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Early Warning News Release

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By The Northwire Desk — AI Analysis Nov 05, 2025 · 19:42 AG · 15.05 First Majestic Silver Corp.

Executive Summary

First Majestic announced its financial results for the third quarter of 2025. Key highlights include: - Record quarterly silver production of 3.9 million ounces, leading to total production of 7.7 million silver equivalent (AgEq) ounces. - Record quarterly revenue of $285.1 million, driven by an average realized silver price of $39.03 per ounce. - Record quarterly operating cash flow of $141.3 million. - Strong free cash flow of $98.8 million. - Net earnings of $43.0 million, or $0.06 per share. - All-in Sustaining Cost (AISC) was $20.90 per AgEq ounce. - The company ended the quarter with a cash position of $435.4 million. - A quarterly dividend of $0.0052 per share was declared, consistent with the company's policy of distributing approximately 1% of net quarterly revenues.

Material Impact

The Q3 2025 financial results are materially positive and confirm the company's successful transformation following the acquisition of Gatos Silver, which closed in January 2025. The results build upon a strong performance throughout the year.

Progression of Performance: The company has consistently delivered record-breaking quarters in 2025. Q1 saw record production and financials as the Los Gatos mine was integrated. In Q2, the company again posted record financial results and, importantly, increased its full-year 2025 production guidance by 7% to a range of 30.6 to 32.6 million AgEq ounces, while maintaining its AISC guidance of $20.02 to $20.82 per ounce.
Q3 Performance vs. Expectations: The October 8th pre-release of production figures (7.7M AgEq oz) set a high bar, which these financial results have met. The record revenue and cash flow figures are a direct result of strong operational performance combined with a significant tailwind from a very high realized silver price of $39.03/oz, up from $34.62/oz in Q2.
Cost Analysis: A key point of scrutiny is the AISC of $20.90/oz. This is slightly above the high end of the company's full-year guidance range ($20.82/oz) and represents a continued trend of elevated costs (Q1: $19.24, Q2: $21.02). While this cost pressure is a concern and warrants monitoring, it is currently being overshadowed by the exceptional revenue generated from high metal prices. The margin expansion is significant.
Balance Sheet Concern: A notable discrepancy exists in the reported cash position. The company ended Q2 with a record cash position of $510.1 million. Despite generating $98.8 million in free cash flow during Q3, the quarter-end cash position is reported at $435.4 million. This substantial decrease is not immediately explained by dividends or the known share repurchase activity and presents a hidden risk. Investors should seek clarification on this outflow, which could be due to tax payments, working capital adjustments, or other non-operating activities.
Overall Impact: The market will likely view these results favorably due to the headline records in revenue, earnings, and cash flow. The company is successfully executing on its growth strategy and demonstrating powerful earnings leverage to the silver price. However, a critical analyst must flag the cost creep and the unexplained drop in the cash balance as items requiring further clarification in the company's full reporting and conference call.

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Company Overview

First Majestic Silver Corp. is a silver-focused mining company with its producing assets located in Mexico. Following its acquisition of Gatos Silver in early 2025, the company's portfolio is anchored by four key producing mines: 1. Los Gatos Silver Mine (70% interest): Now a cornerstone asset, it is a large, modern, and high-margin underground mine producing silver, zinc, and lead. 2. San Dimas Silver/Gold Mine: A historically consistent, high-grade underground mine. 3. Santa Elena Silver/Gold Mine: An underground mine with significant recent exploration success (Navidad and Santo Niño discoveries) that promises to extend mine life and add value. 4. La Encantada Silver Mine: A pure-play underground silver mine. The company's strategy is focused on growing its silver production in mining-friendly jurisdictions. The acquisition of Los Gatos was a transformative step, significantly increasing production scale and lowering the company's overall cost profile.

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Early Warning News Release

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