Interview with Kyle Floyd, CEO of Vox Royalty Corp.

Our previous interview: https://www.cruxinvestor.com/posts/vox-royalty-tsxvoxr-leveraging-royalty-revenues-returns-and-database-assets-for-creative-growth-4399

Recording date: 11th March 2024

Vox Royalty Corp (TSX:VOXR) presents a compelling opportunity for investors seeking exposure to a diversified portfolio of mining royalties. With a focus on acquiring royalties on advanced-stage projects at attractive valuations, Vox has assembled a portfolio of around 70 royalties globally, including six currently producing assets.

The company's 2023 results showcase the cash flow-generating potential of this portfolio. Vox reported revenue growth of nearly 45% and a 157% increase in operating cash flow year-over-year. This enabled the company to raise its dividend by over 9%, resulting in a sector-leading yield of 2.4%.

Vox's strategy centers on a disciplined, value-driven approach to royalty acquisitions. The company targets royalties on projects within 1-3 years of production, with a focus on quality assets and experienced operators. This has led to a portfolio weighted towards Australia, which Vox views as a top mining jurisdiction, and includes partnerships with major names like Zijin Mining and Mineral Resources.

A key competitive advantage is Vox's proprietary database of royalties, which allows it to quickly identify and evaluate opportunities. While the company is agnostic to commodity, this approach has resulted in a portfolio that is predominantly gold-focused, as that is where Vox has found the most attractive risk-adjusted returns.

Looking ahead, Vox is guiding for revenue of $11-13 million in 2024, in line with its 2023 results. Several of Vox's development assets are expected to begin producing in 2025 and 2026, which could drive significant cash flow growth.

To support this growth, Vox has secured up to $25 million revolving credit facility. This enhances the company's ability to act on opportunities and scale its portfolio in line with its historical growth trajectory. Combined with Vox's value-driven approach and focus on near-term producers, this positions the company well to continue delivering strong returns for shareholders.

The macro-environment for mining royalty companies is favorable despite broader market challenges. Volatile commodity prices and constrained capital markets have created a funding gap for many operators and developers. This allows companies like Vox to acquire royalties at attractive valuations, generating strong returns on invested capital.

In summary, Vox Royalty offers investors a differentiated approach to precious metals and mining exposure. With a diversified, cash-flowing portfolio and a pipeline of near-term growth assets, the company is well-positioned to create value through disciplined capital allocation. For investors seeking yield and long-term growth potential in the royalty space, Vox is a name to watch.

View Vox Royalty's company profile: https://www.cruxinvestor.com/companies/vox-royalty

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