First Majestic Silver Corp reports 9% Q3 silver output drop, renews buyback
Third-quarter output of 3.44 million silver ounces leaves nine-month production at 72 per cent of the revised annual guidance midpoint.
Mara Quinlan
First Majestic Silver Corp. TSEAG NYSEAG reported on Thursday that it produced 3,440,447 silver ounces in the third quarter, nine per cent fewer than in the second. The company said nine-month output had reached 72 per cent of the midpoint of its revised annual guidance, leaving 28 per cent to produce in the final quarter.
Shares rose 2.07 per cent to C$24.64 at 4 p.m. EDT on Oct. 9 in Toronto, according to the TSEAG quote page.
First Majestic attributed much of the shortfall to an ongoing labour dispute at San Dimas that affected operations for 12 days. The mine produced 859,869 silver ounces, down 41 per cent from the same quarter of 2025, as lower grades accompanied a slower flow of fresh ore.
The Oct. 8 release also announced the renewal of First Majestic's share repurchase program. Gold production fell 15 per cent from the second quarter to 29,552 ounces, although the company said nine-month gold output was at 75 per cent of the midpoint of its revised annual guidance.
The production table lists 1,088,708 attributable consolidated tonnes of ore processed in the quarter, five per cent more than in the second. That total counts only First Majestic's 70 per cent share of ore processed at Los Gatos. Silver output was 11 per cent below the year-earlier quarter, while gold output was 17 per cent lower.
San Dimas's average silver grade was 133 grams per tonne, compared with 185 grams per tonne in the second-quarter table. The mine processed 229,188 tonnes of ore, up from 203,486 in the second quarter, even as its silver output declined.
Los Gatos, in which First Majestic holds a 70 per cent interest, contributed 1,245,178 attributable silver ounces. Los Gatos processed six per cent more ore than a year earlier, but lower silver grades partly offset the increase. Santa Elena produced 368,333 silver ounces, down 11 per cent from a year earlier, as lower grades outweighed higher mill throughput and improved recoveries.
"At Santa Elena and Los Gatos, our mill and mine expansion projects continue to advance on schedule, with both expected to be completed in the near term," chief executive Keith Neumeyer said in the Oct. 8 release.
The company sold 3.5 million attributable silver ounces in the third quarter, compared with 3.4 million in the second. La Encantada contributed 967,067 silver ounces to quarterly production, making it the second-largest silver contributor after Los Gatos. Gold sales were 31,934 ounces, down from 32,681 in the second quarter.
The fourth quarter ends Dec. 31, by when First Majestic would need to produce the remaining 28 per cent of its annual silver guidance midpoint.
