EXPOSED: How First Majestic’s CEO Sat On $63 Million In Bullion In Q1

First Majestic Silver Corp (NYSE: AG) reported Q1 2026 earnings with revenue of roughly $476.7 million as stronger silver and gold prices pushed earnings sharply higher. EPS also surged to 31 cents, a +520% YoY, as margins expanded across the business.

Then management chose to withhold 676,637 ounces of silver and another 2,732 ounces of gold worth approximately $63.60 million instead of selling aggressively into stronger prices.

That decision kept pulling me back into the report, more than the fact that the stock jumped almost 7% after the report.

The Economics Exploded While Production Slipped Backward

First Majestic generated roughly $311.2 million in operating cash flow, approximately $223.5 million in free cash flow, and around $128.1 million in net income during the quarter. Mine operating earnings climbed from roughly $63.8 million last year to approximately $266.6 million this quarter, while EBITDA reached about $306.8 million. Management also raised the quarterly dividend from $0.0037 per share to $0.015.

At the same time, silver production fell roughly 17% YoY while gold production weakened across several operations.

But here’s the thing, mining executives usually monetize inventory hard during quarters like this. Companies lock in profits, strengthen liquidity, and maximize cash generation while commodity prices cooperate. As you can see, First Majestic already had the profits, arguably their best historically. 

Yet CEO Keith Neumeyer chose to sit on more than half a million ounces of silver. The deeper I went through the report, the stranger that decision started looking.

The Mines Are Fighting To Keep Up

Crews at La Encantada improved ore flow, accelerated underground development, hired contractors, and unlocked higher grades from the Ojuelas area before silver production finally jumped 48% year-over-year.

At Los Gatos, mining teams pushed throughput toward sustained 4,000-ton-per-day capacity while expanding long-hole drilling and development work underground. Santa Elena delivered record ore throughput while management moved ahead with mill expansion plans from 3,200 to 3,500 tons per day. San Dimas continued aggressive drilling campaigns despite weaker grades and softer production levels.

The report kept circling back to the same operational reality. More drilling. More contractors. More expansion work. More effort underneath supply.

Meanwhile, more industries keep pulling from the same metal market.

Solar manufacturers consumed roughly 196 million ounces of silver last year alone as renewable infrastructure accelerated globally. Semiconductor systems, AI hardware, electronics manufacturing, EV infrastructure, and defense technologies continue to draw from the same supply chain, even as global silver markets head toward a sixth straight annual supply deficit.

Believe it or not, mining companies cannot scale production the way software companies scale users. Ore grades still matter. Infrastructure still matters. Development timelines still matter.

And First Majestic’s operations exposed that pressure almost everywhere inside the business.

Rally Suggests Investors Took The Bullion Move To Heart

AG jumped roughly 7% after earnings, climbing from around $22.60 toward the $24.20 area while volume surged above 25 million shares, one of the stock’s heaviest trading sessions in weeks.

That reaction mattered because buyers were not responding to a routine commodity quarter.

The stock reclaimed both its 20-day moving average near $20.81 and 50-day moving average around $21.70 while continuing to hold comfortably above the 200-day moving average near $16.70. Buyers also defended the longer-term uptrend, stretching back to late 2024, after AG collapsed from the March highs near $32.

That shift in momentum appeared to happen after investors processed more than just the revenue and EPS beat. Keith Neumeyer’s decision to withhold 676,637 ounces of silver and another 2,732 ounces of gold during a record cash-flow quarter may have changed how traders viewed the company’s positioning underneath the silver market.

The key area now sits near $25-$26 around the declining trendline overhead. A breakout above that zone could force investors to reconsider whether the March selloff reflected exhaustion… or simply a pause inside a much larger silver move.

Keith’s Actions Just Revealed The Bigger Story

That is why the bullion decision stayed with me long after the earnings report ended.

CEO Keith Neumeyer and his management generated some of the strongest cash flow and profitability in company history while operational teams still faced throughput constraints, development pressure, weaker grades, and softer production across parts of the business.

Then, executives chose to lock down 676,637 ounces of silver and another 2,732 ounces of gold rather than fully monetize production at stronger prices.

Companies usually sell aggressively during quarters like this.

First Majestic chose to sit on $63.6 million worth of bullion instead. I do not think management makes a decision like that unless executives believe the silver market may become much tighter than current prices still imply, which also means a violent repricing is closer than ever.