First Majestic Silver Corp. has reported its production results for the third quarter of 2026, revealing a decline in silver and gold output primarily due to a labor dispute at its San Dimas mine. The company also announced a renewal of its share repurchase program, indicating a commitment to enhancing shareholder value despite current operational challenges.
In Q3 2026, First Majestic produced 3.4 million ounces of silver and 29,552 ounces of gold, which represented 72% and 75% of its revised production guidance, respectively. The decline in production was attributed to a labor dispute that impacted operations for 12 days at San Dimas. The company sold 3.5 million ounces of silver and 31,934 ounces of gold during the quarter.
First Majestic operates four underground mines in Mexico: Santa Elena, Los Gatos, San Dimas, and La Encantada. The company is known for its focus on silver and gold production, and it is listed on the NYSE under the ticker AG. In its recent filing, First Majestic highlighted that safety performance remains a priority, with a Total Reportable Incident Frequency Rate of 0.61.
The filing, dated October 8, 2026, included a news release that detailed the production highlights for the quarter. The company reported a total production of 3.4 million silver ounces and 29,552 gold ounces, alongside other metals such as zinc, lead, and copper. Despite the labor disruptions, First Majestic emphasized its ongoing efforts to resolve the situation and return to normal operations.
First Majestic's CEO, Keith Neumeyer, stated, "First Majestic remains focused on meeting its production guidance and, with a focus on controlling costs, looks forward to delivering enhanced profitability to investors through the rest of the year." He noted that while labor disruptions affected production, the company is advancing its mill and mine expansion projects at Santa Elena and Los Gatos, which are expected to be completed soon.
The company's exploration efforts continue to be active, with approximately 78,475 meters of drilling completed across its mines in Mexico and the Jerritt Canyon Gold Mine in Nevada. First Majestic's commitment to sustainability was also highlighted, with the company achieving a score of 50 in S&P Global's annual Corporate Sustainability Assessment, placing it in the top 17% of mining companies globally.
As for the next steps, First Majestic has not disclosed specific future actions in the filing. However, the renewal of the share repurchase program suggests a strategic move to bolster investor confidence. The company is also expected to continue addressing the labor issues at San Dimas while focusing on production recovery.
First Majestic Silver Corp. continues to navigate the challenges in the mining sector, particularly in the gold and silver ores industry, where labor disputes and production targets are critical factors affecting performance. The company's proactive measures, including the share repurchase program, may position it favorably as it works to enhance its operational efficiency and profitability.