We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
AG vs. HL: Which Silver Mining Stock Has Greater Upside Now?
Read MoreHide Full Article
Key Takeaways
First Majestic Silver saw Q1 output dip, but gains from prices, First Mint and Gatos deal aid growth.
AG's First Mint sales surge and IRA eligibility boost demand and margins despite Mexico risks.
Hecla Mining posted solid output growth, but rising costs and capital spend may pressure cash flow.
First Majestic Silver Corp. (AG - Free Report) and Hecla Mining Company (HL - Free Report) are both prominent names operating in the Zacks Mining - Silver industry. As competitors, these two are focused on extracting and operating silver mines, while driving growth through exploration activities, mine expansions and strategic partnerships.
Both companies have been benefiting from strength in the silver mining sector, supported by higher silver prices and sustained investments in expanding production capacity in recent years. Let’s take a closer look at their fundamentals, growth prospects and challenges.
The Case for First Majestic
AG’s total production was 3.5 million ounces of silver and 34,341 gold ounces in first-quarter 2026. It also includes 15.4 million pounds of zinc, 8.7 million pounds of lead and 262,913 pounds of copper. The production of silver and gold ounces reflected a decline of 5.4% and 6%, respectively, on a year-over-year basis. The decline was attributable to reduced head grade milled, indicating a lower cut-off grade.
Despite the recent decline, the company is benefiting from a significant increase in silver prices over the past year. The prices are expected to remain strong, owing to the persistent market deficit, high industrial demand in solar and AI sectors and strong safe-haven demand. It’s worth noting that more than half of global silver demand comes from electronics, electrification and solar energy sectors.
First Majestic currently owns four operating mines in Mexico, including the likes of Santa Elena Silver/Gold mine, Los Gatos Silver mine, San Dimas Silver/Gold mine and La Encantada Silver mine. These sites are witnessing healthy production performances, despite the ongoing legal and regulatory issues.
Strong momentum in AG’s First Mint LLC business, its wholly-owned minting facility, also bodes well. The business is experiencing strong sales of silver ounces. Also, the ISO 9001 certification (awarded in April 2025) has made the business’ silver product sales eligible for Individual Retirement Accounts (IRAs). Strong operational execution at the business has allowed First Majestic to sell a larger share of its total silver production to its bullion customers.
First Majestic completed the acquisition of Gatos Silver in January 2025. With the buyout, AG gained a 70% interest in the high-quality, long-life Cerro Los Gatos Silver underground mine and strengthened its position as an intermediate primary silver producer.
The Case for Hecla Mining
HL is strengthening its position as a leading North American precious metals producer, supported by strong silver prices, steady operations and focused capital discipline. In 2025, the company produced 17.0 million ounces of silver, up 5% year over year.
The strong quarterly performance was mainly driven by strength across its core operating assets, like Greens Creek, Keno Hill and Lucky Friday. During 2025, Greens Creek and Lucky Friday produced 8.7 million and 5.3 million ounces of silver, respectively. Keno Hill also produced a record 3.02 million ounces of silver in the year. The results were supported by higher milled grades and throughput.
The company is pairing operational progress with permitting advances that extend its project pipeline. In Nevada, the company received a Finding of No Significant Impact and Decision Notice from the U.S. Forest Service for the Polaris Exploration Project in the Aurora Mining District, clearing the way for exploration activities to commence in 2026. It also reported a high-grade gold discovery at Midas on the previously untested Pogo Trend, including visible gold mineralization on a new structure, supporting the restart potential of an existing permitted mill and tailings facility.
However, inflationary pressures at Lucky Friday persisted through 2025, prompting higher labor, profit sharing, consumables and contractor usage. In fourth-quarter 2025, Lucky Friday produced about 1.3 million ounces with AISC of $25.73 per ounce after by-product credits. AISC is guided at $23.50-$26.00 per ounce for 2026, higher than $21.98 in 2025.
Rising capital intensity and logistics costs might also constrain its near-term cash flow. During 2026, HL expects to incur $204-$223 million in capital investment and plans to invest nearly double its 2025 spending on exploration and pre-development. The stated goal is to replace or exceed annual reserve depletion. Management also flagged potential cost increases to place concentrates at Western smelters in 2026 as contracts shift away from China, and higher site power generation costs at Greens Creek were noted earlier in 2025.
How Does the Zacks Consensus Estimate Compare for AG & HL?
The Zacks Consensus Estimate for AG’s 2026 EPS implies year-over-year growth of 52.2%. The company’s EPS estimates for 2026 have increased 105.9% over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for HL’s 2026 earnings per share (EPS) indicates growth of 40.8%. The company’s EPS for 2026 estimates have remained steady over the past 60 days.
Image Source: Zacks Investment Research
Price Performance and Valuation of AG & HL
In the past six months, First Majestic’s shares have surged 55.8%, while Hecla Mining stock has gained 39.9%.
Image Source: Zacks Investment Research
Hecla Mining is trading at a forward 12-month price-to-earnings ratio of 30.91X, below its median of 37.60X over the past five years. First Majestic’s forward earnings multiple sits at 24.73X, lower than its median of 29.78X over the same period.
Image Source: Zacks Investment Research
Final Take
First Majestic’s market leadership position, diversified assets and strong operational execution provide it with a competitive advantage to leverage the long-term demand prospects in the silver and gold markets. Also, higher silver prices and IRA eligibility are driving stronger demand and the company’s growth momentum.
Hecla Mining has also performed well, delivering strong operational progress, production growth and a significantly improved balance sheet. However, with the stock already reflecting much of this progress and trading at a premium to peers, the risk-reward balance appears more nuanced.
Both the mining companies currently carry a Zacks Rank #3 (Hold), which makes choosing one stock a difficult task. Considering their long-term prospects, earnings growth potential and valuation, AG seems to have an edge over HL currently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
AG vs. HL: Which Silver Mining Stock Has Greater Upside Now?
Key Takeaways
First Majestic Silver Corp. (AG - Free Report) and Hecla Mining Company (HL - Free Report) are both prominent names operating in the Zacks Mining - Silver industry. As competitors, these two are focused on extracting and operating silver mines, while driving growth through exploration activities, mine expansions and strategic partnerships.
Both companies have been benefiting from strength in the silver mining sector, supported by higher silver prices and sustained investments in expanding production capacity in recent years. Let’s take a closer look at their fundamentals, growth prospects and challenges.
The Case for First Majestic
AG’s total production was 3.5 million ounces of silver and 34,341 gold ounces in first-quarter 2026. It also includes 15.4 million pounds of zinc, 8.7 million pounds of lead and 262,913 pounds of copper. The production of silver and gold ounces reflected a decline of 5.4% and 6%, respectively, on a year-over-year basis. The decline was attributable to reduced head grade milled, indicating a lower cut-off grade.
Despite the recent decline, the company is benefiting from a significant increase in silver prices over the past year. The prices are expected to remain strong, owing to the persistent market deficit, high industrial demand in solar and AI sectors and strong safe-haven demand. It’s worth noting that more than half of global silver demand comes from electronics, electrification and solar energy sectors.
First Majestic currently owns four operating mines in Mexico, including the likes of Santa Elena Silver/Gold mine, Los Gatos Silver mine, San Dimas Silver/Gold mine and La Encantada Silver mine. These sites are witnessing healthy production performances, despite the ongoing legal and regulatory issues.
Strong momentum in AG’s First Mint LLC business, its wholly-owned minting facility, also bodes well. The business is experiencing strong sales of silver ounces. Also, the ISO 9001 certification (awarded in April 2025) has made the business’ silver product sales eligible for Individual Retirement Accounts (IRAs). Strong operational execution at the business has allowed First Majestic to sell a larger share of its total silver production to its bullion customers.
First Majestic completed the acquisition of Gatos Silver in January 2025. With the buyout, AG gained a 70% interest in the high-quality, long-life Cerro Los Gatos Silver underground mine and strengthened its position as an intermediate primary silver producer.
The Case for Hecla Mining
HL is strengthening its position as a leading North American precious metals producer, supported by strong silver prices, steady operations and focused capital discipline. In 2025, the company produced 17.0 million ounces of silver, up 5% year over year.
The strong quarterly performance was mainly driven by strength across its core operating assets, like Greens Creek, Keno Hill and Lucky Friday. During 2025, Greens Creek and Lucky Friday produced 8.7 million and 5.3 million ounces of silver, respectively. Keno Hill also produced a record 3.02 million ounces of silver in the year. The results were supported by higher milled grades and throughput.
The company is pairing operational progress with permitting advances that extend its project pipeline. In Nevada, the company received a Finding of No Significant Impact and Decision Notice from the U.S. Forest Service for the Polaris Exploration Project in the Aurora Mining District, clearing the way for exploration activities to commence in 2026. It also reported a high-grade gold discovery at Midas on the previously untested Pogo Trend, including visible gold mineralization on a new structure, supporting the restart potential of an existing permitted mill and tailings facility.
However, inflationary pressures at Lucky Friday persisted through 2025, prompting higher labor, profit sharing, consumables and contractor usage. In fourth-quarter 2025, Lucky Friday produced about 1.3 million ounces with AISC of $25.73 per ounce after by-product credits. AISC is guided at $23.50-$26.00 per ounce for 2026, higher than $21.98 in 2025.
Rising capital intensity and logistics costs might also constrain its near-term cash flow. During 2026, HL expects to incur $204-$223 million in capital investment and plans to invest nearly double its 2025 spending on exploration and pre-development. The stated goal is to replace or exceed annual reserve depletion. Management also flagged potential cost increases to place concentrates at Western smelters in 2026 as contracts shift away from China, and higher site power generation costs at Greens Creek were noted earlier in 2025.
How Does the Zacks Consensus Estimate Compare for AG & HL?
The Zacks Consensus Estimate for AG’s 2026 EPS implies year-over-year growth of 52.2%. The company’s EPS estimates for 2026 have increased 105.9% over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for HL’s 2026 earnings per share (EPS) indicates growth of 40.8%. The company’s EPS for 2026 estimates have remained steady over the past 60 days.
Image Source: Zacks Investment Research
Price Performance and Valuation of AG & HL
In the past six months, First Majestic’s shares have surged 55.8%, while Hecla Mining stock has gained 39.9%.
Image Source: Zacks Investment Research
Hecla Mining is trading at a forward 12-month price-to-earnings ratio of 30.91X, below its median of 37.60X over the past five years. First Majestic’s forward earnings multiple sits at 24.73X, lower than its median of 29.78X over the same period.
Image Source: Zacks Investment Research
Final Take
First Majestic’s market leadership position, diversified assets and strong operational execution provide it with a competitive advantage to leverage the long-term demand prospects in the silver and gold markets. Also, higher silver prices and IRA eligibility are driving stronger demand and the company’s growth momentum.
Hecla Mining has also performed well, delivering strong operational progress, production growth and a significantly improved balance sheet. However, with the stock already reflecting much of this progress and trading at a premium to peers, the risk-reward balance appears more nuanced.
Both the mining companies currently carry a Zacks Rank #3 (Hold), which makes choosing one stock a difficult task. Considering their long-term prospects, earnings growth potential and valuation, AG seems to have an edge over HL currently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.