The Gold Bull Makes the Case for First Majestic as a Leveraged Silver Play

First Majestic Silver (AG) behaves as a leveraged play on the silver price, The Gold Bull argues. Leverage here means a given percentage move in silver should produce a larger percentage move in the stock, because revenue floats with the metal while a large share of costs does not. The host, Ben, builds the case on three pillars — a silver-heavy revenue mix, sharply higher production after the Gatos acquisition, and a balance sheet he calls unusually clean for the sector.

## A revenue mix tilted toward silver

The video starts with revenue composition. First Majestic draws 57% of its revenue from silver, which the host says is the highest share among larger silver miners, and he expects that figure to climb in the fourth quarter. Overall, 90% of revenue comes from precious metals.

The company also sells its metal in an unusual way. The host claims it is the only publicly traded miner that runs its own silver mint. It ships about 10% of the doré — the semi-refined alloy that comes out of its mines — to Las Vegas, where it is struck into coins and bars. The company has 22 years of operating history behind it.

## Production is up sharply

Production is the strongest part of the story as the video tells it. First Majestic produced 15.4 million ounces of silver in 2025, up about 84% year over year. Quarterly silver production rose 77% year over year, and silver-equivalent production — total metal output expressed as ounces of silver — rose 37%. The host attributes much of that growth to the Gatos acquisition, in which the company holds roughly a 70% interest. All production comes from four mines in Mexico.

Margins look wide on the video's numbers. Third-quarter cost of production was $20.90 per silver ounce. With silver trading near $80 per ounce, as the host cites, that gap leaves a large margin on each ounce sold. He expects the fourth-quarter results, due February 19, to be strong.

## 2026 guidance: more throughput, slightly less silver

The 2026 plan is a trade-off worth noting. The company guides to slightly lower silver production next year, because higher prices make lower-grade ore economical to process. It will push more material through its mills, but at a lower average grade, so a little less silver comes out the other end.

Costs rise as grade falls. All-in sustaining cost, or AISC — the full cost of producing an ounce, including the spending needed to keep the mines running — is guided to $26.15 to $27.91 per ounce for 2026. The host presents this as normal industry behavior when prices are high: mines work through lower-grade ore that becomes profitable at those levels.

## A balance sheet that stands out

The video returns twice to the balance sheet. As of September 30, the company held $435 million in cash and a total treasury of $569 million. It also carries a $350 million convertible debenture — debt that can convert into shares. The host calls this a strong position for a silver miner, a sector where he says clean balance sheets are rare, and expects the February 19 fourth-quarter report to show an even cleaner picture.

## Context and caveats

Before the company specifics, the host sets a broader stage. He points to a ratio of silver miners to the silver price that recently spiked to a level that preceded big rallies in silver stocks the last two times it appeared, and he thinks history could repeat. He also notes that investor Rick Rule recently sold about 80% of his silver and moved some of that capital into silver miners, which the host reads as a vote of confidence in the sector.

Two caveats sit inside the video itself. Rising AISC and slightly lower planned production mean the margin story depends on silver staying high. The same leverage that lifts the stock in a rally would work in reverse if the price falls. The host also discloses that he owns shares in the company, so viewers should weigh his enthusiasm accordingly.

As analysis, the video is a short retail overview rather than deep research. There is no discussion of valuation, reserve life, or mine-by-mine economics, and the concentration of all production in Mexico goes unexamined. But on its own terms it delivers a clear, specific thesis: a high silver revenue share, production growing off the Gatos deal, modestly rising costs, and a cash-heavy balance sheet, with the February 19 fourth-quarter report as the near-term test.