First Majestic Releases 2025 Financials; Dividend Announced Amid High Valuation Scrutiny

What happened

First Majestic Silver Corp has announced its audited consolidated financial results for the fourth quarter and full year ended December 31, 2025. The company also declared a quarterly dividend payment, signaling continued capital return despite operational uncertainties highlighted in prior reports. According to the latest DeepValue analysis, the investment thesis centers on Los Gatos sustaining its Q4 2025 milling baseline of 226,900 tonnes and controlling all-in sustaining costs within the $26.15-$27.91 per AgEq oz range. The stock trades at $21.59 with elevated valuation multiples, including an EV/EBITDA of 87.9 and P/E of 138.3, pricing in optimistic expectations for ongoing performance. Investors now have access to detailed financials to verify whether operational metrics align with the critical proof points needed for a higher conviction rating.

Implication

The release of audited financial results provides essential data to evaluate Los Gatos throughput and AISC, which are pivotal to the investment thesis; any confirmation of sustained metrics could support a shift towards the bull scenario with an implied value of $28. Conversely, if the results show tonnes milled below 226,900 or AISC above guidance, it would reinforce the bear case with an implied value of $16, highlighting operational vulnerabilities. The dividend announcement adds a modest yield but does not mitigate the high execution risks and crowded positioning that make the stock sensitive to misses. Given the valuation already discounts success, investors should prioritize evidence of cost control and mining rate stability over short-term dividend payments. Ultimately, this news necessitates a careful review of the financial statements to assess whether AG can deliver on its promised operational ramp without triggering dilution from convertible notes near the $22.36 conversion price.

Thesis delta

The availability of audited financial results enables a direct test of the operational proof points required by the DeepValue report, specifically Los Gatos throughput and AISC adherence. If the data confirms sustained performance at or above the baseline, the thesis could shift from 'WAIT' to 'BUY' on reduced execution risk; however, any shortfalls would validate the current wait rating due to persistent valuation and overhang concerns.