First Majestic Silver moved lower as precious-metals sentiment softened, even as the company posted a meaningful legal advance in Mexico. The stock fell 6.4 percent to EUR 13.64 on Wednesday, after losing 6.3 percent to EUR 13.66 the previous day. There was no company-specific news to explain the latest drop; instead, the pressure came from a firmer US dollar, rising US Treasury yields and unexpectedly hot US inflation data that renewed concern about further Federal Reserve rate increases.
That macro backdrop tends to hit miners harder than the metals themselves. When silver futures weaken, mining equities often exaggerate the move, and First Majestic has not been spared. The shares are now 22 percent below their 200-day average.
Against that difficult market tone, the company said on Tuesday that it had reached a broad framework with the government of Mexico to settle a long-running tax dispute involving its subsidiary Primero Empresa Minera. The relevant tribunal suspended the NAFTA arbitration until 31 December 2026 so the two sides can work out and implement a final agreement.
For investors, the development removes a major legal overhang that had weighed on the valuation for years. The final documentation is still to come, but the pause in the international arbitration points to a clear step toward resolution.
The company is also returning capital to shareholders. A renewed buyback programme began on Wednesday, 14 October, and runs for 12 months. Over that period, First Majestic is authorised to repurchase up to 10,000,000 common shares in the market. The company says the repurchases reflect confidence in the balance sheet and in the market’s assessment of the business.
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Operations were less smooth in the latest quarter. In the third quarter of 2026, First Majestic produced 3.4 million ounces of silver and 29,552 ounces of gold. Silver output was down 11 percent from the same period a year earlier, mainly because of a 12-day labour dispute at the key San Dimas mine about a month ago. Production has since returned to normal.
The company also continues to reshape its portfolio. It has signed a definitive agreement to sell the San Martin silver mine to Flextronics Supply and Service for total proceeds of US$90 million. Completion is targeted for the fourth quarter of 2026, subject to antitrust approval in Mexico.
Investors will get another update when First Majestic reports third-quarter results on 5 November. For now, the shares sit between cyclical pressure in the silver market and a series of company-specific developments that may yet narrow the discount.
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