First Majestic Silver's Strategic Pivot to Gold Gains Investor Approval

First Majestic Silver shifts focus to gold, backed by strong finances and a $75M plan to restart its Nevada mine by late 2027, aiming for 86k oz annual production.

First Majestic Silver is executing a significant strategic pivot, shifting its focus toward gold production. The company aims to capitalize on robust precious metal prices through a detailed investment plan for its Jerritt Canyon mine in Nevada, which has been on care and maintenance since 2023. The market has responded favorably to the outlined roadmap for resuming operations at the key asset.

Financial Strength and Shareholder Returns Underpin Strategy

The company’s strategic shift is backed by a solid financial position. Following a strong fourth quarter in 2025, which yielded earnings of $0.30 per share, First Majestic Silver holds approximately $940 million in liquid assets. Management has also doubled its dividend policy, now committing to pay out two percent of revenue to shareholders. This financial health and enhanced capital return program are being recognized by the market; the stock closed at €18.46 recently, marking a year-to-date increase of over 34 percent.

Investors will soon have a formal opportunity to engage with leadership on this new direction. The annual general meeting is scheduled for June 10, 2026, in Vancouver. Shareholders of record as of April 15 will be eligible to vote on corporate matters.

A Detailed Roadmap for Jerritt Canyon

A capital allocation of $75 million is planned for this year to prepare the Jerritt Canyon mine for a restart, currently targeted for the second half of 2027. Operations were suspended in March 2023 due to high contractor costs and extreme weather conditions. The project's foundation has since been strengthened by an expanded resource base, now totaling 4.1 million ounces of measured and indicated gold resources.

Preparatory work to access the underground Smith and SSX zones is set to begin in the second quarter. Concurrently, the company is advancing an extensive drilling program spanning 42,000 meters to further define and expand the resource.

Wall Street Analysts Express Confidence

Market experts have largely endorsed the company's plans. Wayne Lam, an analyst at TD Cowen, views the project as a valuable option in a higher gold price environment, assigning the mine an approximate value of $582 million. Analysts at BMO Capital Markets project that, once operational, Jerritt Canyon could produce around 86,000 ounces of gold annually. They estimate all-in sustaining costs (AISC) to be approximately $1,990 per ounce. A BMO analyst also highlighted that the planned open-pit operations are expected to be a major contributor to overall production volume.