Is Triple-Digit Silver Coming Back? | Mani Alkhafaji - First Majestic Silver

The Deep Dive Jul 9, 2026

Summary

First Majestic's president calls silver's current pullback healthy and argues triple-digit prices are a matter of when, not if.

The guest says silver price leverage — not production growth — lifted quarterly free cash flow from $40 million to roughly a quarter-billion.

New construction permits at Santa Elena cut 12 to 18 months off the timeline for two recent discoveries to reach production.

Jerritt Canyon restart targets H2 2027 with $75 million committed, helped by gold's climb from $1,600 at shutdown to $4,200 now.

At Gatos the mine, not the mill, is the bottleneck; switching from selective cut-and-fill to bulk mining targets 4,000 tons per day.

Mani says quarterly free cash flow went from $40 million in 2025, when silver traded near $32, to roughly $220-250 million in the same quarter a year later on broadly unchanged production, because about 70% of First Majestic's revenue comes from silver.
New construction permits for two Santa Elena discoveries arrived well before the 2027-or-later timeline the company expected, cutting an estimated 12-18 months off development; Mani now sees those discoveries reaching production in about two to three years.
Jerritt Canyon, idle since 2023, is moving toward a restart with $75 million committed: Mani targets first production in about 18 months (H2 2027), cites gold at roughly $4,200/oz versus $1,600 at shutdown, and says the market currently values the asset at zero.
With about $1.2 billion in cash, the company is increasing dividends, buying back shares, and funding almost 300 kilometers of drilling this year while holding cash in reserve for acquisitions.
On M&A, Mani says the company never stops looking but can afford to be patient and selective, and will stay silver-focused on its goal of becoming the world's largest silver producer.

Top takeaway The host closes by saying he is a First Majestic shareholder who thinks the company is setting up for a heck of a run, while stressing that this is not a buy recommendation.
He relays from silver dealers that retail bullion demand has leveled off with silver near $60 after a peak of about $100.

Top takeaway Mani argues triple-digit silver is a matter of when rather than if, and calls the current pullback a healthy pause that needs a bit longer before the next leg higher.
He argues a true silver company, with at least half of revenue from silver (First Majestic is near 70%), gets a direct boost to the bottom line as silver rises, pointing to $40 million of quarterly free cash flow at $32 silver in 2025 versus roughly $220-250 million a year later.
He calls the two Santa Elena discoveries unprecedented, says the early permits bring them into production in two to three years, and stresses that everything found so far sits within 5 kilometers of the mill on a 102,000-hectare property.
On Jerritt Canyon, he is targeting an H2 2027 restart for about $75 million and sees the asset, which he says the market values at zero, as a major catalyst for the stock.
He signals M&A discipline: always looking but patient and selective, rejecting gold- or copper-heavy 'silver equivalent' deals so the company stays silver-focused on its goal of being the world's largest silver producer.