Silver's Historic Rally Leads To Record Setting Quarter For First Majestic Silver

First Majestic Silver: 2025 Financial Performance Review

Key Concepts:

• Silver Equivalent Ounce (SEO): A standardized unit used to represent the value of silver production, accounting for by-product metals like gold, zinc, and lead.
• EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization – a measure of a company’s operating performance.
• All-in Sustaining Cost (AISC): The total cost of producing an ounce of silver, including operating costs, capital expenditures, and sustaining capital.
• Free Cash Flow: Cash flow available to the company after all expenses and investments are paid.
• Treasury Position: The amount of cash and cash equivalents a company holds.

I. Fourth Quarter 2025 Performance – Record Results

First Majestic Silver reported record financial and operational results for the fourth quarter of 2025. Silver production reached a record 4.2 million ounces, a 77% increase compared to the 2.44 million ounces produced in Q4 2024. This significant increase is largely attributed to the acquisition of Gateau’s silver mine.

Key financial highlights include:

• Revenue: $463.9 million, a 169% increase from $172.3 million in Q4 2024 (excluding $45.3 million in held inventory). 60% of revenue was derived from silver sales.
• Cash Flow from Operations: $31 million (61 cents per share) versus $62.4 million (21 cents per share) in Q4 2024.
• EBITDA: $338.8 million, compared to $62 million in Q4 2024.
• Net Earnings: $105.2 million (17 cents per share) compared to a net loss of $13.5 million in Q4 2024.
• Adjusted Net Earnings: 30 cents per share compared to 3 cents per share in Q4 2024.
• Free Cash Flow: A record $250.4 million, significantly up from $68.4 million in Q4 2024.
• First Mint Sales: $22.7 million in quarterly sales.
• Dividend: 0.0083 cents per common share.

The average realized sales price for silver equivalent ounces in Q4 was $58.96. The speaker notes that even at a $50-$60 silver price, the company would likely achieve similar results, given the current production levels. As of the recording (Thursday afternoon), the silver price was $78.16, suggesting a strong potential for Q1 2026.

II. Full Year 2025 Performance – Exceeding Guidance

First Majestic Silver met or exceeded its original and revised production guidance for the full year 2025.

• Total Production: 31.1 million silver equivalent ounces (midpoint of guidance range).
• Silver Production: 15.44 million ounces (above guidance range), an 84% increase from 8.44 million ounces in 2024. This increase was driven by production from the Lasato silver mine, as well as increases at San Dimas (19%) and La Encantada (18%). The speaker highlights the successful resolution of a previous water issue at La Encantada, contributing to the production increase.
• Gold Production: 147,433 ounces.
• Zinc Production: 56.7 million pounds.
• Lead Production: 32.3 million pounds.
• Treasury Position: A record $937.7 million in cash, compared to $38.3 million at the end of 2024 – the highest in the company’s history.
• Annual Revenue: $1.257 billion, compared to $560.6 million in 2024.
• Net Earnings for the Year: $211 million.
• Adjusted Net Earnings for the Year: $216 million (46 cents per share).

III. Cost Considerations & Market Reaction

The speaker notes a 21% increase in cash costs in Q4, attributed to rising commodity prices and a compressed gold-to-silver ratio. This impacted the reported silver equivalent ounces by 1.1 million ounces compared to initial guidance assumptions, affecting cost figures. The All-in Sustaining Cost (AISC) was $23.48 versus $20.34 in Q4 2024.

The market reacted positively to the earnings report, with First Majestic’s stock price rising to $24.78 (up $2.18, almost 10%) despite not reaching the earlier peak of $27 (associated with a $120 silver price).

IV. Strategic Importance of Gateau’s Silver Acquisition

The speaker repeatedly emphasizes the positive impact of the Gateau’s silver acquisition, stating it was “incredible timing” and has significantly contributed to the company’s increased production and financial performance.

Notable Quote:

“...really happy for them to see how their deal worked out.” – Chris Marcus, Arcadia Economics.

V. Conclusion

First Majestic Silver delivered exceptional financial results in both the fourth quarter and full year of 2025, driven by increased production, particularly from the Gateau’s silver mine, and a rising silver price. The company’s strong treasury position and record free cash flow position it well for future growth and investment. The results demonstrate the potential for significant profitability even at moderate silver prices, and the current silver price suggests a strong outlook for the first quarter of 2026. The speaker encourages viewers to watch a separate video featuring Keith New Meer for further insights.