Silver Crown Royalties Inc. has made a significant move to bolster its financial reserves by acquiring 1,000 ounces of physical silver. This strategic purchase, completed at an average price of $30.65 per ounce, not only represents an 8% discount to the 20-day volume-weighted average price but also an 11% discount to recent market highs. The total investment amounted to US$30,650, based on a spot price of US$30.15 per ounce plus a modest premium of US$0.50 per ounce. The physical silver is set to be stored with Money Metals Depository LLC, with the exact storage location to be confirmed.
Peter Bures, the company's Chief Executive Officer, highlighted the strategic importance of this acquisition. He pointed out the company's intention to maintain a prudent working capital position while diversifying away from traditional currency holdings. "We feel it is only prudent as a silver royalty company to convert a portion of our cash to physical silver," Bures stated. This move underscores the company's proactive approach to safeguarding its assets and ensuring long-term financial stability.
The acquisition marks a strategic pivot for Silver Crown Royalties, which currently holds four silver royalties, three of which are already generating revenue. By converting cash received from PPX into physical silver bullion, the company is not only demonstrating its commitment to providing investors with a natural hedge against potential currency devaluation but also aligning with its broader business model. This model focuses on minimizing economic risks associated with mining projects while maximizing potential returns for shareholders. The silver acquisition is a clear indication of the company's strategy to maintain financial flexibility and tangible asset value, ensuring resilience in fluctuating market conditions.
