Summa Silver Corp. (TSXV: SSVR, OTC: SSVRF, FRA: 48X)
Silver Lives Here
First Majestic Silver Corp. (TSX:AG), a Canadian silver producer, is emerging as an attractive investment opportunity amid structural deficits in the global silver market. With silver prices holding above $36/oz – a decade-high level – and strong fundamentals supporting further upside, this $5.5 billion market cap miner warrants closer inspection despite its 34% gain over the past year.
The company delivered standout Q1 2025 results including record silver production of 3.7 million ounces (+23% YoY), cash costs declining to $13.68/oz (18% improvement), operating cash flow of $110 million with $462.6 million cash reserves.
Its strategic acquisition of a 70% stake in Mexico’s Cerro Los Gatos mine has significantly enhanced resource bases. First Majestic now controls over 350,000 hectares across three premier silver districts, with mid-point 2025 production guidance of 14.45 million ounces – representing 71% growth over 2024 levels.
“This production growth profile is exceptional among junior miners,” noted TD Securities mining analyst. “Their all-in sustaining costs now rank in the industry’s top 30th percentile.”
The silver market exhibits unprecedented supply-demand dynamics, with 835 million ounces mined globally in 2024 (+190Moz recycled) while 681 million ounces for industrial uses alone (25% for PV solar). 2025 is the fifth consecutive annual shortfall expected at 120Moz.
Photovoltaic demand has been particularly explosive, with solar panel silver usage surging from 82Moz in 2020 to 198Moz in 2024 – a 24% CAGR. First Majestic’s vertical integration through its First Mint refinery allows direct capture of physical premiums.
The stock appears significantly undervalued on several key metrics:
Risks Ahead: Potential Mexican mining policy changes, photovoltaic silver thrifting technologies, and Fed monetary policy impacts. However, with industrial inventories at decade lows and COMEX stocks down 27% YTD, near-term fundamentals remain robust.
