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Silver’s doing the heavy lifting
First Majestic’s second quarter was basically a tale of two stories: the headline numbers missed Wall Street’s targets, but the business underneath looked pretty sparkly. Adjusted earnings came in at 21 cents a share versus the 30-cent consensus, and revenue reached $415.5 million, short of estimates — even after jumping 57% year over year.
What kept the engine humming? Silver prices, mostly. The company said average realized silver prices rose 90% and gold prices climbed 40%, helping revenue, EBITDA, and cash flow all surge. Adjusted EBITDA more than doubled to $257.1 million, while operating cash flow hit $248 million and free cash flow landed at $195 million. Not bad for a miner that’s fully unhedged and basically riding the metal like a surfboard.
Production was solid, and the mines got a flex moment
First Majestic produced 3.8 million ounces of silver in the quarter, up 3% from a year ago. La Encantada even hit a record throughput of 4,078 tonnes per day in June, while Santa Elena kept chugging above expectations. The company also said it completed 94,000 meters of exploration drilling, and it got permits in Mexico for the Santa Niño and Navidad portal developments, which should extend the life of Santa Elena.
Cash is king, and the board knows it
Here’s the bit investors will probably care about most: the company is using that silver windfall to return more cash. First Majestic raised its quarterly dividend by 217% year over year and bought back 1.2 million shares, while ending the period with $1.25 billion in treasury assets.
- Quarterly dividend: $0.0152 per share
- Payable: on or about August 31, 2026
- Record date: August 14, 2026
Big picture: the earnings miss is annoying, but the cash-generation story is getting stronger. If silver stays hot, First Majestic has the kind of balance sheet that can turn good vibes into actual payouts.