MEXICO – First Majestic Silver Corp. (NYSE:AG) (TSX:AG) reported Tuesday that second quarter production reached 3.8 million silver ounces and 34,660 gold ounces, increases of 3% and 2% year-over-year respectively, according to a press release statement.
The company raised its full-year 2026 production guidance to 14.6-15.5 million attributable silver ounces and 128,000-135,000 gold ounces, representing increases of 10% and 7% compared to original guidance. The revision reflects higher throughput rates and improved recoveries across its four Mexican underground mines. The operational improvements come as First Majestic’s stock has delivered a 106% return over the past year, though shares recently traded at $15.80, down from $17.31. According to InvestingPro analysis, net income is expected to grow this year as the company capitalizes on higher production volumes.
Second quarter production included 16.5 million pounds of zinc, 9.0 million pounds of lead and 252,938 pounds of copper from the Santa Elena, Los Gatos, San Dimas and La Encantada mines. First Majestic holds a 70% interest in Los Gatos.
La Encantada posted the strongest quarterly performance with 1,035,497 silver ounces, a 65% increase year-over-year driven by higher throughput and improved recoveries. Santa Elena produced 422,571 silver ounces and 21,468 gold ounces, up 38% and 4% respectively.
Production at San Dimas declined 15% to 1,062,203 silver ounces due to labor negotiations and equipment failures, though operations have resumed at targeted rates. Los Gatos production was affected by a rockfall in April that temporarily disrupted mining operations.
The company increased its 2026 capital expenditure budget to $318-344 million from $213-236 million, primarily for the Jerritt Canyon restart program in Nevada and development projects at Santa Elena. First Majestic targets production from Jerritt Canyon in the second half of 2027. The company maintains a strong financial position to fund this expansion, holding more cash than debt on its balance sheet with a current ratio of 2.73. InvestingPro data shows the stock trading near its Fair Value, with the platform offering access to 8 additional ProTips and comprehensive financial metrics for deeper analysis.
All-in sustaining costs are projected at $27.69-28.77 per silver equivalent ounce, up 4% at the midpoint from original guidance, reflecting higher costs linked to elevated silver prices and a stronger Mexican peso in the first half of 2026.
The company appointed Neil Beaumont as Chief Financial Officer effective July 2, 2026, succeeding David Soares. For investors seeking comprehensive analysis, First Majestic is among the 1,400+ US equities covered by InvestingPro’s detailed Pro Research Reports, which transform complex financial data into actionable intelligence.
In other recent news, First Majestic Silver Corp. has entered into an agreement to sell its San Martin Silver Mine in Jalisco State, Mexico, to Flextronics Supply and Service for $90 million. The deal includes an upfront payment of $2.5 million at closing, with subsequent payments totaling $50 million over five years and a final payment of $35 million due in 2032. Additionally, First Majestic announced drilling results from its Santa Elena Silver/Gold Mine in Sonora, Mexico, where it completed significant drilling activities aimed at converting Inferred Mineral Resources to Indicated Mineral Resources.
In a separate development, Sierra Madre Gold and Silver Ltd. has completed its acquisition of the Del Toro Silver Mine from First Majestic Silver Corp., a transaction initially announced in December 2025. Meanwhile, H.C. Wainwright has raised its price target for First Majestic Silver stock to $30.75, maintaining a Buy rating. This adjustment comes amid an increase in the company’s all-in sustaining costs, which rose 55% year-over-year due to currency fluctuations and changes in the silver equivalent conversion ratio.
These updates follow a broader trend in the gold mining sector, where stocks have been affected by recent fluctuations in gold prices. Despite these challenges, First Majestic continues to make strategic moves to optimize its portfolio and align with market conditions.
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