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Strength in Los Gatos Mine Aids First Majestic: Will the Momentum Last?
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Key Takeaways
First Majestic boosted output at Los Gatos to 2.1M AgEq ounces in Q4 2025 after the Gatos Silver buyout.
AG targets higher mining rates and 4,000 tpd throughput with contractor-led development plans.
Rising silver prices, strong demand and supply deficits continue to support AG's growth outlook.
First Majestic Silver Corp. (AG - Free Report) gained a 70% interest in the high-quality and long-life Cerro Los Gatos Silver underground mine with the acquisition of Gatos Silver in January 2025. This transaction strengthened the company’s position as an intermediate primary silver producer.
In fourth-quarter 2025, Los Gatos silver mine (on a 70% attributable basis) increased its total production to 2.1 million silver-equivalent (AgEq) ounces. The figure comprises a record 1.5 million silver ounces and 894 gold ounces. It also produced 14.2 million pounds of zinc, 8.1 million pounds of lead and 235,886 pounds of copper. Production at the mine increased on a sequential basis, supported by higher mobile equipment availability, which led to normalized mining rates.
First Majestic remains focused on increasing mining rates at Los Gatos and achieving increased mill throughput. By selecting a new contractor, the company plans to increase development rates and has a target to sustainably increase ore throughput to 4,000 tpd in the second half of the year.
AG is benefiting from the rise in silver prices over the past year due to strong safe-haven demand, geopolitical tensions and escalating trade conflicts. Silver has gained from resilient industrial demand and mounting supply deficits. Demand for electronics, electrification and solar energy now accounts for more than half of global silver demand.
Snapshot of AG’s Peers
Among its major peers, Pan American Silver Corp.’s (PAAS - Free Report) 2025 silver production totaled 22.8 million ounces, reflecting an increase of 8.5% compared with the prior-year period. The increase in output was driven by the strong performance from its stake in the Juanicipio mine, which was acquired last year.
Its another peer, Avino Silver & Gold Mines (ASM - Free Report) is strengthening its position as a leading silver producer. In 2025, the company produced 2,606,155 AgEq ounces, within its guidance of 2.5-2.8 million AgEq ounces. Also, in the fourth quarter, Avino produced 345,298 AgEq ounces, reflecting a significant increase on a year-over-year basis.
First Majestic's Price Performance, Valuation and Estimates
Shares of First Majestic have gained 19.6% in the past three months compared with the industry’s growth of 5.5%.
Image Source: Zacks Investment Research
From a valuation standpoint, First Majestic is trading at a forward price-to-earnings ratio of 29.09X, above the industry’s average of 15.37X. AG carries a Value Score of F.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for AG’s 2025 earnings has increased 76.5% over the past 60 days.
View the Zacks #1 Rank List
Image: Bigstock
Strength in Los Gatos Mine Aids First Majestic: Will the Momentum Last?
Key Takeaways
First Majestic Silver Corp. (AG - Free Report) gained a 70% interest in the high-quality and long-life Cerro Los Gatos Silver underground mine with the acquisition of Gatos Silver in January 2025. This transaction strengthened the company’s position as an intermediate primary silver producer.
In fourth-quarter 2025, Los Gatos silver mine (on a 70% attributable basis) increased its total production to 2.1 million silver-equivalent (AgEq) ounces. The figure comprises a record 1.5 million silver ounces and 894 gold ounces. It also produced 14.2 million pounds of zinc, 8.1 million pounds of lead and 235,886 pounds of copper. Production at the mine increased on a sequential basis, supported by higher mobile equipment availability, which led to normalized mining rates.
First Majestic remains focused on increasing mining rates at Los Gatos and achieving increased mill throughput. By selecting a new contractor, the company plans to increase development rates and has a target to sustainably increase ore throughput to 4,000 tpd in the second half of the year.
AG is benefiting from the rise in silver prices over the past year due to strong safe-haven demand, geopolitical tensions and escalating trade conflicts. Silver has gained from resilient industrial demand and mounting supply deficits. Demand for electronics, electrification and solar energy now accounts for more than half of global silver demand.
Snapshot of AG’s Peers
Among its major peers, Pan American Silver Corp.’s (PAAS - Free Report) 2025 silver production totaled 22.8 million ounces, reflecting an increase of 8.5% compared with the prior-year period. The increase in output was driven by the strong performance from its stake in the Juanicipio mine, which was acquired last year.
Its another peer, Avino Silver & Gold Mines (ASM - Free Report) is strengthening its position as a leading silver producer. In 2025, the company produced 2,606,155 AgEq ounces, within its guidance of 2.5-2.8 million AgEq ounces. Also, in the fourth quarter, Avino produced 345,298 AgEq ounces, reflecting a significant increase on a year-over-year basis.
First Majestic's Price Performance, Valuation and Estimates
Shares of First Majestic have gained 19.6% in the past three months compared with the industry’s growth of 5.5%.
Image Source: Zacks Investment Research
From a valuation standpoint, First Majestic is trading at a forward price-to-earnings ratio of 29.09X, above the industry’s average of 15.37X. AG carries a Value Score of F.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for AG’s 2025 earnings has increased 76.5% over the past 60 days.
Image Source: Zacks Investment Research
First Majestic currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.