Although it's a Canadian company, First Majestic focuses on Mexico because it produces more silver than any other country in the world. The company currently operates three mines in Mexico and has several others under development.
First Majestic also operates the Jerritt Canyon Gold Mine in Nevada. Additionally, it has a 70% interest in the Los Gatos joint venture, which owns the Los Gatos silver, lead, and zinc mine in Mexico. In addition, First Majestic owns and operates a minting facility, First Mint, which produces silver bars, ingots, coins, and medallions that it sells to the public.
First Majestic's focus on producing silver positions it to outperform the price of the precious metal. It can increase production while reducing costs, which should grow profits faster than silver prices.
However, its business model also makes it vulnerable to operational problems and cost overruns. Mining issues, management missteps, and exposure to other commodities can weigh on the performance of a silver mining company's stock.
First Majestic believes it can be a long-term outperformer. It has a strong financial position, allowing it to invest millions of dollars each year in finding and developing new silver mines. It has also spent heavily to acquire other silver mines. For example, it closed its $970 million all-stock deal for Gatos Silver (and the Los Gatos Joint Venture) in early 2025.