First Majestic Silver (TSX:AG) Is Up 9.5% After Silver Production Surges 96% in Q3 – What's Changed

• First Majestic Silver announced its third quarter 2025 production results last week, highlighting a substantial operational increase with 997,002 tonnes of ore processed and silver output rising nearly 96% year-over-year to 3,863,673 ounces, despite a decline in gold production.
• This marked surge in silver production compared to the same quarter last year reflects a step change in operational performance that may underpin the company’s future growth ambitions.
• We’ll examine how the sharp jump in processed ore and silver output might influence First Majestic Silver’s longer-term investment outlook.

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First Majestic Silver Investment Narrative Recap

To be a shareholder in First Majestic Silver, you need to believe in the ongoing growth of silver production and the company's ability to capitalize on rising silver demand without seeing margins eroded by costs. The recent surge in Q3 2025 production meaningfully strengthens the main short-term catalyst, higher sales volumes and operational momentum, but does not entirely address the key risk of rising operating and capital expenditures outpacing gains if silver prices do not keep up.

The September update on drilling results at Los Gatos is especially relevant in this context, as it suggests continuity of strong mineralization, supporting future production growth and reserve expansion, both central factors in sustaining momentum from the current uptick in output. However, scaling up new ore bodies introduces its own execution risks, particularly if project efficiencies or grades fall short.

But even as production growth captures headlines, investors should be aware that cost inflation and capital intensity...

Read the full narrative on First Majestic Silver (it's free!)

First Majestic Silver's outlook anticipates $1.2 billion in revenue and $94.0 million in earnings by 2028. This is based on a projected 12.2% annual revenue growth rate and a $79.3 million increase in earnings from the current $14.7 million.

Uncover how First Majestic Silver's forecasts yield a CA$21.12 fair value, a 9% upside to its current price.

Exploring Other Perspectives

Ten members of the Simply Wall St Community have provided fair value estimates for First Majestic Silver, ranging from CA$3.91 to CA$120 per share. While production growth is robust, this wide spectrum of perspectives highlights the need to understand potential risks and opportunities shaping future performance.

Explore 10 other fair value estimates on First Majestic Silver - why the stock might be worth over 6x more than the current price!

Build Your Own First Majestic Silver Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your First Majestic Silver research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
• Our free First Majestic Silver research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate First Majestic Silver's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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