Couloir Capital is pleased to announce it has initiated research coverage on Silver Crown Royalties Inc. (CBOE CA: SCRI) (OTCQX: SLCRF) (‘SCRI,’ or ‘Company’). The new report by Couloir Capital’s Mining Analyst, Tim Wright, MSc., CFA, is titled ‘An emerging pure-play silver royalty company.’
Report excerpt: ‘With the royalty and streaming business model, the royalty/streaming company provides funds to an operation (exploration, mining, mill, autoclave) in need of capital and, in return, either receive a portion of future revenue generated by an operation (royalty) or a portion of the physical metal produced (streaming). Royalties often cover multiple minerals or metals and offer no investor protection but are generally registered on title. Streams offer minimal protection for investors, are generally not registered on title, tend to cover a single element/mineral, and are considered a secured debt instrument. Registered on title means that a royalty/streaming agreement is legally recognized and attached to the property itself. This ensures that the rights to receive proceeds from any production remain intact if the property is transferred or sold.
Figure 1: Map showing SCRI royalties
Source: SCRI corporate presentation
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Silver Crown Royalties combines the best attributes of the streaming and the royalty model into one business. A key feature of SCRI is that it focuses only on silver royalties (90% silver only), setting it apart from other companies that pursue the royalty business model. It increases investor protection by ensuring all royalties are always registered on title, tying a minimum delivery obligation to funding, and spreading out investments in tranches contingent on certain milestones being achieved. The royalties should be mutually beneficial to both parties involved. SCRI’s strategy involves acquiring silver royalties in projects and operations where silver’s contribution to overall expected revenue is small (usually under 2%). This is important because it allows operators to derive value for a by-product or co-product of an asset without having a hefty royalty or streaming agreement reducing the profits from the main economic driver of a mine.’
The report can be accessed through Couloir Capital’s portal: https://www.couloircapital.com/research-portal. Investors are encouraged to sign up for a subscription to receive research reports and other valuable information.
About Couloir Capital Ltd.
Couloir Capital Ltd. is an investment research firm with a team of experienced investment professionals dedicated to providing opportunities in the natural resource exploration and development sectors. Our research reports are disseminated through Bloomberg, FactSet, Capital IQ, LSEG, and many other portals, as well as through our social media and large email distribution list. To subscribe, please visit: https://www.couloircapital.com/research-portal.
For further information, please contact:
Rob Stitt, Managing Director, Couloir Capital Ltd.
Email: rstitt@couloircapital.com
www.couloircapital.com
DISCLAIMER:
Analyst Disclosure: Couloir Capital does hold shares or options in the Company. The analyst does not hold shares or options in the Company.
The company has retained Couloir Capital under a service agreement that includes analyst research coverage.
Investors are encouraged to read the complete list of disclosures contained in the report.
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