First Majestic Silver Corp. (NYSE:AG) shares traded lower Tuesday after the company reported first-quarter 2026 results, with silver and gold production tracking toward full-year guidance.

Revenue surged 95% year over year to $476.7 million, driven by higher realized silver and gold prices, while holding back $63.6 million in bullion inventory.

The company said revenue growth was supported by a 161% increase in realized silver prices and an 81% rise in realized gold prices, along with stronger sales volumes from key mines including La Encantada, Santa Elena and Los Gatos. The quarter also included $63.6 million in silver and gold held in inventory.

Production And Costs

Silver production totaled 3.5 million ounces, down slightly from 3.7 million ounces a year earlier and representing 26% of the midpoint of the company's 2026 guidance.

Gold production fell to 34,341 ounces from 36,469 ounces in the prior-year quarter, accounting for 28% of the midpoint of full-year guidance.

Cash costs per attributable silver-equivalent ounce increased to $20.28 from $13.68 a year earlier, primarily due to lower reported silver-equivalent production.

The company said the decline in silver-equivalent ounces reflected stronger silver prices relative to other metals, reducing the silver-equivalent conversion ratio to 75:1 from 90:1 in the first quarter of 2025.

All-in sustaining costs per silver-equivalent ounce rose to $29.76 from $19.24 a year earlier, mainly due to higher cash costs, worker participation payments and sustaining development expenses tied to elevated mine development activity.

Profitability And Cash Flow Improve

Mine operating earnings climbed to $266.6 million from $63.8 million a year earlier, supported by higher metal prices and improved operating leverage, particularly at La Encantada.

Adjusted EBITDA increased 192% year over year to $320.8 million, while adjusted earnings rose to 31 cents per share from 5 cents per share in the prior-year quarter.

Free cash flow totaled $223.5 million, despite $95.5 million in tax payments, while operating cash flow before working capital and taxes rose 182% year over year to $310.6 million.

Treasury holdings increased 20% quarter over quarter to a record $1.13 billion, up from $937.7 million at the end of 2025, including $143.8 million in restricted cash.

The company also raised its quarterly dividend nearly four times to $0.0171 per share.

AG Price Action: First Majestic Silver shares were down 1.40% at $23.25 at the time of publication on Tuesday, according to Benzinga Pro data.

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