How do AISC and cash‑costs per Ag‑Eq ounce for First Majestic compare with Hecla and Pan American on a like‑for‑like 2025 basis?
Executive summary
First Majestic’s 2025 consolidated guidance points to materially higher all‑in sustaining costs (AISC) on a per silver‑equivalent (AgEq) ounce basis—about $19.89–$21.27 (ex‑non‑cash $19.35–$20.67)—with cash costs reported near $14.8/AgEq oz in 2025 reporting [1] [2]. By contrast, Hecla’s reported AISC and cash‑cost metrics (which are stated after by‑product credits and vary by quarter and asset mix) have been meaningfully lower in 2025 at the company and mine level—ranging from negative cash costs at some high by‑product sites to single‑digit or low‑teens AISC in certain quarters [3] [4]. Pan American sits between the two: its 2025 silver‑segment AISC guidance is notably lower than First Majestic’s consolidated AgEq figure, projected about $16.25–$18.25 per silver ounce with certain high‑by‑product assets (Juanicipio) guiding materially below that band [5] [6].
1. First Majestic: higher consolidated AISC on an AgEq basis driven by mix and acquisitions
First Majestic’s 2025 guidance explicitly frames costs on a per attributable payable AgEq ounce basis and forecasts consolidated AISC of $19.89–$21.27 (or $19.35–$20.67 excluding non‑cash items), with non‑cash items alone of $1.86–$2.07/AgEq oz—numbers derived using specific metal price and FX assumptions and reflecting its mix and recent asset additions such as Cerro Los Gatos, which itself recorded lower mine‑level AISC (~$13.07/AgEq oz) and helps but does not fully offset the consolidated level [1] [7].
2. Hecla: much lower reported AISC and cash costs once by‑product credits are applied, but results are asset‑specific
Hecla’s public materials and market reports show a large dispersion driven by by‑product credits and mine mix; Greens Creek and Lucky Friday generate significant lead/zinc by‑product credits that can push cash costs to negative figures at times and produced AISC figures in the low single digits or low teens in 2025 quarters cited by analysts, though quarterly volatility and different reporting conventions mean one must read Hecla’s reconciliations carefully [3] [4] [8]. Hecla’s investor presentations and reconciliation documents emphasize that their AISC metrics are reported after by‑product credits and are therefore not directly comparable to companies reporting on an AgEq basis without identical credit treatments [9] [10] [4].
3. Pan American: lower silver‑segment AISC guidance than First Majestic, aided by high‑grade and by‑product assets
Pan American’s 2025 materials present silver‑segment AISC on a per‑silver‑ounce sold basis and guide 2025 AISC for the silver segment to roughly $16.25–$18.25/oz, with specific assets like Juanicipio expected to post very low or even negative cash cost ranges by virtue of gold/by‑product contribution and JV economics (Juanicipio cash cost/AISC guidance as low as ($1) to $8/oz in ranges disclosed) — placing Pan American below First Majestic’s consolidated AgEq AISC band in 2025 if comparing like metrics [11] [12] [6].
4. Why “like‑for‑like” normalization is essential—and elusive with public disclosures
A true like‑for‑like comparison requires harmonizing: (a) whether figures are reported per pure silver ounce or per AgEq ounce (First Majestic reports AgEq), (b) whether AISC and cash costs are stated before or after by‑product credits (Hecla and Pan American commonly report after credits), (c) the metal‑price and FX assumptions used to calculate AgEq, and (d) inclusion/exclusion of non‑cash items and sustaining versus expansionary capital—elements that differ across the filings and presentations and that the companies’ own reconciliation documents stress [1] [10] [4] [11]. Public sources reviewed disclose these differences but do not provide a single standardized table that fully normalizes all three peers on identical assumptions, limiting precision [9] [13].
5. Bottom line: relative positions on a reconciled 2025 view
Using the companies’ reported 2025 disclosures and analyst summaries as presented, First Majestic’s consolidated AISC on an AgEq basis sits materially higher (roughly $19.4–$21.3/AgEq oz) than Pan American’s silver‑segment guidance (~$16.25–$18.25/oz) and Hecla’s asset‑adjusted AISC cash‑cost profile (which is often single‑digit to low‑teens or better after by‑product credits, even negative cash costs at some sites), but this ranking flips or narrows depending on whether comparisons are shifted to pure silver‑ounce metrics, whether by‑product credits are included, and which mines drive each company’s 2025 production mix [1] [3] [5] [7].