AG's Silver-Proofed Upsurge: Miners' Timing Trumps Metal Prices

Despite silver's 50% drop from its January record price, First Majestic Silver (AG) reported record revenue, cash flow, and a higher dividend in Q2. Analyst Heiko Ihle at H.C. Wainwright upgraded his target to $27, implying an 80% gain, even as the stock fell to a fresh low of $15.03.

The key difference between miners like First Majestic and silver's price is timing. Miners sell their production based on the quarter's average price, so they banked cash at levels set before the crash in silver prices.

Analysts were more optimistic about AG than silver itself during its decline. They raised their target prices from $22 to $27, while silver fell 50%. This is because analysts priced the business, not the metal.