First Majestic Silver (NYSE: AG) (TSX: AG) lifted third quarter revenue 38% year over year to US$394.1 million, driven by higher realized silver and gold prices.
Net earnings attributable to shareholders came to US$74.5 million, or US$0.15 per share, up from US$27.0 million, or US$0.06 per share, a year earlier. That figure absorbed a one-time US$30.7 million expense tied to settling a legacy tax dispute with Mexico’s tax authority. Adjusted earnings were US$0.19 per share, compared with US$0.07, while adjusted EBITDA rose 65% to US$229.4 million.
Results eased from the second quarter, when revenue reached US$415.5 million and adjusted EPS was US$0.21. The decline reflected a modest dip in the realized silver price to US$61.52 per ounce from US$63.98.
Free cash flow totalled US$85.5 million after US$73.7 million in cash taxes and settlements. The company ended September with US$1.23 billion in treasury, up 32% from the end of 2025, including US$1.07 billion in cash and equivalents.
Attributable production was 3.44 million ounces of silver and 29,552 ounces of gold, and throughput rose 5% from the second quarter to 1.09 million tonnes milled. La Encantada led the way, with silver output up 68% from a year ago to 967,067 ounces. The quarter over quarter dip in metal output came mostly from San Dimas, which lost 12 days to a labour disruption, and from high grade ore at Los Gatos being moved into the fourth quarter as part of mine sequencing, a shift in timing rather than lost ounces.
AISC margin widened to US$31.95 per silver equivalent ounce from US$18.14 a year earlier in the third quarter. Cash costs meanwhile were US$21.75 per ounce and all-in sustaining costs totaled US$30.45. Both were affected by silver outperforming gold, which lowered the conversion ratio to 75:1 from 87:1 and reduced reportable silver equivalent ounces. On last year’s assumptions, both measures would have been about 6% lower. Year to date AISC of US$28.55 sits within revised guidance of US$27.69 to US$28.77.
San Dimas delivered solid results through mid-September before a labour disruption tied to the tax treatment of an annual production bonus paused operations. First Majestic has challenged the legality of the strike and expects a ruling in the second half of November. It will reassess the mine’s 2026 guidance once there is clarity on a restart.
“While resolving the labour disruption at San Dimas is a priority, the Company remains financially strong, supported by three producing operations that continue to perform at or above budget,” said CEO Keith Neumeyer.
First Majestic declared a quarterly dividend of US$0.0142 per share, payable on or about November 30. A conference call is expected to be held at 9:00 a.m. (PT) / 11:00 a.m. (ET), which can be accessed here.
First Majestic Silver last traded at $21.51 on the TSX.
