AG Gains From Record Sales at First Mint: Can the Momentum Sustain?

Core Insights - First Majestic Silver Corp. (AG) is experiencing strong growth in its First Mint LLC business, achieving record revenues in Q4 2025 with a 149.5% increase to $22.7 million [1][8] Group 1: First Mint Performance - First Mint recorded a 10% year-over-year increase in sales, totaling 325,143 ounces of silver, which represents about 8% of AG's total silver production [2][8] - The average realized silver price increased by 127% year-over-year to $69.74 per ounce, contributing to the strong performance [2] - First Mint obtained ISO 9001 certification in April last year, making its silver products eligible for Individual Retirement Accounts (IRAs), thus enhancing sales potential [3][8] Group 2: Market Outlook - Despite recent declines, silver prices are expected to remain strong due to a persistent market deficit, high industrial demand in solar and AI sectors, and robust safe-haven demand [4] - First Mint is well-positioned for long-term growth with capabilities to expand and meet rising demand, including support for third-party manufacturing [4] Group 3: Peer Comparison - Hecla Mining Company (HL) produced 17 million ounces of silver in 2025, a 5% year-over-year increase, with revenues rising to $1.4 billion, up 53% year-over-year [5] - Pan American Silver Corp. (PAAS) achieved silver production of 22.8 million ounces in 2025, an 8.5% increase from the previous year, supported by strong performance from the Juanicipio mine [6] Group 4: Valuation and Estimates - First Majestic's shares have increased by 37.7% over the past three months, outperforming the industry's growth of 14.8% [7] - The company is trading at a forward price-to-earnings ratio of 32.01X, which is above the industry average of 16.77X, and carries a Value Score of F [9] - The Zacks Consensus Estimate for AG's earnings for 2025 and 2026 has been rising over the past 60 days, indicating positive sentiment [10]