First Majestic Silver has reported third quarter 2026 output of 3.4 million ounces of silver and 29,552 ounces of gold, a step down from the second quarter, with a 12-day labour dispute at its San Dimas mine in Mexico weighing on results. For ASX investors, the update is a useful read on how operational disruption is filtering through the global silver supply chain.
Mixed result across the portfolio
San Dimas produced 859,869 ounces of silver as grades fell to 133 grams per tonne from 185 in the prior quarter. Los Gatos contributed 1,245,178 attributable ounces, while La Encantada was the standout, lifting output 68% year on year to 967,067 ounces on higher throughput and better grades. Santa Elena was held back by planned downtime for its expansion.
Nine-month production of about 10.8 million ounces sits at roughly 72% of the midpoint of the raised 2026 guidance of 14.6 to 15.5 million ounces, so the company has work to do in the fourth quarter. Gold is tracking closer to plan. The pattern echoes recent softness reported by other producers, including Fresnillo’s lower third quarter silver output.
Jerritt Canyon and the buyback
First Majestic said the Jerritt Canyon restart in Nevada remains on track for the second half of 2027, with a new mill due on site in the first half of that year and about 5,965 metres of underground rehabilitation completed so far in 2026. The company also renewed its share buyback for up to 10 million shares, around 2% of its stock. Full financial results are due on 5 November.
What it means for ASX silver investors
Labour disruption and grade variability are reminders that even established producers can miss quarterly expectations, which matters when comparing them with Australian developers such as those profiled in our silver coverage. Supply-side trouble in Mexico can tighten the market, a theme tracked in the annual supply and demand data from The Silver Institute. Investors may wish to watch the 5 November results for cost and guidance commentary, and check price benchmarks published by the London Bullion Market Association.
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