Silver Miner Banks Record Cash From Mexico Operations

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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) highlighted stronger second-quarter financial results, reporting higher revenue, earnings and free cash flow as improved precious metals prices and operating performance boosted profitability, according to a July 30 release.

The company also announced an increased quarterly dividend for shareholders while ending the quarter with a record treasury balance.

For the three months ended June 30, 2026, First Majestic posted unaudited revenue of US$415.5 million, up 57% from a year earlier, as stronger realized silver and gold prices more than offset an increase in bullion inventories, which rose to US$78 million, the company said. Silver production increased 3% year over year, while gold production climbed 2%, and the company said continued emphasis on operational efficiency drove significant margin expansion.

First Majestic reported net earnings of US$109.4 million, or US$0.22 per share, during the quarter. The company also generated US$194.6 million in free cash flow despite paying US$46.8 million in cash income taxes, helping lift its treasury to a record US$1.253 billion.

The company said complete unaudited condensed interim consolidated financial statements and management's discussion and analysis for the quarter are available on its website and through its filings on SEDAR+ and EDGAR.

Cash Dividend Declared for Shareholders

First Majestic also announced that its board of directors has declared a cash dividend of US$0.0152 per common share for the second quarter of 2026. The dividend is scheduled to be paid on or about Aug. 31, 2026, to shareholders of record at the close of business on Aug. 14, 2026.

The company said its recently adopted dividend policy targets a quarterly payout equal to approximately 2% of net quarterly revenue beginning Jan. 1, 2026, divided by the number of common shares outstanding. For revenue generated by the Los Gatos Silver Mine, First Majestic noted that only its attributable 70% share of net revenue from the Los Gatos Joint Venture is included in the dividend calculation because the company owns a 70% interest in the operation.

First Majestic added that future dividend amounts and payment dates will continue to be determined at the discretion of its board of directors. The company also said the dividend qualifies as an "eligible dividend" for Canadian income tax purposes, while noting that shareholders who reside outside Canada may be subject to Canadian non-resident withholding taxes on dividend payments.

Record Liquidity

According to the release, the company generated record liquidity during the period, ending June with US$1.253 billion in treasury, including US$159.4 million in restricted cash, a 34% increase from the end of 2025. Working capital reached a record US$876 million, while total liquidity, including available credit facilities, rose to more than US$1.03 billion. During the quarter, First Majestic also repurchased and canceled 1.2 million common shares for US$22.7 million under its ongoing buyback program.

Revenue climbed 57% year over year to US$415.5 million, with silver accounting for 60% of total sales, as sharply higher realized silver and gold prices more than offset the impact of mark-to-market adjustments on concentrate sales. The company finished the quarter with more than 1.0 million ounces of silver and 4,730 ounces of gold in finished goods inventory, valued at US$78 million, which had not yet been recognized as revenue. Mine operating earnings surged to US$223.6 million from US$49.4 million a year earlier, while EBITDA more than doubled to US$252.3 million, and adjusted EBITDA increased to US$257.1 million.

First Majestic reported net earnings of US$109.4 million, or US$0.22 per share, compared with US$52.5 million, or US$0.11 per share, in the prior-year quarter. Adjusted net earnings rose to US$101.6 million, or US$0.21 per share, from US$18.4 million, or US$0.04 per share, a year earlier. Operating cash flow before working capital changes and taxes jumped 116% to US$248.3 million, and free cash flow increased 150% to US$194.6 million after the company paid US$46.8 million in cash income taxes. The quarter's reported earnings included a one-time US$10.1 million current tax expense related to the settlement of a historical tax dispute with Mexican authorities involving First Majestic Plata S.A. de C.V.

Operationally, the company processed just over 1.04 million tonnes of ore, producing approximately 3.8 million ounces (Moz) of silver and 34,660 ounces of gold, representing year-over-year increases of 3% and 2%, respectively. Production gains were led primarily by the La Encantada and Santa Elena mines, while the Los Gatos operation, reported on a 70% attributable basis, also contributed significant silver production along with zinc, lead, and copper byproducts. Capital expenditures totaled US$65.1 million on a 100% basis, reflecting continued investment in underground development, exploration, and property, plant, and equipment.

Although cash costs and all-in sustaining costs (AISC) increased from the prior year to US$18.06 and US$25.68 per attributable payable silver equivalent ounce, respectively, both remained below company guidance. Management attributed the higher costs to a stronger Mexican peso, increased mining activity, higher contractor, maintenance, and royalty expenses, elevated sustaining development, and temporary operational disruptions at Los Gatos and labor issues at San Dimas that have since been resolved. Even with those higher costs, substantially stronger precious metals prices lifted the company's AISC margin to US$40.27 per silver equivalent ounce, nearly tripling the level recorded in the second quarter of 2025.

'Glad to Maintain My Holdings'

On July 8, 2026, Peter Krauth of The Silver Stock Investor commented on First Majestic Silver Corp.'s agreement to sell its past-producing San Martin silver mine to Flextronics for US$90 million in cash. Krauth noted that although the mine has remained on care and maintenance since 2019, the transaction allows the company to monetize a non-producing asset while strengthening its balance sheet. He added that transferring the project to Flextronics, a privately held Mexican mining company backed by Meridian Capital, enables First Majestic to sharpen its focus on its core operations. Krauth described the transaction as "A strong move by management to realize value and focus on core assets. I am glad to maintain my holdings."

According to MarketBeat, analyst sentiment toward First Majestic has been mixed in recent months. On July 31, H.C. Wainwright Analyst Heiko F. Ihle upped his price target from US$26 to US$27 while maintaining a Buy rating. On July 14, Ovais Habab of Scotiabank rated the stock Sector Perform and lowered the price target from US$23 to US$22.50. On July 10, ATB Cormark Capital Markets raised its rating from Hold to Moderate Buy.

On July 30, Chen Lin of What Is Chen Buying? What Is Chen Selling? noted that the stock and another equity were both down. "I am just glad that I sold a lot of both at 2x the current price and booked nice profits early this year," he said. "I will be watching them and looking for buying opportunities."

The Catalyst: Restarting the Jerritt Canyon Mine

The company and its analysts are watching a handful of catalysts to the stock, including the restart of the Jerritt Canyon Gold Mine in Nevada. In its April 2 restart-plan release, the company committed roughly US$75 million in 2026 to advance the project, engaged Stantec for a pre-feasibility study expected in Q4 2026, and targeted first production in the second half of 2027, citing an expanded resource base of about 4.1 Moz gold (Measured and Indicated) plus 3.7 Moz Inferred. Close behind is near-term production growth tied to raised 2026 guidance — after a strong second quarter, First Majestic lifted its guidance on the back of mill and processing expansion at Santa Elena and throughput and recovery gains at Los Gatos, with higher per-mine silver guidance and Santa Elena gold guidance up 10%.

The other two catalysts are more balance-sheet oriented. The pending US$90 million sale of the idled San Martin mine (expected to close in Q4 2026) is framed as monetizing a non-core asset and sharpening focus on core operations.

Finally, an active exploration program of roughly 66,000 meters of drilling across the four operating mines should move the stock further as assays are released.

Uncertainty Clouds Silver Market

Silver prices eased modestly early Monday after opening the session with a slight upward gap, as traders continued to weigh the impact of elevated interest rates on the precious metal, wrote Christopher Lewis for FX Empire on August 3. Because silver does not generate income, higher interest rates generally reduce its appeal, although analysts noted that falling rates over time tend to improve the metal's attractiveness.

Despite pressure from the interest rate environment, analysts said physical demand for silver remains strong globally. However, they cautioned that ongoing uncertainty surrounding the potential closure of the Strait of Hormuz and its implications for the global economy could continue to fuel volatility in the silver market.

From a technical perspective, analysts identified the US$60 level as an area of resistance, with the 50-day exponential moving average near US$63.45 presenting another potential hurdle for prices. On the downside, they said silver has recently found support around US$55, warning that a sustained move below that level could weaken market sentiment.

Analysts added that a deeper decline could bring prices back toward the US$50 level, an area that served as major long-term resistance before silver recently broke above it. They noted that a retest of that former resistance zone would not be unusual given current market conditions.

Technical analysts said silver remains at an important inflection point on the four-hour chart after rebounding from the US$56.60-US$56.90 support zone, an area that has consistently attracted buyers during recent trading sessions, according to Rania Hamid Gule writing for XS.com in a story published by Investing.com on July 29. They also pointed to the development of a short-term bullish reversal pattern and improving momentum indicators as they recover from oversold conditions, suggesting the potential for additional gains. In their view, maintaining prices above $56.60 would keep buyers in control and preserve the positive outlook over both the near and intermediate term.

On the upside, analysts said silver must overcome initial resistance near US$59.05 before challenging the more significant psychological and technical barrier around US$60.30, where a harmonic chart pattern is projected to complete. They believe a convincing breakout and sustained close above that level would strengthen the technical picture, opening the door for a move toward the descending moving average and then the next major target near US$61.00. Such a move could signal the start of a new upward trend if supported by favorable market fundamentals.

Ownership and Share Information¹

First Majestic Silver Corp. has a market cap of US$7.4 billion, with 492.66 million shares outstanding. The company's 52-week range is US$7.97-US$32.04.

Institutions own 54% of shares, while Management and Insiders own just over 1%. The remaining shares are held by Retail.

Common Investor Questions

What did First Majestic report for the second quarter of 2026? First Majestic reported stronger Q2 2026 results, with revenue of US$415.5 million, up 57% year over year, driven by higher realized silver and gold prices and improved operating performance. Net earnings were US$109.4 million (US$0.22 per share), and the company generated US$194.6 million in free cash flow, ending the quarter with a record treasury of US$1.253 billion. It also announced an increased quarterly dividend.

What drove the jump in revenue and earnings? Sharply higher realized prices were the main driver — the average realized silver price rose about 90% and gold about 40% versus a year earlier — more than offsetting mark-to-market adjustments on concentrate sales. Silver production rose 3%, and gold 2%, and mine operating earnings surged to US$223.6 million from US$49.4 million. EBITDA more than doubled to US$252.3 million.

What is the new dividend, and how is it calculated? The board declared a cash dividend of US$0.0152 per common share for Q2 2026, payable on or about August 31, 2026, to shareholders of record as of August 14, 2026. Under the policy adopted January 1, 2026, the quarterly dividend targets roughly 2% of net quarterly revenue divided by shares outstanding. For the Los Gatos Silver Mine, only First Majestic's attributable 70% of net revenue is included, reflecting its 70% joint-venture interest. The dividend qualifies as an "eligible dividend" for Canadian tax purposes, and non-resident holders may face Canadian withholding taxes.

What is the outlook for silver prices? Commentary cited in the article is cautious in the near term. Silver eased as elevated interest rates weigh on the non-yielding metal, though physical demand remains strong globally. Analysts flagged the US$60 area (and the 50-day EMA near US$63.45) as resistance and support around US$55–US$56.60, noting that holding above the US$56.60 zone would keep a constructive near-term picture, while a break below US$55 could pressure sentiment toward US$50.