First Majestic Shares Fall 4% Amid Silver Price Decline and $350 Million Bond Offering

First Majestic Silver Mining Corp. (AG) experienced a 4% decline in share price on December 5, 2025, as investors reacted to a broader downturn in silver prices and the company’s decision to issue $350 million in senior notes. The capital raise is intended to fund ongoing development at its San Dimas and La Encantada operations, as well as support future exploration and operational expansion. The notes are structured as unsecured, senior debt with a maturity of seven years and carry a fixed interest rate of 7.25% per annum. The decline in silver prices, which fell to $28.75 per ounce during the session, contributed significantly to investor caution. Silver is a key input to First Majestic’s revenue model, with over 70% of its production derived from silver and approximately 30% from gold. The current price level represents a 12% drop from the prior month’s average, pressuring margins and market sentiment. The company’s all-in sustaining cost (AISC) for silver stood at $18.40 per ounce in the third quarter of 2025, slightly above the industry benchmark. The $350 million financing comes as part of a broader strategy to maintain capital discipline and maintain a strong balance sheet amid volatile commodity markets. First Majestic’s total debt-to-EBITDA ratio improved to 1.9x in Q3 2025, down from 2.3x in the prior year, reflecting ongoing deleveraging efforts. The company also reported adjusted EBITDA of $128 million in the quarter, up 11% year-over-year, driven by increased production and operational efficiency. Market participants are monitoring the impact of the bond issuance on First Majestic’s leverage and dividend sustainability. The company continues to maintain a quarterly dividend of $0.07 per share, which remains under pressure due to lower silver revenues. Investors in North American silver miners, including Pan American Silver (PAAS) and Coeur Mining (CDE), also saw modest declines in tandem with the broader sector.