Vox Royalty: Using Unique Sourcing to Build a High-Return Portfolio

• Vox Royalty focuses on generating high returns by acquiring existing royalties and streams, using a global sourcing network and database to find overlooked opportunities.
• In 2022, Vox expects $11-13 million in royalty revenue, a big jump from $9.7 million in 2021, showing the growth and cash flow potential of their model.
• Vox finds royalties from a variety of sources globally, not just miners, giving them a wide funnel - they've done more 3rd party royalty deals since 2019 than any other company.
• Their disciplined approach has led to industry-leading returns - a 25% cash yield on $50 million invested. The recent Red Hill deal validates their ability to find value where others don't.
• Vox plans to stick to their proven strategy of using their advantages to source overlooked royalties. Continued execution will prove their systematic ability to find value and close the gap between price and intrinsic value.

About Vox Royalty Corp

Vox Royalty Corp is a specialist royalty company that focuses on generating high returns on invested capital in the natural resources sector. With headquarters in Toronto, Canada, Vox has the second largest holding of hard rock mining royalties in Australia. The company was founded over a decade ago by CEO Kyle Floyd with the goal of creating a royalty business with a durable competitive advantage, even in a crowded industry.

Vox's unique advantage comes from its proprietary database that allows it to identify and source royalties that other companies are unaware of or unable to access. This gives Vox the ability to find value in a highly competitive sector where returns have been compressed.

Interview with Kyle Floyd, CEO of Vox Royalty

Business Model and Strategy

Unlike conventional royalty companies that focus on financing operators, Vox specializes in acquiring existing third-party royalties from a diverse range of holders such as doctors, family estates, and automotive parts companies. Vox provides liquidity and asset diversification to these non-traditional royalty holders.

According to Floyd, Vox has completed more third-party royalty acquisitions since 2019 than any other company in the world. The key to delivering outsized returns is having a team of managers and geologists evaluating opportunities and data to identify overlooked royalties trading below intrinsic value.

Vox aims to maintain its differentiated business model even during market downturns when competitors may struggle. The company believes its proprietary database and specialized approach gives it a systematic, durable advantage to consistently provide value to shareholders across cycles.

Financial Performance

Vox is on track for significant revenue growth in 2022, guiding for $11-13 million compared to $9.7 million in 2021. Recent deals are already exceeding return expectations, like a royalty acquired in September with a 15x return on invested capital.

Current cash flows indicate Vox is generating a 25%+ return on its $50 million in royalty investments. Floyd highlighted these high rates of return on capital set Vox apart from industry peers whose returns have been compressed by competitive forces.

Outlook for Investors

Vox plans to continue its disciplined strategy focused on sourcing overlooked royalties. Floyd believes the market undervalues Vox's existing portfolio and durable competitive strengths. While the business sees room for improvement on market engagement, the priority is on executing deals to gradually close the gap between share price and intrinsic value.

Conclusion

With its specialized business model and systematic sourcing advantage, Vox Royalty represents a differentiated investment opportunity in the royalty space. The impressive returns generated to date and significant revenue growth confirm the strength of the company's approach. Investors seeking exposure to high-return natural resource royalties may want to take a closer look at this unique royalty provider.