First Majestic Silver Shifts Strategy After Record-Breaking Year

First Majestic Silver posts record 2025 revenue but pivots to cost control for 2026, lowering production guidance and doubling its dividend payout to shareholders.

First Majestic Silver has concluded its 2025 fiscal year with unprecedented production and revenue figures, marking a period of explosive growth. However, the company is now deliberately pivoting its strategy, prioritizing stability and cost control over further expansion for the coming year.

Strategic Pivot Follows Expansion

Following a year of rapid scaling, management has issued a notably more conservative production forecast for 2026. The guidance calls for attributable silver production of 13.0 to 14.4 million ounces and gold output between 116,000 and 129,000 ounces. This represents a deliberate reduction from 2025’s record levels, signaling a strategic shift from aggressive growth to operational efficiency and financial discipline.

The company’s San Dimas and Santa Elena mines will continue to serve as the portfolio's core assets. Production, however, is expected to be moderated as the Ermitaño mine at the Santa Elena site transitions into lower-grade ore zones as planned.

Cerro Los Gatos Drives Record Performance

The catalyst for the remarkable 2025 results was the acquisition and full integration of a 70% interest in the Cerro Los Gatos underground mine, completed in January 2025. This move propelled annual silver production to 15.4 million ounces, an 84% surge compared to the previous year. Total silver equivalent production (AgEq) reached 31.1 million ounces, with Cerro Los Gatos contributing approximately 2.09 million AgEq ounces in the fourth quarter alone.

Bolstered by historically high silver prices, the company’s annual revenue soared to approximately $1.26 billion. This figure constitutes a staggering 124% year-over-year increase.

Dividend Policy Enhanced

Concurrent with its strategic realignment, First Majestic Silver has revised its shareholder return policy. The company has doubled its dividend payout, raising it from 1% to 2% of its quarterly revenue. This adjustment is intended to directly return a larger portion of the strengthened cash flows to investors.

Market Performance and Outlook

First Majestic’s share price has retreated approximately 39% from its 52-week high in late February and currently trades well below its 50-day moving average. The market will be watching closely to see if the company’s solid operational foundation and enhanced dividend are sufficient to rebuild investor confidence. A clearer picture is expected once the complete 2025 annual results, including detailed cost breakdowns, are published.