First Majestic Silver Faces a Test of Investor Confidence as AGM Approaches Amid Steep Selloff
08.06.2026 - 18:57:21 | boerse-global.de
First Majestic Silver heads into its annual general meeting in Vancouver on Wednesday with the stock nursing a 48% decline from its March peak of €28.79. The shareholder vote carries unusual weight this year, with a contentious say-on-pay resolution on the agenda after last year’s compensation package secured just 41% approval. The meeting also requires ratification of outstanding equity grants, including 1.55 million stock options and more than 640,000 restricted and performance share units.
The timing could hardly be more delicate. The silver miner’s shares closed at €14.75 on Friday, shedding 17.6% in a single week and 20.4% over the past month. The rout deepened Monday, with the stock hitting €14.66 — a weekly loss exceeding 18%. The trigger lies firmly in the macro backdrop. May’s US jobs report delivered 172,000 new positions, nearly double the 85,000 economists had penciled in. The strong reading has all but buried hopes of near-term rate cuts; the CME FedWatch Tool now assigns a better-than-50% probability to a quarter-point rate hike by December 2026.
The dollar surged to a two-month high in response, pushing COMEX silver below $67.39 an ounce on Monday. Silver ETFs absorbed a 6% hit on the day, and the precious metal finished last week with a 7% decline — its lowest since late March. For First Majestic, whose share price amplifies moves in the underlying metal, the pain has been outsized. The annualized 30-day volatility stands at 77.8%, and the relative strength index has slid to 33.4, brushing against oversold territory.
Should investors sell immediately? Or is it worth buying First Majestic Silver?
Operationally, the picture diverges sharply from the market’s mood. First Majestic posted a record first-quarter revenue of $476.7 million, up 95% year-on-year, driven by higher realized silver and gold prices. Production of 3.5 million ounces of silver exceeded internal guidance. Operating margins leaped to $52 per ounce from just $13 a year earlier, reflecting strong cost discipline. But the results fell short of analyst expectations on both the top line — $522 million was the consensus — and earnings per share, which came in at $0.31 versus the $0.33 forecast. The miss, coupled with the macro headwinds, has left investors unimpressed.
Management is also working to reduce the company’s pure reliance on silver. First Majestic has committed $75 million to revive the Jerritt Canyon gold mine in Nevada, which has been on care and maintenance since March 2023 after extreme weather and high contractor costs forced its closure. The project hosts 4.1 million ounces of gold resources, and production is expected to restart in the second half of 2027.
A long-running tax dispute with Mexican authorities continues to cast a shadow. The claim totals $1.01 billion, and $113.4 million of the company’s assets remain frozen. The drag from energy costs is also intensifying: Brent crude has climbed above $95 a barrel amid renewed military tensions between Israel and Iran, squeezing margins at mining operations in Mexico.
Technically, the stock is trading below both its 50-day moving average of €17.73 and its 200-day average of €15.49 — a clear bearish signal. Despite the near-term pain, the structural case for silver remains intact. Analysts project a supply deficit of 190 million to 200 million ounces for 2026, driven by industrial demand. Price forecasts for the remainder of the year range from $55 to $85 an ounce, well above current levels. Whether that will be enough to offset the combined pressure from monetary policy and geopolitics depends largely on how quickly the rate outlook shifts. For now, all eyes are on Vancouver.
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First Majestic Silver Stock: New Analysis - 8 June
Fresh First Majestic Silver information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.
