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Silver Crown Royalties offers unique byproduct model
The bull case for Silver Crown Royalties is its unique strategy of acquiring 100% pure-play silver royalties on byproduct silver from primary gold mines.
The argument
The guest argued that because 50% of global silver is produced as a byproduct, Silver Crown can acquire these unvalued silver streams from gold producers at highly accretive 25% to 35% IRRs, avoiding the high cost-of-capital competition faced by traditional junior royalty companies.
The thesis, stress-tested
✓ What validates it
- ✓Company scaling royalty production toward target of 5 to 10 million ounces per year
- ✓Announcement of new byproduct silver royalty acquisitions at high IRRs
▸ Risks discussed
- ▸High volatility inherent to silver as a metal
- ▸Micro-cap liquidity and execution risks
Hear it yourself
"If your margins are $400 an ounce, it makes sense you could pay a $100 an ounce and still have, you know, $300 an ounce to play with. If your margins are $2,000 an ounce, why are these junior resource companies still trading today at 50 to $100 an ounce in the ground?"
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