First Majestic Silver Corp.

First Majestic reported record Q1 revenue of $477 million, up 95% year over year, with average realized silver price of $86.35 versus $33.10 in Q1 2025. The company said it produced 3.5 million ounces of silver and gold production reached 28% of midpoint guidance; operating cash flow was $311 million, free cash flow was $224 million, and margins improved to $52 per ounce from $13 per ounce a year earlier. It also said it held back 676,000 ounces of silver and 2,700 ounces of gold in inventory, valued at $63 million. Looking ahead, management said Q2 is “looking pretty darn good,” Santa Elena’s mill expansion to 3,500 tonnes per day should be reached by H2 2026, and Jerritt Canyon remains targeted to restart in H2 2027, with a pre-feasibility study expected in early 2027.

Keith Neumeyer framed the quarter as unusually strong for a seasonally soft period, emphasizing that the company is producing ahead of guidance and that the key story is margin expansion, not just volume. He repeatedly pointed to lower diesel exposure, higher efficiency, and the strategic choice to reduce cutoff grades to extend mine life while still keeping costs aligned. His tone was upbeat and confident, with a clear message that current metals prices and the company’s operating discipline could support another strong year.

The transcript did not include a separate detailed CFO prepared statement, but management gave several financial figures and margin drivers during the call. Keith said operating cash flow was $311 million, free cash flow was $224 million after a $95 million tax payment, and treasury remained over $1.1 billion. He also explained that all-in sustaining costs were affected by a fixed 75:1 gold-silver ratio, higher profit sharing, and higher taxes/royalties, but said costs remained in line with plans and that diesel exposure is only 5% because most sites run on LNG or grid power.

Analysts focused on whether stronger commodity prices could lead to inflationary pressure from governments, unions, labor or suppliers. Management said Mexico’s government appears satisfied because mining tax revenue is rising, unions have been cooperative, and it has not seen the kind of broad inflation in equipment or consumables that occurred in prior bull markets. Questions on Jerritt Canyon centered on staffing, milestones, and critical path items; management said hiring is ramping up now, the underground fleet and oxygen plant are the main items to watch, and production is still targeted for H2 2027.