Royalty-Funded and Ready: A Quiet Player With Growing Cash Flow

Source: Streetwise Reports 12/16/2025

Silver Crown Royalties Inc. (SCRI:CBOE; SLCRF:OTCQX; QS0:FSE) is now fully funded through to free cash flow following its latest royalty deal and financing. The company believes market data has yet to reflect the full impact of its PPX asset and its growing production profile.

Silver Crown Royalties Inc. (SCRI:CBOE; SLCRF:OTCQX; QS0:FSE) stated that it is now fully funded through to free cash flow following the completion of its most recent financing and continued progress at its largest royalty asset, the PPX Igor Mine. According to the company, this shift represents a fundamental change that has not yet been fully reflected in market data.

“We are now, in fact, fully funded to free cash flow,” said Peter Bures, CEO of Silver Crown Royalties, in a call to Streetwise Reports. “We don’t have to raise one more dollar, and the market is totally missing this.”

Bures explained that the company’s October financing does not yet appear in most financial databases because it was completed after the quarter ended. “If you look at Bloomberg, Ibis, FactSet, or whatever other data provider you have, you only see the cash from the end of the quarter, which is like 400 grand,” he said. “But on a net basis, because we paid for the final portion of the PPX transaction, that’s what ultimately gets us to free cash flow.”

Silver Crown holds a 15% net smelter return royalty on silver produced as a byproduct from PPX’s Igor Mine. Bures said development updates from PPX have been publicly available, but the significance of the asset has not translated into broader awareness. “PPX is not a well-known story in North America,” he said. “Subsequently, because it is our most important royalty right now, nobody knows that we have this massive step function benefit coming in Q2 next year.”

The company expects the PPX mill to be commissioned in the first quarter of 2026, with full production anticipated in the second quarter. “That’s exactly what we’re expecting. That’s what they’re expecting,” Bures said, referring to public statements made by PPX management regarding development timelines.

Couloir Capital analyst Tim Wright reiterated a Buy rating on Silver Crown Royalties Inc. and set a 24-month price target of CA$44.40 per share.

Silver Crown estimates annual silver deliveries from the PPX royalty could range from approximately 56,000 to 112,500 ounces, with total life-of-mine deliveries exceeding 200,000 ounces. The royalty was acquired for an upfront US$2.5 million cash payment, with an additional US$2.5 million bonus tied to a doubling of deliverable ounces.

“We’re trading as if we need more capital,” Bures said. “But that’s just not true — we’re fully funded, and the market hasn’t caught up yet.”

The company currently holds five royalties, including two producing assets, two in near-term development, and one restart opportunity. According to Silver Crown, the combined portfolio carries a net present value of approximately US$56 million and a portfolio internal rate of return of over 25%.

Bures also addressed the company’s most recent financing, which was completed at CA$5.50 per unit and included three-year warrants exercisable at CA$8.25. “We’re not issuing equity below CA$10,” he said. “It would be tremendously disingenuous of me to go around and say the stock is cheap, and then turn around and issue equity.”

He added that Silver Crown continues to pursue royalty acquisitions through both cash transactions and equity-for-silver swaps executed at a premium to market prices. “We go to an operator and say, we’ll take your silver, you take our equity,” Bures said. “We priced equity at CA$10 when the stock was trading at CA$7.”

Bures also highlighted his personal alignment with shareholders. “I’ve just only ever been a consistent buyer,” he said, referring to his ongoing open-market share purchases.

Silver Market Dynamics and Industrial Demand

A December 10 report from Leede Financial highlighted the rapid expansion of photovoltaic (PV) capacity over the past decade, noting that global installed PV power had grown more than tenfold, with China accounting for 51% of that growth. Leede stated that silver demand from photovoltaics had outpaced demand from other industrial segments, increasing from 11% of total industrial silver use in 2014 to 29% in 2024. While PV installations rose more than tenfold during that period, silver demand for photovoltaics increased only threefold, a trend attributed to advances in technology that have reduced the amount of silver required per solar cell.

Peter Krauth, in a sector commentary also dated December 10, reported that silver had surpassed US$60 per ounce for the first time, calling it “another milestone record high.” He noted that this followed a move above US$50 per ounce less than two months earlier and cited tightening supply conditions as a key factor. Krauth referenced ongoing discussions with colleague Jeff Clark, pointing to “five straight years of global deficits, shrinking inventories and tightening supply,” while also emphasizing continued strong industrial demand and increased physical silver absorption in China.

The BBC reported the same day that silver had crossed the US$60 mark on the spot market ahead of a widely expected interest rate cut by the U.S. Federal Reserve. The article explained that investors often turn to precious metals in periods of falling interest rates and a weakening U.S. dollar. Yeow Hwee Chua of Nanyang Technological University stated that declining rates “naturally shift demand toward assets viewed as stores of value, including silver.”

The report added further context, attributing silver’s rise to both strong industrial use and constrained supply. Analysts pointed to silver’s growing applications in electric vehicles and solar technology. Kosmas Marinakis of Singapore Management University remarked that silver is “not only an investment asset but also a physical resource,” adding that more manufacturers are incorporating it into their production lines. The report also noted that silver supply has struggled to keep pace with demand, in part because the majority of global silver production occurs as a by-product of mining other metals, limiting the industry’s ability to quickly scale output.

Silver Royalty Stock Called ‘Pure-Play Leader’ With 628% Upside

On October 17, Couloir Capital analyst Tim Wright reiterated a Buy rating on Silver Crown Royalties Inc. and set a 24-month price target of CA$44.40 per share. At the time, the stock traded at CA$6.10, representing a potential upside of 628%. Wright described Silver Crown as “the only pure-play silver royalty company in the market offering investors access to a diversified portfolio of silver royalties.”

He highlighted the company’s consistent execution, pointing to average quarter-over-quarter growth of over 30% in royalty silver ounces and revenue since inception. Wright also noted that Silver Crown appeared “well on its way to becoming cash flow positive in the next 6–12 months.” The firm’s staged investment model, which deploys capital in tranches tied to milestones, was cited as a strategy that “minimizes risk” while leveraging in-house technical expertise and industry connections.

In the valuation analysis, Couloir Capital compared Silver Crown’s enterprise value to equity raised ratio of 1.27 to a peer group average of 11.57, later adjusting the latter to 9.25 to account for differences in business models. Using Silver Crown’s ratio, the report reaffirmed the CA$44.40 target and associated upside. Wright concluded that the company’s ability to scale its royalty portfolio with capital discipline positions it to benefit from increasing investor attention and silver market demand.

Cash Flow Visibility Strengthens Silver Crown’s Revaluation Case

Silver Crown’s near-term catalysts are centered around the PPX mill entering production in early 2026. The company projected free cash flow of CA$3 to CA$4 million in 2026, assuming silver prices between US$50 and US$60 per ounce. At CA$4 million, that would represent more than CA$1.00 per share in free cash flow on the current share count.

In its Q4 2025 presentation,Silver Crown emphasized its undervaluation relative to peers. Junior royalty companies with market capitalizations under US$1 billion are currently trading at over 40x sales, while Silver Crown currently trades at around 20x sales. The company noted it had historically traded between 12x and 25x trailing sales and suggested that the expected revenue from PPX in 2026 could support a step change in valuation.

The company’s five royalty assets include the operating PGDM complex in Brazil, which carries a 90% silver NSR and a minimum 16,000 ounce delivery obligation annually, and the BacTech project in Ecuador, with a similar NSR structure. Royalty agreements include structured bonuses for increasing production or advancing to commercial operations. The cumulative minimum deliveries across the portfolio for 2025 are estimated at around 22,000 ounces of silver, rising to over 60,000 ounces in 2026 based on internal forecasts. [OWNERSHIP_CHART-10873]

Silver Crown executives said the company remains focused on expanding its royalty base through both cash-based and equity-based transactions. Past deals have included share-based swaps where the company exchanged equity at a premium to market in return for silver royalties, a model they plan to continue.

Management also highlighted strong insider alignment, with more than 20% of shares held by insiders and over 22,500 shares acquired in the open market since the IPO.

Ownership and Share Structure ¹

Insiders and management, including their friends and family, hold a total of 28% of the company. Institutions own 14%, and private corporations have 9%, according to the Company’s investor presentation.

As for share structure, Silver Crown has approximately 3.81 million outstanding shares and a free float of about 3.38 million shares. Its market capitalization is around CA$23.2 million. Its 52‑week trading range is CA$5.27 to CA$7.83 per share.

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Important Disclosures:

1. Silver Crown Royalties 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.
3. James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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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1. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

( Companies Mentioned: SCRI:CBOE; SLCRF:OTCQX; QS0:FSE, )

Source: https://www.streetwisereports.com/article/2025/12/16/royalty-funded-and-ready-a-quiet-player-with-growing-cash-flow.html