First Majestic Silver (NYSE:AG) reported first-quarter financial results on Tuesday. The transcript from the company’s first-quarter earnings call has been provided below.
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Summary
First Majestic Silver Corp achieved record revenues of $477 million in Q1 2026, up 95% from the previous year, with silver and gold production exceeding midpoint guidance.
The company appointed Dave Howe as the new Chief Operating Officer and Alex Thompson to lead the Jarrett Canyon restart, with significant investments planned for 2026.
Operating cash flows reached $311 million, with a significant increase in shareholder dividends, reflecting improved profitability and strategic cost management.
Future strategic initiatives include expanding the Santa Elena and Los Gatos operations, with a robust exploration program of over 300,000 meters planned for the year.
Management highlighted improved margins and cost efficiencies, despite increased costs due to higher taxes and bonuses. The outlook remains positive with expectations of continued strong performance.
Full Transcript
OPERATOR
Thank you for standing by. This is the conference operator. Welcome to the First Majestic Silver Corp 2026 Q1 Financial Results Conference call. As a reminder, all participants are in listen-only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press star then one on your telephone keypad. If you are participating through the webcast, you can submit a question in writing by using the form in the lower section of the webcast frame on your screen. Should you need assistance during the conference call, you may reach an operator by pressing star then zero. I would now like to turn the conference over to Mr. Keith Neumeyer, Chief Executive Officer of First Majestic Silver Corp. Keith, please go ahead.
Keith Neumeyer (Chief Executive Officer)
Well, thank you and welcome everyone to our Q1 highlights conference call with investors and shareholders. Thank you. Today obviously I am present. I’m in Europe right now. Manny Alcavigi, President and Chief Corporate Development Officer is in Vancouver. David Suarez, our Chief Financial Officer is also in Vancouver. David Howe, Chief Operating Officer who just was newly appointed on May 4, which we’ll talk about a little bit further in the next couple of slides. But David comes with us after quite a long search for a replacement to Steve. Steve told me last summer that he would like to retire and we put an effort in place to find his replacement and we were successful in getting Dave Howe, who’s a well known mining executive. So we’re happy to have Dave on board. Steve will be effectively working until June 30, assisting Dave in anything that Dave might request of Steve over the next month or so. We also have Samir Patel, General Counsel and Corporate Secretary present in Vancouver and also Darryl Ray and Joel Felt about that. Joel from Investor Relations also present today. Before I go any further, I’ll need to pass the call over to Samir Patel for the disclaimer.
Samir Patel (General Counsel and Corporate Secretary)
Thanks Keith. Before we begin today’s call, I would like to remind you that we will be referring to certain non-IFRS measures and making certain statements regarding First Majestic Silver and its operations that constitute forward looking statements in accordance with applicable Canadian and U.S. securities laws. All statements that are not historical facts, such as statements regarding future estimates and plans or expectations of future performance, constitute forward looking statements that reflect the company’s current views with respect to future events. These statements are necessarily based upon a number of assumptions and estimates that while considered reasonable by the company, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. We encourage you to refer to the cautionary language included in our news release that was disseminated early this morning and the disclosure on non IFRS measures in our most recently filed management’s discussion and analysis as well as the risk factors set out in our most recently filed annual information form. As a reminder, these documents along with all of our continuous disclosure documents are available on SEDAR Plus and on EDGAR. Investors are cautioned against attributing undue certainty or reliance on any forward looking statements made during today’s call. The company does not intend or assume any obligation to update these forward looking statements or information other than as required by law. With that, I will turn the call back to Keith.
Keith Neumeyer (Chief Executive Officer)
Okay, thanks Samir. Just a couple of things on our management changes. Steve Holmes has been with the company for six years and he’s been extremely instrumental in positioning the company where it is today. Much of the improvements that the business has experienced over the last few years has been a result of Steve’s efforts and we’re sad to see him go. But at the same time it’s time for him to retire and we wish him the best in his future travel experiences with his wife and family. So obviously we’ll be staying in touch with Steve. But Dave Howe is now the new Chief Operating Officer and he brings a wealth of experience in the industry and Latin America. Held a number of key executive roles and we’re really excited for him to help lead the first Majestic team to the next phase. Further description is available in today’s news release if you wish to read a little bit about his history. We’re also quite pleased to announce a hiring that took place on April 20th. We were able to find a great leader for the Jarrett Canyon restart. We brought on Eric ‘Alex’ Thompson and Alex is a seasoned and strategic mining executive with experience in building and operating mines all over the world and will be key part of the restart plan for Jarrett Canyon which we’ll be excited about talking further about as developments continue. So going to slide three of the presentation, which I’m assuming some of you online have access to, you’re just going back in time. If you go back over the last 20 years, Q1 is generally a kind of a soft quarter. You know, you get everyone coming back from holidays and then you gotta remobilize all the contractors and usually you could lose up to two or three weeks in Q1. It’s not that unusual and we’ve experienced that many, many times over the life of the business. But this Q1 was exceptionally good. We didn’t experience that same kind of dip and you know, we ended up, you know, producing three and a half million ounces of silver, which shows 26% of 2026 guidance, midpoint guidance. So that’s pretty, pretty good being ahead of guidance. And gold Production was at 28% of midpoint guidance. So both silver and gold are above our current guidance, which is, or at least midpoint guidance, which is fantastic. To start the year off on such a positive note, the average realized Silver price is 86.35 compared to 3310 last Q1, 2025. So pretty impressive there. Revenues were record revenues of 477 million, up 95% compared to a year ago. And we did hold back some silver and gold as well. And so this was not included in revenue. We did hold back 676,000 ounces of silver. Also 2700 ounces of gold held in inventory at the end of the quarter, and the value of that inventory is $63 million. So if we’d sold it, that obviously would have improved our revenue and also improved our profitability. But we elected to hold on to it for higher prices. And, you know, we’re expecting that’s going to be a good strategy for us. We’ve really got our eyes on margins, and as the price of silver goes up, costs also go up, and we’ll address that in the next couple of slides. But one thing I think the analysts or the investors should really pay attention to is actually the expanding margins, which is pretty impressive. And I’ve got a couple of more comments coming up on that topic. You know, we’ve really been focused on efficiency and keeping our costs in check and is really paying off. We’ve had operating cash flows in Q1 of 311 million, you know, $0.63 a share, and our silver purity is 66%. You know, that compares to 60% in Q4 of 2025. Our dividend is our largest dividend ever at 1.71 cents. For shareholders of record on May 15, the dividend is basically four times the size of last year’s dividend. You know, with revenue doubling and us changing our policy, increasing our dividend from 1% to 2% effective January 1, 2026, you know, has made a big impact. And so shareholders will be getting, you know, the highest dividend that they’ve ever received in the company’s history. So that’ll be fun to see all those checks arriving in people’s mailboxes going on to slide four. So the cash cost and all the sustaining cost per ounce are aligned with plans. There’s really no big surprises There per ounce costs increased when compared to Q1, as it shows on this slide there. The main drivers of the increase, as we’ve mentioned to the analysts before, you know, it is we have changed our ratios, which has a big impact, which I’ll talk about shortly. But our production cost did go up a little bit, mostly due to higher throughput, you know, because we have reduced the cutoff grades, you know, due to price. So, you know, we could mine a lot lower grade ore and still get the same ounces. But it does affect your cost, your cost to go to go up as a result of that method of mining. But it does improve life of mine as well at the same time. So it has a big benefit. And the revenues that we’re getting, even though the grades are slightly lower, far outpaces the increase in cost, which is really nice to see. Other things I said, you know, the price ratio, now that had a $3 impact. You know, if we use the same price ratios we did in 2025 and 90 to 1, it would, it would. Our all sustaining costs would be basically $3 less than …
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