Skip Navigation Links

Bookmark and Share
Vox Royalty Corp. (TSXV: VOX): High Growth Precious Metals Royalty and Streaming Company, Portfolio of 50 Royalties and Streams, Meaningful competitive Advantages; Kyle Floyd, CEO Interviewed

on 5/4/2021
We spoke with Kyle Floyd, CEO of Vox Royalty Corp. (TSXV: VOX), a high growth precious metals royalty and streaming company, established in 2014, which holds a portfolio of 50 royalties and streams, spanning nine jurisdictions. We learned from Mr. Floyd that Vox is focused exclusively on buying third-party royalties, which are royalties that are held by third parties, over various mining operations around the world. This approach has allowed Vox to become the fastest growing Company in the royalty sector. According to Mr. Floyd, the Company has exponential growth, both in the number of royalties brought into the portfolio, as well as in the number of royalties moving into production and generating cash flow that will continue to grow organically over the coming years. Most of the underlying assets, of the Company's royalties, are located in Australia and North America, and about 70% of the Company's portfolio has precious metals underlying exposure.

Vox Royalty Corp.

Dr. Allen Alper: This is Dr. Allen Alper, Editor-in-Chief of Metals News, talking with Kyle Floyd, who is CEO and Founder of Vox Royalty. Kyle, could you give our readers/investors an overview of your Company and what differentiates your Company from others?

Kyle Floyd: Vox Royalty Corp. is the fastest growing royalty company in the sector. We focus exclusively on buying what we call third-party royalties. Vox does not actively finance mining companies for capital they may be looking for. We instead focus on royalties that are held by third parties over various mining operations around the world. That allows us to not be constrained by mining assets needing capital (and the negative selections bias) and instead evaluate assets all over the world that might have a mining royalty attached to them. Then we look for those royalties and the owners of those royalties, with whom we aim to purchase the royalty from.

Our model focuses on precious metals. That being said, if we find good value in other hard rock commodities, we'll also bring those into the portfolio – similar to Franco Nevada. Vox, in this capacity of buying third-party royalties, has been the fastest growing Company in the sector. Over the last two years, we've completed more than 20 transactions, bringing in more than 45 royalties for a portfolio that now equates to 50 royalties and streams, with assets all around the world.

We have exponential growth in number of royalties that we've brought into the portfolio. Also exponential growth in terms of royalties moving from development into production and also what will be cash flow growth, over the coming quarters and years, as these royalties and underlying assets enter production.

Dr. Allen Alper: That sounds very exciting and excellent. Could you tell us more about your portfolio?

Kyle Floyd: Our portfolio is precious metals weighted, about 70% of the net asset value is weighted towards precious metals. Thirty percent is in the basket of other hard rock commodities that would be vanadium, copper, iron ore. The portfolio right now stands at five production-stage assets. We expect to close in on 10 production stage assets as we near the conclusion of 2021. We have tremendous growth from the exploration assets moving into the development stage as well. So, across the spectrum of stages, in terms of development, Vox is well diversified in exploration, development and production. All these assets, in those respective development categories, are really accelerating and building. In our exploration assets, there's a tremendous amount of drilling. We have more than 132,000 meters annually being drilled on our royalty linked deposits, for which we don't pay anything. All that drilling, all the development expenditure, is increasing the value of these underlying royalties for Vox. Yet Vox and its shareholders do not have to pay anything additional for that underlying growth in those assets.

Dr. Allen Alper: That sounds excellent. Could you give our readers/investors a feeling for where some of these royalties are located? I know quite a few are in Australia.

Kyle Floyd: Vox has built the second largest holding of hard rock royalties on the continent of Australia, after Franco, Nevada. It's something that we're very proud of. We built a first mover advantage in the Australian marketplace and a lot of our exposure comes from Western Australia, which is rated by the Fraser Institute and many objective rating agencies, as the best mining jurisdiction on the planet. Eighty percent of our assets in totality, both by volume and nav weighting are in Tier 1 jurisdictions either North America or Australia.

We do have some small exposure to the continent of Africa, with what will be a near term producing gold royalty in Nigeria and a near term production of the Bushvelds' Vanadium Project, more specifically the Brits Land package.

Dr. Allen Alper: That sounds very good. Could you tell our readers/investors what your primary plans are for 2021?

Kyle Floyd: 2021 is going to be a very exciting year for our shareholders, in what we believe fundamental growth is going to translate to corresponding share price growth. We have a tremendous amount of what we call organic growth, so that is the growth that's being created by our operating partners over royalties already purchased. All our royalties share in the increase in the value of the underlying projects at the operating partners expense and not ours. We have seen incredible news flow, both from drilling and development and production expansion. We're excited that we're going to be able to pass that news along to our investors over the coming weeks and months.

On the acquisition side of the business, we recently announced the acquisition of three very interesting gold royalties all in Western Australia. The Janet Ivy Royalty is part of Norton Gold Fields, which is one of the largest producers in Western Australia. Also, the Otto Bore Royalty, which is a near term production royalty, operated by Northern Star/Saracen in that merger. Another royalty, we acquired, is very interesting. It is linked to 775,000 ounces of resource. It was part of the pre-feasibility study, not too many years back, of the Bullabulling asset and associated royalty.

We've been very active on the deal front. We expect that to translate into additional near-term revenue. 2021 is looking like a transformational year for Vox, in terms of our organic growth, but also our acquisitional growth. We're well-financed now. We recently completed a capital raise of approximately $17 million that allows us to execute the business plan, without further dilution to our shareholders. 2021 should be a year of immense growth in all categories for Vox Royalty and our shareholders.

Dr. Allen Alper: That's excellent. Sounds like 2021 is going to be extremely exciting for Vox shareholders and stakeholders, so that's fantastic. Kyle, could tell us a little bit more about your background and your Team?

Kyle Floyd: A very clear distinction, we like to make, concerning Vox Royalty Corp. is that the business has been around since January 2014 and was being worked on even prior to that, so almost eight years. This business has been around, building what it is now, which is a Company underpinned by intellectual property and deal sourcing agents around the world. We have built unique intellectual property, in a royalty space that gives us an advantage in finding royalties that, while the space has become more crowded, most of our competition is not able to find. It's these uniquely sourced opportunities that we've created, connected with our agents around the world, that have allowed us to find a tremendous amount of royalties, in hidden places, that allows us to capture a first mover's advantage. These are bilateral opportunities. Meaning, we're not participating in a process over a shopped royalty with 30 other royalty companies.

That's resulted in what has been precedent-setting growth in the royalty sector, over the last two years. Setting the foundation to that growth and unpinning the selection process, is a highly technical team. One of the factors we believe that differentiated the high performers in the royalty industry from companies that didn't perform quite as well, was the level of technical expertise that they had in- house. Our key business development executive team is made up of mining engineers and geologists, with deep background and pedigrees in that space.

Our technical experts are utilizing our IP and using our deal sourcing agents, with the backdrop of finding first the most technically quality assets that we believe are going to be unlocking value for our investors and finding those assets with the best value around the globe. It's been that combination of unique intellectual property, field sourcing agents, in pretty much every major mining market on the planet, with the technical team unpinning the understanding of the quality of that asset that has really led to our precedent-setting growth and our ability to drive value for our shareholders in the portfolio.

Dr. Allen Alper: That sounds very good. Could you tell our readers/investors a little bit about your capital structure?

Kyle Floyd: We went public in May of 2020, while it might seem like we're a new entrant in this space, we've actually been in the royalty space for some time, just newly public. We forward split the stock upon listing, but right now have approximately 40,000,000 shares outstanding and a share hovering in the mid-$2 range.

We just completed a capital raise of about $17 million, so we're extremely well capitalized and well financed, in executing on our growth strategy. We have no debt and minimal warrants outstanding.

Dr. Allen Alper: That sounds very good. Could you tell our readers/investors the primary reasons they should consider investing in Vox Royalty?

Kyle Floyd: The reason to invest in Vox Royalty Corp. is that you get the benefits of diversification combined with growth and value! We have more than 50 royalties and streams now, diversified across more than 40 different operating partners. Organic growth is being unlocked that our investors pay nothing more for, and that's continuing to increase the underlying value for our shareholders every day. You have an opportunity to invest in the fastest growing royalty company, while you the company is trading at great value. Vox combines the benefit of lower risk, but very significant upside. Especially the way it's priced, as we presently speak. It's the immense growth that we're building for investors in all capacities and growth at great value that we believe presents a unique opportunity for investors to realize very significant gains in the share price of our business.

Dr. Allen Alper: That sounds excellent. Sounds like it's an opportunity for readers/investors to consider and those are very compelling reasons. Kyle is there anything else you'd like to add?

Kyle Floyd: I appreciate the opportunity to speak with you Dr. Alper. I believe, for your readers/investors, Vox is a unique opportunity to participate in growth and great value. We believe we're leading the industry in terms of percentage revenue growth, over the next few years and we continue to have an upswelling of value created in our underlying portfolio that is driving value for our shareholders across the spectrum. We believe it's going to manifest in higher share prices.

Dr. Allen Alper: That sounds excellent. We’ll publish your press releases as they come out so our readers/investors can follow your progress.

Kyle Floyd
Chief Executive Officer

Disclaimer | Terms Of Use And Privacy Statement

© Metals News. All rights reserved.