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    Why First Majestic Silver (TSX:AG) Is Up 5.6% After Santa Elena Expansion And Drill Results News – And What's Next

    Simply Wall St·12/17/2025 12:25:03
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    • First Majestic Silver Corp. recently closed a private placement and reported extensive new gold and silver mineralization at its Santa Elena mine in Mexico, alongside plans to expand plant throughput by late 2026.
    • Beyond adding capital, the combination of high-recovery exploration results at Santo Niño and Navidad and an internal leadership promotion signals a push to grow Santa Elena’s role within the company’s overall production profile.
    • We’ll now examine how the Santa Elena throughput expansion and high-recovery drilling results could reshape First Majestic Silver’s investment narrative.

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    First Majestic Silver Investment Narrative Recap

    To own First Majestic Silver, you need to believe its technology driven silver and gold portfolio can justify today’s valuation despite relatively low returns on equity and a high earnings multiple. In the near term, the key catalyst is whether Santa Elena’s expansion can translate high recovery drilling results into sustained production, while the biggest risk remains execution and cost control as capital spending rises. The latest Santa Elena news looks incremental rather than transformational to that risk reward balance right now.

    The most relevant recent announcement here is the US$300 million unsecured convertible notes financing, closed on December 8, 2025. That funding gives First Majestic added flexibility to progress scoping studies and plant expansion work at Santa Elena, but it also raises the stakes on delivering timely, efficient development at Santo Niño and Navidad so that increased throughput and exploration spend support the broader growth story.

    However, investors should also be aware that rising operating and capital costs at key mines could...

    Read the full narrative on First Majestic Silver (it's free!)

    First Majestic Silver's narrative projects $1.2 billion revenue and $94.0 million earnings by 2028.

    Uncover how First Majestic Silver's forecasts yield a CA$21.00 fair value, a 7% downside to its current price.

    Exploring Other Perspectives

    TSX:AG 1-Year Stock Price Chart
    TSX:AG 1-Year Stock Price Chart

    Ten fair value estimates from the Simply Wall St Community span roughly US$3.91 to US$42.74 per share, showing how far apart views on First Majestic can be. Against this wide range, the company’s plan to lift Santa Elena throughput and rely more heavily on new ore bodies highlights how much future performance may hinge on managing execution risk and controlling cost creep at its core Mexican assets.

    Explore 10 other fair value estimates on First Majestic Silver - why the stock might be worth as much as 90% more than the current price!

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.