Streetwise Reports' StreetSmart Live! Broadcast on Aug. 26, 201 featured Vox Royalty Corp. (VOX:TSX.V) CEO Kyle Floyd and Chief investment officer Spencer Cole, who discussed the mining royalty and streams firm's impressive Q2/21 revenue, announced its latest transaction, and covered upcoming near-term catalysts.
Host Cyndi Edwards noted that Vox Royalty Corp.'s revenue jumped nearly 500% in only three quarters, between Q3/20 and Q2/21. Edwards asked CEO Kyle Floyd what drove those results.
Floyd attributed the revenue growth to Vox's operating partners and their success with the projects on which Vox has a royalty or stream. Specifically, he said, three production-stage assets yielded record revenue, and another asset, Janet Ivy, which Vox acquired earlier this year, generated its first revenue. Also during Q2/21, Vox sold its two graphite royalties to Electric Royalties Ltd. (ELECF:OTCMKTS). On the back of the second quarter results, Vox management doubled its revenue guidance for full-year 2021.
Chief Investment Officer, Spencer Cole, said the growth validates Vox's differentiated business model, which the company has been developing for approximately eight years. Vox only acquires existing mining royalties and existing mining royalties on projects between three and 24 months away from production.
"This quarter's really shown that our management team is consistently picking the right mining royalties and acquiring them at the right prices to deliver maximum value for our shareholders," Cole added.
Vox's growth differs from that of the company's peers, Floyd said, in that it is outpacing theirs and significantly. Yet, Vox is trading at a discount. He explained that Vox is trading at a revenue multiple of 15 to 20 times, whereas, for most of its peers, the multiple is up to 100 times. Similarly, the trading multiple for an asset is 0.7 to 0.8 times for Vox but 1.5 to 3 times for most of its peers.
"Not only are we growing faster — we believe we're growing better," Floyd said. "We're trading at a discount to most of our comps in the marketplace, which we believe presents a very interesting opportunity for investors."
Edwards asked Cole if further consolidation is expected in the royalty/streams sector, given Gold Royalty's recent acquisition of Ely Gold Royalties Inc. (ELY:TSX.V; ELYGF:OTCQX; I4U:FSE).
"Absolutely, we expect that acquisition wave to continue," Cole confirmed.
He noted three reasons why Vox makes for an intriguing takeout target. One is the critical mass of its portfolio, 54 royalties/streams on assets around the world. Also, Vox is the second largest holder of royalties/streams in all of Australia. Further, Vox owns a proprietary database of 8,000 unique mining royalties around the globe.
What investors can expect from Vox in terms of catalysts in 2022, Floyd indicated, are at least three assets coming online and some significant project expansions, at Higginsville and Janet Ivy for instance. Plus, Floyd said, a cumulative total of about 160,000 meters of drilling will be done next year at its royalty/stream assets.
Referencing Vox's Q2/21 and the future, Floyd said, "We'll continue to see these results increase at a very high level for Vox and for our shareholders."
- This broadcast does not constitute investment advice. Each viewer is encouraged to consult with his or her individual financial professional and any action a viewer takes as a result of information presented here is his or her own responsibility. This broadcast is not a solicitation for investment. Streetwise Live! does not render general or specific investment advice and the information should not be considered a recommendation to buy or sell any security. Streetwise Live! does not endorse or recommend the business, products, services or securities of any company mentioned here.
- Statements and opinions expressed are the opinions of the presenters and not of Streetwise Live! or its officers. The presenters are wholly responsible for the validity of the statements. The presenter was not paid by Streetwise Live! for this broadcast. Streetwise Live! requires presenters to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Live! relies upon the authors to accurately provide this information and Streetwise Live! has no means of verifying its accuracy.
- The following companies discussed in this broadcast have paid a $10,000 fee to participate: Vox Royalty Corp.
- From time to time, Streetwise Live! and its directors, officers, employees or members of their families, as well as persons interviewed for broadcasts and interviews on the site, may have a long or short position in securities mentioned. As of the date of this broadcast, officers and/or employees of Streetwise Live! (including members of their household) own securities of the following companies discussed in this broadcast: Vox Royalty Corp. Vox Royalty Corp. is not a billboard sponsor of Streetwise Reports, an affiliate of Streetwise Live! (description available at https://www.streetwisereports.com/disclaimer/).
- Spencer Cole - Chief Investment Officer owns securities of the company.
- Kyle Floyd - CEO, Chairman owns securities of the company.
- Disclosures for: Cyndi Edwards, Host. I, or members of my immediate household or family, own securities of the following companies discussed in the broadcast: Vox Royalty Corp. I personally am, or members of my immediate household or family are, paid by the following companies discussed in the broadcast: None. My company has a financial relationship with the following companies discussed in the broadcast: None.