First Majestic Silver Reports Record 2025 Earnings and Revenue, Significant Reserve Growth, and Gatos Silver Acquisition Amidst Ongoing Mexican Tax Dispute

summarizeSummary

First Majestic Silver reported record 2025 revenues and net earnings, driven by the Gatos Silver acquisition and significant mineral reserve growth, while navigating a substantial ongoing Mexican tax dispute and operational challenges at its San Martin mine.

check_boxKey Events

• Record 2025 Financial Performance

  Reported record revenues of $1.26 billion (up from $560.6 million in 2024) and a net profit of $211.0 million for 2025, a significant turnaround from a net loss of $101.9 million in 2024. Cash and cash equivalents increased to $793.4 million from $202.2 million.

• Gatos Silver Acquisition Completed

  Completed the $1.05 billion acquisition of Gatos Silver, Inc. in January 2025, which contributed $489.8 million in revenues and $151.5 million in net earnings to First Majestic's 2025 financial results since the acquisition date.

• Significant Mineral Reserve and Resource Growth

  Consolidated Proven and Probable Mineral Reserves increased by 53% in tonnage, 16% in silver, and 2% in gold. Measured and Indicated Mineral Resources increased by 149% in tonnage, 7% in silver, and 79% in gold, primarily due to the Gatos acquisition and exploration success.

• Ongoing Mexican Tax Dispute and Legal Challenges

  The company faces an ongoing tax dispute with Mexican authorities, with total reassessments amounting to $1.09 billion. The Mexican Supreme Court recently ruled against PEM's appeal regarding the 2012 tax reassessment, and the NAFTA VAT Claim has been consolidated into the NAFTA APA Claim, increasing the damages claim to $1.09 billion.

auto_awesomeAnalysis

First Majestic Silver Corp. reported a strong financial turnaround in its 2025 annual report, achieving record revenues and net earnings, and a substantial increase in cash and cash equivalents. This performance was significantly bolstered by the $1.05 billion acquisition of Gatos Silver, Inc. in January 2025, which added a producing mine and contributed materially to the company's financial results. The company also announced a substantial increase in its consolidated Proven and Probable Mineral Reserves (53% in tonnage) and Measured and Indicated Mineral Resources (149% in tonnage), indicating strong future production potential. However, these positives are balanced by significant ongoing risks, including a major Mexican tax dispute with a $1.09 billion claim, an adverse ruling from the Mexican Supreme Court regarding the 2012 tax reassessment, and the continued de facto control of the San Martin mine by a criminal group, posing operational and environmental liabilities. The company also issued $350 million in convertible senior notes and increased its dividend policy, reflecting both growth initiatives and capital management.