Why Shares of First Majestic Are Tumbling Lower This Week

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].