First Majestic Silver Corp. (AG) shares dipped a bit on Tuesday after the company reported its first-quarter 2026 results, but the numbers themselves were anything but a downer. The miner is cashing in big on the precious metals rally, with revenue nearly doubling and profits soaring.
Revenue surged 95% year over year to $476.7 million, fueled by a 161% jump in realized silver prices and an 81% increase in realized gold prices. Stronger sales volumes from key mines like La Encantada, Santa Elena, and Los Gatos also helped. The company even held back $63.6 million in bullion inventory, a sign that management sees further upside.
Production and Costs
Silver production came in at 3.5 million ounces, slightly below the 3.7 million ounces a year earlier, representing 26% of the midpoint of 2026 guidance. Gold production fell to 34,341 ounces from 36,469 ounces, hitting 28% of the full-year target.
Costs crept higher, as you'd expect with inflation and all that mining activity. Cash costs per attributable silver-equivalent ounce rose to $20.28 from $13.68, partly because the silver-equivalent conversion ratio changed. Since silver prices are relatively stronger now, the ratio shifted to 75:1 from 90:1, meaning fewer silver-equivalent ounces are reported from the same gold production. All-in sustaining costs climbed to $29.76 per ounce from $19.24, driven by higher cash costs, worker participation payments, and more mine development spending.
Profitability and Cash Flow Improve
Mine operating earnings jumped to $266.6 million from $63.8 million, thanks to higher metal prices and better operating leverage, especially at La Encantada. Adjusted EBITDA more than doubled to $320.8 million, and adjusted earnings rose to $0.31 per share from $0.05 a year ago.
Free cash flow totaled $223.5 million, even after the company paid $95.5 million in taxes. Operating cash flow before working capital and taxes surged 182% to $310.6 million. The company's treasury grew 20% quarter over quarter to a record $1.13 billion, including $143.8 million in restricted cash.
Shareholders got a nice treat, too: the quarterly dividend was nearly quadrupled to $0.0171 per share.
As of Tuesday's close, First Majestic Silver shares were down 1.40% at $23.25, but with gold and silver still shining, the long-term story looks bright.
