Silver Crown Royalties Converts Cash to Physical Silver, Signaling Strategic Hedge Strategy

Silver Crown Royalties, a publicly traded silver royalty company, has made a strategic move to convert a portion of its cash reserves into physical silver, purchasing 1,000 ounces at an average price of $30.65 per ounce. The acquisition represents an 8% discount to the 20-day volume-weighted average price and an 11% discount to recent market highs.

The company's decision reflects a deliberate approach to capital management and investment strategy. CEO Peter Bures emphasized the importance of maintaining a robust working capital position while simultaneously providing investors with an alternative to traditional fiat currency exposure. By converting a cash payment from PPX into physical silver bullion, Silver Crown Royalties is positioning itself as a strategic player in precious metals investment.

The physical silver will be stored with Money Metals Depository LLC, with the potential for storage at a designated sub-custodian facility. This approach aligns with the company's vision of offering investors a natural hedge against currency devaluation and minimizing the economic impact of cost inflation in mining operations.

Silver Crown Royalties currently maintains four silver royalties, three of which are already generating revenue. The company's business model is designed to provide investors with precious metals exposure while mitigating the risks associated with traditional mining investments.

This strategic silver purchase underscores the company's commitment to diversification and risk management. By converting cash to physical silver, Silver Crown Royalties demonstrates a proactive approach to preserving capital value and offering shareholders an alternative investment vehicle that can potentially withstand economic fluctuations.