First Majestic Silver: Strong Quarterly Results
First Majestic Silver’s stock lost over 11% of its value last week. Yet the silver price appears to be finding a floor, and the company itself has reported strong results. First Majestic Silver benefited in the second quarter of 2026 from higher precious metal prices and a slight increase in production. Silver production rose by 3% compared to the same quarter last year, while gold production increased by 2%. At the same time, revenue rose by 57% to USD 415.5 million. In addition, the company held silver and gold products with a total market value of USD 78 million at the end of the quarter.
Profitability also improved significantly. Operating income from mining rose from USD 49.4 million to USD 223.6 million, while EBITDA more than doubled to USD 252.3 million. Bottom line, First Majestic reported net income of USD 109.4 million, or USD 0.22 per share. On an adjusted basis, net income totaled USD 101.6 million, or USD 0.21 per share. Cash costs of USD 18.06 and all-in sustaining costs (AISC) of USD 25.68 per attributable payable silver-equivalent ounce were below guidance. As a result, the AISC margin increased from USD 13.60 in the prior-year quarter to USD 40.27 per ounce.
The strong operating performance was also reflected in cash flow and the balance sheet. First Majestic generated operating cash flow before changes in working capital and taxes of USD 248.3 million, as well as free cash flow of USD 194.6 million. Cash and cash equivalents have risen 34% since the beginning of 2026 to a record high of USD 1.25 billion. In addition, the company increased its quarterly dividend by 217% to USD 0.0152 per share and repurchased 1.2 million of its own shares for a total of USD 22.7 million.
Gold Establishes Long-Term Floor at USD 4,000: Desert Gold a Buy Candidate
Is gold currently establishing a long-term floor at USD 4,000 per troy ounce? The industry could certainly live with that, as it is earning handsomely at this level. This will soon apply to Desert Gold as well. The explorer plans to ramp up gold production at Barani East in the coming months. This is a smaller section of the massive SMSZ project in Mali. SMSZ spans 440 km² in the “Kaba” region of western Mali, placing it in one of West Africa’s most important gold-producing regions.
According to GBC Research, Desert Gold is making visible progress at Barani East. Areas for the processing plant, workshop, and tailings piles have been cleared, survey points have been established, and the foundation should now be complete. The gravity concentrator ordered, with a capacity of around 200 metric tons per day, is expected to arrive on-site soon. This could be the event the market has been waiting for. The current market capitalization of approximately CAD 40 million is too low even for the first small-scale production facility, given GBC’s projected figures.
For Barani and Gourbassi, the updated NI 43-101 PEA calls for a ten-year oxide open-pit operation. At a gold price of USD 2,850 per ounce, the after-tax NPV10 is reported at USD 61 million with an internal rate of return (IRR) of 57%. At USD 4,070 per ounce, the NPV10 rises to USD 124 million and the IRR to 101%.
GBC Research highlights the 4,250 m RC drilling program as an additional growth driver. Since April, several targets—including Barani Gap, Kolon Soa, Koussili, Gourbassi West North, and Mogoyafara South—have been investigated. New near-surface oxide resources could create additional feed options in the future and extend the potential mine life. Analysts therefore view Desert Gold as increasingly transitioning from a pure-play explorer to a prospective producer and estimate the fair value of Desert Gold shares at CAD 0.93. The shares are currently trading at around CAD 0.11.
Nordex: Strong Quarterly Results, but One Analyst Remains Cautious
Nordex delivered a strong performance in the second quarter of 2026, posting significant improvements in both revenue and profitability. Revenue increased 16.3% year over year to approximately EUR 2.2 billion. EBITDA more than doubled to EUR 223.8 million, lifting the EBITDA margin from 5.8% to 10.3%. Consolidated net income rose from EUR 31.0 million to EUR 111.5 million, while the wind turbine manufacturer also generated free cash flow of EUR 164.6 million.
Order intake also developed positively. In the Projects segment, Nordex received orders totaling 3,054 MW, representing a 32.2% increase compared to the same quarter of the previous year. The order value rose from EUR 2.2 billion to EUR 3.0 billion, while the average selling price remained stable at EUR 0.97 million per megawatt. At the end of June, the total order backlog stood at EUR 18.4 billion.
During the reporting period, Nordex manufactured turbines with a total capacity of 1,953 MW, representing a 23.1% increase over the same period a year earlier. By contrast, only 1,168 MW were installed, compared to 1,959 MW in the same quarter of the previous year. The company cited, among other things, the regional project mix, delays in Turkey, and the scheduling of individual projects as reasons for this. With cash and cash equivalents of just under EUR 2.0 billion, a net cash position of EUR 1.67 billion, and a strong order backlog, Nordex considers itself to be in a solid financial position and confirmed its forecast for the full year 2026.
The stock benefited from the figures only briefly and ended the week down more than 3%. Overall, analyst feedback was positive. Only RBC remains bearish on Nordex. Analysts continue to rate the stock “Underperform” and see its fair value at just EUR 38. They attribute this pessimism to legislative changes in Germany and the price war in the industry.
If the gold price remains above USD 4,000, the industry stands to generate exceptionally strong profits. Desert Gold would be among the beneficiaries, with first gold production expected to begin soon. That milestone could serve as the catalyst for a long-awaited re-rating of the shares. Nordex has already enjoyed a strong run, and its solid quarterly results appear to have been largely priced in. The sell-off in First Majestic Silver, by contrast, is more difficult to explain. The silver price appears to be finding a bottom, and the company is earning well. If this trend continues, the stock should rebound as well.
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