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How First Majestic Built a Silver Empire

The Deep Dive
The Deep Dive•Apr 8, 2026

Why It Matters

With a persistent silver supply deficit driving prices higher, First Majestic’s low‑cost, vertically integrated model offers investors a rare, high‑margin exposure to the metal’s upside.

Key Takeaways

  • •First Majestic grew via rapid acquisition of proven silver mines.
  • •The company now produces 58% pure silver revenue, leading peers.
  • •Own minting facility captures extra margin and boosts liquidity.
  • •2025 record revenue $1.3B, EBITDA $686M, strong cash position.
  • •Silver supply deficit predicts price rise; First Majestic offers exposure.

Summary

The video examines how First Majestic built a silver empire by emulating a "Moneyball" roll‑up strategy—buying existing, proven mines instead of spending years on greenfield exploration. Founder Keith Neumeyer’s 2004 purchase of La Parrilla sparked a rapid series of acquisitions, adding Dios Padre and La Candelaria within 18 months and establishing a mid‑tier primary silver producer that now dominates the pure‑silver niche. Key data points illustrate the success of this model: four operating mines—La Encantada, San Dimas, Santa Elena and Los Gatos—generated 30 million silver‑equivalent ounces in 2025 at an average AISC of $1,800 per ounce, while the company’s own mint, launched in 2024, added $49 million in revenue. Financially, First Majestic posted record $1.3 billion revenue, $686 million EBITDA and $471 million free cash flow, backed by a near‑$1 billion treasury and $733 million working capital. The presenter highlights several standout examples: San Dimas delivered 10.2 million silver‑equivalent ounces at $1,962/oz, Santa Elena’s recent vein discoveries added 91 million silver‑equivalent ounces to resources, and Los Gatos, a 70%‑owned polymetallic operation, emerged as the lowest‑cost producer at $1,515/oz. The company’s unique minting capability captures additional margin, and its $400 million average daily trading volume makes it a market proxy for silver, with a beta of two‑to‑three. Implications are clear: a structural silver deficit—estimated at 120 million ounces in 2025—supports higher prices, and First Majestic’s diversified, low‑cost assets, strong cash position, and vertical integration position it as a compelling vehicle for investors seeking exposure to the metal’s upside. Valuation remains attractive at 2.2 × NAV and 10 × forward cash flow, reflecting both growth potential and a solid dividend outlook.

Original Description

In this conversation with Keith Neumeyer, President and CEO of First Majestic Silver Corp. (NYSE: AG, TSX: AG, FSE: FMV), we break down why First Majestic has built one of the most recognizable names in the silver space through acquisition, consolidation, and scale rather than the usual high risk discovery model.
We get into how the company was built, why its roll up strategy still matters today, and what makes its current portfolio stand out in a market that is paying closer attention to silver again. From San Dimas and Santa Elena to Los Gatos, La Encantada, First Mint, and Jerritt Canyon, this is a full look at the assets, the financial performance, and why the company is often treated by the market as a liquid stand in for silver itself.
The discussion also covers recent discoveries at Santa Elena, the growth profile of Navidad and Santo Niño, the importance of owning a minting facility, the company’s record 2025 financial results, and how management is positioned heading into 2026 as silver demand remains strong and supply deficits continue to build.
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#Silver #silverprice #silversqueeze #stockmarket #money
FULL DISCLOSURE: First Majestic Silver Corp. is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is currently long the equity of First Majestic Silver Corp. The author has been compensated to cover First Majestic Silver Corp. on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. We may buy or sell securities in the company at any time. Always do additional research and consult a professional before purchasing a security.
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TheDeepDive.ca Team
Writers: Jordan Lutz & Steve Hyland
Producer: Chriz Rayos
Host: Steve Hyland
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Not a recommendation to buy or sell securities. Always do additional research and consult a professional before purchasing a security. The Deep Dive and its affiliates hold no licenses.

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