Core Insights - Warren Buffett's prediction regarding silver prices has materialized, with a significant increase in silver prices over the past three years, approximately 150% [4][7] - The imbalance between silver supply and demand continues, with the world consuming 149 million more ounces of silver than produced last year [6][14] Industry Overview - The silver market has experienced a bull run, driven by robust industrial demand and inelastic supply, as mine production has increased by less than 1% in 2024 [4][6] - The ongoing trend of silver demand outpacing supply is expected to persist, marking the fifth consecutive year of this deficit, with over 100 million ounces expected [14] Company Analysis: First Majestic Silver - First Majestic Silver is positioned as a near pure-play silver miner, with 57% of its revenue derived from silver, significantly higher than its peers [11] - The company reported a record quarter with 3.9 million ounces produced, reflecting a 96% year-over-year increase in production [11][12] - First Majestic's all-in sustaining costs for silver range between $14.80 to $15.80 per ounce, ensuring profitability as long as silver prices remain above this threshold [11] - The company's revenue surged by $139 million in Q3, with $73 million attributed to increased silver production and $66 million from rising silver prices, indicating strong operational performance [12] - Despite a high price-to-earnings ratio of 113, the company's significant revenue growth positions it well for future valuation adjustments [13]