First Majestic Silver(AG 1.48%) reported second-quarter 2025 earnings on August 14, 2025, delivering record silver production of 3.7 million ounces, up 76% year over year, and EBITDA (non-GAAP) of $119.9 million. The company ended the quarter with $510 million in cash, while guidance for production and costs remains unchanged for the year. Key insights below focus on operational outperformance, integration of Cerro Los Gatos, and capital allocation discipline.
Record production and cash generation at AG in Q2
First Majestic Silver reported its best-ever quarterly silver output and revenue, driven by strong performance across key mines and effective cost management, despite temporary cost and cash flow headwinds from typical second-quarter events and integration expenses, maintaining its industry-leading pure-play profile.
"Super record quarter, best quarter ever in the company's history. Strong safety performance, which we're very proud of, Silver production, 3,700,000 ounces, up 76% year over year. And we do have a presentation on screen. I don't know if there's a number of people that are hopefully watching it. I know some of you are dialing in and don't have access to the screen, but we do have a PowerPoint that we do have available that we are going through to follow my presentation. So we had record quarterly revenue $68 million, up 94% year over year. That's not too bad. You know, we are in line with . It's a pretty exciting place to be. Record EBITDA of $120 million. Cash flows of about $115 million. Record cash position in me as a CEO. I love looking at this number. I see it every Friday, and $510 million in the bank is not a too bad place to be for a company like ours, and that's growing."
-- Keith Neumeyer, President and Chief Executive Officer
These results highlight the company’s ability to generate strong cash flow and maintain a robust balance sheet, supporting ongoing investment and shareholder returns.
Gatos integration boosts AG’s scale and operational efficiency
The smooth acquisition and integration of Cerro Los Gatos delivered operational synergies, demonstrated by improved mining rates and cost savings from unified procurement and contracting practices. The asset came with a ten-year life of mine, reducing near-term exploration spend and facilitating implementation of First Majestic Silver’s control systems.
"The Gatos integration. You know, it's been extremely smooth. You know, it's gotta be one of our smoothest integrations in the twenty-three-year history of the company. You know, I guess that's probably to do with the fact that it's a new mine. You know, it wasn't, you know, one of the old ancient mines that we bought in the past. We've had to go in and basically rebuild and take time and money to do that. But in this case, there's no capital required. We're actually even able to reduce the exploration programs a little bit just because they already have a ten-year life of mine. So you don't need to spend that type of capital. As long as we replace reserves at our resources that we're mining on an annual basis, that's really the job of the exploration team. And they do that successfully. And then we expect that they'll continue to do that forward. The, you know, areas like safety, security, environment, health, people, everything's aligning. We're actually just implemented SAP. You know, we've been using SAP within First Majestic for, geez, almost five years, I think. And getting that implemented at Gatos takes some time, and that was just launched last week. So it's really nice to see that. That's really gonna give us an extra layer of controls over that operation and brings it into the whole supply chain and maintenance and so on. Matching all the guidelines and then policies and procedures within those. So we're happy to see that."
-- Keith Neumeyer, President and Chief Executive Officer
This successful integration enhances First Majestic Silver’s production base, optimizes operational efficiency through shared best practices, and limits exploration capital outlays.
AG maintains financial discipline and growth-capex focus
The company frontloaded exploration and mine development spending in the first half of 2025 to accelerate growth projects. Record exploration spending, with 255,000 meters expected to be drilled this year using 28 rigs, was achieved while preserving a strong cash position and keeping within revised guidance. Capital investment at Santa Elena and Gatos targets mill expansion and sustained throughput, with La Encantada’s owner-haulage initiative expected to lower operating costs once implemented.
"We as a result of, you know, strong production and revenues and profits in Q4 and Q1. We did expand some of our projects, and we did come out with a revised guidance earlier in July as most of you probably have seen. And that has translated into higher underground development costs, higher exploration costs. But this is all growth capital. It's all very nice to see, and it'll have big impacts on the business over the next couple of years."
-- Keith Neumeyer, President and Chief Executive Officer
Disciplined deployment of growth capital, balanced with robust operating cash flow, supports sustainable expansion and positions First Majestic Silver to exploit future exploration successes and production scale-ups without straining the balance sheet.
Looking Ahead
Management reaffirmed unchanged full-year 2025 guidance, targeting 31 million to 32 million silver equivalent ounces of production, and continues to expect revenue of nearly $1 billion for fiscal 2025. Development updates for new discoveries (Navidad and Santo Nino) at Santa Elena, along with timelines for bringing them into mill feed, are expected by late 2025 or early 2026, with the company expecting to provide guidance by year-end 2025 or the first quarter of 2026. No additional spending or capital plan changes are anticipated through year-end, with potential new investments or internal project announcements deferred until 2026 guidance is issued.
