Silver Crown Royalties (CBOE:SCRI) has completed a successful private placement of approximately CAD 3.3 million. According to the company, the fresh capital fully finances it until it reaches positive cash flow in 2026.
In a conversation with Arne von Battery Commodity, CEO Peter Bures explains that Silver Crown has now created the necessary basis to complete the existing transactions and monetize ongoing royalty interests. Based on the deals already concluded, the company expects CAD 2 to 3 million of free cash flow per year, depending on the development of the underlying commodity prices.
In addition to classic mining investments, Silver Crown Royalties is also working on innovative royalty structures outside of traditional mining, for example in the areas of recycling and reprocessing. This gives the company a special position in the market and opens up additional sources of income in safe jurisdictions such as Canada and Nevada.
When asked about the current silver price, which temporarily exceeded the 50 USD mark this year, Bures continues to see attractive opportunities for royalty deals despite the upward trend:
“Even in a bull market, the cost structure of many mining companies remains strained. Royalty financing is therefore often the cheaper alternative to equity financing.”
In the long term, Bures refers to the structural supply shortage on the silver market. Global annual production has been limited for years, while demand – especially from the
Despite the strong increase in the price of silver since 2022, the valuation of its own shares has so far lagged behind the metal price development.
“We are now fully financed, do not have to issue any further shares and expect positive cash flow as early as next year. This creates considerable upside potential for our valuation,” says Bures.
With this starting position and a clear strategy towards cash flow generation, Silver Crown Royalties believes it is in an excellent position to benefit from the ongoing trend of rising industrial metal prices.
