This Leading Silver Stock's Bold Strike is Paying Off Big Time

In precocious 2024, First Majestic Silver (NYSE: AG) made a bold move. It agreed to get Gatos Silver successful a $970 cardinal deal. The transaction, which closed aboriginal past year, gave it a 70% involvement successful the Los Gatos Joint Venture, which owns the Cerro Los Gatos metallic excavation successful Mexico. The transaction made it a overmuch larger-scale metallic producer.

That woody has paid large dividends arsenic metallic prices spiked. It has made First Majestic a starring silver banal investment option.

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First Majestic Silver produced an mean of 4.2 cardinal metallic ounces successful the 4th fourth of past year, a 77% summation compared to the 4th fourth of 2024. Las Gatos was a large driver, arsenic the excavation produced 1.5 cardinal ounces of metallic during the period. That drove its yearly full to 15.4 cardinal ounces, a caller institution record, and an 84% summation from 2024. In summation to the accumulation from Los Gatos, the institution delivered higher metallic output from its San Dimas (19%) and La Encantada (18%) mines.

Meanwhile, the company's full accumulation (which includes silver, gold, zinc, lead, and copper) reached 31.1 cardinal metallic equivalent ounces past year. The institution exceeded oregon met its archetypal and upwardly revised accumulation guidance, driven by coagulated operating results crossed its mining portfolio.

The uptick successful accumulation came astatine an opportune time. It enabled the institution to currency successful connected higher precious metals prices. During the 3rd quarter, First Majestic Silver achieved grounds quarterly revenues of $285.1 million, a 95% summation from the anterior twelvemonth and its 3rd consecutive 4th of grounds revenues. Meanwhile, its currency travel from operations accrued by $101.6 cardinal to $141.3 million, portion its escaped currency travel roseate by $67.5 cardinal to a grounds $98.8 million. As a result, the institution ended that play with a grounds currency presumption of $568.9 million.

That was conscionable the 3rd quarter. The company's fiscal results are apt to acceptable different grounds successful the 4th quarter, fixed wherever precious metals prices were during the period. To enactment its fiscal results into perspective, First Majestic Silver initially expected that the Gatos Silver acquisition would boost its yearly escaped currency travel to astir $70 million. It acold exceeded that full successful the 3rd 4th alone.

First Majestic's robust currency flows and grounds currency presumption are enabling it to instrumentality much wealth to shareholders. The institution precocious announced plans to summation its dividend per stock from 1% to 2% of its nett quarterly revenue, starting successful 2026. If metallic prices stay elevated, First Majestic volition wage importantly higher dividends successful 2026 compared to past year's level. That volition alteration investors to currency successful connected higher metallic prices.