First Majestic Reports Record 2025 Financials & 2026 Guidance Amidst Escalating $1.09B Mexico Tax Dispute
Summary
First Majestic Silver announced record Q4 and full-year 2025 financial results, including significant increases in revenue and net earnings, and provided 2026 guidance, while simultaneously revealing an increased $1.09 billion NAFTA claim against Mexico due to an ongoing tax dispute.
Key Events
-
Record 2025 Financial Performance
First Majestic Silver achieved record annual revenue of $1.26 billion, net earnings of $211.0 million, and operating cash flow of $667.2 million for the full year 2025.
-
Strong Production Growth
The company reported record annual silver production of 15.4 million ounces, an 84% increase year-over-year, successfully meeting its upwardly revised production guidance.
-
2026 Production and Cost Guidance Issued
Provided its 2026 outlook, projecting attributable production of 13.0 to 14.4 million ounces of silver and 116,000 to 129,000 ounces of gold, with consolidated All-in Sustaining Costs (AISC) between $26.15 and $27.91 per AgEq ounce.
-
Escalating NAFTA Tax Dispute
Disclosed a $147.2 million tax accrual for the 2012 tax year following a Mexican Supreme Court decision and increased its NAFTA damages claim against Mexico to $1.09 billion.
Analysis
The filing reveals a strong operational and financial year for First Majestic Silver, marked by record revenues, net earnings, and cash flow, significantly boosted by the acquisition and successful integration of the Los Gatos Silver Mine. The company also provided its 2026 production and cost guidance, outlining future growth strategies and capital investments. However, these positive developments are overshadowed by the ongoing and escalating tax dispute with the Mexican authorities. The Mexican Supreme Court's decision regarding the 2012 tax reassessment is a setback, leading to a material $147.2 million tax accrual. Furthermore, the company has increased its NAFTA damages claim against Mexico to $1.09 billion, highlighting the substantial financial risk and uncertainty associated with this legal battle. Investors should weigh the company's robust operational performance and growth outlook against the significant contingent liabilities and legal challenges posed by the tax dispute.
At the time of this filing, AG was trading at $23.38 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $11.1B. The 52-week trading range was $5.09 to $27.90. This filing was assessed with neutral market sentiment and an importance score of 8 out of 10.