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viewVox Royalty

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

Snapshot

Toronto-based Vox holds a portfolio of over 45 royalties and streaming assets in Australia, Canada, Peru, Brazil, Mexico, the United States, Madagascar and Nigeria

Vox Royalty -

Quick facts: Vox Royalty

Price: 3.04 CAD

TSX-V:VOX
Market: TSX-V
Market Cap: $100.2 m
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  • 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) 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 45 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:

Vox Royalty Corp provided investors wuth a glimpse into its 2021 plans on February 10 that showed the company preparing for a “catalyst-rich” year ahead. In a statement, CEO Kyle Floyd told shareholders that the company's fourth-quarter 2020 achievements rounded out a “transformational” year.

The company said it expects to increase its producing royalty asset count within its existing portfolio from four to six. It also highlighted a number of new developments on its development and exploration-stage royalties from projects like Silver Mines Limited’s Bowdens and Alamos Gold’s Lynn Lake-MacLellan. The firm said it is targeting an approximate average of 30,000 metres of partner-funded drilling on royalty projects each quarter.

Vox also set out ambitious corporate targets for the year, including continuing to grow and acquire additional NAV-accretive royalties, leveraging its proprietary royalty database and continuing discussions already underway with potential royalty vendors, and increasing analyst coverage beyond the current three independent firms providing coverage. The company also said it is conducting a review of secondary exchange listing options, it told shareholders.

Its expansion plans bore fruit when, on February 22, Vox Royalty announced that it has agreed to acquire a Western Australian gold royalty portfolio from Gibb River Diamonds Ltd for A$325,000 in cash.  Vox noted that the transaction will expand its total Australian royalties to 31, making the company the second-largest publicly traded holder of royalty interests in Australia by royalty count, behind Franco Nevada Corporation.   

The company said the gold royalty portfolio will give it exposure to three advanced exploration gold royalties in Western Australia, each located within trucking distance of third-party mills. It comprises a 1% Net Smelter Return (NSR) royalty over the Bulgera Gold project operated by Norwest Mineral Ltd, a 1% NSR over the Comet Gold Project operated by Accelerate Resources Ltd, and a 1% NSR over the Mount Monger Gold Project operated by Accelerate and subject to a binding option agreement with Mt Monger Minerals Pty Ltd. The company added that the transaction will provide it uncapped exposure to the Bulgera Gold deposit, which has an estimate resource of 93,880 gold ounces at 1.0 grams per tonne (g/t).

At the end of January, Vox Royalty closed its previously announced acquisition of a portfolio of royalties from Breakwater Resources Ltd and some of its affiliates for a total of C$1,125,001 in cash and shares. The original deal, announced in November 2020, comprised of eight precious and base metals royalties, but three were not included at closing, as is typical of such a transaction, due to the exercise of a right of first refusal (ROFR) or other conditions not being satisfied. Those not included were the Eau Jaune 2% net smelter return (NSR) in Quebec and BMC Minerals' 0.45% NSR at the Toe-On exploration asset in Yukon. The Breakwater royalty portfolio was created from previous sales between 1988 and 2015 by Breakwater, Nyrstar N.V. and their affiliates.

And on December 18, Vox said it had completed the previously announced acquisition of the Brits vanadium royalty. As reported in late November, Vox struck a deal with Sable Metals and Minerals Pty Ltd to acquire a 1.75% gross sales royalty for US$2 million, giving it exposure to a near-term production asset next to Bushveld Minerals (LON:BMN) producing Vamteco mine and processing facility.

In the boardroom, on February 8, Vox said it had appointed Andrew Kaip as a director. Kaip has held a number of senior roles in the financial services and mining industries for over 25 years, Vox said. Most recently, he served as managing director of BMO Nesbitt Burns, where he held the position of large-cap precious metal analyst and co-head of global mining research. Prior to BMO Nesbitt Burns, he also held positions at Haywood Securities and a number of mining and exploration companies based in Canada. 

What the analyst says:

Proactive Research analyst Ryan Long published an update on Vox Royalty on February 24 following the company's acquisition of a portfolio of three Western Australian gold royalties for a total cash consideration of A$325,000.

Long noted that this transaction, which is expected to close in Q121, will be Vox's 19th in the past two years, giving the company an industry-leading acquisition rate.

He added: "During Q420, there were over 32,000 meters of partner-funded drilling on projects within Vox's portfolio demonstrating the large amount of activity taking place on these projects. This activity looks set to increase with this latest acquisition with almost 7,000 meters (m) of drilling underway or recently completed at two of the three projects and a follow-up drill programme planned."

Inflection points:

  • More royalty acquisitions
  • News of activity from operating partners
  • Precious metals prices

What the boss says:

In the February 10, 2021, corporate update, Vox Royalty CEO Kyle Floyd told shareholders that the company's fourth-quarter 2020 achievements rounded out a “transformational” year. “We started 2020 with one producing royalty, being Graphmada, and added Koolyanobbing in Q2, Brauna in Q3 and Higginsville in Q4 to our growing list of producing royalties,” he said. “We look forward to the organic news flow from our existing operators in 2021 as we see the number of producing royalties within our existing portfolio continue to grow."

Contact the author at jon.hopkins@proactiveinvestors.com

 

 

 

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Vox Royalty extend global presence, snapping up three Western Australian...

Proactive Analyst, (CVE:VOX) Ryan Long presents his analysis on Vox Royalty which has recently extended its first advantage in Australia, acquiring a portfolio of three Western Australian gold royalties for a total cash consideration of A$325,000. Long says once closed, this acquisition will...

1 week, 5 days ago

6 min read