Highlights

  • First Majestic shares fell 4.1% today after silver and gold prices moved lower.
  • Silver prices dropped from nearly 83 USD/oz overnight to under 71 USD/oz by early afternoon.
  • The stock currently trades at 21.7 times operating cash flow, below its five-year average.

First Majestic Silver Corp. (NYSE:AG) saw its shares decline 4.1% on December 29, reversing part of an earlier 6.9% drop. The pullback comes after a year in which the stock rose more than 217%, largely in line with gains in silver and gold prices.

Silver Prices Slide
After reaching nearly 83 USD per ounce in overnight trading, silver prices fell steadily during the day, dropping below 71 USD per ounce by 1:30 p.m. ET. For comparison, silver was trading around 30 USD per ounce at this time last year.

Gold Also Weakens
Gold prices moved lower during the session as well. By 10:30 a.m. ET, gold had fallen to approximately 4,322 USD per ounce, reflecting a broader trend in precious metal markets that influenced First Majestic’s share movement.

Revenue Composition Impacts Stock
First Majestic generates most of its revenue from silver and gold sales. In the first three quarters of 2025, silver accounted for 57% of total revenue, while gold represented 33%. Zinc and lead sales contributed a smaller share. The stock’s correlation with silver and gold prices explains the day’s decline.

Valuation Context
Despite the decline in share price, First Majestic remains below its historical valuation. The stock is trading at about 21.7 times operating cash flow, compared with a five-year average of 24.9 times. This suggests that the drop reflects short-term commodity price movements rather than changes in company fundamentals.

Share Performance
First Majestic closed at 16.70 USD on December 29, down 4.13%.