Strategic Listing on Cboe Canada Marks New Growth Phase for Silver Royalty Company

Silver Crown Royalties Inc. (SCRI:CBOE) announced yesterday that its common shares are now listed for trading on the Cboe Canada Inc. stock exchange under the symbol "SCRI." The listing on Cboe Canada marks a significant milestone for the company, enhancing its visibility and providing a platform to further its strategic ambitions.

The listing on Cboe Canada, effective as of yesterday, represents a crucial step for Silver Crown in its growth journey. Silver Crown's CEO, Peter Bures, expressed enthusiasm about this development, highlighting the alignment of Cboe Canada's innovative exchange with the company's vision in the company news release.

"We are very excited to be listed on Cboe Canada, an innovative exchange that aligns with our vision. The Cboe Canada platform will enable us to achieve our ambitions more effectively and at a substantially lower cost of capital. Silver Crown is excited about executing the pipeline as we move forward, and we are confident the public listing of the company will further our shareholders' success," Bures stated.

Cboe Canada, operational since 2015, is a Tier 1 stock exchange dedicated to the purpose-driven Innovation Economy. It provides a robust listing experience for issuers shaping future economies. As part of the Cboe Global Markets network, Cboe Canada offers deep international expertise, market intelligence, and advanced technology to deliver essential services to stakeholders globally.

In addition to this, on July 26, Silver Crown Royalties Inc. announced that it had reached an agreement with Elk Gold Mining Corp., a wholly owned subsidiary of Gold Mountain Mining Corp. (GMTN:TSX;GMTNF:OTCMKTS), to amend the payment terms of its royalty agreement dated May 11, 2023. Pursuant to the terms of the Letter Agreement, Elk Gold paid an initial $10,000 cash payment to Silver Crown on July 25, 2024. Additionally, Elk Gold and GMTN agreed to pay Silver Crown the remaining $121,483.86 payable under the Royalty Agreement by September 30, 2024. Regular quarterly royalty payments are expected to resume on October 30, 2024.

Peter Bures, Silver Crown's CEO, commented in the news release, "We are pleased to acknowledge this resolution with Elk Gold regarding the royalty payments that are due to the Company. This arrangement reflects a strong mutual commitment to good faith and reinforces our belief in maintaining a positive and long-term relationship with our valued partners. We look forward to continuing our collaboration and achieving mutual success."

Silver Sector Poised for Growth Amid Market Resilience and Strategic Investments

The silver sector has demonstrated resilience and potential for significant growth, particularly through companies like Silver Crown Royalties Inc. On July 9, Investing News highlighted that "Silver Crown Royalties represents an economically and ecologically efficient investment, focusing on generating consistent and growing income through its unique silver mining royalty interests." The company has leveraged its position as a pure-play silver equity company to offer organic growth, exploration upside, and, ultimately, dividends, making it a compelling option in the silver market.

But why silver?

FX Leaders reported on July 25 that despite market fluctuations, "these factors have traditionally supported silver's role as a safe-haven asset." The report noted that silver's appeal as a safe-haven asset remained robust amid weak economic data and potential monetary easing. The anticipation of a potential rate cut by the Federal Reserve could bolster silver prices, making it an attractive asset in times of economic uncertainty. Former New York Fed President William Dudley's comments about a potential imminent rate cut to stave off recession fears have amplified expectations of monetary easing, providing a floor against further declines in silver prices.

According to FX Empire on July 24, "Investors are awaiting crucial U.S. economic data that could influence the Federal Reserve's interest rate decisions." The PCE index, the Fed's preferred inflation gauge, will be particularly significant for monetary policy guidance. Market participants are anticipating the first interest rate cut in September, which could support silver prices. "Traders are anticipating two more rate cuts by year-end, potentially providing a boost to silver as an asset," the article stated.

On July 16, Hubert Moolman wrote about the potential for significant rallies in the silver market. "The takeaway from this should be that we are close to a period where massive (sustained) silver rallies will likely occur," Moolman explained. Historically, silver has rallied on a sustained basis for at least two years before reaching significant peaks, and Moolman indicated that the best rallies are still ahead.

Silver Crown's business model has also been a point of interest. Peter Bures, the company's CEO, emphasized, "An investment in Silver Crown is a protection against currency devaluation." This sentiment reflects the company's strategic approach to maintaining excess cash in silver bullion and acquiring guaranteed silver delivered as a by-product from mining operations. This model positions Silver Crown uniquely in the market to also eventually offer dividends from free cash flow while economically aligning with operators and explorers. 

Silver Crown Catalysts

The public listing of Silver Crown on Cboe Canada is expected to be a catalyst for growth and enhanced shareholder value. By leveraging Cboe Canada's platform, Silver Crown aims to minimize its capital costs while expanding its royalty portfolio. The listing facilitates greater investor trust, quality liquidity, and broad market awareness, which are critical for the company's strategic execution.

As explained in the press release, Silver Crown is a revenue-generating silver-only royalty company. The company focuses on silver as byproduct credits, striving to minimize the economic impact on mining projects while maximizing shareholder returns. Currently, Silver Crown has two primary sources of revenue, and the public listing is anticipated to accelerate the company's growth trajectory and operational effectiveness.

Expert Insight Into Silver Crown Royalties

The Investing News Network provided insights into Silver Crown Royalties, highlighting the company's strategic positioning in the silver market. In May 2024, silver prices breached $30/oz as investor demand drove prices to their highest levels in over a decade. Strong imports and low stocks in China, reflecting robust solar industry demand, were expected to maintain momentum as economies ramped up their clean energy ambitions. With mine supply struggling to keep pace with demand, further price appreciation was considered likely, making Silver Crown Royalties well-placed to leverage this positive silver market.

As a pure-play silver equity company, Silver Crown offered organic growth, exploration upside, and, eventually, dividend payments. The company's business model included acquiring a guaranteed amount of silver delivered as a by-product from mining operations, ultimately paying a dividend to shareholders, and keeping all excess cash in silver bullion. Peter Bures, founder, chairman, and CEO of Silver Crown, stated, "An investment in Silver Crown is a protection against currency devaluation." 

The article went on to specify how diversification was seen as a key strategy for Silver Crown, with the objective to grow its portfolio to more than 200 silver-only royalties that pay dividends, creating more value for shareholders. The company was led by board members, founders, and advisors with hundreds of years of collective experience in world-renowned international brokerage, royalty, fund management, and mining companies. 

Silver Crown's significant agreements included a royalty purchase agreement with Gold Mountain Mining on 90% of the aggregate gross proceeds of silver sold from the Elk Gold Mine, a definitive agreement providing for 90% of the silver sold from Pilar Gold's PGDM complex in Brazil, and a royalty purchase agreement with Tucano Gold, ensuring delivery of 90% of the payable silver produced from the Mina Tucano project. The company also has numerous LOIs outstanding with producers and developers. 

Ownership and Share Structure

According to the company 28% of the company is with management, insiders, and friends and family.

17% is with institutional investors. 

6% is with corporate investors, and the rest is with retail.

Important Disclosures:

1. Silver Crown Royalties Inc. has a consulting relationship with an affiliate of Streetwise Reports, and pays 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 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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