Silver Crown Royalties Inc. (SCRI:CBOE; SLCRF:OTCQX; QS0:FSE) achieved eight consecutive quarters of "staggering" 30%-plus quarter-over-quarter revenue growth since Q2/23, reported Couloir Capital Analyst Tim Wright in a July 16 research note.
"We expect the firm's revenues to continue increasing at a rapid pace, as they have done so far, while overheads and costs are expected to remain relatively steady, implying a rapidly growing net profit margin in the years to come."
539% Return Implied
Silver Crown's share price at the time of Wright's report was about CA$7.15, the analyst noted. The company was trading at a discount to peers, at an enterprise value:equity raised ratio of 1.23 versus the peer average of 7.15.
As such, Couloir assigned the royalty firm a 24-month fair value target price of CA$45.67, representing 539% upside from the CA$7.15 price.
Silver Crown Royalties remains a Buy. Its shares outstanding total 3 million (3M). Its market cap is CA$21.5 billion.
What to Know
Wright made three key points about Silver Crown. It is the only publicly traded, pure-play silver royalty company and as such, offers investors a unique, diversified entry point into the silver market.
The company's growth has been impressive, a trend that is expected to continue.
Silver Crown continues to add to its portfolio of royalty assets, making bigger and bigger deals as it does. It has three producing royalties, one in development and one in the closing phase. Already the company is generating cash flow.
"With the deals already agreed and currently in the pipeline, we can expect the revenue figures to rise substantially in the quarters ahead, which will support the share price," the analyst wrote.
Silver Crown's approach to selecting and acquiring royalties is proven by its track record. The company's strategy includes securing royalties from projects where silver is produced as a byproduct and contributes less than 2% to revenue. Wright pointed out that even if the company captured only 10% of this market, it would equate to US$100 million-plus (US$100M-plus) in revenue. Another of Silver Crown's strategies is to acquire royalties in tranches tied to project milestones, to mitigate risk.
"We can expect dealmaking to continue and the royalty portfolio to grow," Wright wrote.
Accomplishments in H1/25
Wright reported Silver Crown's major achievements since Couloir Capital's last report on the company, in January 2025.
Tranche Closed: The company closed the first tranche of the royalty on PPX Mining Corp.'s (PPX:TSX.V; PPX:BVL) Igor project in Peru, of US$1M, for which it received a 6% cash equivalent of silver production. Silver Crown is to pay another US$1.5M within six months of the first tranche's closing to obtain the full royalty value of 15%. PPX is to deliver a minimum of 14,062.5 ounces of silver to Silver Crown each quarter for a total of up to 225,000 ounces (225 Koz). PPX made its first payment to Silver Crown in March of US$41,000.
LOI Signed: Silver Crown signed a letter of intent with Kuya Silver Corp. (KUYA:CSE; KUYAF:OTCQB) in June for a 4.5% royalty on silver produced from its Bethania mine in central Peru for a proposed US$3M in cash plus US$2M in shares sold at a specific price. According to the proposed deal, Kuya would deliver 4.5 Koz of silver in the first four quarters, 9 Koz in quarters five to eight and 12,375 ounces in quarters nine to 40. Once Kuya delivered 475 Koz, the royalty would drop to 1% of silver produced.
This royalty deal would add near-term revenue to Silver Crown's portfolio and could take the amount of silver the company has contracted under royalty agreements to 100 Koz per year by 2026.
"That amount of silver ounces would provide Silver Crown with significant funds to deploy into new deals, enabling it to grow organically and reduce its reliance on equity financings to fund growth," Wright wrote.
Capital Attracted: Silver Crown raised $3M in five tranches. It will apply most of the proceeds to the PPX royalty acquisition and with the rest, cover general and administrative costs.
"In an environment where many smaller firms in the sector struggle to attract capital, SCRI continues to raise the fresh capital needed to pursue its accretive growth strategy," noted Wright.
Silver Purchased: With part of its working capital, Silver Crown bought 1 Koz of physical silver at US$30.15 per ounce (US$30.15/oz) because, it said, investors in the company want to invest in silver not fiat currency. After the purchase, the silver price rose and surpassed US$38/oz, thereby increasing the value of Silver Crown's acquired silver.
Structure Maintained: Silver Crown maintained a "very tight" share structure, noted Wright, with only 3M shares outstanding, and a favorable ownership breakdown. Management owns 21%. Institutions and corporations, including Euro Pacific Asset Management, U.S. Global Investors and Investor Stratum Resources, hold 22%. Retail investors own 47%.
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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., July 16, 2025
DISCLAIMER 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 by the subject issuer under a service agreement that 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 The principal of Couloir Capital maintains a financial interest in the securities or options of the Company through an affiliated hedge fund entity. 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.
