First Majestic Silver falls amid silver price decline
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 03 2024
0mins
Should l Buy AG?
Source: Business Insider
First Majestic Silver Corp's stock dropped 5.44% as it hit a 20-day low, reflecting broader market trends in precious metals.
The decline in First Majestic Silver's stock is primarily attributed to a significant drop in silver prices, which fell nearly 13% recently, raising concerns about future demand and investor confidence. This price drop has severely impacted the stock performance of silver miners, including First Majestic, which has seen a nearly 30% decline from its 52-week high. The company's revenue is heavily reliant on silver, expected to account for 58% of its total by 2025, making it particularly sensitive to fluctuations in silver prices.
Investors are advised to exercise caution as the volatility in silver prices continues to pose risks to First Majestic's stock performance. The company's plans to increase dividend payouts may not be sufficient to attract investors in the current market environment, where silver prices are under pressure.
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Analyst Views on AG
Wall Street analysts forecast AG stock price to rise
3 Analyst Rating
1 Buy
2 Hold
0 Sell
Moderate Buy
Current: 19.650
Low
19.03
Averages
22.18
High
24.50
Current: 19.650
Low
19.03
Averages
22.18
High
24.50
About AG
First Majestic Silver Corp. is a mining company. The Company is focused on silver and gold production in Mexico and the United States. It owns and operates approximately 350,000 hectares of land package, which include the San Dimas Silver/Gold Mine, the Santa Elena Silver/Gold Mine, the La Encantada Silver Mine, and a 70% joint venture interest in the Cerro Los Gatos Silver Mine as well as a portfolio of development and exploration assets, including the Jerritt Canyon Gold project located in northeastern Nevada, United States. The San Dimas Silver/Gold Mine is located over 130 kilometers (km) northwest of the city of Durango, Durango State, Mexico. The Santa Elena Silver/Gold Mine is located over 150 km northeast of the city of Hermosillo, Sonora, Mexico. The La Encantada Silver Mine is an underground mine located in the northern Mexico State of Coahuila, 708 km northeast of Torreon. The Cerro Los Gatos Mine is located around 120 kms south of Chihuahua City, Mexico.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- China's Export Ban: In January 2026, China imposed a complete ban on silver exports, tightening global supply as China accounts for approximately 20% of global mine supply, exacerbating the supply-demand imbalance in the market.
- Americore Resource Project: Americore Resources has expanded its Trinity Silver Project in Nevada to over 36 million ounces of Silver Equivalent and plans a Q2 2026 drill campaign aimed at upgrading resources from Inferred to Indicated, which is expected to significantly enhance its market value.
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- Valuation Metrics: According to BMO's updated commodity price deck, First Majestic trades at 2.2x net asset value and 10x next-12-month cash flow, compared to historical multiples often exceeding 3x NAV and 15x cash flow, highlighting the attractiveness of its current valuation.
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- Surging Silver Prices: Since the U.S. Geological Survey added silver to the Critical Minerals List in November 2025, prices have skyrocketed from $30 to over $121 per ounce, setting a 45-year record and highlighting silver's importance as a strategic industrial commodity.
- China's Export Ban: In January 2026, China imposed a complete ban on silver exports, tightening global supply as China accounts for approximately 20% of global mine supply, exacerbating the supply-demand imbalance in the market.
- Americore Resource Project: Americore Resources has expanded its Trinity Silver Project in Nevada to over 36 million ounces of Silver Equivalent and plans a Q2 2026 drill campaign aimed at upgrading resources from Inferred to Indicated, which is expected to significantly enhance its market value.
- Leading Industry Performers: First Majestic Silver produced 15.44 million ounces of silver in 2025 and completed a $970 million acquisition of Gatos Silver, demonstrating that industry leaders are achieving record results in the context of tightening silver resources.
See More
Silver Prices Surge, Americore Resources Seizes Opportunity
- Resource Potential: Americore Resources' Trinity Silver Project in Nevada spans 22,700 acres, historically producing approximately 5 million ounces of silver, now expanded to over 36 million ounces of Silver Equivalent, indicating significant resource potential.
- Market Supply Tightening: With China imposing a complete ban on silver exports, global silver prices have surged from $30 to $121 per ounce, setting a 45-year record, highlighting silver's growing importance as a strategic industrial commodity.
- Drilling Campaign Advancement: Americore is set to conduct drilling in Q2 2026 aimed at upgrading resources from Inferred to Indicated, which is expected to enhance the company's market visibility and financing capabilities.
- Industry Leadership: Amid rising silver prices and structural supply deficits, Americore's project is poised to attract investor interest, particularly as silver resources under American soil become increasingly critical.
See More
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- Meta Legal Setbacks: Meta Platforms' stock dropped over 6% following losses in two major legal cases concerning child safety, raising concerns about Big Tech's role in social media safety and free speech protections, despite relatively minor financial penalties.
- AppLovin's Decline: AppLovin's shares fell nearly 8% due to reports of weakening e-commerce spending trends, with insufficient new client momentum to offset churn in Q1, highlighting potential challenges in maintaining growth.
- Brown-Forman's Surge: Shares of Brown-Forman rose over 14% after Bloomberg reported that French spirits company Pernod Ricard is considering a bid, indicating strong market interest in the company's future acquisition potential.
- Pony AI's Expansion Plans: Pony AI's stock fell 13% after announcing ambitious robotaxi expansion plans alongside its first quarterly profit, but an 18% revenue drop due to project timing raises concerns about margin pressures despite doubling robotaxi revenue.
See More
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- Mining Stocks Drop: Shares of gold and silver miners fell alongside declining precious metal prices, with First Majestic Silver shedding about 5% and both Coeur Mining and Hecla Mining losing nearly 4%, reflecting a bearish sentiment in the precious metals market.
- Adobe Downgrade: Adobe's stock dipped 1.4% after William Blair downgraded it from outperform to market perform, highlighting uncertainty regarding its position as an AI winner or loser, which may impact investor confidence.
- Navan's Strong Guidance: Travel tech firm Navan soared 18% after guiding for strong revenue in 2027, expecting full-year revenue between $866 million and $874 million, exceeding market expectations, showcasing its robust growth potential in the industry.
See More
BMO Capital Upgrades First Majestic to Outperform with C$35 Target
- Rating Upgrade: BMO Capital has upgraded First Majestic Silver from Market Perform to Outperform with a C$35 price target, indicating that the shares are currently undervalued compared to historical trading multiples, which may attract more investor interest.
- Valuation Metrics: According to BMO's updated commodity price deck, First Majestic trades at 2.2x net asset value and 10x next-12-month cash flow, compared to historical multiples often exceeding 3x NAV and 15x cash flow, highlighting the attractiveness of its current valuation.
- Value Catalysts: The analyst pointed to
See More
Silver Prices Volatile, Mining Stocks Show Divergent Performance
- Price Volatility: Silver prices surged past $100 per ounce at the start of 2023 but faced a steep decline by the end of January, followed by a corrective phase in February driven by profit-taking and increased volatility in commodity markets, resulting in a year-to-date decline of 2.19%.
- Market Performance: Despite closing in the red for 14 out of 20 trading sessions, silver remains above $65 per ounce compared to the same period last year, indicating a relatively strong market foundation and reflecting investor expectations for a potential price rebound.
- Mining Stock Performance: Andean Precious Metals (ANPMF) recorded the highest year-to-date loss at 36.01%, while First Majestic Silver (AG) gained 15.25%, illustrating the divergent responses of mining stocks to silver price fluctuations, which could influence investors' asset allocation strategies.
- Quant Rating Discrepancies: Among mining stocks, First Majestic Silver boasts a quant rating of 3.40, indicating its relatively strong market performance, whereas Andean Precious Metals has a lower quant rating of 4.92, reflecting the challenges it faces and a lack of investor confidence.
See More
