First Majestic's Q3 Silver-Equivalent Production Jumps 39% Y/Y

First Majestic Silver Corp. reported a robust 39% year-over-year increase in Q3 2025 silver-equivalent production, reaching 7.7 million ounces, primarily fueled by a 96% surge in silver output. This significant growth was largely driven by the January 2025 acquisition of Gatos Silver, which contributed 1.4 million silver ounces from the Los Gatos mine, alongside a 27% rise in AgEq output from the San Dimas mine. The company's shares have outperformed the industry, climbing 115.5% over the past year, despite holding a Zacks Rank #3 (Hold).

Analysis

First Majestic Silver Corp. (AG) reported a robust 39% year-over-year increase in Q3 2025 silver-equivalent (AgEq) production, reaching 7.7 million ounces. This significant growth was primarily driven by a 96% surge in silver output, which included a record 3.9 million silver ounces, and was substantially bolstered by the January 2025 acquisition of Gatos Silver, Inc. and its Cerro Los Gatos mine.

The acquired Los Gatos mine contributed 1.4 million silver ounces to total production, accounting for 2.13 million AgEq ounces on a 70% basis, and also diversified output with 13.89 million pounds of zinc and 7.65 million pounds of lead. Concurrently, the San Dimas mine demonstrated strong organic growth, with its AgEq output rising 27% year-over-year, aided by a 40% increase in silver production.

Despite a 16% decline at Santa Elena, the overall production strength underscores the strategic impact of the Gatos Silver acquisition in solidifying AG's position as an intermediate primary silver producer. The company's shares have significantly outperformed the industry, climbing 115.5% over the past year compared to the industry's 77.7% growth, reflecting positive market reception to its operational improvements.

First Majestic has also commenced its 2025 drilling program at the Jerritt Canyon mine, with results anticipated by year-end, potentially offering future growth catalysts. While operational metrics and stock performance are strong, AG currently holds a Zacks Rank #3 (Hold), suggesting analysts view it as performing in line with the broader market expectations at its current valuation.

Key Decisions for Investors

• Investors should consider the sustained operational outperformance and strategic growth from the Gatos Silver acquisition, which has significantly boosted production and diversified metal output.
• Monitor the upcoming drilling results from the Jerritt Canyon mine for potential future resource expansion and production upside, which could further enhance long-term value.
• Evaluate the company's strong stock performance against its current Zacks #3 (Hold) rank, assessing whether current valuations fully reflect the recent production growth and strategic moves, and consider potential entry points or position adjustments.