COMPANY INTRODUCTION
Silver Crown Royalties is a fast-growing silver royalty company already generating cash flow and steadily adding new royalties to its portfolio, which is increasing in size. A unique selling point of the firm is that it is the only pure-play silver royalty company on the market, offering investors exposure to silver production from various operations and geographies. Having listed only in July 2024, the company already has three producing royalties in its portfolio, as well as two developing ones.
Silver Crown Royalties targets royalties from operations where silver is only a by-product and not a significant economic driver (usually less than 2% of revenue). Producing and developing companies are more inclined to enter into royalty agreements on a by product than on an element that is a key economic driver. This broadens the opportunity set of investments for Silver Crown Royalties, which estimates that globally, around 350 Moz of silver production goes unreported due to being a minor component of the overall economic value of many projects. Capturing only 10% of this market would equate to more than US$100 million in revenue from silver royalties.
The company diligently reduces investment risk by acquiring royalties in stages. Payments to acquire a royalty are made when certain milestones are achieved, delaying initial outlays, which is beneficial to the valuation of each deal. This also provides Silver Crown Royalties with an option to exit the deal if a project does not perform as desired and even recoup part or all of the initial investment.
Investment Highlights
- Silver Crown Royalties (SCRI or Company) is the only pure-play silver royalty
company on the market. It is quickly establishing itself as the go-to name for non-dilutive
financing and an ideal vehicle for investors to gain diversified exposure to silver. - Rapidly increasing revenues: Listed in July 2024, the company’s revenues are on a steep growth trajectory. Revenues have grown 286% from Q3 2023 to 04 2024. The rate of revenue growth is expected to remain strong.
- Proof of concept: Silver Crown Royalties' strategy for selecting and acquiring has proven highly effective. The experienced and well-connected team at Silver Crown Royalties continues to add value accretive royalties to the portfolio and is gaining momentum.
- We are maintaining coverage with a BUY rating for the company and a target price of $32.34 per share over a 12-month period.
