First Majestic Silver Corp. (NYSE: AG) has launched a restart plan for its Jerritt Canyon Gold Mine in Nevada, a property the company acquired on April 30, 2021 for $470 million and placed in care and maintenance in March 2023. The restart plan calls for a $75 million investment in 2026 to complete a pre‑feasibility study, develop an open‑pit and underground mine plan, and upgrade processing and water infrastructure. The pre‑feasibility study is slated for completion in the fourth quarter of 2026, with production expected to begin in the second half of 2027.
The decision to reactivate Jerritt Canyon follows a substantial expansion of the mine’s resource base. As of December 31, 2025, the mine reported 4.1 million ounces of gold in the Measured and Indicated categories and an additional 3.7 million ounces in Inferred resources. The enlarged resource base, combined with a favorable gold price environment, underpins the economic viability of the restart and provides First Majestic with a new gold‑producing asset that can generate additional cash flow and reduce concentration risk in its Mexican silver operations.
First Majestic’s broader strategy has been to diversify beyond its silver‑heavy portfolio. The company’s recent $970 million acquisition of Los Gatos Silver in 2025 added a high‑grade silver mine to its portfolio, and the Jerritt Canyon restart complements that move by adding a gold asset in a tier‑one jurisdiction. Management highlighted that the mine’s permitted gold processing plant, which roasts ore at a nominal capacity of 4,000 metric tonnes per day, is already in place, reducing the time and cost required to bring the mine online.
The company’s Q4 2025 results provide context for the restart. First Majestic reported earnings per share of $0.30, beating analyst expectations of $0.18, and revenue of $463.9 million, surpassing the forecast of $403.71 million. The strong performance in its core Mexican operations gives the company a solid financial foundation to fund the $75 million restart investment. Management noted that the 2025 drilling program at Jerritt Canyon reaffirmed confidence in the district’s potential, and the improved metal price assumptions lowered cut‑off grades, driving the resource expansion.
Market reaction to the announcement was mixed. While the restart plan was viewed as a positive strategic development, investors focused on valuation concerns. Analysts highlighted the company’s high valuation multiples and the demanding price‑to‑earnings ratio, which tempered enthusiasm for the news. Nonetheless, the announcement was seen as a step toward long‑term growth and risk diversification for First Majestic.
The restart plan is a significant milestone for First Majestic, marking a shift toward a more diversified commodity portfolio and positioning the company to capitalize on favorable gold prices while leveraging its existing infrastructure and financial strength. The planned investment and timeline demonstrate a deliberate, phased approach to reactivating the mine, with clear milestones and a focus on operational efficiency.
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