Key Points
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First Majestic raised its 2026 production target to 14.5–15.5 million ounces of silver and plans nearly $350 million in capital spending, primarily for exploration and approximately 300 kilometers of drilling.
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The company cited a six-year structural silver deficit totaling 840 million ounces and reported liquidity of roughly $1.2–$1.3 billion, supporting investments, potential acquisitions and a dividend payout now tied to 2% of revenue.
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First Majestic is targeting a second-half 2027 restart of Jerritt Canyon after acquiring new mining equipment, adopting a self-performed mining plan and upgrading the idle mill; its Las Vegas mint also generates premiums of 15%–20% above spot on some sales.
First Majestic Silver (NYSE:AG) outlined plans to expand production, advance exploration and restart its Jerritt Canyon gold operation as the company seeks to capitalize on higher precious-metals prices and strengthen its position as a major silver producer.
During a company presentation, Mani, a First Majestic representative, said silver accounted for 63% of revenue so far, with gold contributing roughly one-third and lead and zinc comprising the remainder. The company operates four underground mines in Mexico, owns the Jerritt Canyon asset in Nevada and operates a bullion mint in Las Vegas.
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The company raised its 2026 guidance in July for the second consecutive year and is targeting 14.5 million to 15.5 million ounces of silver production. Mani said the company expects to make nearly $350 million in capital investments, with most spending directed toward exploration. The program includes approximately 300 kilometers of drilling across its portfolio.
Silver Market and Financial Position
Mani characterized the silver market as being in a structural deficit for the past six years, citing a cumulative shortfall of 840 million ounces. He also said 2025 and 2026 represented a combined 150 million-ounce deficit, while First Majestic produced slightly more than 15 million ounces in its record production year.
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The presentation highlighted growing industrial demand, including demand associated with artificial intelligence data centers, solar panels and battery technologies. Mani said a single AI data center requires about 6.5 tons of silver, although he did not provide a source for that estimate.
First Majestic reported liquidity exceeding $1 billion, with Mani stating the company had approximately $1.2 billion to $1.3 billion in the bank. He said the company’s higher cash flow gives it flexibility to invest in operating assets, consider mergers and acquisitions and pursue other capital-allocation opportunities.
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The company also recently increased its dividend policy. First Majestic’s payout was raised in January 2026 to 2% of revenue from 1%, according to the presentation. Mani said the structure provides shareholders with more direct exposure to changes in metals prices and production.
Operations and Exploration Priorities
First Majestic identified Los Gatos, Santa Elena and San Dimas as cornerstone assets in Mexico. The company acquired Los Gatos last year in what Mani described as its largest and most significant transaction. The mine has a current 10-year life of mine and is supported by a 103,000-hectare land package, much of which the company said remains largely unexplored.
At Santa Elena, First Majestic is expanding processing capacity to 3,500 tonnes per day from about 3,100 tonnes per day. The expansion follows discoveries at Santo Niño and Navidad, which added 90 million ounces of incremental resources, according to the presentation. The company has begun developing two ramps after receiving a construction portal permit and expects incremental growth potentially beginning late next year or in early 2028.
San Dimas will receive the largest share of the exploration budget, with 117 kilometers of drilling planned. Mani said the mine’s hydroelectric dam helps limit energy costs, while Santa Elena and La Encantada use liquefied natural gas.
La Encantada, First Majestic’s smallest mine, is nearly entirely silver-focused and produced more than 1 million ounces in the latest quarter, according to Mani. He said the operation is projected to exceed the guidance issued earlier in the year.
Jerritt Canyon Restart Targeted for 2027
First Majestic is targeting a second-half 2027 restart for Jerritt Canyon, which was suspended in March 2023. Mani said the shutdown was driven by lower gold prices, third-party contractor arrangements and operating inefficiencies.
The company has ordered a new mining fleet and plans to self-perform mining under a new mine plan. It is also modernizing and optimizing the mill while it remains idle. First Majestic recently reported a 7.8 million-ounce resource at Jerritt Canyon and said the future production plan is expected to include both underground mining and permitted open pits.
In response to an analyst question, Mani said Jerritt Canyon’s roaster has capacity for 5,000 tonnes per day. The operation is expected to run below that level but above its prior throughput, with bulk mining intended to increase tonnage from underground and open-pit sources.
Mint Business Adds Premium Revenue Opportunity
First Majestic also emphasized the role of its Las Vegas mint, which the company said is the only mining-company-owned and operated mint. The facility, opened about 18 months ago, allows First Majestic to refine and sell bullion directly rather than relying entirely on third-party mints.
Mani said the company currently diverts about 10% to 15% of its production through the mint and can capture margins 15% to 20% above spot pricing on those sales. The facility also offers custom minting, white-label products and commemorative items.
Looking ahead, the company expects to issue additional exploration updates before year-end and plans to provide 2027 guidance and an updated exploration program in January.
About First Majestic Silver (NYSE:AG)
First Majestic Silver Corp. is a mining company focused on the exploration, development, and production of silver, gold, lead, and zinc. The company generates revenue primarily by producing and selling metal concentrates, doré bars, and other refined precious-metal products.
Founded in 2002 and headquartered in Vancouver, British Columbia, First Majestic has historically concentrated its operations in Mexico and the United States. Its principal Mexican mining assets have included the San Dimas, Santa Elena, and La Encantada mines, while its U.S.
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The article “First Majestic Silver Eyes Growth, Jerritt Canyon Restart as Silver Deficit Deepens” was originally published by MarketBeat.
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