First Majestic Silver: Down From Highs, And I'm Finally Buying
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Gold Mining Bull15.22K FollowersFollow5ShareSavePlay(12min)CommentsSummaryFirst Majestic Silver is upgraded to Buy, driven by the transformative Los Gatos acquisition and record Q4 2025 free cash flow of $250 million.AG's leverage to silver prices is substantial, with Q4 2025 production up 77% year-over-year and significant margin expansion at current silver levels.Despite a premium 17.4x forward P/E, AG's improved balance sheet, active portfolio streamlining, and near-term catalysts justify the valuation.Key risks include Mexico jurisdiction exposure, cost discipline concerns, and sensitivity to silver price volatility, but the structural silver supply deficit supports the bullish thesis. natatravel/iStock via Getty Images First Majestic Silver (AG) Update When I last covered First Majestic in 2023, I called it a SELL. My exact words: the company didn't have its cash costs under control at one of its major mines, its financial position was worsening, and a capitalThis article was written byGold Mining Bull15.22K FollowersFollowGold Mining Bull is a gold analyst with more than a decade of investing experience in commodities, hard assets (gold and silver miners), exploration companies, oil and gas producers, MLPs, and more.Analyst’s Disclosure: I/we have a beneficial long position in the shares of BTG, SVM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. I may buy shares of AG this week.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.