Silver Crown Royalties Bucks Trend with Rare 100% Ag Leverage

The silver junior mining sector has experienced significant decline over the past six months, with two-thirds of Ag-heavy names dropping more than 50% from their 52-week highs. The underlying silver price has also decreased by over 50%, falling from $122/oz in January to $59/oz today.

Despite this downturn, analysts are still bullish on the medium- to long-term outlook for silver, citing growth driven by industrial demand and constrained supply due to stagnant mine production. Silver's byproduct nature and China's reclassification of it as a strategic material further restrict exports.

Silver Crown Royalties is one company that has managed to hold up relatively well in this sector. Its latest transaction, the acquisition of two existing 1% net smelter return royalties on Titiminas Silver Inc.'s Madre Sierra project in Peru for $6M in cash, has helped maintain its share price.

The Madre Sierra project is a past-producing mine with numerous surface access points and working faces, targeting small-scale production starting as soon as next quarter. Titiminas Silver's target production rates are 1,000 to 1,100 tpd in 18-24 months, with solid reported recoveries in the mid-to-high 80's percent.

Silver Crown anticipates run-rate annual revenue equal to ~60,000 ounces/yr within two years. Readers should note that Titiminas Silver controls a significant land package in a past-producing camp, so the NSRs could potentially produce cash flow for decades.