First Majestic Silver Corp. (NYSE:AG) had a quarter that looked good on paper and messy in the ground. The silver miner reported mixed third-quarter results Thursday, and the stock traded lower as a labor dispute at its San Dimas mine disrupted production and pushed costs higher, while revenue missed Wall Street estimates.

The numbers: adjusted earnings of 19 cents per share, which matched what analysts were expecting. Revenue rose 38% year over year to $394.1 million, but that fell short of the $423 million consensus estimate.

Higher metal prices did the heavy lifting on revenue growth. Average realized silver prices increased 59%, while realized gold prices climbed 23%.

Earnings and Cash Flow Head in the Right Direction

Mine operating earnings rose to $170.1 million from $99.1 million a year earlier. EBITDA increased 78% to $228.8 million from $128.6 million.

Cash costs rose to $21.75 per attributable payable silver equivalent ounce, up from $14.83 a year earlier. All-in sustaining costs stood at $30.45 per ounce.

The all-in sustaining cost margin widened to $31.95 per ounce from $18.14 a year earlier, supported by higher metal prices.

Operating cash flow before working capital changes and taxes climbed 52% to $214.3 million.

First Majestic ended the quarter with $1.23 billion in treasury holdings, up 32% from Dec. 31, 2025.

The company declared a quarterly dividend of 1.42 cents per share, up 176% year over year. It also repurchased 100,000 shares.

San Dimas Labor Dispute Hits Silver Production

Companywide silver production fell 11% year over year to 3.44 million ounces, partly due to a labor disruption at San Dimas that began Sept. 18. The dispute caused 12 lost production days during the quarter.

And it is still not resolved. As of Thursday, the standoff drags on. CEO Keith Neumeyer said the dispute centers on the union's demand that the company cover 100% of workers' income taxes on bonuses. Management has rejected the demand and remains firm on its position.

Neumeyer said the company is pursuing legal proceedings and holding daily discussions to restore operations as soon as possible.

Meanwhile, silver ounces sold increased 82% at La Encantada and 6% at Santa Elena, partly offsetting lower sales volumes at other operations.

First Majestic Advances Key Mining Projects

First Majestic drilled about 78,000 meters across four assets, including Jerritt Canyon. The company expects to release exploration results in the coming weeks.

At Santa Elena, the processing plant exceeded its 3,500-ton-per-day target several times during the quarter. Management aims to maintain that processing rate through much of the remainder of 2026.

The Santo Niño project received portal permits in August, about 18 months ahead of schedule. Development is progressing, with ore expected to reach the mill by late 2027. Construction has also begun at the Navidad portal.

AG Price Action: First Majestic Silver shares were down 4.48% at $14.70 at the time of publication on Thursday, according to market data.