First Majestic Silver Corp. (NYSE: AG) reported solid second-quarter 2026 operating results, prompting the company to raise its full-year production guidance for both silver and gold. The miner also increased its capital expenditure forecast to support expansion projects and the planned restart of its Jerritt Canyon Gold Mine. Despite higher expected production, the company anticipates slightly elevated costs due to inflationary pressures and a stronger Mexican peso.
Strong Second-Quarter Production
During the second quarter of 2026, First Majestic produced approximately 3.8 million ounces of silver, a 3% increase compared to the same period last year. Gold production also improved by 2% year over year, reaching 34,660 ounces. Higher output was primarily driven by stronger performances at the La Encantada and Santa Elena mines, while the Los Gatos operation maintained strong grades despite temporary disruptions caused by a rockfall event. Meanwhile, the San Dimas mine experienced lower production due to labour negotiations and equipment issues, although both challenges have since been resolved.
Higher 2026 Production Guidance
Reflecting stronger-than-expected operational performance, First Majestic increased its attributable consolidated silver production guidance to 14.6–15.5 million ounces, up roughly 10% from its previous forecast of 13.0–14.4 million ounces. Gold production guidance was also raised to 128,000–135,000 ounces, compared with the earlier range of 116,000–129,000 ounces.
The revised outlook reflects continued improvements across key operations, particularly at Los Gatos, La Encantada and Santa Elena, where operational efficiencies and expansion projects continue to deliver positive results.
Increased Investment to Support Growth
To support its long-term growth strategy, the company lifted its 2026 capital expenditure guidance to $318–344 million, representing a 47% increase from the original plan of $213–236 million.
Approximately $75 million has been allocated to advance the restart of the Jerritt Canyon Gold Mine, which remains on track for initial production in the second half of 2027. Additional investments will fund underground development at the Santo Niño and Navidad projects, as well as expansion initiatives across Santa Elena, Los Gatos, San Dimas and La Encantada.
Portfolio and Leadership Updates
During the quarter, First Majestic completed the sale of its Del Toro Silver Mine to Sierra Madre for consideration of up to $60 million, including $30 million received upfront in cash and shares. The company also appointed Neil Beaumont as its new Chief Financial Officer, bringing more than three decades of experience in mining, finance and investment management.
Cost Outlook and Sustainability
While production expectations improved, the company slightly increased its all-in sustaining cost (AISC) guidance to $27.69–$28.77 per payable silver equivalent ounce, around 4% higher at the midpoint than previous guidance. The increase reflects higher silver prices and currency-related cost pressures. At the same time, First Majestic highlighted continued progress on sustainability, reporting its lowest carbon intensity on record while maintaining strong production levels during 2025.
