Silver Crown Royalties (SLCRF, SCRI) is a publicly traded silver royalty company dedicated to generating free cash flow. Silver Crown currently holds five silver royalties. Its business model offers investors exposure to precious metals, providing a natural hedge against currency devaluation while mitigating the adverse effects of production-related cost inflation. Silver Crown strives to minimize the economic burden on mining projects while simultaneously maximizing shareholder returns.
- Silver Crown Royalties Closes Strategic Investment with Michael Gentile
- From Gentile’s January Newsletter – New 19% Strategic Investment in Silver Crown Royalties (SCRI)
As I mentioned above, I have not been this excited about a new investment in a long time.
SCRI is a rare combination of minimal long-term downside due to its royalty business model and its low valuation, along with massive long-term upside due to its large and proprietary addressable market opportunity in the Silver royalty space.
SCRI is the first-ever royalty investment in my portfolio and is 100% exposed to Silver at a small micro cap of $50M CAD
Some quick facts about SCRI
SCRI is the only pure silver royalty company in the market with pure 100% exposure to the Silver price.
SCRI does not compete in the typical stream and royalty space; SCRI creates its own royalties specifically on silver at the project level (mine, mill, recycling plant, or otherwise)
Since all royalties are created by SCRI (less competition), the target economics are excellent (target 25-30% IRR or higher vs their peers at 5-10%)
SCRI essentially runs a portfolio of royalties the same way a fund would invest in equities – diversification, market-weight positions to reduce risk, and building of positions (i.e. sequential capital deployment into royalties if they’re working) as their base of royalty acquisitions expands, the portfolio becomes more and more valuable.
Management has on the ground engineering/geology, buy side, sell side, accounting, mining law, and banking experience.
Tight Capital Structure: Only 4M shares outstanding, no options, minimal founder shares, and warrants that are tightly held by only a few holders
Management Alignment : And the CEO is the 3rd largest shareholder (I am now the largest shareholder)
FCF inflection SCRI will hit a FCF point in 2H26 and due to its royalty model, will generate FCF in perpetuity going forward at larger and larger amounts as they expand the portfolio via acquisitions. I expect a dividend policy to be implemented in 2027 as their FCF expands again.
Economic moat – first mover in silver-only royalties, can create royalties where there are no reserves/resources on Silver, where its a very small portion of the overall production of a gold or base metals deposit.
Valuation – Compared to its peers, SCRI trades at a 50% discount on 2026 cash flow numbers and an even wider discount off 2027 despite having the best growth profile by far of its peer group.
Pipeline: Of all the royalty companies in the sector SCRI has by far the best growth pipeline of acquisitions due to its proprietary nice and small size, SCRI is positioned to grow much much faster than its peers from a base of 70,000 oz of Silver today I see the potential for SCRI to be at 10M oz of Silver in the next 10 years, If they achieve that goal this will be a multi billion dollar market cap company from its starting point of $50M today
I plan to be a significant partner and contributor to the business, working alongside Peter and the team to build the best Silver Pure Play investment vehicle in the industry today.
Michael Gentile Video comment on the company:
