Vox Royalty (VOX) - Doubles Revenue Guidance on Good News

Vox Royalty Corp. is a growth and precious metals-focused royalty and streaming company. The company has a portfolio of more than 50 royalties and streams spanning nine jurisdictions. A technically focused transactional team and a global sourcing network have allowed it to become the fastest-growing company in the royalty sector. 

We met with Kyle Floyd, CEO, and Chairman, Vox Royalty. Kyle has built the team and raised the capital required to commence the company's operations as a metal royalty and streaming company. His operational and strategic direction has helped the company become one of the fastest-growing mining royalty businesses in the past 2 years. He is responsible for business development executive for all mining transactions, leading to the financing and advising of $1Bn over more than 60 transactions across M&A assignments, private placements, IPOs, and follow-on offerings. 

Company Overview

Vox Royalty is a royalty and streaming company founded in 2014. The company is headquartered in the Cayman Islands. Vox Royalty Australia Pty Ltd. and Mineral Royalties Online Pty Ltd. are the company's subsidiaries. 

Vox Royalty recently announced that they have doubled their revenues in 2021 to CAD$4M- $5M. The company conducted an IPO in May 2020. Their growth is akin to buying royalties that are 3-24 months out from production. As these assets come into production, it leads to significant revenue growth for the company. The company's growth is also a result of the recent developments with the Karora Resources' Royalty. 

The company's mining engineers and geologists closely analyze potential properties and projects, seeking great value and bringing them to the company's portfolio. 

What separates Vox Royalty from other companies is that they have 15-20 development-stage royalties in their portfolio, with engineering and economic studies already in place. This provides a broad view of the economics of a project and the resources needed to bring the asset into production.

Vox Royalty defines its collective holdings through exploration. The exploration royalties are drilling deposits and raising capital to eventually enter production. The company looks for its portfolios seeking promising assets. They look for royalties that are delivering and have the potential to add value to their overall portfolio. 

The company has added royalties to its portfolio which are yet to generate revenue. This makes the acquisition an attractive deal. The company's careful selection of assets for its portfolio has led to the best production quarter in the company's history. 

Vox Royalty is looking to maximize shareholder value through strategically planned acquisitions of royalties. They are taking a patient approach towards existing assets, looking for portfolios to mature and the business model to deliver results over time. According to the company, their development-stage and exploration Royalties aren't fairly valued in their portfolio. 

Vox Royalty currently has 54-55 Royalties and Streams in their portfolio which continues to appreciate alongside their team and business model. However, the size of the portfolio and diversity can also pose a potential challenge for investors to grasp the true scale of the company's growth. At present, the company has the largest number of development-stage projects in its portfolio in the market. 

Acquisition Strategy

Vox Royalty's growth profile is based on buying Royalties in the development stage at a good value. The projects are analyzed by an in-house team of mining engineers, and geologists to understand their potential over the course of the coming months. Based on the growth indications, the company utilizes its business model to determine adding the company to the existing portfolio. The company places a strong focus on considering the risk parameters around new acquisitions. 

Buying into a Royalty company gives the opportunity to investors for better risk-adjusted returns. The company has been able to add a significant number of assets to its portfolio over the course of the last few years while continuing to provide strong volumes at a better value for investors as compared to the competition. 

Vox Royalty follows a strong discipline when it comes to acquiring new royalties. They look for projects which have a significantly lower cost of capital and bring in those projects via debt and other structures. They are not looking towards equity markets to raise growth funds. Instead, the growth is achieved through strategic structures resulting in the breakdown of the capital cost. 

Growth Projections

The company's initial guidance stood at CAD$1.7M-2.5M which was recently raised to CAD$4M - $5M. The company's major projects include the Segilola Gold Project, the highest grade open-pit asset in Africa. This asset is currently in the commissioning stage with Thor explorations Ltd., a Canadian-based exploration and development based company. 

As per Vox Royalty's analysts, the company's guidance and growth are projected at $6M in 2022 and $8M in 2023. 

The company is looking to provide options along with 1%-2% discounts on investments based on the current metal price. The company has deployed $30M in Royalties and in a scenario where the growth rate stays consistent, the company has the capacity to provide up to 25% returns. 

As the development and exploration stage Royalties continue to grow and enter production. The company is expected to post stronger growth numbers along with increased returns by the year 2023.

To find out more, go to the Vox Royalty Website