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First Majestic Announces Temporary Suspension of NAFTA Arbitration Proceedings as Settlement Framework Agreed to with Mexico

First Majestic suspends tax arbitration and agrees to a settlement framework, though legal overhang persists until year-end.

By The Northwire Desk — AI Analysis Oct 13, 2026 · 07:01 AG · 24.64 First Majestic Silver Corp.

Executive Summary

First Majestic Silver Corp. announced a temporary suspension of its NAFTA Chapter 11 arbitration proceedings against the Government of Mexico regarding a legacy tax dispute involving its subsidiary, Primero Empresa Minera, S.A. de C.V. (PEM). The suspension is tribunal-ordered until December 31, 2026, to allow parties to finalize a settlement framework that has been agreed to in principle.

If a final settlement is not executed by year-end 2026, the arbitration will re-commence unless an extension into Q1 2027 is granted. Management characterized negotiations as constructive and cordial, expressing optimism that a final settlement will be concluded by the end of 2026. This is a procedural update on a legal overhang first highlighted in Q3 2025 earnings, where the Mexican Supreme Court upheld a 2012 tax reassessment against PEM.

Material Impact

First Majestic Silver Corp. (AG) issued a legal and regulatory update that does not alter its near-term production guidance, cost structure, or capital allocation plans. The suspension of the relevant proceedings removes a near-term procedural overhang and signals progress toward a financial resolution, serving as a positive sentiment catalyst. However, the actual monetary impact, including tax liability, penalties, or settlement payments, remains unknown until the framework is finalized. The market has already priced in the legal risk, and while this news provides de-risking, it lacks the quantitative magnitude to re-rate the business.

AG · Price

Company Overview

First Majestic Silver Corp. (AG) is a pure-play silver producer headquartered in Vancouver, BC, with primary operations in Mexico and the USA. The company’s producing assets include the Los Gatos Silver Mine, which is 70% owned in a joint venture with Dowa Metals, as well as the Santa Elena Silver/Gold Mine, the San Dimas Silver/Gold Mine, and the La Encantada Silver Mine.

Development and exploration holdings include the Jerritt Canyon Gold Project in Nevada, which is targeting a restart in the second half of 2027; the San Martin project, which is pending sale to Flextronics for $90 million; and the Springpole Silver Stream in Ontario. The company is vertically integrated via the First Mint facility in Nevada, which produces .999+ fine silver bullion. Silver accounts for approximately 63% of revenue, with significant base metal by-products coming from Los Gatos.

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First Majestic Announces Temporary Suspension of NAFTA Arbitration Proceedings as Settlement Framework Agreed to with Mexico

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