2026 guidance anticipates slightly lower grades (and thus volumes), upgraded plants and expanded exploration could pave the way for new upside. Increased dividends and a focus on maintaining industry-leading safety and execution mean AG enters 2026 well positioned for whatever metal markets bring next.
Investors monitoring silver sector dynamics may want to track the company’s upcoming guidance conference call on February 19, 2026, for additional insights on its robust drilling program and how it plans to build on this year’s momentum.
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