Silver Crown Royalties Inc. (SCRI:CBOE; SLCRF:OTCQX; QS0:FSE) announced the closing of the final tranche of the silver royalty on PPX Mining Corp.'s (PPX:TSX.V) Igor 4 project in Peru, reported Couloir Capital Analyst Tim Wright in an October 17 research note. Silver Crown paid the final US$637,000 due to acquire the remaining 3.9% balance of the 15% cash equivalent royalty.
"This paves the way for Silver Crown Royalties to receive an annual royalty covering 56,250 ounces a year for the next four years, which is equivalent to US$2.81 million (US$2.81M) per year," Wright wrote. "At current silver prices, the company is set to receive US$11.25 million in royalty payments over the next four years, on a royalty which it paid US$2.5 million for."
628% Upside Implied
Couloir Capital maintained its CA$44.40 per share fair value target price on this pure play silver royalty company, trading at the time of Wright's report at about CA$6.10 per share, the analyst noted.
From this share price, the return to target is 628%. Silver Crown remains a Buy.
Recap of Year's Events
Wright presented Silver Crown's other key developments since September 2024, when Couloir Capital initiated coverage on the company. In addition to completing payments for the Igor 4 project royalty, they are:
Another Royalty: Silver Crown acquired and closed the EDM Resources Inc. (EDM:CVE) royalty agreement, on 90% of net silver proceeds or a minimum of 7,000 ounces (7 Koz) of silver production per year at the past-producing Scotia mine in Nova Scotia. The term of the royalty, to begin with the start of commercial production, is for 10 years. For the royalty, Silver Crown paid CA$500,000, issued 60,000 units of SCRI shares and issued an equivalent number of share purchase warrants.
A Royalty Setback: Silver Crown will not have money coming in from its royalty with Gold Mountain Mining Corp. in the near term. This is because on Aug. 1 it became known that Gold Mountain Mining Corp. and its two subsidiaries, Bayshore Minerals Inc. and Elk Gold Mining Corp., were to be placed into receivership for an unpaid outstanding balance of CA$11.2M owed to Nhwelmen Construction.
All is not lost, however, for Silver Crown, Wright noted, because this royalty is secured to the asset not the operating company. This means that if a new operator restarts the project, either the royalty would kick in with production or an agreement would be made to buy Silver Crown out of the royalty, "either of which would be favorable," the analyst added. The royalty is for a minimum of 6 Koz of silver equivalent cash per year, with the potential for more with greater production.
A Successful Financing: Earlier this month, Silver Crown closed an oversubscribed financing for gross proceeds of CA$3.3M. It used the funds to finalize the PPX Mining and EDM Resources royalty deals.
Added Technical Expertise: Silver Crown appointed Christian Aramayo, a chartered engineer, as an adviser to the company. Now chief operating officer and director at Kuya Silver (with which Silver Crown Royalties signed a letter of intent for a silver royalty), Aramayo has nearly 20 years' experience at many projects in varied jurisdictions, including Pueblo Viejo, Paracatu, Fruta del Norte and Tasiast.
Achieved Growth: Since founding, Silver Crown averaged 31% quarter-over-quarter growth in royalty silver ounces and in revenue.
Investment Highlights
Along with this "impressive growth," there are two other key highlights of the Silver Crown investment story, Wright wrote and reviewed them. One is the company's status as the only pure-play silver royalty company in the market and its related benefit of first mover advantage. The company acquires royalties from mines where silver is produced as a byproduct and the metal typically accounts for less than 2% of total revenue.
According to management, an estimated 350,000,000 ounces of total silver production globally are unreported each year, and capturing even just 10% of this amount could yield more than US$100M in potential royalty revenue.
Also noteworthy is Silver Crown's strategic approach to royalty dealmaking, which aims to minimize risk and "return metrics of investments," Wright pointed out. The company stages its investments and ensures capital tied to its royalty agreements is deployed in tranches when certain project-related milestones are reached.
Capital Structure and Ownership
Wright reported that with respect to ownership of Silver Crown, management holds 20%, friends and family have 8% and institutions hold 23%.
The company's capital structure is tight with only 3.8M common shares outstanding. It has 1.99M warrants outstanding, at a weighted average exercise price of just under CA$13, most of which expire in 2028. Because the exercise prices are significantly higher than SCRI's share price, the warrants likely will not be exercised now. However, when they are, they will cause shareholder dilution but also bolster the company's treasury by CA$25.7M, much more than the total of any of Silver Crown's previous capital raises.
What to Expect
Silver Crown will continue to expand its silver royalty portfolio, noted Wright. Because it has a pipeline of projects for royalty agreements and has shown it can raise the required capital, Couloir Capital expects more deals to happen and thus more growth in the months ahead.
"We expect the firm to turn cash flow positive in the next six to 12 months," the analyst wrote.
Once this happens and portfolio revenues increase, Silver Crown "will be able to raise debt on the back of those cash flows, which will substantially reduce their cost of capital and further boost revenue growth," Wright added.
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Important Disclosures:
- Silver Crown Royalties Inc. has a consulting relationship with Street Smart an affiliate of Streetwise Reports. Street Smart Clients pay a monthly consulting fee between US$8,000 and US$20,000.
- As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Silver Crown Royalties Inc.
- Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
- This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.
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Disclosures for Couloir Capital, Silver Crown Royalties Inc., October 17, 2025
This report has been prepared by an analyst on contract with or employed by Couloir Capital Ltd. The analyst certifies that the views expressed in this report, which include the rating assigned to the issuer’s shares as well as the analytical substance and tone of the report, accurately reflect his or her personal views about the subject securities and the issuer. No part of his / her compensation was, is, or will be directly or indirectly related to the specific recommendations. Couloir Capital, its affiliates, and their respective officers, directors, representatives, researchers, and members of their families may hold positions in the companies mentioned in this document and may buy and/or sell their securities. Additionally, Couloir Capital may have provided, in the past and may provide, in the future, certain advisory or corporate finance services and receive financial and other incentives from issuers as consideration for the provision of such services. Couloir Capital has prepared this document for general information purposes only. This document should not be considered a solicitation to purchase or sell securities or a recommendation to buy or sell securities. The information provided has been derived from sources believed to be accurate, but cannot be guaranteed. This document does not consider the particular investment objectives, financial situations, or needs of individual recipients and other issues (e.g., prohibitions to investments due to law, jurisdiction issues, etc.) that may exist for certain persons. Recipients should rely on their own investigations and take their own professional advice before making an investment. Couloir Capital will not treat recipients of this document as clients by virtue of having viewed this document. Company-specific disclosures, if any, are below: 1 In the last 24 months, Couloir Capital Ltd. has been retained under a service agreement by the subject issuer. This service agreement includes analyst research coverage. 2 The views of the Analyst are personal. 3 No part of the Analyst’s compensation was directly or indirectly related to the specific ratings as used by the research Analyst in the Reports. 4 The Analyst does not maintain a financial interest in the securities or options of the Company. 5 Couloir Capital does maintain a financial interest in the securities or options of the Company. 6 The information contained in the Reports is based upon publicly available information that the Analyst believes to be correct but has not independently verified with respect to truth or correctness.
Investment Ratings—Recommendations Each company within an analyst’s universe, or group of companies covered, is assigned: 1 A recommendation or rating, usually BUY, HOLD, or SELL; 2 A 12-month target price, which represents an analyst’s current assessment of a company’s potential stock price over the next year; and 3 An overall risk rating which represents an analyst’s assessment of the company’s overall investment risk. These ratings are more fully explained below. Before acting on a recommendation, we caution you to confer with your investment advisor to determine the suitability of our recommendation for your specific investment objectives, risk tolerance, and investment time horizon. Couloir Capital’s recommendation categories include the following: Buy The analyst believes that the security will outperform other companies in their sector on a risk-adjusted basis or for the reasons stated in the research report the analyst believes that the security is deserving of a (continued) BUY rating. Hold The analyst believes that the security is expected to perform in line with other companies in their sector on a risk-adjusted basis or for the reasons stated in the research report the analyst believes that the security is deserving of a (continued) HOLD rating. Sell Investors are advised to sell the security or hold alternative securities within the sector. Stocks in this category are expected to under-perform other companies on a risk-adjusted basis or for the reasons stated in the research report the analyst believes that the security is deserving of a (continued) SELL rating. Tender The analyst is recommending that investors tender to a specific offering for the company’s stock. Research Comment An analyst comment about an issuer event that does not include a rating. Coverage Dropped Couloir Capital will no longer cover the issuer. Couloir Capital will provide notice to clients whenever coverage of an issuer is discontinued. Following termination of coverage, we recommend clients seek advice from their respective Investment Advisor.
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