In keeping with a CNBC report:
- Silver futures plummeted 31.4% Friday to US$78.53 per ounce, the worst single-day efficiency since March 1980.
- Spot silver fell 28% to US$83.45.
- Gold dropped 11.4% as futures settled at US$4,745.10.
President Donald Trump’s nomination of Kevin Warsh to switch Jerome Powell as Fed chair triggered the carnage. Warsh has traditionally advocated a tighter financial coverage, which strengthened the U.S. greenback and triggered huge profit-taking.
Metals prolonged losses on Monday. Spot gold fell one other 5% to US$4,611.40 whereas silver dropped over 10% to US$76.11. Regardless of the selloff, silver stays up roughly 16% yr up to now.
The sell-off in silver costs dragged shares of First Majestic Silver (TSX:AG) decrease by 16% on Friday, valuing the miner at a market cap of $13.9 billion.
A robust efficiency in Q3 of 2025
Regardless of the continued pullback, AG inventory has greater than tripled prior to now yr. Within the third quarter (Q3), the corporate produced 3.9 million ounces of silver, bringing year-to-date manufacturing to 11.3 million ounces.
Income hit report ranges, working money circulation reached $98 million, and EBITDA (earnings earlier than curiosity, tax, depreciation, and amortization) clocked in at $128 million—all firm information. Maybe most spectacular: prices fell whereas rivals reported value inflation throughout the sector.
The corporate has $560 million in money, no debt, and a $140 million marketable securities portfolio. Administration even held again 758,000 ounces of silver and almost 4,000 ounces of gold in stock, representing $50 million in income they selected to not acknowledge.
“Our shareholders need to see that,” firm administration defined. “It’s like money. If we do need to convert these ounces into income at any time, we might do it fairly simply.”
The latest Los Gatos acquisition continues to ship, with plans to extend throughput to 4,000 tons per day. At Santa Elena, two main discoveries, Navidad and Santo Niño, will add a number of years to mine life.
San Dimas has rotated after difficult years and is now operating inside funds with declining prices. Even La Encantada has applied self-haulage to scale back prices beginning in Q1 of 2026.
The case for contrarian consumers
First Majestic is executing operationally whereas silver whipsaws on macro components exterior its management.
The corporate maintained its dividend, purchased again shares in the course of the selloff, and expects robust This autumn outcomes. Administration expects to finish 2025 with 30 million silver equal ounces, according to its preliminary steering.
With silver down 30% on compelled promoting reasonably than basic deterioration, the query turns into whether or not you’re shopping for a mining operation or betting on steel costs.
First Majestic’s steadiness sheet, manufacturing progress, and value management recommend operational fundamentals stay intact. For buyers with a excessive tolerance for volatility, the washout creates an entry level right into a well-positioned firm buying and selling at doubtlessly depressed ranges.
The danger is that silver continues to fall because the Fed tightens and the greenback strengthens. However for these betting on eventual easing and renewed safe-haven demand, First Majestic proved it could actually function profitably even when steel costs lose their minds.
Regardless of its stellar run within the final 12 months, First Majestic Silver inventory trades at a 26% low cost to consensus worth targets in February 2026.
