Royalty Company Secures High-Grade Iron Ore in Australia

1. James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. 
2.  This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company. 

For additional disclosures, please click here.

Vox Royalty Corp. (VOXR:TSX; VOXR:NASDAQ) has announced the acquisition of a gross revenue royalty over the Wyloo North iron ore project, located in the Pilbara region of Western Australia. The company entered into a binding agreement with an Australian vendor to purchase the royalty for AU$1.5 million, approximately US$1 million. The royalty entitles Vox to 1.5% of gross revenue on the first 15 million tonnes of iron ore production from the deposit, which is operated by Fortescue Metals Group.

The Wyloo North deposit, measuring approximately 7 kilometers in strike length, is situated within 30 kilometers of Fortescue's producing Eliwana operation, which produces 30 million tonnes of iron ore annually. According to public disclosures, Wyloo North contains some of the highest-grade iron content in Fortescue's Greater Western Hub, with an average of 59.6% iron compared to the broader hub's average of 56.8%.

Spencer Cole, Chief Investment Officer at Vox, stated in a company news release: "We are pleased to announce the Wyloo North royalty acquisition in Western Australia, which aligns with Vox's focus on large high-grade orebodies, operated by large-cap mining companies with medium-term development potential via existing infrastructure."

The mining lease associated with the royalty, ML47/1567, is operated by FMG Pilbara Pty Ltd, a Fortescue subsidiary. Fortescue has conducted exploration drilling and mapping in the area since 2006, focusing on iron formations known as Marra Mamba and Brockman. Historical data indicates mineralization thicknesses up to 95 meters and multiple mineralized zones across the central, western, and eastern parts of the lease.

Wyloo North's resource was previously reported as an inferred mineral resource prior to its consolidation into the Greater Western Hub total, and drilling has continued to update the resource model under JORC (Joint Ore Reserves Committee) compliance standards.

Global Iron Ore Sector: Stability on the Surface, Pressure Beneath

According to a report published by NAI500 on August 26, global iron ore futures experienced a downturn as new tariff threats from former U.S. President Donald Trump heightened concerns over steel demand. The most-traded January iron ore contract on China's Dalian Commodity Exchange closed at 776.5 yuan, or approximately US$108.56 per metric ton, marking a 0.7% decline.

Analysts cited the U.S. administration's trade policy rhetoric and continued weakness in Chinese demand as contributing factors. "China has to give the United States magnets, or we have to charge them 200% tariff or something," Trump said, reigniting trade-related uncertainty. The article noted that Fortescue reported its smallest annual profit in six years, while BHP posted its lowest earnings in five years, reflecting prolonged pricing pressure.

Finimize reported one day later that iron ore prices held relatively steady due to consistent daily hot metal output from Chinese steel mills, which remained around 2.4 million tons. However, the article also described signs of fragility, with "slumping prices for coking coal and coke" serving as a warning for the broader supply chain. While Australia ramped up shipments delayed by earlier weather events, Galaxy Futures flagged softening manufacturing demand in China, raising questions about whether the usual autumn demand increase for steel would materialize.

Cantor Fitzgerald reiterated its Buy rating and US$5.50 per share price target for Vox Royalty Corp. following the company's second-quarter financial and operating results.

On August 27, Isaac Lane wrote in AI Invest that the market's recent price stability was not driven by demand strength, but rather by strategic stockpiling and export-focused output. He explained that "iron ore prices have stabilized around US$95–US$100 per ton," despite crude steel output in China falling 9.2% in June.

Lane attributed the resilience to stockpiles reaching 146.85 million tons at Chinese ports and a projected annual import volume of 1.27 billion tons. He also noted that "the property sector, which accounts for 55% of China's steel consumption, remains in freefall," referencing a 24.27% year-on-year drop in housing starts in Q1.

Lane's report further examined the long-term implications of China's green steel transition. Although hydrogen-based steelmaking methods such as H2-DRI (direct reduced iron) and electric arc furnace (EAF) technology are expected to reduce reliance on traditional iron ore inputs, he stated that these would "coexist with traditional methods, ensuring gradual phase-out." Lane added that Australia's and Brazil's robust supply growth, including expansions at major mining operations, would likely prevent prices from rising significantly above US$100 per ton in the near term.

Positive Analyst Views Reinforce Strategic Momentum

On August 14, Cantor Fitzgerald reiterated its Buy rating and US$5.50 per share price target for Vox Royalty Corp. following the company's second-quarter financial and operating results. Analyst Mike Kozak stated that Vox "maintained its quarterly cash dividend of US$0.0125/share," yielding 1.4%, and noted that the company exited the quarter with US$10.2 million in cash and reduced its outstanding credit facility balance to US$6.7 million. He added that "there was no material change to our NAVPS estimate" and emphasized that Vox's uncapped AU$0.50 per tonne royalty on the Binduli North project could potentially yield more than US$2 million annually, offering "a greater than 50% cash return on the US$4.5 million acquisition cost."

According to Cantor's analysis, the company's net asset value stood at approximately US$3.33 per share, with US$168.8 million attributed to the portfolio, including producing and development-stage royalties. The firm also acknowledged that first-half revenue of US$5.4 million was tracking behind Vox's full-year guidance of US$13 to US$15 million, but noted management expected higher receipts in the second half of the year.

On August 25, Jeff Valks, a senior analyst at TheGoldAdvisor highlighted Vox Royalty's acquisition of a 1.5% gross revenue royalty on the Wyloo North iron ore project. Valks stated, "Vox Royalty is doubling down on its strategy of royalties on world-class deposits." He described Wyloo North as a "high-grade body nestled in Western Australia's famed Pilbara region" and emphasized that the royalty agreement applied to the first 15 million tonnes of production.

Valks also pointed to the quality of the deposit, writing that "at 59.6% iron (Fe), the iron ore at Wyloo North stands above the 56.8% Fe average across the Greater Western Hub." He described the geology as extensive and well-defined, based on more than a decade of drilling and mapping by the operator. He cited Vox's Chief Investment Officer Spencer Cole, who said the royalty aligned with Vox's focus on "large high-grade orebodies, operated by large-cap mining companies with medium-term development potential via existing infrastructure."

Vox's Momentum Beneath the Surface

Vox Royalty's acquisition of the Wyloo North royalty adds to its growing portfolio of more than 60 royalties, with over 70% of its assets weighted toward precious metals and approximately 90% situated in Tier-1 mining jurisdictions such as Australia, Canada, and the United States. The company's model emphasizes capital-light exposure to mining assets, targeting royalties associated with large-scale operators and advanced-stage projects.

According to Vox's investor presentation, key upcoming catalysts for the Wyloo North royalty include a potential updated mineral resource and reserve classification, the submission of environmental approval documentation to Western Australian authorities, and receipt of ministerial decisions for mine development.

This royalty follows Vox's continued focus on acquiring assets operated by large-cap companies. Fortescue, which operates Wyloo North, has a market capitalization of approximately AU$60 billion and substantial infrastructure in the Pilbara region. Vox has indicated that infrastructure proximity and operator scale are central to its acquisition strategy.

Vox reported a market capitalization of US$175 million as of August 12, 2025, with current assets of US$13.6 million and debt of US$11.7 million. The company maintains a diversified portfolio by geography and commodity, with a significant number of assets in development or production stages.

As Vox expands its footprint in Australia's iron ore and gold royalty space, the Wyloo North royalty aligns with its strategic focus on risk-adjusted returns from established mining hubs and high-grade deposits. 

Ownership and Share Structure

According to Refinitiv, management and insiders hold 24.15% of Vox Royalty. Those include Robert David Sckalor with 9.84%, Kyle Floyd with 5.69%, and Spencer Cole with 1.22%.

Institutions hold 47.18%, with ORG Partners LLC holding the most at 26.38%. Konwave AG owns 5.89%, US Global Investors holds 3.15%, and Sanders Morris LLC has 2.76%.

The rest is retail.

Vox Royalty has a market capitalization of approximately CA$238.05 million, with 43.91 million free float shares and a 52-week trading range of CA$3.16 to CA$5.20.