First Majestic Silver Corp. (AG): Business Model Canvas [Dec-2025 Updated]

You're looking at First Majestic Silver Corp. (AG) and wondering where the real value lies beyond the commodity price, and honestly, it's in their dual strategy: they're not just a miner, they're a retailer, too. Their 2025 plan is laser-focused on efficiency, targeting approximately 25.0 million silver equivalent ounces while keeping their All-in Sustaining Costs (AISC)-the true cost of getting an ounce out of the ground-tightly controlled around $18.50. This retail channel, selling finished bullion directly, is their defintely unique edge, but it also adds complexity to their logistics and customer relationships. Digging into their Business Model Canvas shows exactly how these moving parts-from their 130 million ounces of reserves to their e-commerce platform-fit together to drive revenue, so let's break down the mechanics.

First Majestic Silver Corp. (AG) - Canvas Business Model: Key Partnerships

The core of First Majestic Silver Corp.'s operational stability rests on a few critical partnerships, particularly those securing long-term cash flow and specialized operational expertise. You need to view these not just as transactions, but as strategic relationships that de-risk the entire business model, especially the $193 million in total capital expenditures planned for 2025.

Off-take Agreements with Global Metal Traders

Your sales channel is a mix of streaming, direct broker sales, and a small retail component. This diversification is key to managing price volatility. The most structured partnership is the streaming agreement (a deal to sell future production at a fixed, low price) with Wheaton Precious Metals (WPM) on the San Dimas Silver/Gold Mine.

This agreement is on 25% of the gold equivalent production from San Dimas, with a fixed price of only $600 per ounce of gold equivalent. Honestly, that fixed, low price locks in a margin regardless of market swings, which is a powerful hedge. Beyond this, the company assigns its silver and gold doré bars primarily to two major metal brokers for refining and sale, plus they capture extra retail margin by minting and selling a portion of their silver directly through their wholly-owned First Mint, LLC in the United States.

Strategic Alliances with Key Equipment Suppliers

Mining is a capital-intensive business, so your relationship with suppliers is less about a handshake and more about managing a high-cost, specialized supply chain. In 2025, the company has earmarked $67 million for property, plant and equipment, which shows the scale of these purchases.

The global market for specialized equipment is concentrated, dominated by a few major players like Caterpillar Inc. and Komatsu Ltd. For example, a single underground mining drill can cost around $750,000, and a new ore processing machine can run up to $2.3 million. This means switching costs are high, so maintaining strong, long-term supplier relationships is critical to avoid operational delays and secure the right machinery for the planned 44,000 meters of lateral underground development in 2025.

Joint Venture and Strategic Partners

The acquisition of the Cerro Los Gatos Silver Mine in January 2025 brought in a crucial joint venture partner. This is a true strategic alliance, not just a supplier deal.

The mine is a 70% owned joint venture by First Majestic, with the remaining 30% held by Dowa Metals & Mining Co. Ltd, a major Japanese smelter and refinery operator. This partnership with Dowa Metals & Mining is a significant advantage: they are a key downstream player, which helps secure a reliable path for the lead and zinc concentrates produced at Los Gatos, which is expected to contribute 33 to 35 million pounds of lead and 52 to 56 million pounds of zinc to the 2025 production mix.

Government and Regulatory Bodies in Mexico and Nevada for Permits

Operating a mine is a political act, so relationships with government and regulatory bodies are non-negotiable partners. The company's primary operations are in Mexico (San Dimas, Santa Elena, La Encantada, Cerro Los Gatos), which requires continuous permitting from federal and state agencies. The non-producing Jerritt Canyon Gold project in Nevada also requires maintaining permits and compliance with the Bureau of Land Management (BLM) and state-level environmental regulators. Any hiccup here stops production cold. The company must dedicate resources to maintaining compliance and securing the necessary permits for all exploration and expansionary projects, like the $82 million planned for underground development this year.

Local Community Agreements for Social License to Operate

Your social license to operate is arguably your most fragile asset. Without community support, permits are worthless. All of the company's operating mines have formal local community engagement plans and social investment programs in place.

The results of this partnership approach are defintely measurable. In 2024, the company invested over US$1.2 million in community projects. This investment directly translates into operational continuity, as evidenced by an 89% annual reduction in community complaints and zero community-related technical delays reported in 2024. This is the quick math: a stable community means stable production.

First Majestic Silver Corp. (AG) - Canvas Business Model: Key Activities

The core of First Majestic Silver Corp.'s business model centers on the physical act of extracting precious metals and converting them into saleable product. This isn't a tech platform; it's a heavy industrial operation. So, the key activities are focused on three main areas: getting the ore out of the ground, processing it efficiently, and then monetizing the final product, including a small, high-margin retail channel.

Underground silver and gold mining operations

This is the primary activity, driving nearly all revenue. First Majestic operates multiple underground mines, primarily in Mexico, which is a key differentiator from open-pit miners. Underground mining requires precision engineering and constant maintenance, plus it's more capital-intensive per ton of ore than surface mining.

The company focuses on high-grade deposits, which helps offset the higher operating costs of underground work. For the full 2025 fiscal year, the operational focus remains on optimizing production at its core assets, including the San Dimas Silver/Gold Mine and the La Encantada Silver Mine, both in Mexico. The goal is to maximize the extraction of Silver Equivalent Ounces (SEO) while tightly controlling the All-in Sustaining Costs (AISC).

Here's the quick math: maintaining a low AISC is defintely critical because it directly dictates the profit margin when silver prices fluctuate, which they do constantly.

Ore processing and metallurgical recovery (e.g., flotation, cyanidation)

Once the ore is mined, the next critical step is processing it to separate the metal from the rock. This is where the company's metallurgical expertise comes into play. The two main processes are flotation and cyanidation, and the choice depends on the specific ore body at each mine.

The company's key processing facilities, such as the Del Toro processing plant, are designed to handle thousands of tonnes per day. For example, the La Encantada operation uses a large-scale cyanidation circuit, which is essential for achieving high recovery rates from its specific ore. The efficiency of this activity directly impacts the final output and, therefore, the revenue stream. A 1% increase in recovery rate can translate to millions in additional revenue over a year.

Exploration and resource development drilling

A mining company is only as good as its reserves, so exploration is a foundational activity that ensures the business's long-term viability. This involves drilling new targets to find new deposits and infill drilling to upgrade existing resources from inferred to measured and indicated categories-which is necessary for long-term mine planning.

The 2025 capital expenditure (CapEx) program includes significant funding allocated to exploration, a necessary investment to replenish the reserves depleted by mining. This activity is focused on extending the mine life at existing operations, a much lower-risk strategy than greenfield exploration. The primary focus is on high-priority targets near the producing mines to maximize the return on investment.

The exploration team's success directly impacts the company's Net Asset Value (NAV). It's a key activity that secures the future.

A breakdown of the operational focus for the core activities:

Direct retail sales of finished silver bullion products

Unlike most large miners who sell only to commodity traders, First Majestic engages in direct-to-consumer sales through its online bullion store. This is a crucial, though smaller, activity that captures a higher margin by cutting out the middleman.

This activity involves:

• Minting silver into finished products (e.g., 1-ounce coins, 100-ounce bars).
• Managing the e-commerce platform and logistics.
• Handling customer service and secure shipping.

While the volume is small compared to their total production, the retail segment's revenue per ounce is typically much higher than the wholesale spot price, offering a natural hedge and a high-margin revenue stream. This direct retail channel is a strategic activity that builds brand equity and provides a unique value proposition to individual investors, plus it is a great way to diversify revenue.

First Majestic Silver Corp. (AG) - Canvas Business Model: Key Resources

The core of First Majestic Silver Corp.'s value proposition is its physical resource base-the high-grade mineral deposits and the infrastructure to extract them. This is a capital-intensive business, so the financial strength and the technical expertise of the team are just as crucial as the ounces in the ground. You need to see this as a portfolio of assets, not a single mine; some are in full production, others are in resource expansion mode.

Core Producing Mines and Processing Infrastructure

Our key physical resources are the four operating underground mines in Mexico, which are the engine of our 2025 production. These mines-San Dimas, Santa Elena, La Encantada, and the newly acquired Cerro Los Gatos Silver Mine-are projected to deliver a consolidated production of between 30.6 and 32.6 million silver equivalent (AgEq) ounces in 2025, a significant jump driven by the Los Gatos acquisition in January 2025.

Each mine comes with its own processing plant, which is a key asset. For example, San Dimas has a 2,500 tonnes per day (tpd) cyanidation mill, while La Encantada operates a 4,000 tpd cyanidation plant. We are projecting to invest approximately $182 million in capital expenditures in 2025 to sustain and expand these operations, with $102 million allocated specifically for expansionary projects.

Proven and Probable Silver Reserves

Our mineral reserves are the ultimate financial resource, representing the metal we can economically mine. As of December 31, 2024, our Proven and Probable (P&P) Mineral Reserves across the four producing mines totaled 86.8 million ounces of silver. To be fair, the total P&P reserves, including gold, zinc, and lead, convert to 177.6 million silver equivalent ounces, showing the value of our diversified metal mix.

What this estimate hides is the significant upside from non-producing assets. Our Measured and Indicated (M&I) Mineral Resources, which are not yet classified as reserves, contain an additional 135.2 million ounces of silver. Plus, our Jerritt Canyon Gold Mine, currently under temporary suspension of mining activities since early 2023, is a key gold resource for future development.

Skilled Mining Engineers and Technical Personnel

The human capital is what converts reserves into revenue. We rely on a highly skilled, global workforce, which totaled approximately 3,818 employees in 2024, to manage complex underground operations and advanced metallurgy. This team is the driving force behind our aggressive exploration strategy.

Here's the quick math on our exploration commitment: we plan to complete a massive 270,000 meters of exploration drilling in 2025, with $49 million allocated to this effort. This is a defintely a huge jump from the prior year and is focused on extending mine life and converting resources into reserves at sites like San Dimas and Santa Elena.

Proprietary Bullion Inventory for Direct Sales Program

A unique financial and intellectual resource is our direct-to-consumer sales channel, the First Mint facility. This allows us to capture the full retail premium on a portion of our production, increasing our realized price per ounce. We aim to put about 10% of our total production through this channel in 2025.

This program is backed by a tangible inventory. At the end of the third quarter of 2025, we held a significant inventory of bullion, valued at $50.3 million, which included 758,333 ounces of silver and 3,994 ounces of gold. This inventory acts as a liquid asset and a strategic buffer against short-term market volatility. Shareholders with at least 100 shares also get a direct benefit, saving $0.50 per ounce on purchases.

First Majestic Silver Corp. (AG) - Canvas Business Model: Value Propositions

You're looking for the core value First Majestic Silver Corp. (AG) delivers, and it boils down to two things: high-leverage exposure to silver prices and a unique, vertically-integrated model that captures more of the metal's value chain. They are a pure-play silver producer that's getting bigger and more efficient in 2025, which is defintely a key differentiator.

High-purity silver and gold production from primary assets

The primary value proposition is simple: deliver a large, growing volume of high-purity silver and gold bullion. The company's 2025 strategy, bolstered by the January 2025 acquisition of the Cerro Los Gatos Silver Mine, has significantly scaled production. This year's revised guidance targets total attributable production of between 30.6 and 32.6 million silver equivalent (AgEq) ounces. That's a huge jump.

The core of this value comes directly from their four producing underground mines in Mexico: Los Gatos Silver Mine, Santa Elena Silver/Gold Mine, San Dimas Silver/Gold Mine, and La Encantada Silver Mine. Here's a quick look at the expected metal output for 2025, which shows the scale of their operation:

Strong focus on low-cost, high-grade Mexican silver assets

What makes the production valuable isn't just the quantity, but the cost at which they pull it out of the ground. The focus on high-grade Mexican assets, especially the successful integration of Los Gatos, is keeping their costs competitive. This operational efficiency is the bedrock of their financial health.

Here's the quick math: For 2025, the revised consolidated All-in Sustaining Costs (AISC)-which is the true cost of getting an ounce of metal to market, including all capital expenditures-is projected to be in the range of $20.02 to $20.82 per attributable payable AgEq ounce. Their cash costs are even tighter, projected at $13.94 to $14.37 per AgEq ounce. Keeping costs this low, especially with silver prices seeing a Q3 2025 average realized price of $39.03 per AgEq ounce, translates directly to superior operating margins.

Exposure to silver price leverage for investors

For investors, the value is the high leverage to the silver price. Because the company is a primary silver producer with a strong cost structure, a small move up in the silver price translates into a much larger percentage increase in their profit margins. This is the classic pure-play mining appeal.

The company's goal to reach $1 billion in revenue for the 2025 fiscal year underscores this leverage. Their margin cushion-AISC under $21/AgEq oz-means they remain profitable even if silver prices pull back, but they capture massive upside when the price runs, which it did with the Q3 2025 realized price. That's a powerful value proposition.

Direct-to-consumer silver bullion sales, bypassing intermediaries

This is the unique, vertically-integrated value that most miners don't offer. By owning and operating their own minting facility, First Mint, LLC, in Nevada, they bypass the wholesale bullion market's intermediaries and capture the retail premium on a portion of their production.

This vertical integration provides a few key benefits:

• Capture the retail premium, boosting revenue per ounce sold.
• Offer physical silver bullion directly to the public, including a discount for shareholders.
• The mint is on track to produce 10% of the company's total production, which is a significant volume.
• It provides a strategic hedge against the volatility of the industrial silver market.

This move is about maximizing the value of every ounce they mine. It's smart business, and it gives you a way to own the physical product straight from the source.

First Majestic Silver Corp. (AG) - Canvas Business Model: Customer Relationships

For First Majestic Silver Corp., customer relationships are a dual-track strategy: a high-volume, low-touch transactional model for the vast majority of its metal production, and a high-margin, direct-to-consumer relationship for a small but growing portion of its silver. You need to understand this split because it defines where the company focuses its capital and how it manages price risk.

Transactional relationships with large metal refiners/off-takers

The core of First Majestic's revenue stream relies on large-scale, automated transactional relationships with a handful of global metal refiners and off-takers. This is a business-to-business (B2B) model focused purely on volume, purity, and delivery schedule, not personalized service.

In the third quarter of 2025 (Q3 2025), sales to these industrial customers accounted for the overwhelming majority of revenue. Out of the total quarterly revenue of $285.1 million, an estimated $274.0 million-or approximately 96.1%-came from these large-volume concentrate and doré sales. This relationship is managed through long-term contracts and spot sales, which simplifies the sales process but exposes the company to the inherent volatility of commodity pricing.

Here's the quick math on the Q3 2025 revenue split:

Dedicated e-commerce platform for direct retail customers

First Majestic maintains a direct-to-consumer relationship through its wholly-owned minting facility, First Mint, LLC, which sells silver bullion, bars, and coins online. This channel is strategic because it allows the company to capture the retail premium (the markup over the spot price of silver) that a refiner would typically take.

This is a high-touch, self-service model, built on brand trust and competitive pricing for physical silver. The platform is defintely a growth focus; the company is aiming to increase First Mint sales to represent 10% of its total production in the near future. In Q3 2025, the e-commerce platform achieved a record quarterly revenue of $11.1 million, a significant jump from prior periods, showing this strategy is gaining traction. It's a great way to diversify revenue.

Investor relations team for financial stakeholders

The relationship with financial stakeholders-shareholders, analysts, and debt holders-is crucial for a publicly traded miner, impacting its cost of capital and valuation (its market capitalization). This is a personal assistance model driven by transparency and compliance.

The Investor Relations team manages communication around key 2025 events, including the revised production guidance of 30.6 to 32.6 million silver equivalent ounces (AgEq) and the full-year revenue projection to exceed $1 billion. Engagement includes:

• Holding the 2025 Annual General Meeting (AGM) in May 2025.
• Conducting non-deal roadshows and meetings with top shareholders to solicit feedback on topics like executive compensation.
• Providing detailed quarterly financial statements, like the Q3 2025 report showing a record $39.03 average realized silver price per AgEq ounce.

Community engagement for long-term operational stability

Operating four mines in Mexico means the relationship with local communities is a critical non-market factor for operational continuity. This is a partnership-based relationship, essential for securing the social license to operate (SLO).

The company invests in local infrastructure and social programs to mitigate operational risk. For example, in 2024, the company invested over US$1.2 million in its local communities, a commitment that directly contributed to an 89% annual reduction in community complaints and zero community-related technical delays. This focus on local stability is a necessary cost of doing business in the mining sector.

First Majestic Silver Corp. (AG) - Canvas Business Model: Channels

First Majestic Silver Corp.'s channels are a clear, dual-pronged strategy: the vast majority of our metal is sold wholesale to industrial partners, but we maintain a high-margin, direct-to-consumer (DTC) channel to capture the full value of a portion of our silver production. This structure ensures high-volume sales for our core business while building brand equity and premium pricing in the retail market.

To be fair, the wholesale channel is the engine, but the First Mint, LLC retail channel is a powerful margin enhancer. The core channel mix is heavily weighted toward wholesale, but the retail segment is growing fast, with Q3 2025 sales hitting a record $11.1 million.

Direct sales to bullion dealers and refiners (wholesale)

The primary channel for First Majestic Silver Corp. is the wholesale sale of dore bars (a semi-pure alloy of gold and silver) and metal concentrates to international bullion dealers, smelters, and refiners. This channel handles the bulk of our production volume, providing the necessary liquidity and scale for a major mining operation.

For the third quarter of 2025 alone, our total quarterly revenue reached a record $285.1 million. Of this, the vast majority-approximately 96.1%-was generated through this wholesale channel, representing the sale of silver, gold, and base metal concentrates. Silver sales alone accounted for 56% of that total Q3 2025 revenue.

Here's the quick math on the two main revenue channels for Q3 2025:

First Majestic Silver Corp.'s online store (retail)

Our wholly-owned minting facility, First Mint, LLC, serves as our direct-to-consumer (DTC) retail channel. This is a strategic move to capture the full premium on a portion of our physical silver production, bypassing the traditional dealer network for those specific ounces. The channel operates entirely online at www.firstmint.com, selling a range of branded products.

The growth here is defintely a key trend. Retail sales through First Mint, LLC have shown significant momentum in 2025, generating quarterly sales of $7.8 million in Q2 2025 and a record $11.1 million in Q3 2025. What this estimate hides is the higher profit margin captured on these sales compared to the wholesale spot price sales.

Products sold through this direct channel include:

• Silver bars and ingots.
• Silver coins and medallions.
• Branded silver bullion products.

Investor roadshows and financial conferences

While not a direct sales channel for metal, investor relations is a critical channel for capital and market valuation, which directly impacts our ability to fund operations. We use a mix of digital and in-person communication to reach a diverse spectrum of financially-literate decision-makers.

This channel is managed through consistent public disclosures, quarterly earnings conference calls, and active participation in global financial conferences. The goal is to ensure a clear understanding of our financial performance-like the Q2 2025 net earnings of $56.6 million-and our strategic direction, such as the integration of the Los Gatos Silver Mine.

Direct shipment logistics for metal concentrates

A key operational channel involves the logistics for shipping metal concentrates, which is separate from the silver dore sold to bullion dealers. Our mines, including the newly integrated Los Gatos Silver Mine, produce significant amounts of base metals-specifically lead and zinc-as byproducts.

These base metals are processed into concentrates and shipped directly to third-party international smelters and refiners under specific contractual terms. Our revised 2025 production guidance reflects the importance of these streams, with anticipated increases of 11% and 8% in the mid-points for lead and zinc production, respectively. This logistics channel is essential for realizing the full value of our silver equivalent (AgEq) production, which is targeted to be between 30.6 and 32.6 million AgEq ounces for the full year 2025.

First Majestic Silver Corp. (AG) - Canvas Business Model: Customer Segments

You're looking at where First Majestic Silver Corp. (AG) actually sells its metal, and the reality is, like most primary miners, the vast majority of their product flows through the wholesale pipeline before it hits end-users or investors. Their unique direct-to-retail bullion platform is a high-growth, but still minor, part of the business.

The company's customer base is cleanly segmented into two primary groups: large-scale industrial processors and a niche direct-to-consumer (D2C) retail channel. The core revenue driver remains the sale of unrefined metal to specialized buyers. For the third quarter of 2025 (Q3 2025), First Majestic generated record quarterly revenue of $285.1 million.

Global precious metal refiners and smelters

This group represents the company's primary and most crucial customer segment. They purchase the bulk of First Majestic Silver Corp.'s output, which includes silver and gold dore (unrefined metal bars) and concentrates (metal-rich powder) from mines like Los Gatos, San Dimas, and Santa Elena.

These customers are the essential intermediaries who process the raw product into investment-grade bullion, industrial components, and jewelry alloys. Based on Q3 2025 data, the estimated revenue from this segment is approximately $274.0 million, representing about 96.1% of the total quarterly revenue. This is the bedrock of the company's financial model.

The Los Gatos Silver Mine, acquired in early 2025, is a key contributor, generating $108.7 million in revenue for Q3 2025, primarily through the sale of concentrates to these global processors.

Retail investors and silver stackers (direct bullion purchases)

This segment is served directly through the company's wholly-owned minting facility, First Mint, LLC. This direct-to-consumer channel is a strategic differentiator, allowing the company to capture the full margin of the finished product (coins and bullion) rather than selling unrefined metal at a discount. It's a high-margin, high-visibility segment, but it's still small.

The sales volume here is growing fast. First Mint, LLC generated quarterly sales of $11.1 million in Q3 2025, a significant jump from $2.7 million in the year-ago period. This direct bullion revenue accounts for approximately 3.9% of the company's total Q3 2025 revenue.

• Q3 2025 Direct Sales: $11.1 million
• Q2 2025 Direct Sales: $7.8 million
• Finished Goods Inventory (Bullion/Coins) as of Q3 2025: 758,333 silver ounces

Institutional investors (hedge funds, mutual funds) seeking silver exposure

While this group is not a direct purchaser of the company's physical metal product, they are a critical financial customer segment. Their exposure is primarily through the company's equity (stock), which acts as a leveraged play on the price of silver.

These investors drive the company's market capitalization, which was approximately C$7.95 billion as of November 2025, and their demand for the stock is a key factor in the company's cost of capital and ability to fund growth. The company's strong financial performance, including a record treasury balance of $510.1 million in Q2 2025, is what attracts this capital.

Jewelry and industrial manufacturers (minor segment)

These companies are the ultimate end-users of the refined silver and gold. While First Majestic Silver Corp. does not typically sell directly to them, the demand from this segment dictates the price and volume requirements of the primary customers (the refiners and smelters). The company's core product is ultimately destined for:

• Industrial applications (e.g., solar panels, electronics)
• Jewelry and silverware production
• Investment products (bullion and coins)

Here's the quick math on the product-to-customer flow based on the latest available 2025 data:

First Majestic Silver Corp. (AG) - Canvas Business Model: Cost Structure

You need to see where every dollar goes in a high-fixed-cost business like mining, and for First Majestic Silver Corp., that cost structure is a classic mix of heavy upfront capital and volatile operational expenses. The core takeaway is that while the company is driving down its cash costs per ounce through higher throughput, its All-in Sustaining Costs (AISC) are holding firm, largely due to a significant push on expansionary capital.

The company's cost profile is centered on its four Mexican underground mines-San Dimas Silver/Gold Mine, Santa Elena Silver/Gold Mine, La Encantada Silver Mine, and the newly integrated Cerro Los Gatos Silver Mine. Your focus should be on the cost per ounce, which is the true measure of efficiency in this sector.

High Fixed Costs from Mining Infrastructure and Processing Plants

The largest fixed-cost commitment for First Majestic Silver is the infrastructure required to extract and process millions of ounces of metal. This isn't a cost you can easily cut, so you need to keep the mills running at high capacity to spread that cost thin.

The CapEx budget for property, plant, and equipment alone is a fixed commitment of $67 million in the updated 2025 guidance. This investment maintains the large-scale cyanidation mills (a process that uses a chemical solution to recover silver and gold) at sites like La Encantada, which has a 4,000 tonnes per day (TPD) capacity, and San Dimas, with a 2,500 TPD capacity. These plants are the backbone of the operation; they represent a massive sunk cost (capital expenditure) that must be sustained regardless of short-term production dips.

Significant Variable Costs: Labor, Energy, and Reagents (e.g., Cyanide)

The cash cost of production-the direct, day-to-day operational expense-is where the variable costs hit. For First Majestic Silver, this is primarily driven by labor, energy, and consumables. Their full-year 2025 cash cost guidance is expected to be in the range of $13.94 to $14.37 per silver equivalent ounce (AgEq). This is an improvement, but it's still highly sensitive to external factors.

The key variable cost drivers include:

• Labor: Wages for the large workforce in Mexico, which fluctuate with local economic conditions and the Mexican Peso (MXN) exchange rate.
• Energy: Powering the underground mining equipment and the massive milling operations, with the company noting that higher energy costs have impacted operations like San Dimas.
• Reagents: Consumables like sodium cyanide and lime, which are essential for the cyanidation process used to leach silver and gold from the ore.

Here's the quick math: The difference between the cash cost and the AISC is the sustaining capital and other corporate overhead. That gap is where the long-term health of the mine sits.

All-in Sustaining Costs (AISC) Projected around $20.02 to $20.82 per AgEq ounce in 2025

All-in Sustaining Costs (AISC) is the benchmark measure for a mining company's true cost of doing business, encompassing cash costs plus all the capital needed to keep the mine running over its life (sustaining capital). The latest full-year 2025 consolidated AISC guidance is between $20.02 and $20.82 per attributable payable AgEq ounce.

While an AISC of $18.50 per silver ounce was reported for a strong Q1 2025 performance, the official full-year guidance is higher, reflecting expected inflationary pressures and the costs of integrating the new Cerro Los Gatos Silver Mine. This range is your realistic floor for profitability. If the price of silver drops below this range, the company is not generating free cash flow after accounting for necessary maintenance and replacement capital.

Exploration and Capital Expenditure for Mine Development

The other major cost center is Capital Expenditure (CapEx), which is split between sustaining capital (keeping current production going) and expansionary capital (growth). For 2025, First Majestic Silver plans to invest a total of approximately $193 million in CapEx, a 7% increase from the original guidance. This is a clear sign of a growth-focused strategy.

A significant portion of this is allocated to future ounces. For instance, the exploration budget alone is $43 million. You can't make a long-term investment decision without weighing this CapEx, because it dictates the future production profile and, defintely, the long-term cost structure.

Finance: draft a sensitivity analysis on the AISC range by Friday, modeling a 10% increase in energy costs and a 5% appreciation of the Mexican Peso.

First Majestic Silver Corp. (AG) - Canvas Business Model: Revenue Streams

First Majestic Silver Corp.'s revenue model is straightforward: sell the metal you dig up. But the mix is getting more complex, moving beyond just wholesale silver to include significant gold and base metal sales, plus a growing direct-to-consumer (DTC) bullion channel.

In the first nine months of 2025, the company generated a total revenue of $793.234 million, putting it on track to hit its full-year target of over $1 billion. The key takeaway is that while silver is the core, the contribution from gold and base metals is what provides the crucial diversification and cost offset.

Here is a quick snapshot of the key revenue drivers and performance metrics for the third quarter of 2025, which saw record revenue of $285.1 million.

Wholesale sales of silver and gold doré bars/concentrates

This is the primary revenue engine, accounting for the vast majority of First Majestic Silver's sales. The revenue comes from selling silver and gold in the form of doré bars (a mix of gold and silver) and concentrates to third-party smelters and refiners. The addition of the Cerro Los Gatos Silver Mine in early 2025 has been a major tailwind, contributing $108.7 million in revenue in Q3 2025 alone. The realized price is critical here; the average realized silver equivalent (AgEq) price in Q3 2025 was a strong $39.03 per AgEq ounce, a 31% increase year-over-year. This price leverage is what drives margin expansion. You're defintely seeing the benefit of higher metal prices amplified by increased production volume.

Retail sales revenue from direct-to-consumer silver bullion

The company operates its own minting facility, First Mint, LLC, which sells silver bullion (coins and bars) directly to retail consumers. This is a strategic, high-margin revenue stream that captures the premium (or 'seigniorage') typically taken by third-party mints and distributors. The growth here is explosive: First Mint generated quarterly sales of $11.1 million in Q3 2025, up from $2.7 million in the year-ago period. Management is looking to increase this channel to account for 10% of total production, which would significantly boost overall margins.

• Q3 2025 Retail Sales: $11.1 million
• Q2 2025 Retail Sales: $7.8 million
• Strategic Goal: 10% of total production directed to retail

By-product credits from gold and base metals (e.g., lead, zinc)

While First Majestic Silver is a primary silver producer, the gold, lead, and zinc extracted from its polymetallic mines-like the Cerro Los Gatos Silver Mine-are crucial revenue components. These are often treated as by-product credits, which reduce the All-In Sustaining Cost (AISC) of silver. The non-silver portion of revenue, which includes gold and base metals, accounted for about 44% of the Q3 2025 total revenue.

The 2025 production guidance highlights the scale of this non-silver output, which acts as a natural hedge against pure silver price volatility. The forecast for the full year is substantial:

• Gold Production Guidance: 135,000 Oz - 144,000 Oz
• Lead Production Guidance: 33 million Lbs - 35 million Lbs
• Zinc Production Guidance: 52 million Lbs - 56 million Lbs

Interest income on cash reserves (minor)

This is a minor, but stable, revenue stream that has become more notable due to rising interest rates and the company's strong balance sheet. The company's cash and cash equivalents grew to a record $435.4 million by the end of Q3 2025. The interest earned on this large cash reserve provides a small, non-operational income buffer. This is just a financial sweetener, not a core business driver, but it is a sign of financial health.

Finance: Track the Q4 2025 AISC against the $20.58 guidance mid-point to assess operational efficiency. If onboarding takes 14+ days, churn risk rises.