First Majestic Silver rode a historic silver price spike to its strongest quarter in years, then did something a windfall's recipient does not always do: it bet a large slice of the cash on future growth rather than hoarding it. Revenue climbed 57% to $415.5 million, mine operating earnings surged to $223.6 million, and the company pulled the trigger on a big expansion - lifting its 2026 capital budget by roughly half to $318–344 million, with about $75 million earmarked to restart the Jerritt Canyon gold mine in Nevada and additional money for new underground development at Santa Elena. Net earnings reached $109.4 million, or $0.22 per diluted share, up 108% from the year-ago $52.5 million.
Two numbers anchor the story. First, the price: the company realized $63.98 per silver ounce, up 90% year over year, and $4,347 per gold ounce, up 40%. Second, the balance that policy sets: a quarterly dividend now pegged to about 2% of net revenue returned $8.4 million to shareholders during the quarter, while $46.8 million went to taxes and capex rose 16%. The result was $194.6 million of free cash flow and a record cash-in-treasury balance of $1,252.7 million - enough that the company sits in a net cash position even after funding the growth pipeline. The quarter's thesis is simple: a price windfall converted into margin, treasury, and a funded bet that the good times continue because First Majestic is spending to make them last. The question for the next two years is whether the Jerritt restart and the throughput expansions deliver on schedule, because the market is already pricing silver to stay strong.