FULL DISCLOSURE: First Majestic Silver is a sponsor of theDeepDive.ca.
First Majestic Silver (TSX: AG) (NYSE: AG) saw improved silver equivalent production in the second quarter of 2025, leading the company to lift 2025 guidance off the back of this performance. Silver equivalent production rose 48% on a year over year basis, while silver production itself was up 76%.
The company reported total silver equivalent production of 7.9 million ounces in the quarter, with that production coming from four operating mines within their portfolio. Broken out, those silver equivalent ounces consisted of 3.7 million ounces of silver, 33,865 ounces of gold, 16.1 million pounds of zinc and 9.0 million pounds of lead.
Comparatively, silver equivalent production in the year ago period stood at 5.3 million ounces, which consisted of 2.1 million ounces of silver and 39,339 ounces of gold. Silver equivalent production was also up on a quarter over quarter basis, from 7.7 million ounces in the first quarter.
At the mine-site level, San Dimas was the big producer in the second quarter with 2.5 million silver equivalent ounces of production, followed by Los Gatos at 2.4 million equivalent ounces, Santa Elena at 2.3 million silver equivalent ounces, and La Encantada at 632,942 silver equivalent ounces.
“First Majestic continues to deliver on the commitments made at the start of the year. During the first half of the year, our operations achieved strong and consistent production, supported by disciplined cost management. We closed Q2 ahead of budget with strong momentum, despite weather-related disruptions and power outages in the final days of June that impacted production at Los Gatos, San Dimas and La Encantada. Looking ahead, we are revising our 2025 guidance positively to reflect improved production and cost targets,” commented Keith Neumeyer, CEO of First Majestic Silver.
WATCH: First Majestic Silver: The Santo Nino Discovery
The second quarter saw First Majestic drill a total of 67,830 metres across all mines in Mexico, with 28 drill rigs active in total. Notably, the discovery of a second high grade gold and silver vein hosted system, referred to as Santo Niño, was reported at Santa Elena during the quarter.
In terms of guidance, First Majestic has lifted full year production guidance from the prior range of 27.8 to 31.2 million silver equivalent ounces to a range of 30.6 to 32.6 million silver equivalent ounces. The improved production guidance follows higher production estimates for the Los Gatos, Santa Elena, and San Dimas mines, which is a result of a mix of higher throughput rates and improved precious metals grades.
Cost guidance meanwhile has been lowered, with cash costs per silver equivalent ounce now expected to be in a range of $13.94 to $14.37 an ounce, versus the prior $14.10 to $14.86 an ounce. In terms of all in sustaining costs, that range has been lowered from $19.89 to $21.27 to a range of $20.02 to $20.82 an ounce on a consolidated basis.
The capital budget at the same time has been increased by 7% to $193 million, with that investment expected to support growth initiatives including a plant expansion at Santa Elena, early-stage development of the Navidad discovery, and equipment purchases to enhance throughput rates at Los Gatos.
Full financial results are scheduled to be released in August, with the related conference call scheduled for 8:00 AM Eastern on August 14.
First Majestic Silver last traded at $10.95 on the TSX.
FULL DISCLOSURE: First Majestic Silver Corp. is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is currently long the equity of First Majestic Silver Corp. The author has been compensated to cover First Majestic Silver Corp. on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. We may buy or sell securities in the company at any time. Always do additional research and consult a professional before purchasing a security.
