INVESTMENT INSIGHTS - First Majestic Silver Corp. (AG)

START - $21.30 | FINISH - $27.50

1. HORIZON: 0 - 3 months (Short-Term)

2. FROM: 16 April 2026 | UNTIL: 16 July 2026

3. MANAGEMENT ASSESSMENT: 29% growth

4. RECOMMENDATION: BUY

5. PROJECTION BASED ON: R20 000

TRADING PLAN

●     Entry point: A potential buying opportunity may be identified should the share price record a close above $21.30, which would serve as confirmation of a trend continuation signal.

●     Risk management: Positioning a stop-loss at $17.88 would cap the potential downside to approximately 16.10% below the entry price, if the trade moves unfavourably.

●     Profit target: The technical upside target is placed at $27.50, representing a potential return of approximately 29% from the entry level.

WHY THESE SHARES HAVE POTENTIAL FOR PROFIT

●     The business is growing fast and has cash: First Majestic is digging up more silver than ever before. In 2025, the company mined 15.4 million ounces of silver, nearly double what it produced the year before, 8.4 million ounces, after buying a new mine called Los Gatos and improving output at its existing mines. More silver in the ground means more silver to sell. This translated into record sales of $1.25 billion for the year, and the company now sits on a war chest of nearly $938 million in cash, the most it has ever had. A company with strong cash reserves is in a healthy financial position and is well-equipped to grow further.

●     Silver is a safe place to put money when the world gets uncertain: When global events make investors nervous, many people move their money into precious metals like silver and gold because they tend to hold their value. Right now, the world is watching the Strait of Hormuz, a critical shipping lane in the Middle East through which a large portion of the world's oil travels, where tensions between the U.S. and Iran have disrupted global trade. When situations like this arise, the demand for silver as a safe-haven asset tends to rise. As one of the world's largest pure silver producers, First Majestic is one of the most direct ways to benefit if silver prices move higher as a result of these tensions.

●     The company pays you to hold the share (Dividends): First Majestic pays its shareholders a regular quarterly dividend, meaning investors receive a cash payment every three months. After its record year in 2025, the company paid a dividend of $0.0083 per share for the fourth quarter. While the dividend amount may seem small on its own, the company's policy is to pay more when it earns more, so as silver prices and production increase, the dividend payments are designed to grow alongside them.

TECHNICAL INDICATORS

●     Trading above the 200-day SMA: The share price is currently trading above the 200-day simple moving average (SMA), a key long-term indicator that separates bullish from bearish trends. In simple terms, when a share trades above this level, it signals that the long-term momentum is positive and buyers remain in control.

●     Bollinger band contraction. A breakout is building: The Bollinger Bands are contracting, meaning the upper and lower bands are squeezing closer together. This is a well-known technical signal that a period of low volatility is ending and a significant price move is likely approaching. The direction of the breakout will be the key thing to watch.

●     MACD bullish crossover: The moving average convergence divergence (MACD) indicator has produced a bullish crossover, with the MACD line crossing above the signal line. This is a momentum signal suggesting that buying pressure is building and the share may be preparing to move higher. When this signal occurs alongside a Bollinger Band squeeze, it adds further weight to the case for an upside breakout.

RISKS

●     Silver price volatility: The single biggest risk is that the silver price can move sharply in both directions. Silver already fell approximately 44% from its January 2026 all-time high of $121.64 to around $67 within weeks. Because First Majestic's entire business revolves around selling silver, a falling silver price directly hits the company's revenue, profits, and share price, even if the mines are running perfectly.

●     Operating in Mexico carries political risk: All of First Majestic's producing mines are located in Mexico. Changes in government policy, new mining taxes or royalties, permitting delays, or social unrest in local communities can disrupt operations at any time. Any negative regulatory change by the Mexican government could increase the company's costs or even force a temporary shutdown of a mine.

●     Rising interest rates hurt the silver price: When interest rates are high, investors tend to prefer putting their money in bonds or savings accounts that pay a yield, rather than holding silver, which pays nothing. The current environment of elevated global interest rates has been a key reason why silver has pulled back from its highs, and this pressure could continue for as long as rates remain high.

SOURCES

●     2025 Full-Year Earnings Report

●     Strait of Hormuz Disruptions and Federal Reserve Rate Compress Silver Prices from January 2026 Highs

●     Oil prices rise to $96.11 as Strait of Hormuz risk premium persists

Disclaimer:
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** This article was prepared by BROKSTOCK analyst Maboko Seabi