AG Stock Forecast & Price Target

First Majestic Silver is supported by a stronger operating mix, with La Encantada and Santa Elena delivering meaningful production gains while Los Gatos advances toward sustained 4,000 tpd and management raises 2026 guidance for silver to 14.6M–15.5Moz and gold to 128,000–135,000oz. Its fundamentals were reinforced by 1Q26 revenue of $476.7M, net income of $128.1M, and $223.5M of free cash flow, leaving $984.8M in cash and enabling continued reinvestment, M&A, and a potential Jerritt Canyon restart. The renewed buyback authorization for up to 10.0M shares, combined with the $90.0M San Martín sale and a 2% dividend, signals disciplined capital allocation that should enhance per-share value while the San Dimas dispute remains the main near-term risk.

First Majestic Silver is facing fundamental pressure from weakening production trends, with 3Q26 output falling to 3.4M ounces of silver and 29,552 ounces of gold, down 11% and 17% year over year, respectively. The decline was driven by labor disruptions at San Dimas that reduced fresh-ore throughput and grades, while lower grades at Santa Elena and Los Gatos further offset gains from La Encantada’s stronger performance. Although Los Gatos nearly reached management’s 4,000-tonne daily throughput objective at 3,994 tonnes, lower silver grades and softer recoveries across key byproducts underscore operational fragility and limit confidence in near-term earnings durability.