Update shared on 05 Dec 2025
Fair value Decreased 5.62%Analysts have trimmed their 12 month price target for First Majestic Silver from approximately $22.25 to $21.00 per share, citing a slightly higher discount rate and modestly lower valuation multiple assumptions, despite marginal improvements to long term growth and margin forecasts.
What's in the News
- Announced a $300 million private placement of unsecured convertible senior notes due 2031, with a 0.125% annual cash coupon, a conversion price of $22.36, and an additional $50 million over allotment option. The transaction is expected to close on December 8, 2025 (company announcement).
- Launched a new normal course issuer bid authorizing the repurchase of up to 24,500,000 shares, representing 5% of issued share capital. The program expires on October 13, 2026 (buyback program disclosure).
- Reported completion of 818,500 shares repurchased for CAD 6.56 million under the prior buyback program announced September 10, 2024. No shares were repurchased between July 1 and September 11, 2025 (buyback tranche update).
- Board of Directors authorized a new share buyback plan on October 14, 2025, reinforcing the company focus on returning capital to shareholders (board authorization notice).
- Released third quarter 2025 operating results showing a 47% year over year increase in ore processed and a 39% rise in silver equivalent output to 7.65 million ounces. The company also reported a 96% jump in silver production, a 15% decline in gold production, and meaningful zinc and lead volumes (Q3 2025 production report).
Valuation Changes
- Fair Value Estimate has decreased modestly from $22.25 to $21.00 per share, reflecting a slightly more conservative outlook despite improved operating assumptions.
- Discount Rate has risen slightly from 7.12% to approximately 7.21%, increasing the required return applied in the discounted cash flow analysis.
- Revenue Growth has been nudged higher from about 14.30% to 14.34% annually, indicating a marginally stronger long term top line outlook.
- Net Profit Margin has edged up from roughly 16.15% to 16.17%, implying a small improvement in expected long term profitability.
- Future P/E Multiple has been reduced moderately from about 42.7x to 41.0x, signaling a slightly lower valuation multiple applied to forward earnings.
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