Robust Silver Deliveries Drive Record Quarterly Revenues and Growth

Source: Streetwise Reports 11/11/2024

Silver Crown Royalties Inc. (SCRI:CBOE; SLCRF:OTCQX; QS0:FSE) announced record quarterly revenues in its financial results for the third quarter ending on September 30, 2024. Read more about the impressive growth in silver deliveries and how the company is strategically positioned for continued expansion.

Silver Crown Royalties Inc. (SCRI:CBOE; SLCRF:OTCQX; QS0:FSE) announced record quarterly revenues in its financial results for the third quarter ending on September 30, 2024. The company recorded payments for 4,245 ounces of silver, generating approximately US$120,000. This performance marks a significant 47% increase over the prior quarter’s silver deliveries of 2,880 ounces, and an impressive 183% rise compared to the 1,500 ounces delivered in the third quarter of 2023. These figures highlight a robust year-over-year revenue growth of 286%, driven by both increased silver prices and enhanced production levels.

Peter Bures, Silver Crown’s Chief Executive Officer, commented in the press release, “We’re very proud to note that over the last year, we were able to increase silver delivery payments by 183%. Further, we increased revenues by almost 300% while the silver price increased 40% over the same timeframe. With our robust pipeline of opportunities, we continue to target aggressive silver delivery growth into next year and beyond.”

The State of Silver

On October 25, CBS News highlighted silver’s impressive performance throughout 2024. The report pointed to prices climbing nearly 42% from US$23.76 per ounce at the start of the year to US$33.67. The article noted silver’s unique role as both a precious metal and an industrial commodity, driven by significant demand from sectors like renewable energy and electronics manufacturing. According to the report, “The global push toward green technology, especially in solar panel production, continues to drive industrial demand for silver,” underpinning a strong price outlook.

In an October 29 note, Technical Analyst Clive Maund noted silver’s favorable “buy spot” after a breakout pattern. Maund predicted continued gains and an initial target of US$50 per ounce. He emphasized that silver was positioned for potential rapid appreciation, attributing this trend to a combination of market forces, geopolitical factors, and a long-term technical pattern that he believed made this a significant period for silver investors.

Ahead of the Herd reported on November 5 that silver’s price had surged 46% year-to-date, reaching US$34, the highest level since 2012, driven by physical demand in India and China as well as renewed investment interest. Richard Mills remarked, “Silver looks ready to rip,” reflecting optimism about the metal’s future. Additionally, silver ETFs showed strong inflows, reinforcing a positive outlook.

Silver Crown Catalysts

Silver Crown’s growth is supported by key catalysts, as outlined in its Q4 2024 investor presentation. The company has pursued a unique royalty model focused on securing high returns from byproduct minerals while minimizing the impact of cost inflation associated with mining operations. This model has allowed Silver Crown to double its annualized revenue run rate. Currently, the company holds four royalties, two of which are revenue-generating silver-only assets, marking a first for the industry.

To sustain and expand these revenue streams, Silver Crown continues to strategically target new royalty acquisitions and expects increased silver deliveries through additional projects slated for 2025. Recent financing rounds have raised more than US$3.7 million in capital, which the company is reinvesting in its current operations and future acquisitions. This growth strategy is positioned to leverage Silver Crown’s pioneering approach in the silver royalty market, capturing substantial gains for stakeholders through its efficient, revenue-focused model.

Analysts on Silver Crown

Couloir Capital covered Silver Crown Royalties Inc. in September and offered a Buy rating, highlighting a CA$31.20 per share fair value, which represented a 285% upside from the share price of CA$8.10 at the time of the report. [OWNERSHIP_CHART-10873]

Analyst Tim Wright noted, “Based on the large opportunity set of silver royalties available and Silver Crown’s first mover advantage, we believe the company was well-positioned to grow rapidly and become a household name in the silver royalty space.”

Wright further detailed Silver Crown’s strategy to expand its royalty portfolio, with the firm targeting smaller revenue-contributing silver projects, thus allowing operators to benefit from silver without significantly impacting profits from primary minerals. He observed that, while Silver Crown’s track record was still developing, “the company can source and add new royalties to its portfolio with some consistency,” with the potential for generating significant cash flows in the near future.

Ownership and Share Structure

Insiders and management hold a total of 21% of Silver Crown Royalties. Institutions own 16% and private corporations have 6%, noted Wright.

“Insider ownership by management aligns management’s interests with those of shareholders, which is a desirable attribute,” he added.

Regarding share structure, the royalty company has 2.3 million (2.3M) outstanding shares, 474.9K in CA$8 warrants, 757.1K in CA$16 warrants and 66.3K in restricted stock units, for a total of 3.7M fully diluted shares.

Silver Crown’s market cap is CA$18.7M.

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Important Disclosures:

1. 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.
2. 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.
3. James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
4. 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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( Companies Mentioned: SCRI:CBOE; SLCRF:OTCQX; QS0:FSE, )

Source: https://www.streetwisereports.com/article/2024/11/11/robust-silver-deliveries-drive-record-quarterly-revenues-and-growth.html