Silver prices fell more than 22 percent in the second quarter of 2026, as high volatility and macroeconomic pressures pulled the metal down from its earlier heights.
However, top miners insulated their balance sheets by turning to production, driving record throughputs and strong operational execution.
Following an explosive first quarter that saw the metal spike to an all-time high of US$121.62 in January, silver spent much of Q2 plunging back to earth. The metal traded in a volatile US$57 to US$89 range before closing June near the US$58 mark.
Spot silver ultimately underperformed gold, dropping 13.3 percent through mid-June compared to gold’s 10.5 percent decline, as markets priced in a 67 percent probability of a Fed rate hike by September.
Institutional analysts subsequently slashed their price targets. ING downgraded its Q3 forecast to US$68 per ounce, while Macquarie expects the metal to remain rangebound before drifting to US$65 by the end of 2027.
Despite the hostile price environment and outlook downgrades, major producers capitalized on ongoing mine expansions and optimized processing circuits, allowing the sector to offset the sharp decline in realized prices through production.
Below is a breakdown of how several major players and explorers fared in Q2.
Aya Gold & Silver hits record throughput and production at Zgounder
Aya Gold & Silver (TSX:AYA,OTCQX:AYASF) posted record consolidated production of 1.68 million silver equivalent ounces for the second quarter, marking a 61 percent year-over-year increase. The company also recorded a 12 percent quarter-over-quarter gain.
The Zgounder silver mine in Morocco anchored the output, generating a record 1.49 million ounces of silver, which represents a 43 percent year-over-year jump. The processing plant averaged a record 3,889 tons per day, supported by 97 percent mill availability and a recovery rate of 91.2 percent.
A temporary crushing contractor mobilized late in the first quarter helped drive the surge. The contractor will remain on site until the company completes a planned crusher expansion at the Zgounder mill.
The company also advanced its Boumadine pyrite reclaiming operation, which produced 187,784 silver equivalent ounces during the quarter following weather-related disruptions earlier in the year.
First Majestic overcomes hurdles, upgrades production guidance
First Majestic Silver (TSX:AG,NYSE:AG) produced 3.8 million ounces of silver and 34,660 ounces of gold in Q2 across its four producing underground mines in Mexico, representing year-over-year increases of 3 percent and 2 percent, respectively.
The company achieved these figures despite facing notable operational disruptions. A rockfall on the main ramp at the Los Gatos Silver Mine temporarily disrupted mining operations and required rehabilitation, while labor negotiations delayed mine haulage at the San Dimas operation.
Strong performance at La Encantada and Santa Elena offset the shortfalls. La Encantada recorded a 65 percent jump in silver production, driven by a 14 percent increase in ore processed and a 27 percent spike in silver grades. Santa Elena processed a record 305,369 tons of ore, yielding a 38 percent increase in silver output.
During the quarter, First Majestic closed the sale of its past-producing Del Toro Silver Mine to Sierra Madre for up to US$60 million, receiving US$30 million upfront.
Avino expands La Preciosa development
Avino Silver & Gold Mines (TSX:ASM,NYSEAMERICAN:ASM) reported second-quarter production of 534,945 silver equivalent ounces. While overall output declined from the same period last year due to lower copper production, the company successfully ramped up its La Preciosa project.
Development production from La Preciosa surged 59 percent quarter-over-quarter, contributing 100,658 silver equivalent ounces as the company brought Mill Circuit 2 online to process the material.
To preserve its underground reserves, Avino opportunistically mined out-of-reserve surface material near its current workings. While the material featured lower copper grades and high oxidation, the lower extraction costs and process flexibility provided acceptable margins.
The quarter also followed Avino’s April release of an updated mineral reserve estimate, establishing inaugural proven and probable reserves of 27 million tons containing 127 million silver equivalent ounces across two of its assets.
The company is actively running two drill rigs at La Preciosa to test high-priority targets at vein intersections outside the current resource model.
Juniors make promising discoveries
While producers optimized current operations, exploration breakthroughs elsewhere highlighted the sector’s long-term pipeline.
Brixton Metals (TSXV:BBB,OTCQX:BBBXF) announced a major brownfields discovery at its Langis Silver Project in Cobalt, Ontario, intersecting 5,015 grams per ton of silver over 20 meters from a depth of 165 meters.
The intercept in hole LM-26-377, located in the newly designated Shaft 6 Southeast area, included 14.00 meters grading 7,150 grams per ton. The same hole featured a 0.65-meter sub-interval grading a staggering 89,125 grams per ton of silver and another 1.15-meter section grading 74,137 grams per ton.
The intercept is located 140 meters east of a previously reported hole that yielded 11.35 meters grading 4,560 grams per ton of silver.
The 2026 drill campaign is the company’s largest to date, with 24,016 meters completed across 105 drill holes. The drilling runs parallel to ongoing work toward a maiden mineral resource estimate on the site’s historic tailings.
“We are super excited to have drilled more ultra-high-grade silver at Langis, especially in the Shaft 6 Southeast (S6-SE) area where no underground workings exist, effectively a new brownfields discovery,” Chairman and CEO Gary R. Thompson said. “As far as we can find in publicly available data, hole 377 represents one of the highest reported silver intercepts globally.”
Elsewhere, Regency Silver (TSXV:RSMX,OTCQB:RSMXF) reported final results from its 2025/2026 drill campaign at the wholly owned Dios Padre project in Sonora, Mexico. The 2026 program included nine holes totalling 6,234 metres.
The announcement highlighted, Hole REG-26-35 which intersected 5.06 grams per metric ton gold, 41.85 grams per metric ton silver and 1.10 percent copper over 36.35 metres within a broader 96-metre interval grading 2.08 grams per metric ton gold, “confirming additional high-grade mineralization at depth”.
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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Brixton Metals is a client of the Investing News Network. This article is not paid-for content.
