The prospects for the Zacks Mining - Silver industry look promising, supported by the strong rally in silver prices. Global industrial demand for silver is expected to account for a major part of the total demand, which is projected at around 1.15 billion ounces. With supply expected to be lower, the silver market is likely headed for a fifth consecutive year of deficit, which will further bolster prices. Moreover, the recent inclusion of silver in the list of critical minerals underscores its growing strat ...

Core Viewpoint - First Majestic reported record silver production and significant revenue growth for Q3 2025, yet its stock price has declined due to investor concerns over a tax dispute with the Mexican government [1][3]. Financial Performance - The company achieved a record silver production of 3.9 million ounces in a single quarter, representing a 96% year-over-year increase [5]. - Revenue for the quarter reached $285.1 million, marking a 95% increase compared to the same period last year [5]. Stock Performance - First Majestic's stock has decreased by 14.6% from the end of last Friday's market session to the end of trading today [2]. - The current stock price is $10.90, with a market capitalization of $5 billion [4][5]. Tax Dispute - A recent ruling by the Mexican Supreme Court against a wholly-owned subsidiary of First Majestic regarding a tax appeal related to the San Dimas mine has raised concerns among investors [3]. - The CEO of First Majestic, Keith Neumeyer, downplayed the significance of the tax dispute, stating it has been ongoing for 13 years and that the company is actively working with the Mexican government to resolve the issue [5]. Investment Opportunity - The stock is currently valued at 13.3 times operating cash flow, which is a discount compared to its five-year average cash flow multiple of 25.3, suggesting a potential buying opportunity for investors [6].

Key Points Hopes were high for the miner's third quarter. While it posted record highs in certain line items, it didn't meet those expectations. 10 stocks we like better than First Majestic Silver › Some precious metal prices either approached or established new all-time highs recently. You'd hardly know that from Wednesday's performance of First Majestic Silver (NYSE: AG) stock, however. The silver miner's equity was sliding by over 7% in price that afternoon on the back of quarterly results, at a ...

Financial Data and Key Metrics Changes - The company reported record Q3 silver production of 3.9 million ounces, with year-to-date production reaching 11.3 million ounces [10] - Revenues for the quarter were also at a record level, contributing to a cash flow of $140 million and a cash position exceeding $560 million [10][16] - EBITDA reached another record of $128 million, indicating strong operational performance [19] Business Line Data and Key Metrics Changes - The company is on track to meet its guidance of over 30 million silver equivalent ounces for the year, with a breakdown of 55% silver, 35% gold, and 10% lead and zinc [12] - Significant improvements were noted at the San Dimas operation, with production increasing and costs decreasing, returning to budget after previous challenges [14] - At La Encantada, a transition to sub-level caving is expected to reduce costs and enhance operations by Q1 2026 [15] Market Data and Key Metrics Changes - The company maintained a strong inventory level, holding 758,000 ounces of silver and nearly 4,000 ounces of gold, representing $50 million in potential revenue [16][17] - Marketable securities valued at $140 million as of September 30, indicating substantial liquidity [18] Company Strategy and Development Direction - The company is focused on operational efficiencies and cost reductions while continuing to explore and develop its assets, particularly at Los Gatos and Santa Elena [12][13] - Plans to increase throughput at Los Gatos to 4,000 tons per day are underway, with further guidance expected in January 2026 [12][21] - The company aims to enhance its exploration efforts, particularly at Jerritt Canyon, with updates anticipated by early 2026 [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a strong Q4 and ending 2025 positively, despite ongoing tax issues that are not viewed as material to the business [10][11] - The company is actively working with the Mexican government to resolve a long-standing tax dispute, with no significant changes expected in the near term [4][6] Other Important Information - The company has a solid dividend policy in place, with potential for increases depending on future performance [20] - Safety and sustainability performance have improved, positioning the company favorably within the mining sector [18] Q&A Session Summary Question: Are you doing any share buyback at these prices? - The company confirmed that share buybacks were conducted recently, indicating active management of capital [23]

Financial Data and Key Metrics Changes - The company reported record Q3 numbers, with silver production reaching 3.9 million ounces and year-to-date production at 11.3 million ounces [10] - Revenues for the quarter were also a record, contributing to a cash flow of $140 million and a cash position exceeding $560 million [10][19] - EBITDA reached another record of $128 million, indicating strong operational performance [19] Business Line Data and Key Metrics Changes - The company is on track to meet its guidance of over 30 million silver equivalent ounces for the year, with a breakdown of 55% silver, 35% gold, and 10% lead and zinc [12] - Significant improvements were noted at San Dimas, with production increasing and costs decreasing, bringing the operation back within budget [14] - At La Encantada, a transition to sub-level caving is expected to reduce costs and enhance operations by Q1 2026 [15] Market Data and Key Metrics Changes - The company maintained a strong inventory level, holding 758,000 ounces of silver and nearly 4,000 ounces of gold, representing $50 million in potential revenue [16] - Marketable securities amounted to $140 million as of September 30, contributing to the company's liquidity [18] Company Strategy and Development Direction - The company is focused on operational efficiencies and cost reductions while continuing to enhance its production capabilities [3][10] - The integration of the Los Gatos acquisition is progressing well, with plans to increase throughput to 4,000 tons per day [12] - Exploration efforts at Santa Elena have yielded two major discoveries, which are expected to extend the mine's life significantly [13] Management's Comments on Operating Environment and Future Outlook - Management views the ongoing tax dispute with the Mexican government as non-material and continues to work towards resolution [4][6] - The company is optimistic about ending 2025 on a positive note, anticipating a strong Q4 performance [10] - Management emphasized the importance of focusing on operational achievements rather than sensationalized media reports [3][8] Other Important Information - The company plans to provide further guidance in January 2026 regarding its budget and production targets [12][21] - Safety and sustainability performance have improved, positioning the company favorably within the mining sector [18] Q&A Session Summary Question: Are you doing any share buyback at these prices? - The company confirmed that share buybacks were conducted recently [23]

Financial Data and Key Metrics Changes - The company reported a record silver production of 3.9 million ounces for Q3 2025, with year-to-date production reaching 11.3 million ounces [11] - Revenues for the quarter were also at a record level, contributing to a cash flow of $140 million, and the company holds over $560 million in cash [11] - EBITDA reached a record of $128 million, indicating strong operational performance [19] Business Line Data and Key Metrics Changes - The company is on track to meet its guidance of over 30 million silver equivalent ounces for the year, with a breakdown of 55% silver, 35% gold, and 10% lead and zinc [13] - Significant improvements were noted at the San Dimas operation, with production increasing and costs decreasing, now operating within budget [15] - At La Encantada, a transition to sub-level caving is expected to reduce costs and improve operations by Q1 2026 [15] Market Data and Key Metrics Changes - The company maintained a strong inventory level, holding 758,000 ounces of silver and nearly 4,000 ounces of gold, representing $50 million in potential revenue [16] - Marketable securities valued at $140 million as of September 30, 2025, contribute significantly to the company's liquidity [19] Company Strategy and Development Direction - The company is focused on operational efficiency and cost reduction while continuing to explore and develop its assets, particularly at Los Gatos and Santa Elena [14][15] - The integration of systems from the Los Gatos acquisition is progressing well, with plans to increase throughput to 4,000 tons per day [14] - Future guidance for 2026 will include updates on production and cost strategies [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a strong Q4 2025, building on the positive results from Q3 [11] - The ongoing tax dispute with the Mexican government is not viewed as a material issue, and management is focused on operational performance rather than tax concerns [5][7] - The company is optimistic about exploration results, particularly at Santa Elena, which could extend the mine's life significantly [14] Other Important Information - The company plans to update resource estimates at the Navidad project in March 2026, indicating ongoing exploration and development efforts [21] - The dividend policy remains intact, with potential for increases depending on future performance [20] Q&A Session Summary Question: Are you doing any share buyback at these prices? - The company has conducted share buybacks recently, indicating confidence in its stock value [22]

Financial Performance - Q3 2025 silver production reached 3.9 million ounces, a 96% year-over-year increase [19] - Q3 2025 silver equivalent production was 7.7 million ounces, and year-to-date production was 23.2 million ounces, representing 73% of the revised guidance mid-point [15] - Record Q3 2025 quarterly revenue of $285 million, up 95%, driven by higher production (+$73 million) and higher metal prices (+$66 million) [15] - Record Q3 2025 cash flow from operations was $141 million ($0.29/share) [15] - The company ended Q3 2025 with a record cash position of $569 million, including $435 million in cash and cash equivalents and $133 million in restricted cash [15] - All-in sustaining costs (AISC) decreased by 1% year-over-year to $20.90 per silver equivalent ounce [19] - The company returned $12 million to shareholders year-to-date in Q3 2025, including $7.3 million in dividends and $4.3 million in share buybacks [15] - Available liquidity stands at $682 million, excluding $133 million in restricted cash [31] Operational Updates - The company is on track to achieve upwardly revised 2025 production guidance [20] - The company is converting to owner haulage at La Encantada Silver Mine to support increased mill throughput rates [23] Other Considerations - The company achieved a 30.0 ESG risk rating with Sustainalytics, placing it in the Medium risk category and in the top 40% of its peer group [28]

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Core Insights - First Majestic Silver Corp. reported record financial results for Q3 2025, driven by significant increases in silver production and revenue compared to the same period in 2024 [2][8][9] Financial Highlights - Record quarterly silver production of 3.9 million ounces, a 96% increase year-over-year from 2.0 million ounces in Q3 2024 [2][12] - Total revenue reached $285.1 million, marking a 95% increase from $146.1 million in Q3 2024, with 56% derived from silver sales [2][8] - Mine operating earnings were $99.1 million, up from $28.5 million in Q3 2024, primarily due to the addition of the Los Gatos Silver Mine [2][8] - Operating cash flow before changes in working capital and taxes was a record $141.3 million, compared to $39.8 million in Q3 2024 [2][8] - Net earnings for the quarter were $43.0 million (EPS of $0.06), compared to a net loss of $26.6 million (EPS of ($0.09)) in Q3 2024 [2][8][9] - Free cash flow reached a record $98.8 million, up from $31.3 million in Q3 2024 [2][8] Operational Highlights - The company processed 997,002 tonnes of ore, a 47% increase from 678,397 tonnes in Q3 2024 [4][11] - Cash costs per silver equivalent ounce decreased to $14.83, down from $15.17 in Q3 2024 [2][12] - All-in sustaining cost (AISC) was $20.90 per silver equivalent ounce, a slight decrease from $21.03 in Q3 2024 [2][12] Additional Developments - First Mint, the company's minting facility, achieved record sales of $11.1 million, compared to $2.7 million in Q3 2024 [5] - The company declared a cash dividend of $0.0052 per common share for Q3 2025, payable on or about November 28, 2025 [5][16] - The company received a 30.0 ESG risk rating from Sustainalytics, placing it in the medium risk category [5]

Core Insights - First Majestic Silver (AG) is anticipated to show a significant improvement in its third-quarter 2025 results, with earnings per share expected to rise to 11 cents from a loss of 3 cents in the same quarter last year [1][5]. Earnings Estimates - The Zacks Consensus Estimate for AG's earnings per share has increased by 120% over the past 60 days, indicating a positive turnaround [1][2]. - The current earnings estimates for the upcoming quarters are as follows: Q1 at $0.11, Q2 at $0.05, F1 at $0.18, and F2 at $0.16 [2]. Production and Revenue Drivers - First Majestic's total production reached 7.7 million silver equivalent ounces in Q3, marking a 39% year-over-year increase, driven by a 96% surge in silver production [5][8]. - The acquisition of the Los Gatos mine and higher silver prices, averaging around $40 per ounce (up 34% year-over-year), are expected to significantly boost quarterly revenues [9][10]. Historical Performance - First Majestic has missed the Zacks Consensus Estimate in each of the last four quarters, with an average negative earnings surprise of 55.8% [3][4]. - The company's earnings surprise history shows a consistent trend of underperformance relative to estimates [3]. Stock Performance - First Majestic's stock has increased by 130.2% year-to-date, outperforming the industry average growth of 99.6% [11]. Zacks Rank - First Majestic currently holds a Zacks Rank of 2 (Buy), indicating a favorable outlook [6].