First Majestic Hits Record 15.4Moz Silver in 2025

Canada-based silver company First Majestic announced its 4Q25 and full-year 2025 production results, reporting a record year for silver output following the acquisition of Gatos Silver. With consolidated silver production jumping 84% year-over-year, the company is pivoting toward a more active 2026 expansion strategy, earmarking over US$200 million for infrastructure upgrades and a drilling program to capitalize on recent high-grade discoveries.

The company produced 7.8Moz AgEq in 4Q25, comprising 4.2Moz of silver, 41,417oz of gold, 14.2Mlb of zinc, 8.1Mlb of lead, and 235,886lb of copper. First Majestic met its upwardly revised 2025 guidance with a full-year production of 31.1Moz AgEq, which included 15.4Moz of silver. This represents an 84% increase compared to 2024, driven primarily by the integration of the Los Gatos mine and operational improvements at San Dimas, Durango and Sinaloa and La Encantada mine in Coahuila.

Regarding operational performance, the Los Gatos mine produced 2.1Moz AgEq in 4Q25 during its first year under First Majestic's 70% interest. The mill processed 226,900t with recoveries for silver and lead at 87% and 86%, respectively, while the company targets a throughput increase to 4,000t/d by 2H26. 

At Santa Elena, the mine produced 2.3Moz AgEq in the quarter and set a quarterly record of 283,721t processed despite lower grades at Ermitaño mine within Santa Elena. Recent exploration at the Santo Niño and Navidad targets has expanded the mineralization footprint, prompting preliminary mine planning studies. 

San Dimas reported a 10% year-on-year increase in production to 2.4Moz AgEq due to higher milling rates and improved gold grades, while La Encantada saw silver production rise 32% to 1Moz following improvements in ore flow and mine development. As we close out 2025 on a positive note, I am excited about the outlook for 2026, with several important initiatives underway, including the Santa Elena mill expansion, increased mine throughput and recovery at Los Gatos, and another robust exploration program across our portfolio,” said Keith Neumeyer, CEO, First Majestic.

First Majestic Delineates 2026 Forecast

The 2026 outlook forecasts total attributable production between 13Moz and 14.4Moz of silver. While the company expects higher throughput from expansion projects, it anticipates lower metal grades due to reduced cut-off grades influenced by higher projected metal prices. To support this growth, First Majestic plans to invest between US$213 million and US$236 million in capital expenditures for 2026, with US$154 million to US$171 million allocated to expansionary projects. These include expanding the Santa Elena plant to 3,500t/d, increasing Los Gatos throughput to 4,000t/d, and executing a 266,000m drilling program. Consolidated all-in sustaining costs (AISC) for 2026 are projected at US$26.15/oz to US$27.91/oz AgEq, based on a silver price assumption of US$52.00/oz.

Los Gatos Deal Overview 

The Los Gatos Silver Mine, located in Chihuahua, Mexico, is a primary silver underground operation acquired by First Majestic on Jan. 16, 2025. The district covers approximately 103,140ha of mineral concessions and is operated through a joint venture, with First Majestic holding a 70% interest and Japan-based Dowa Metals & Mining holding the remaining 30%. 

The operation consists of an underground mine and a processing plant utilizing conventional flotation technology to treat silver-zinc-lead ore. The processing circuit features a crushing and grinding stage, including a jaw crusher, a semi-autogenous grinding (SAG) mill, and a ball mill, followed by separate lead and zinc flotation circuits with rougher, regrind, and cleaner stages. 

Under the merger agreement, Gatos Silver shareholders received 2.550 common shares of First Majestic, implying a value of US$13.49 per share at the time of the announcement. Following the closing in early 2025, Gatos Silver shareholders held approximately 38% of First Majestic’s shares on a fully diluted basis, as reported by MBN.

In 2024, on a 100% basis, the mine produced 15.6Moz AgEq, consisting of 9.7Moz of silver, 69.7Mlb of zinc, 46.4Mlb of lead, and 5,530oz of gold. “The acquisition of Gatos Silver is a highly compelling and transformative transaction that meaningfully enhances First Majestic's operating platform through the addition of 70% of Cerro Los Gatos, a high quality, long-life, unencumbered, free cash flow generating asset in the mining-friendly state of Chihuahua,” said Neumeyer when the company announced the merger with Gatos Silver. 

First Majestic announced positive drilling results from its 2024-2025 exploration programs at Los Gatos, expanding mineralization across the South-East Deeps, Central Deeps, and North-West Deeps zones. These results, which were not included in the most recent Mineral Reserve and Mineral Resource Estimates, feature several high-grade intercepts that extend known deposits at depth and along the plunge.

In the South-East Deeps Zone, drilling returned an interval of 8m grading 711g/t AgEq, including a 1.6m section at 1,080g/t AgEq with 23.2% zinc and 12.35% lead. In the Central Deeps Zone, intercepts reached 6.9m grading 713g/t AgEq, driven by zinc grades as high as 30.09%. "The latest drilling results reinforce the district’s significant exploration upside, supporting our expectation for meaningful Mineral Resource growth at Los Gatos,” stated Neumeyer.

While drilling in the South-East continues to target down-plunge potential, exploration in the Central and North-West zones has confirmed mineralization at depth and identified a faulted offset from the main deposit. First Majestic plans to tighten drill spacing in these areas throughout the remainder of 2025 to establish an Inferred Resource classification.