First Majestic Silver Corp. (NYSE:AG) reported second-quarter results on Thursday that missed Wall Street estimates for both earnings and revenue, despite higher precious metals prices and strong operating performance.
Quarterly Results
Adjusted earnings were 21 cents per share, missing the analyst consensus estimate of 30 cents. Revenue rose 57% year over year to $415.5 million but fell short of the Street estimate of $496.0 million.
The revenue increase was driven by a 90% year-over-year rise in average realized silver prices and a 40% increase in average realized gold prices.
Higher sales volumes also contributed to growth. Silver ounces sold increased 57% year over year at La Encantada and 22% at Santa Elena.
Adjusted EBITDA more than doubled to $257.1 million, up 105% from a year earlier, supported by higher revenue and operational improvements.
Production And Operations
The company produced 3.8 million ounces of silver during the quarter, up 3% from a year earlier. First-half silver production totaled 7.3 million ounces, representing about 50% of its revised full-year production guidance.
First Majestic completed 94,000 meters of exploration drilling during the quarter.
Total cost per tonne remained stable at about $107 despite inflationary pressures and higher employee bonuses.
La Encantada achieved record throughput of 4,078 tonnes per day in June, exceeding its 4,000-tonne target. Santa Elena’s throughput approached 3,500 tonnes per day, with both mines performing above expectations.
Exploration And Capital Returns
The company received permits in Mexico for the Santa Niño and Navidad portal developments, two discoveries expected to extend the life of the Santa Elena mine.
Development at Santa Niño is underway, with initial blasting expected soon. First Majestic said the project is running about one year ahead of schedule.
The company expects Santa Niño to begin supplying ore to the mill by late 2027, followed by Navidad about 18 months later.
First Majestic used stronger cash generation from higher precious metals prices to increase shareholder returns during the quarter. The company raised its quarterly dividend by 217% year over year, ended the period with $1.25 billion in treasury assets, generated $248 million in operating cash flow and $195 million in free cash flow, and repurchased 1.2 million shares.
Management said the company continues to build its cash position while remaining fully unhedged, allowing it to benefit directly from higher silver prices.
The board declared a quarterly cash dividend of $0.0152 per common share, payable on or about Aug. 31, 2026, to shareholders of record as of Aug. 14, 2026.
AG Price Action: First Majestic Silver shares were up 0.85% at $15.34 at the time of publication on Thursday, according to Benzinga Pro data.
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