This is an interview with First Majestic president Manny Alkhafaji about silver’s post-parabolic reset, the company’s record Q1, and a series of operating/growth updates. His core message is that silver’s pullback and choppy consolidation are healthy and are building a stronger base, while First Majestic is benefiting from high realized margins, strong cash flow, a larger dividend, and multiple growth levers at the mint, Jerritt Canyon, Los Gatos, and Santa Elena.
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Manny Alkhafaji’s main thesis is straightforward: silver’s violent surge and subsequent correction were necessary, and the current range-bound trade is healthier than a continued parabolic move. He argues the metal has already found a higher support zone after the January 31 selloff, and that the market is now “building a healthier base” for the next leg higher in both gold and silver. At the company level, he says First Majestic is in a strong operating position because higher silver prices are translating directly into exceptional margins, free cash flow, and a stronger balance sheet. He spends a lot of time explaining why he thinks the silver supply response remains limited. In his view, not much has changed on the supply side despite better prices: a few small mines may open, but the large “chunky” deposits needed to close the deficit are still not being developed. …
Tactically, silver looks like a post-spike consolidation trade rather than an immediate breakout setup; the risk is more about range churn than a fresh collapse. First Majestic’s near-term upside is tied to continued operational beats and project updates, not just metal beta.
Over the next few months, the base case is a gradual re-rating if silver stays firm and the company keeps converting that backdrop into cash flow, restart progress, and exploration wins. If the price weakens materially or execution slips at Jerritt Canyon or Santa Elena, the narrative should cool quickly.
Structurally, the interview argues that silver remains a scarce, slow-to-build supply market where existing producers with permitted assets and downstream exposure can compound for longer than the cycle may imply. The long-run thesis is that vertically integrated silver operators may gain strategic value if the deficit persists and industrial demand keeps rising.
Silver’s January surge was parabolic and unhealthy, and the subsequent selloff was a necessary reset.
He explicitly says the move was not healthy and that a pullback was needed.
Silver appears to have found a higher support zone after the one-day selloff and is now likely to chop in a broad range for a while.
He says it found footing around the mid-60s/67 and has hovered between 70 and 90 since.
The silver supply response remains weak because large new primary silver mines are still not coming into production in meaningful numbers.
He distinguishes small openings from the large assets needed to close the deficit.
Are we seeing more quality silver assets pop up with money moving down the risk curve, or does the shortage of quality primary silver assets still hold true?
Manny says not much has changed — silver price has improved but is not really impacting supply. A couple of small mines are opening but they produce one or two million ounces and won't move the needle. The big chunky assets needed to bridge the deficit supply are not there yet. He notes it takes on average 18 years from discovery hole to production and requires patient capital and sustained triple-digit prices, which hasn't happened yet.
Have you guys seen an uptick in companies that consume silver reaching out to do direct deals to avoid standard exchanges and markets?
Manny confirms they've seen that happen for the first time recently. A couple of companies reached out wanting to source silver directly from First Majestic. As a public company they are limited on who they can sell to, but they've made couple of deals with refineries when there was a shortage. They've also seen direct investments from some of these companies going into the company or at the asset level.
Is First Majestic looking at third-party processing for other companies at the Jerritt Canyon roaster?
Manny says Nevada has three roasters, two owned by Nevada Gold Mines JV and at full capacity. Jerritt Canyon was the first roaster built — the blueprint for the others — and it's the only roaster in the state with capacity that's fully permitted and idle. Their focus is getting their own ore through the facility, but the roaster has ample capacity and is permitted for even more. They've done toll milling in the past and will continue doing that as supplemental ore.
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