First Majestic Silver (AG) Q4 2025 earnings summary

Executive summary

• Achieved a transformational and record year in 2025, surpassing key milestones with strong operational and financial performance across all segments, driven by the acquisition and integration of Los Gatos (Gatos Silver) and operational improvements at San Dimas and La Encantada.

• Produced 4.2 million ounces of pure silver in Q4 and over 15.4 million ounces for the year, with total silver equivalent production exceeding 31 million ounces, meeting or surpassing revised guidance.

• Declared a Q4 2025 cash dividend and increased the dividend policy to 2% of net quarterly revenues effective Q1 2026.

• Santa Elena and La Encantada mines delivered strong results, with Santa Elena seeing new discoveries and plant expansion, and La Encantada achieving a turnaround.

• Completed the acquisition of Gatos Silver, Inc., adding a 70% interest in Los Gatos to the portfolio.

Financial highlights

• Revenue reached a record $1,257.2 million for 2025, with Q4 revenue at $464 million, both up over 120% year-over-year.

• Free cash flow saw a significant step change in Q4 2025, reaching $250.4 million, and $470.6 million for the year, reflecting operational discipline and higher metal prices.

• Ended 2025 with $937.7 million in cash and $733.6 million in working capital.

• Q4 realized silver price was $58.96/oz, with the annual average at $41.52/oz, both above market averages.

• The mint operation generated $22.7 million in Q4 and $49.4 million in revenue for the year, with $24.1 million in profitability.

Outlook and guidance

• 2026 production guidance targets 13–14.4 million ounces of pure silver and 110,000–130,000 ounces of gold, with AISC of $26.15–$27.91 per AgEq oz.

• Conversion ratio for silver equivalents locked at 75:1 for 2026 to reduce volatility.

• Plant expansions at Santa Elena and Los Gatos expected to increase throughput in H2 2026.

• Dividend policy doubled from 1% to 2% of top-line/net quarterly revenue, effective Q1 2026.

• 266 km of drilling planned for 2026, with updated reserves and resources to be published before March 31.