First Majestic Silver Corp.’s AG silver production reached 3.8 million ounces in the second quarter of 2026, marking a year-over-year increase of 3%. The upside was driven by solid performances at the La Encantada and Santa Elena mines. The company’s gold production also increased 2% year over year to 34,660 ounces. AG produced 7.3 million ounces of silver and 69,001 ounces of gold in the first half of 2026.
Driven by the strong first-half performance, the company hiked its production outlook for 2026. It expects the total silver production to be 14.6-15.5 million ounces, updated from the previous 13-14.4 million ounces. The silver production guidance indicates a year-over-year improvement of 4% at the mid-point. Total gold production for 2026 is expected to be 128,000-135,000 ounces, up from the previous forecast of 116,000-129,000 ounces. The company produced 147,433 ounces of gold in 2025.
The company’s Los Gatos mine is expected to produce 5.1-5.5 million ounces of silver in 2026, marking a 5% increase at the mid-point from the previous guidance. The La Encantada mine’s silver production is expected to increase 19% at the mid-point from the previous guidance to 3.4-3.6 million.
The company’s Santa Elena mine will gain from higher gold grades and slightly increased gold recoveries. First Majestic expects gold production of 72,000-76,000 at the Santa Elena mine, marking an increase of 10% at the mid-point from the previous guidance. San Dimas’s production is expected to increase 13% at the mid-point from the prior guidance to 4.6-4.9 million ounces of silver for 2026. The upside will be driven by higher throughput rates. These will also aid the company’s upbeat guidance.
First Majestic Silver’s Peers Performance & Guidance
Avino Silver & Gold Mines Ltd.’s ASM silver-equivalent production was 534,945 ounces in the second quarter of 2026, which marked a 17% decrease from the second quarter of 2025. Avino Silver’s second-quarter 2026 silver production fell 6% to 267,305 ounces. However, gold output increased 23% to 2,178 ounces. Avino Silver's 2026 production guidance is 2.4-2.7 million silver-equivalent ounces, while it targets more than 3 million ounces in 2027.
Pan American Silver Corp. PAAS silver production reached 6.47 million ounces in the second quarter of 2026, at the high end of the company’s quarterly operating outlook. Pan American Silver’s silver production increased 27% year over year. For 2026, Pan American Silver expects silver production of 25-27 million ounces, indicating a year-over-year increase of 14% at the mid-point.
AG's Price Performance, Valuation & Estimates
Shares of First Majestic have gained 36.4% in the past year compared with the industry’s growth of 14.5%. In comparison, the Basic Materials sector has risen 13.2%, whereas the S&P 500 has moved up 16.3%.
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AG is currently trading at a forward 12-month price-to-earnings multiple of 19.94X compared with the industry average of 12.94X.
The consensus mark for 2026 earnings is pegged at 81 cents per share, indicating a year-over-year jump of 76%. The estimate for 2027 of 90 cents suggests an increase of 11%.
The Zacks Consensus Estimate for First Majestic’s earnings for 2026 and 2027 has been unchanged over the past 60 days.
AG currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).