Is This TSX Silver Stock a Good Buy Amid Falling Prices?

According to a CNBC report:

• Silver futures plummeted 31.4% Friday to US$78.53 per ounce, the worst single-day performance since March 1980.
• Spot silver fell 28% to US$83.45.
• Gold dropped 11.4% as futures settled at US$4,745.10.

President Donald Trump’s nomination of Kevin Warsh to replace Jerome Powell as Fed chair triggered the carnage. Warsh has historically advocated a tighter monetary policy, which strengthened the U.S. dollar and triggered massive profit-taking.

Metals extended losses on Monday. Spot gold fell another 5% to US$4,611.40 while silver dropped over 10% to US$76.11. Despite the selloff, silver remains up roughly 16% year to date.

The sell-off in silver prices dragged shares of First Majestic Silver (TSX:AG) lower by 16% on Friday, valuing the miner at a market cap of $13.9 billion.

A strong performance in Q3 of 2025

Despite the ongoing pullback, AG stock has more than tripled in the past year. In the third quarter (Q3), the company produced 3.9 million ounces of silver, bringing year-to-date production to 11.3 million ounces.

Revenue hit record levels, operating cash flow reached $98 million, and EBITDA (earnings before interest, tax, depreciation, and amortization) clocked in at $128 million—all company records. Perhaps most impressive: costs fell while competitors reported cost inflation across the sector.

The company has $560 million in cash, no debt, and a $140 million marketable securities portfolio. Management even held back 758,000 ounces of silver and nearly 4,000 ounces of gold in inventory, representing $50 million in revenue they chose not to recognize.

“Our shareholders want to see that,” company management explained. “It’s like cash. If we do want to convert those ounces into revenue at any time, we could do it quite easily.”

The recent Los Gatos acquisition continues to deliver, with plans to increase throughput to 4,000 tons per day. At Santa Elena, two major discoveries, Navidad and Santo Niño, will add multiple years to mine life.

San Dimas has turned around after challenging years and is now running within budget with declining costs. Even La Encantada has implemented self-haulage to reduce costs starting in Q1 of 2026.

The case for contrarian buyers

First Majestic is executing operationally while silver whipsaws on macro factors outside its control.

The company maintained its dividend, bought back shares during the selloff, and expects strong Q4 results. Management expects to end 2025 with 30 million silver equivalent ounces, in line with its initial guidance.

With silver down 30% on forced selling rather than fundamental deterioration, the question becomes whether you’re buying a mining operation or betting on metal prices.

First Majestic’s balance sheet, production growth, and cost control suggest operational fundamentals remain intact. For investors with a high tolerance for volatility, the washout creates an entry point into a well-positioned company trading at potentially depressed levels.

The risk is that silver continues to fall as the Fed tightens and the dollar strengthens. But for those betting on eventual easing and renewed safe-haven demand, First Majestic proved it can operate profitably even when metal prices lose their minds.

Despite its stellar run in the last 12 months, First Majestic Silver stock trades at a 26% discount to consensus price targets in February 2026.

The post Is This TSX Silver Stock a Good Buy Amid Falling Prices? appeared first on The Motley Fool Canada.

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More reading

• My Biggest Investing Regret in 2025 Was Buying This Stock
• 3 Ways to Benefit From Falling Interest Rates in 2026
• 3 Stocks That Could Turn a $100,000 Portfolio Into $1 Million Sooner Than You Think
• Momentum Is High, and These 3 Stocks Could Benefit the Most in 2026
• Safe Havens Under Pressure: Can Gold and Silver Still Hedge Your Portfolio in 2026?

Fool contributor Aditya Raghunath has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.