First Majestic Silver Reports Significant Q3 Production Increase
First Majestic Silver Reports Substantial Q3 Production Growth
First Majestic Silver Corp. (NYSE: AG) announced a significant increase in its third-quarter 2025 production, with attributable silver-equivalent output rising 39% year-over-year to 7.7 million ounces. This notable performance was underpinned by record silver production and the ongoing successful integration of the Los Gatos Silver Mine, acquired in January 2025.
Operational Highlights and Record Silver Output
The company's total attributable production for Q3 2025 reached 7.7 million silver-equivalent (AgEq) ounces. This figure comprises 3.9 million silver ounces, marking a new quarterly record for the company and representing a 96% increase compared to Q3 2024. Additionally, production included 35,681 gold ounces, 13.9 million pounds of zinc, and 7.7 million pounds of lead. The Los Gatos Silver Mine, in which First Majestic holds a 70% interest, was a primary contributor, adding approximately 1.4 million attributable silver ounces and 2.13 million AgEq ounces to the quarter's total. Production at the San Dimas mine also saw a 27% increase. Keith Neumeyer, President & CEO of First Majestic, stated:
> "The third quarter delivered another strong operational performance, marking the highest quarterly silver production in the Company's history and reflecting continued operational improvements and discipline across our sites."
Strategic Acquisitions and Integration Success
The strong production figures underscore the strategic value of the Gatos Silver, Inc. acquisition in January 2025. The integration of the Los Gatos mine is reportedly nearing completion, with the alignment of systems and internal controls progressing effectively across the company's portfolio. Management is actively pursuing a sustained increase in ore throughput at Los Gatos, targeting 4,000 tonnes per day (tpd) by the second half of 2026. Furthermore, exploration efforts remain robust, with 79,481 meters of drilling completed in Q3 across up to 30 active rigs, yielding positive exploration results at both San Dimas and Los Gatos.
Financial Context and Market Performance
First Majestic Silver Corp. has demonstrated strong market performance, with its shares advancing 115.5% over the past year, significantly outperforming the silver industry's 77.7% growth. The company's operational efficiency is also reflected in its Q2 2025 all-in sustaining costs (AISC) of $21.02 per ounce, a 3% improvement year-over-year. AISC margins more than doubled to $13.60 per ounce (39.3%) in Q2 2025, from $6.17 per ounce (22.2%) in Q2 2024, benefiting from higher silver prices. While higher silver prices positively impact economics, they also reduced reported silver-equivalent production by approximately 400,000 ounces when compared to metal prices used in the company's guidance, illustrating the dynamic nature of commodity price reporting.
Capital Allocation and Future Outlook
Looking ahead, First Majestic has provided optimistic guidance. The company has revised its silver and gold price assumptions for the second half of 2025 to $30.00 and $2,800 per ounce, respectively. Attributable production forecasts for Los Gatos have been increased by 6% (mid-point) to 9.1-9.7 million AgEq ounces, and for San Dimas by 7% (mid-point) to 9.9-10.5 million AgEq ounces. To support these growth initiatives, the 2025 capital budget has been increased by 7% to $193 million, funding projects such as the Santa Elena plant expansion and early-stage development at the Navidad discovery. In a move to enhance shareholder value, the TSX has accepted a normal course issuer bid, allowing the company to repurchase up to 24.5 million shares (approximately 5% of outstanding shares) between October 14, 2025, and October 13, 2026. Investors await further details, as Q3 results and dividend information are scheduled for release and discussion on a conference call on November 5, 2025.
