First Majestic Announces Q3 2026 Financial Results and Quarterly Dividend Payment
First Majestic reported third-quarter profit beats driven by higher prices, while a San Dimas strike increased all-in sustaining costs by 46% and gutted guidance.
First Majestic Silver Corp. (AG) reported third-quarter 2026 revenue of $394.1 million, a 38% increase year over year, alongside net earnings attributable to shareholders of $74.5 million, or $0.15 per share. Adjusted earnings per share came in at $0.19. The company’s EBITDA rose 78% to $228.8 million, while mine operating earnings increased 72% to $170.1 million. Operating cash flow before working capital and taxes totaled $214.3 million.
Production volumes declined despite higher throughput. The company processed 1,088,708 tonnes of ore, a 9% increase, but output fell to 3,440,447 silver ounces, down 11%, and 29,552 gold ounces, down 17%. Cash costs per attributable payable AgEq ounce rose 47% to $21.75, and all-in sustaining costs (AISC) increased 46% to $30.45 per ounce compared to the same period in 2025.
Free cash flow was $85.5 million, a 14% decrease from $98.8 million in Q3 2025. This decline followed $73.7 million in cash income taxes and settlements and $101.9 million in attributable capital expenditures. The quarter included a $30.7 million one-time tax settlement expense related to a historic Mexican tax dispute. Additionally, cash income taxes and settlements included $36.8 million for legacy forward silver purchase agreement reassessments.
Operations at the San Dimas mine were suspended following a labor dispute that began on September 18, 2026. The union called a strike on October 8, and the company is awaiting a ruling expected in the second half of November. First Majestic withdrew San Dimas annual production and cost guidance, noting that its other three operations continue to perform at or above budget.
The company declared a Q3 dividend of $0.0142 per share and repurchased 100,000 shares in the quarter at an average price of CAD$21.00. First Majestic ended the period with $1.23 billion in treasury.
First Majestic Silver Corp. (AG) has withdrawn annual production and cost guidance for its San Dimas mine, one of its highest-grade assets, following a strike that has left the duration of the disruption and the timeline for a safe restart unknown. This development converts a known production issue into an open-ended uncertainty, compounding operational challenges reported during the quarter.
The company’s standalone unit costs exceeded expectations, with cash costs rising 9.6% above the top end of the revised annual guidance range and all-in sustaining costs (AISC) increasing 5.8% above that same threshold. While the company noted that applying constant silver-equivalent conversion assumptions would lower reported cash costs and AISC by approximately 6%, the resulting AISC remained elevated at roughly $28.62 per ounce, representing a year-over-year increase of approximately 37%.
Despite the operational headwinds, the company reported strong headline financial results driven primarily by metal price appreciation rather than operational volume. Revenue increased 38%, net earnings surged 176%, and EBITDA rose 78%. These gains were fueled by a 59% increase in realized silver prices to $61.52 per ounce and a 23% rise in realized gold prices to $4,195 per ounce. However, silver and gold production both declined by double-digit percentages.
Free cash flow fell 14% year over year, weighed down by $73.7 million in cash taxes and settlements and a doubling of capital expenditures. The stock had previously reacted to operational weakness disclosed on October 8, falling from $24.14 on that date to $19.75 on November 3 before recovering to $21.51 on November 4. The formal withdrawal of guidance and the detailed cost data represent new information, for which no post-release price data is currently available to assess market reaction.
While the company’s strong balance sheet indicates that the situation is not a liquidity crisis, the event highlights issues regarding operating credibility and cost control. Equity value remains highly exposed to the timing of the San Dimas restart and the company’s ability to deliver against consolidated guidance in the fourth quarter.
First Majestic Silver Corp. (AG) is a Vancouver-based silver and gold producer operating four underground mines in Mexico: Los Gatos in Chihuahua, Santa Elena in Sonora, San Dimas in Durango, and La Encantada in Coahuila. First Majestic holds a 70% interest in Los Gatos, with Dowa Metals & Mining owning the remaining 30%, while the company maintains 100% ownership of the other three Mexican mines.
The company also owns the Jerritt Canyon gold project in Nevada, which is currently in care and maintenance and targeted to restart in the second half of 2027, as well as First Mint, a wholly owned minting facility in Nevada. First Majestic holds a large land package of more than 350,000 hectares. The company has been selling non-core assets, including the Del Toro property, which was sold to Sierra Madre, and the San Martin project, which is under a pending sale to Flextronics for total proceeds of $90 million.
Revenue is silver-weighted, with 62% of Q3 revenue coming from silver and 28% from gold. The investment case is therefore primarily a silver-price leverage story with meaningful gold and base-metal by-products.