Silver Producer Discovers Massive Silver-Gold Gain Potential in Mexico

1. Sierra Madre Gold and Silver Ltd. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$3,000 and US$6,000. 
2. As of the date of this article, officers, contractors, shareholders, and/or employees of Streetwise Reports LLC (including members of their household) own securities of First Majestic Silver Corp. and Sierra Madre Gold and Silver Ltd. 
3. Cori Fisher wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. 
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1. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

First Majestic Silver Corp. (AG:TSX; AG:NYSE; FMV:FSE) released Q2 2026 production results from its four producing underground mines in Mexico: the Santa Elena silver-gold mine, the Los Gatos silver mine, the San Dimas silver-gold mine, and the La Encantada silver mine. Total production between all four equaled 3.8 million ounces of silver (Ag), 34,660 ounces of gold (Au), 16.5 million pounds of zinc (Zn), 9 million pounds of lead (Pb), and 252,938 pounds of copper (Cu). Silver production had a 3% increase over Q2 2025, and gold production had a 2% increase over Q2 2025.

Other developments First Majestic announced include:

• The company announced infill drilling results at its Santo Niño and Navidad targets in June, which showed returns of multiple high-grade silver-gold intercepts. At the same time, First Majestic secured permits for these targets and announced an additional CA$12 million in funding for 2026 development programs to advance underground access to the area.
• Also in June, First Majestic completed its sale of the Del Toro silver mine to Sierra Madre Gold and Silver Ltd. (SM:TSX.V; SMDRF:OTCQX) for a total consideration of up to CA$60 million, which is comprised of both cash and Sierra Madre shares with upfront considerations of CA$30 million and an additional CA$30 million in contingent payments.
• Finally, in Q2, the company reported on its sustainability mission and safety performance. Despite having its highest production to date, the company lowered its carbon intensity. Also, in regard to safety, the release said: "The consolidated Q2 2026 Total Reportable Incident Frequency Rate (TRIFR) was 0.63, slightly above the Company's 2026 target KPI of 0.60. The Lost Time Incident Frequency Rate (LTIFR) was 0.08 compared to our KPI of 0.12, maintaining First Majestic as a leader amongst its peer group."

"First Majestic has delivered another strong quarter, with continued operational outperformance relative to our original guidance, and we are pleased to increase our production guidance for the second consecutive year," said Keith Neumeyer, CEO. "Despite labor disruptions at San Dimas and a minor rockfall event at Los Gatos, our team responded quickly and safely, resolving both issues while recovering the majority of the downtime at each operation. At Santa Elena and Los Gatos, our mill and mine expansion projects continue to progress on schedule, with both mills achieving record monthly throughputs in the quarter, and both projects are expected to be completed during the third quarter. Q2 also marked another significant milestone for the Company, as Santa Elena secured construction permits for both the Santo Niño and Navidad portals ahead of schedule."

Current results have led to First Majestic updating its full-year 2026 guidance. Gold production estimates at Santa Elena have increased 10%, and silver estimates there are anticipated to be at the high end of original guidance. At Los Gatos, silver production estimates have increased 5%. San Dimas has seen a higher forecast increase, expecting a 13% increase in silver production. Finally, the La Encantada project has grown the most, now projecting a 19% increase in silver production estimates.

In a management update, the company announced the appointment of Neil Beaumont as CFO on July 2, 2026. First Majestic stated that Beaumont brings over 30 years of experience across several global organizations, including the CFO of the Canada Pension Plan Investment Board. He has also held senior roles at large mining companies in Canada, Australia, and South America.

Finally, First Majestic will host a conference call and webcast for investors on July 30, 2026, at 8:30 am Pacific time. The live webcast can be accessed here.

First Majestic is a Canadian mining company focused on silver and gold production in both the U.S. and Mexico.

Gold and Silver Prices Resist Global Uncertainty

Junior miners and exploration companies hit the ground running this year after gold and silver rallied to a high of US$5,500 per ounce in January. Many companies, like South First Majestic, chose to begin exploration or production amid these highs. While prices have since fallen, and even dipped below US$4,000 in June, rates are still up 24% compared to July 2025, and Gold.org wrote that: "[T]he stage is set for a possible breakout. On the upside, clear catalysts – a worsening economy or renewed geopolitical shock, a shift towards lower interest-rate expectations, or a wave of dip buying — could reignite gold’s momentum and lift it back towards US$4,500/oz or above."

Gold prices recovered from a dip on July 8, 2026, to US$4,126.10 per ounce on July 9, 2026. Inflationary fears were reignited after Brent crude oil prices rose again after a several-week ceasefire between the two countries lost its stability, but gold rebounded when U.S. home sale prices dropped 2.4%, signaling hope for a healthier economy.

In April, S&P Global wrote, "Gold is expected to remain volatile but structurally supported, with central bank demand and geopolitical risk helping to establish a price floor above recent correction lows."

Silver is recovering from a recent low after "markets reduced bets on Federal Reserve rate hikes after disappointing U.S. jobs data." Despite projections of 110,000 new jobs being added to the market in June, actual numbers came in only around 57,000 — the lowest in four months. Silver also rallied support from rising oil shipments through the Strait of Hormuz and progress in indirect U.S.-Iran talks, which lowered oil prices and eased fears of inflation.

Higher demand from electric cars, solar panels, data centers, and more is shoring up silver's future demand. Yahoo Finance quoted experts from both BlackRock and J.P. Morgan as saying, "By the end of 2026, experts predict silver's price will surpass US$80 per ounce, and it could reach US$100 per ounce by 2030."

Despite the volatility of gold and silver, the sector as a whole is only showing signs of improvement. On May 7, 2026, Brian Taylor of Recycling Today said that the World Bank Group has predicted that overall global metals prices will rise by 17% in 2026, which would mark the first overall market increase since 2022.

Analyst Praises Sale of Mine

On July 8, 2026, Peter Krauth of The Silver Stock Investor weighed in on another sale, where First Majestic has agreed to sell its past-producing San Martin silver mine to Flextronics for US$90 million in cash.

Krauth stated: "San Martin has been on care and maintenance since 2019, and yet the sale allows the company to unlock value from the non-operating asset. The transaction will strengthen First Majestic's balance sheet while transferring the project to Flextronics, a private Mexican mining-focused company backed by Meridian Capital. A strong move by management to realize value and focus on core assets. I am glad to maintain my holdings."

Regarding other analyst ratings, according to Marketbeat:

• On July 10, 2026, ATB Cormark Capital Markets upgraded the company's rating from "Hold" to "Moderate Buy". 
• Also on July 10, 2026, Heiko F. Ihle of H.C. Wainwright gave the company a "Buy" rating but lowered its price target from CA$30.75 to CA$26.00.
• On June 5, 2026, Weiss Ratings downgraded its rating from "Hold (C+)" to "Hold (C)". 
• On April 23, 2026, Scotiabank upgraded its rating to "Hold". 

An Old Project Restarting

The Jerritt Canyon gold mine in Nevada, U.S. — a fifth mine — is being prepared to restart production, and the company is expected to begin production in the second half of 2027.

Purchase orders for underground equipment have been placed, and 3,380 meters of rehabilitation and development have been completed. Technical studies are underway, and surface and plant infrastructure are currently being created.

Ownership & Share Information¹

First Majestic Silver Corp. has a market cap of CA$11.01 billion, with 493.03 million shares outstanding. The company's 52-week range is CA$10.69-CA$43.69.

Institutions own 54.65% of shares, while Management & Insiders own 1.18%. The remaining 44.17% of shares are held by Retail.