Early Royalties and Silver Shortfall Reveal More Than First Thought at Canadian Projects

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Silver Crown Royalties Inc. (SCRI:CBOE; SLCRF:OTCQX; QS0:FSE) announced the receipt of royalty payments from two of its producing royalty interests. PPX Mining Corp. paid Silver Crown US$40,672.70 for the royalty period ending March 31, 2025, several weeks ahead of the scheduled due date. In parallel, Elk Gold Mining Corp., a wholly owned subsidiary of Gold Mountain Mining Corp. (GMTN), made an initial payment of CA$29,811.99 toward its royalty obligation for the quarter ended December 31, 2024. A residual payment of CA$30,070.25 is expected on or before March 31, 2025, as agreed in a letter dated February 5, 2025.

GMTN reported gold sales of 291 ounces for the quarter ended January 31, 2025, from 10,055 tonnes of ore grading 1.23 grams per tonne. These results reflected reduced operations due to a planned winter work program. As such, output from the Elk Gold Project aligned with the company's anticipated lower production levels during the quarter. Silver Crown's royalty agreement with Elk Gold requires a minimum quarterly payment equivalent to 1,500 ounces of silver. Based on the mine's historical silver-to-gold production ratio of 2:1, the current estimated silver production of approximately 573 ounces represents under 40% of the minimum delivery requirement, a shortfall covered by the royalty structure.

Silver Crown's CEO, Peter Bures, noted the strategic value of its royalty terms, stating in the announcement,  "We are thankful to PPX for their early royalty payment to SCRi, which showcases the successful ongoing operations at Igor 4. We are also encouraged by GMTN's payment as mining at Elk resumes following the winter work program . . . our minimum delivery provision has proven instrumental in mitigating additional downside risk associated with operating mines."

Precious Metals in a Shifting Global Economy

According to a March 13 analysis by Ahead of the Herd, uncertainty surrounding aggressive economic policies and tariffs from the U.S. government contributed to weakening investor confidence in U.S. markets. The S&P 500 fell sharply, the U.S. dollar lost ground, and Treasury yields dropped as capital shifted toward perceived safer assets. Bloomberg data cited in the article showed that "the U.S. share of world market capitalization has also slipped since peaking above 50% early this year," while European markets gained strength. The weakening U.S. dollar and investor retreat from equities highlighted a broader move into traditional hedges such as gold and silver. "Historically, gold and silver thrive when global economic conditions get worse," the article explained, reinforcing their reputation as safe-haven assets.

Also on March 13, in a detailed technical report titled Dollar Demise and Silver Surge: A Perfect Storm for Precious Metals, David Tablish underscored how silver was approaching a major inflection point. He noted that recent chart patterns indicated "the odds have just gone up dramatically" that silver's long-term bullish setup would continue, highlighting a "head-and-shoulders bottom" with a minimum price objective of US$66 per ounce. This perspective was supported by long-term technical formations dating back to the 1980s, which suggested that silver was in the early stages of a multi-year secular bull market. Tablish emphasized that silver's price had reached new monthly highs, showing signs of sustained strength.

Industrial and monetary fundamentals also remained strong. In a March 17 commentary, John Newell of John Newell & Associates emphasized silver's dual role as both a precious metal and an industrial input. He wrote, "With rising inflation concerns and central banks continuing to lose monetary policies, silver provides a means to preserve purchasing power." Newell pointed to silver's use in electronics, solar panels, and medical devices, suggesting that "as global industries expand and modernize, silver's demand is expected to rise." He noted that silver had recently reached US$35 and was building momentum, adding that historical patterns showed silver had previously achieved parabolic moves during strong uptrends.

Newell also stressed silver's affordability as a key driver of demand compared to gold. "Silver remains much more affordable," he observed, making it accessible to a broader range of investors, especially in emerging markets. This dynamic, he argued, positioned silver as a potential alternative store of value during periods of economic stress.

Forward Momentum Through Structured Royalties

Silver Crown's investor presentation highlights key mechanisms built into its royalty model designed to preserve investor protections and support operator success. Among its current royalty interests, the Elk Gold Project stands out due to its structured payments and long-term delivery potential. The company holds a 90% silver net smelter return (NSR) royalty on the project, which includes a minimum annual delivery obligation of 6,000 silver-equivalent ounces. This obligation remains in place regardless of output levels and has been designed to ensure consistent revenue flow.

The Elk Gold royalty was structured with contingent bonuses tied to production increases. Silver Crown has the right to receive CA$500,000 for each 2,000-ounce increase in annual deliveries up to 20,000 ounces.

Additionally, a CA$1 per ounce bonus is payable for each in situ mineral resource ounce added, providing exposure to future resource expansion. These provisions underscore a commitment to "crystallizing value" from silver byproduct streams that are often overlooked in primary gold-focused mining operations.

Couloir Capital analyst Tim Wright issued a favorable assessment of Silver Crown Royalties Inc. in a January 21 research note, maintaining a Buy rating and assigning a CA$32.34 target price. 

Silver Crown's other key assets include a royalty on the PGDM operations of Pilar Gold, with a minimum delivery obligation of 16,000 ounces per year and the potential to reach 32,000 ounces.

A third major asset is its royalty on a facility in Ecuador through BacTech Environmental, which has a minimum delivery obligation of 35,000 ounces annually upon development.

Combined, the current portfolio delivers a baseline of 22,000 ounces per year in silver-equivalent royalties, with expansion potential exceeding 80,000 ounces annually. According to company filings, all figures in Canadian dollars have been converted to U.S. dollars where necessary or clearly marked as Canadian dollars.

Silver Crown has also grown its portfolio through structured equity investments and staged payments, reducing upfront capital risk. This approach, along with recent definitive agreements and pipeline opportunities, has positioned the company for continued growth in royalty revenue. The company's model of applying minimum delivery obligations across its royalty agreements is aimed at generating consistent returns while maintaining minimal operational interference.

470% Upside Projected as Silver Crown Gains Traction in Tightening Market

Couloir Capital analyst Tim Wright issued a favorable assessment of Silver Crown Royalties Inc. in a January 21 research note, maintaining a Buy rating and assigning a CA$32.34 target price. He highlighted Silver Crown's unique position as the only pure-play silver royalty company and pointed to rapid growth, noting a 286% revenue increase from Q3 2023 to Q4 2024.

Wright credited strategic milestones for the company's momentum, including new listings on the OTCQX, CBOE Canada, and Frankfurt exchange in late 2024. He also cited the addition of Salman Partners to the advisory network as a move to boost visibility and secure further royalty opportunities.

Key acquisitions contributed to the company's expansion. Wright pointed to the CA$4.0 million BacTech royalty, which guaranteed a minimum of 35,000 ounces annually for at least ten years, and the royalty agreement with PPX Mining Corp. covering up to 15% of the Igor 4 project in Peru. He estimated the royalties could generate more than US$1 million (CA$1.43 million) in 2025 based on expected deliveries of 36,063 ounces of silver.

Wright acknowledged potential risks, including operational execution, commodity price fluctuations, market conditions, and dilution if non-dilutive financing is unavailable. Still, he emphasized Silver Crown's valuation advantage, citing an Enterprise Value/Equity Raised ratio of 1.0—well below the peer average of 5.7 — as a sign of significant upside. At the time of the report, Silver Crown shares traded at CA$6.70, with Wright projecting a 470% potential return.

Separately, The Gold Advisor reported that 2025 marked the fifth straight year of silver supply deficits despite a 3% rise in global supply. Industrial demand continued to drive consumption, particularly from solar, automotive, and electronics sectors. "Silver industrial fabrication is expected to grow by 3%, surpassing 700 million ounces for the first time," the report stated, underscoring the metal's expanding role in the green economy. Investor interest in silver as a hedge against economic uncertainty also remained strong amid geopolitical and inflationary pressures.

Ownership and Share Structure

Insiders and management hold a total of 21% of the company, institutions own 16%, and private corporations have 6%, noted Wright with Couloir.

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

As for share structure, Silver Crown has 2.49M outstanding shares and 2.1M free float traded shares. Its market cap is US$10.6 million. Its 52-week trading range is CA$6.50–9.85 per share.