Vox Royalty rapidly grows its portfolio of low-risk mining assets backed by cash and management experience

Low geo-political risk portfolio Led by team with over 30 years combined of royalty and streaming experience Significant portfolio growth expected What Vox Royalty Corp does: Vox Royalty Corp (CVE:VOX) (OTCMKTS:VOXCF) is a rapidly growing royalty company with a portfolio already spanning several continents. It was founded in 2014 and its shares debuted in Toronto in August 2020.  Toronto-based Vox holds a portfolio of over 50 royalties and streaming assets in Australia, Canada, Peru, Brazil, Mexico, the United States, Madagascar and Nigeria. It has 35 operating partners. Notably, it says three quarters of its assets are located in low-risk Australia. Its assets are mainly precious metals, at over 50% of its net asset value (NAV) but the portfolio also contains base and battery metals. The company, which has a market cap of around C$57 million, was established in 2014 and says it has since built unique intellectual property (IP), a technically focused transactional team and a global sourcing network. How is it doing: In July, Vox Royalty noted that its royalty partner Thor Explorations Ltd (CVE:THX) had begun commissioning its gold processing plant at the Segilola gold project in Nigeria and will pour the first gold bar there before the end of the month.  Vox, which has a 1.5% net smelter return (NSR) royalty on all products mined from the property, estimates it will receive pre-tax royalty revenues of C$4.4 million within the first two full years of production.  Vox added that Segilola will become the company’s fifth producing royalty asset. Earlier in the month, the company promoted Spencer Cole, an experienced mining executive, to the position of chief investment officer (CIO) and also revealed that it had been named as one of the 50 fastest-growing companies of 2021 by The Silicon Review.  Meanwhile in June, Vox announced an agreement to acquire a 0.633% NSR royalty on part of Gold Standard Ventures Corp's (TSE:GSV) Railroad-Pinion gold project, which sits on Nevada’s prolific Carlin Trend, for US$1.98 million in cash. The new royalty covers roughly 35% of the 1.9 million ounces (Moz) resource estimate at South Railroad and provides Vox with immediate annual cash flows of about C$120,000 and, in the medium-term, royalty revenue generation potential of between C$250,000 and C$750,000 per year averaged across the life of mine based on the pre-feasibility study (PFS), Vox estimates. On the financial front, Vox reported record first-quarter 2021 revenue of US$539,980, as the company received initial revenue from its Koolyanobbing iron ore royalty in Australia.  Vox also said it ended the quarter with about US$10.7 million in cash as of March 31.  As well, the company realized a gross profit of US$479,271 during the period as it completed three portfolio transactions to acquire an additional 10 royalties.         In April, Vox Royalty provided its royalty revenue guidance for 2021 of between C$1.7 million and C$2.5 million, about two-thirds of which it said will be derived from gold.   The company said it anticipates gold-equivalent ounces to be weighted towards the second half of the year following first production from the Segilola gold mine in Nigeria and the first ore production from the Altair open pit at the Koolyanobbing iron ore operations, complementing current production from the Deception pit.  Vox also noted that the Segilola gold project, in which its NSR royalty is capped at US$3.5 million, saw its total probable reserve estimate increase by 28% to 517,800 ounces at 4.02 grams per tonne (g/t) gold. As well, the process plant design capacity was increased by 14% to 715,000 tonnes per annum, resulting in the optimizing of a life of mine plan to support increased process plant production rate. It said a resource update is expected to be released for the Bulong Gold Project in Western Australia, in which Vox holds a 1% NSR royalty over part of the Bulong project.   Earlier in April, Vox Royalty announced an update on its 1% NSR royalty on the Pitombeiras vanadium project in Brazil, where operator Jangada Mines PLC  delivered an initial Preliminary Economic Assessment (PEA) that estimates US$271.3 million of total gross revenue for over the lifetime of the project. Production at Pitombeiras is targeted to begin in the first quarter of 2022. As well, the company said it had entered into a binding agreement with Yilgarn Iron Pty Ltd, a subsidiary of Mineral Resources Limited, under which Vox will extinguish the outstanding balance of the Koolyanobbing royalty pre-payment through a A$1,782,032 cash payment. Following payment of the settlement amount, effective January 1, 2021, Vox will earn revenues from the Koolyanobbing royalty that are estimated to range between A$600,000 and A$800,000. And in March, Vox announced it had entered into a binding agreement to acquire an A$10 per ounce gold royalty on part of the Bullabulling gold project in Western Australia for a total consideration of up to A$2.2 million.  The company said the acquisition provides it with exposure to one of Australia’s largest undeveloped gold projects at the feasibility stage, adding that Bullabulling hosts a total resource estimate of 91.65 million tonnes at 1.04 g/t gold for 3.08 million ounces. What the analyst says: Proactive Research analyst Ryan Long published an update on Vox Royalty on March 30, 2021, saying the company continues to take advantage of its first-mover position in Australia by further extending the size of its Australian portfolio with the proposed acquisition of the Janet Ivy A$0.5/tonne Gold Royalty and the Otto Bore 2.5% Gold Net Smelter Royalty (NSR), for a total consideration of A$7 million (US$5.32 million). Long noted that once closed, Vox's Australian royalty portfolio will contain 33 royalties. “This acquisition would give Vox exposure to another production stage project through the royalty on the Janet Ivy Gold Mine, which also has significant near-term production expansion potential and exploration upside potential,” he added. “It also gives Vox exposure to the near-term development project, the Otto Bore Gold Project.” Vox will pay A$4 million (US$3.06 million) upfront in cash to the vendor, Horizon Minerals Ltd (ASX:HRZ), with the balance contingent upon Vox receiving cumulative royalty payments in excess of A$750,000 from the Janet Ivy Mine. The balance is payable in cash or shares, at Vox’s sole discretion. The transaction is expected to close in the second quarter of this year, and is subject to satisfaction of customary conditions. Vox will use current cash on hand to fund the upfront payment of the transaction. Inflection points: More royalty acquisitions News of activity from operating partners Precious metals prices What the boss says: Commenting on the company’s royalty revenue guidance for the year, Vox Royalty CEO Kyle Floyd said in a statement: “We are excited to share our maiden 2021 revenue guidance and exciting construction news flow from our operating partners with Vox investors. Our strategy of acquiring attractive royalties at disciplined prices that are approaching first production means our forecast revenue profile from 2021 to 2023 is expected to offer significant growth to investors.”  Floyd added: “The development milestones from Segilola and Bulong, along with the expected further revenue from our royalties over part of Karora Resources' Higginsville operations, the Brauna diamond mine in Brazil, and royalty over part of the Koolyanobbing iron ore mine operated by Mineral Resources Ltd, all support meaningful revenue growth year over year.” Contact Sean at sean@proactiveinvestors.com