Joining us for a conversation is Spencer Cole, the Chief Investment Officer of Vox Royalty. Mr. Cole, great time to be speaking with you as Vox Royalty continues to provide shareholders with a smart way to invest in commodities. Before we begin, Mr. Cole, please introduce us to Vox Royalty and the opportunity the company presents to shareholders.
Spencer Cole:
Vox Royalty is a high-growth, precious metals-focused, mining royalty investment company. The company’s been around for eight years, and over those eight years, we’ve built what we believe is the most unique mining royalty investment company in our entire $70 billion industry. We’re consistently delivering the highest rate of return on invested capital at what we believe is the lowest potential portfolio risk level. Particularly for some of your listeners who are concerned about inflation levels at the moment, we think Vox is a really attractive inflation hedge that offers investors high-organic growth with very low risk.
Maurice Jackson:
Last month, Vox Royalty announced some exciting news for shareholders regarding development and exploration updates from your royalty operating partners. This month appears equally exciting, as Vox Royalty has just announced additional key developments which look to strengthen your royalty portfolio. Beginning in Nevada, take us onto the Gold Standard Ventures South Railroad Gold Project, and provide us with an update on the feasibility study, permitting, and construction financing.
Spencer Cole:
The South Railroad Project is a rapidly advancing gold project in Nevada, which is obviously arguably one of the most pro-mining, particularly pro-gold mining jurisdictions on the planet. The operator just provided an update to the market that they’re rapidly approaching completion of the feasibility study, which is targeted for the first quarter of 20222. Upon the completion that feasibility study, they’re going to move straight into construction financing.
Spencer Cole:
Gold Standard Ventures already has one of the world’s largest mining private equity funds, Orion, who’s given them a $200 million term sheet to fund the construction of the mine. They’ll be looking to go back to other investment groups to see where the best source of financing is so going into early 2022, we expect a huge amount of exciting news flow as to how this project is going to be constructed, and then their management has also provided an update that they expect to receive their final permits to start construction of this project within 18 months, so a really exciting gold project that’s rapidly moving towards production over the coming years.
Maurice Jackson:
Speaking of exciting news for next year, let’s go to Black Cat’s Bulong Gold Project, where they’re looking at a first production guidance in 2022. What can you share with us?
Spencer Cole:
This is an exciting royalty within our portfolio for a few reasons, as you mentioned, the Black Cat Syndicate, which is the operator of this Bulong Gold Project, they just reiterated guidance. They’re expecting this gold mine to be in production in the second half of 2022, so investors can look forward to the royalty revenue possibly late next year. But a cherry on the cake, so to speak, with this royalty, is not only is the company actively moving this project forward towards production next year, but they’re aggressively drilling out the land package. On an annualized basis, they’re drilling over 80,000 meters on this land package. So not only are investors looking forward to, I guess, near-term royalty revenues on this property, but also, there’s likely to be a huge volume of discovery news flow over the coming months and quarters as they continue that drilling campaign.
Maurice Jackson:
We’ve covered gold. Let’s discuss silver and platinum group metals, beginning with silver at the Bowdens Silver Project by Silver Mines. How’s their drilling and development campaign coming along?
Spencer Cole:
It’s coming along extremely well. For readers who aren’t aware of the Bowdens Project, it’s the largest primary silver project in all of Australia. On a silver equivalent basis, there are approximately 275 million ounces of silver equivalent resources in the ground here, so just an extremely large ore body. The operator, Silver Mines, is working through final permitting at the moment. They’re also progressing an expansion case, looking at a high-grade underground that would go on top of the open pit operation. We expect that this project is rapidly heading towards a construction decision with final permits in hand next year. The managing director of the operator was recently quoted on Bloomberg as saying he personally believes there’s potential for this ore body to triple in size. So what is already a monstrously large silver deposit, the managing director of the operator thinks there’s a multiple of this potential in the ground, which is even more exciting for our investors.
Maurice Jackson:
Finally, my favorite metals, the Platinum Group Metals. What are the latest developments coming from ValOre?
Spencer Cole:
This is another exciting royalty within our portfolio of 54 royalties, The Pedra Branca Project, is ValOre’s flagship asset, it’s also the largest Platinum Group’s metal project and deposit in all of South America. ValOre has been aggressively drilling this property out, so they’ve been doing approximately a 10,000-meter drilling program this year, and our expectation from management is that they’re preparing for a resource update in the coming months. We look forward to seeing the size of this resource grow, and then for this project to continue to move along down the development pathway towards production over the coming years. So all eyes are on the resource update that we expect in the next few months.
Maurice Jackson:
Mr. Cole, as you look back at 2021 and then forward onto 2022, Vox Royalty, in many regards, has exceeded expectations in terms of your development, discovery drilling, and bolstering your royalty portfolio. Vox Royalty is on track for a record year on moving projects into production. Can you comment further on that?
Spencer Cole:
2021 has been a transformational year in Vox’s eight-year history. We’ve increased the number of producing royalty assets that we have in our portfolio to five. We’ve had record volumes of partner-funded drilling on our royalty properties. We’ve had a record number of projects, I guess, moving forward into sort of development stage as well, supporting the near-term growth potential as well. But then importantly for investors, as we look ahead towards next year, 2022, we expect that a lot of that key organic growth is even going to be outpaced and set to continue going into next year.
Spencer Cole:
Just by way of example, there are three additional projects that we expect to commence production next year that are in varying stages of construction currently. There are four separate feasibility studies that we expect to be released next year. The volume of drilling on our royalty properties, we expect that will achieve a new record in 2022 as well. So for Vox shareholders, they can look forward to a huge volume of organic growth in revenue and underlying development within our royalty properties without any additional capital required to acquire those royalties.
Maurice Jackson:
Now, before we leave the property bank, what is the next unanswered question for Vox Royalty? When can we expect a response and what determines success?
Spencer Cole:
I think as we touched on in our last interview, I think the main catalysts that investors continue to be excited about in Vox is just the organic growth within our portfolio and what that means for our revenue projections. As I touched on, we’ve seen a huge volume of growth on a number of our producing royalties. When we went public last year, we only had one producing royalty asset. And look, that was one criticism of the company, that people wanted us to have more producing assets, and where we stand today, we’ve now got five producing royalty assets. Organically, without spending any additional capital on new royalties, we expect that will increase from five producing royalty assets to 10, and north of 10 by late 2023.
Spencer Cole:
What is the unanswered question is how soon will those new royalty assets come into production and what does that mean for revenue, which has already been growing at quite a substantial rate? I think the great news for our investors is they don’t need to wait a very long time. This is a matter of months and quarters as they continue to see that growth organically within the portfolio, the incremental revenue that’s going to come from those producing operations.
Maurice Jackson:
Let’s look at some numbers. Sir, please provide us with the capital structure for Vox Royalty.
Spencer Cole:
We have a very tight capital structure at Vox. with less than 40 million shares on issue. We are in a net cash position on our balance sheet. Our total working capital is approximately nine million on the balance sheet between cash and listed investments. Vox has very strong balance sheet and we are very, very careful about not issuing stock. We, as management, own about 15 percent of the company, and our family members own additional stock on top of that, so this is very much an investor-led and managed business, where management is fully aligned with our investor group.
Maurice Jackson:
In closing, Mr. Cole, what would you like to say to shareholders?
Spencer Cole:
Thanks for the shareholders’ and listeners’ time today. I’d strongly encourage you to have a look at the Vox Royalty website. We’re on the cusp and continuing to deliver on a strategy that is high growth but low capital intensity, where we’re offering incredible returns at very disciplined prices. Particularly in this inflationary environment that we find ourselves in today, getting exposure to a portfolio of base and precious metal assets, such as Vox has in its portfolio, is a really smart way to hedge inflation risk. So I strongly encourage investors, particularly those that are worried about inflation, to seriously consider having a look at Vox Royalty in more detail.
Maurice Jackson:
Last question, sir. What did I forget to ask?
Spencer Cole:
I believe we’ve covered it all today.
Maurice Jackson:
Mr. Cole, for readers that wish to learn more about Vox Royalty, please share the contact details.
Mr. Cole, it’s been a pleasure speaking with you. Wishing you and Vox Royalty the absolute best, sir.
Before you make your next bullion purchase, contact me at 855.505.1900 or email maurice@milesfranklin.com. I’m a licensed representative for Miles Franklin Precious Metals Investments, where we provide a number of options to expand your precious metals portfolio from physical delivery to offshore depositories and precious metal IRAs. Finally, we invite you to subscribe to www.ProvenandProbable.com, where we provide Mining Insights and Bullion Sales.
The information presented on Proven and Probable is provided for educational and informational purposes only, without any express or implied warranty of any kind, including warranties of accuracy, completeness, or fitness for any particular purpose. The information is not intended to be and does not constitute financial, investment or trading advice, or any other advice. You should not make any financial investment or trading decision based on any of the information presented without first undertaking independent due diligence and consultation with a professional broker or competent financial advisor.
TORONTO, Nov. 22, 2021 /CNW/ – Vox Royalty Corp. (TSXV: VOX) (OTCQX: VOXCF) (“Vox” or the “Company“) is pleased to announce its operating and financial results for the third quarter ended September 30, 2021. All amounts are in U.S. dollars unless otherwise indicated.
Vox Royalty Logo (CNW Group/Vox Royalty Corp.)
Kyle Floyd, Chief Executive Officer stated: “The third quarter of 2021 saw multiple royalty-linked production records, organic growth to 5 producing royalties and record trading liquidity. Based on strong Q3 royalty revenues, Vox remains on track to meet the upper-end of 2021 annual revenue guidance of C$4M – C$5M, which was doubled in July 2021. Growing investor interest in Vox’s high-growth asset portfolio and disciplined focus on sector-leading returns has been further validated through the initiation of additional independent research coverage by Laurentian Securities earlier this month. Vox shareholders can look forward to catalyst-rich upcoming quarters as the company continues its rapid organic growth from 5 to 10 producing assets by late 2023.”
Third Quarter 2021 Highlights
Revenue of $1,223,493 reported for the quarter, with record Q3 2021 royalty-linked gold production from the Hidden Secret deposit at Higginsville covered by the Dry Creek royalty and record royalty-linked iron ore production volumes from the Koolyanobbing royalty;
Increased producing royalty count to 5 assets following achievement of commercial production at the Segilola Gold Mine, as reported by Thor Explorations Ltd. (TSXV: THX) on October 5, 2021;
Commencement of construction of the Binduli North heap leach expansion, which includes three key open pits covered by the producing Janet Ivy gold royalty, as disclosed by Zijin Mining Group Co., Limited on August 1, 2021;
Award of a A$73M construction contract for the Mt Ida gold project in Western Australia, as announced on September 9, 2021;
Record positive cash flows from operating activities of $1,346,103 for the quarter;
Strong balance sheet position at period end, including cash on hand of $4,671,606, working capital of $7,842,890 and total assets of $28,109,626;
Under the Company’s normal course issuer bid, Vox purchased and cancelled 454,400 common shares at an average share price of C$2.81; and
Commenced trading on the OTCQX on August 10, 2021.
Summary of Quarterly Results
Three monthsendedSeptember 30, 2021
Three monthsendedSeptember 30, 2020
Nine monthsendedSeptember 30, 2021
Nine monthsendedSeptember 30, 2020
$
$
$
$
Statement of income (loss) and comprehensive income (loss)
Revenues
1,223,493
10,252
3,077,503
10,252
Gross profit
946,711
5,486
2,479,469
5,486
Net income (loss)
(1,251,384)
(2,284,933)
188,893
(7,479,939)
Net income (loss) per share
(0.03)
(0.07)
0.01
(0.26)
For complete details, please refer to the Unaudited Condensed Interim Consolidated Financial Statements for the three and nine months ended September 30, 2021 and 2020 and associated Management Discussion and Analysis for the three and nine months ended September 30, 2021, available on SEDAR (www.sedar.com) or on the Company’s website (www.voxroyalty.com).
About Vox
Vox is a high growth precious metals royalty and streaming company with a portfolio of over 50 royalties and streams spanning eight jurisdictions. The Company was established in 2014 and has since built unique intellectual property, a technically focused transactional team and a global sourcing network which has allowed Vox to become the fastest growing company in the royalty sector. Since the beginning of 2019, Vox has announced over 20 separate transactions to acquire over 45 royalties.
Cautionary Note Regarding Forward Looking Information
This news release contains certain forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects” or “does not expect”, “is expected”, “anticipates” or “does not anticipate” “plans”, “estimates” or “intends” or stating that certain actions, events or results ” may”, “could”, “would”, “might” or “will” be taken, occur or be achieved) are not statements of historical fact and may be “forward-looking statements”. Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to materially differ from those reflected in the forward-looking statements.
The forward-looking statements and information in this press release include, but are not limited toVox’s anticipated outlook for the fiscal 2021 year, completion of certain anticipated milestones, transactions and developments by the operators of certain underlying projects and mines in respect of Vox’s royalty and stream portfolio, anticipated future cash flows, future financial reporting by Vox, the receipt of payments from Vox’s mining royalty and streaming portfolio, and the completion of mine construction, production and expansion under construction phases at the mines or properties that Vox holds an interests in.
Forward-looking statements and information are based on forecasts of future results, estimates of amounts not yet determinable and assumptions that, while believed by management to be reasonable, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Forward-looking statements and information are subject to various known and unknown risks and uncertainties, many of which are beyond the ability of Vox to control or predict, that may cause Vox’s actual results, performance or achievements to be materially different from those expressed or implied thereby, and are developed based on assumptions about such risks, uncertainties and other factors set out herein, including but not limited to: the requirement for regulatory approvals and third party consents, the impact of general business and economic conditions, the absence of control over the mining operations from which Vox will receive royalties, including risks related to international operations, government relations and environmental regulation, the inherent risks involved in the exploration and development of mineral properties; the uncertainties involved in interpreting exploration data; the potential for delays in exploration or development activities; the geology, grade and continuity of mineral deposits; the impact of the COVID-19 pandemic; the possibility that future exploration, development or mining results will not be consistent with Vox’s expectations; accidents, equipment breakdowns, title matters, labor disputes or other unanticipated difficulties or interruptions in operations; fluctuating metal prices; unanticipated costs and expenses; uncertainties relating to the availability and costs of financing needed in the future; the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations; currency fluctuations; regulatory restrictions, including environmental regulatory restrictions; liability, competition, loss of key employees and other related risks and uncertainties. Should one or more of these risks, uncertainties or other factors materialize, or should assumptions underlying the forward-looking information or statement prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Vox cautions that the foregoing list of material factors is not exhaustive. When relying on the Company’s forward-looking statements and information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events.
Vox has assumed that the material factors referred to in the previous paragraph will not cause such forward looking statements and information to differ materially from actual results or events. However, the list of these factors is not exhaustive and is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors. The forward-looking information contained in this press release represents the expectations of Vox as of the date of this press release and, accordingly, is subject to change after such date. Readers should not place undue importance on forward looking information and should not rely upon this information as of any other date. While Vox may elect to, it does not undertake to update this information at any particular time except as required in accordance with applicable laws.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Technical and Third-Party Information
Except where otherwise stated, the disclosure in this press release is based on information publicly disclosed by project operators based on the information/data available in the public domain as at the date hereof and none of this information has been independently verified by Vox. Specifically, as a royalty investor, Vox has limited, if any, access to the royalty operations. Although Vox does not have any knowledge that such information may not be accurate, there can be no assurance that such information from the project operators is complete or accurate. Some information publicly reported by the project operators may relate to a larger property than the area covered by Vox’s royalty interests. Vox’s royalty interests often cover less than 100% and sometimes only a portion of the publicly reported mineral reserves, mineral resources and production of a property.
TORONTO, Nov. 18, 2021 /CNW/ – Vox Royalty Corp. (TSXV: VOX) (OTCQX: VOXCF) (“Vox” or the “Company“), a high growth precious metals focused royalty company, is pleased to provide recent development and exploration updates from royalty operating partners Gold Standard Ventures Corp. (TSX: GSV) (“Gold Standard Ventures“), Black Cat Syndicate Limited (ASX: BC8) (“Black Cat“), Silver Mines Limited (ASX: SVL) (“Silver Mines“), Karora Resources Inc. (TSX: KRR) (“Karora“), ValOre Metals Corp. (TSXV: VO) (“ValOre“), and Quantum Graphite Limited (ASX: QGL) (“Quantum“).
Vox Royalty Corp. Logo (CNW Group/Vox Royalty Corp.)
Spencer Cole, Chief Investment Officer stated, “We are excited by yet another month of consistent progress across our royalty assets, particularly by the impending release of the South Railroad feasibility study in Nevada and pre-construction progress at Bulong in Western Australia. Our royalty projects continue to exceed Vox management expectations in terms of their pace of development, the volume of discovery drilling and higher likelihood of royalty revenue for Vox. Based on this strong operator progress, Vox management expects that 2022 has potential to be a record year for discovery drilling, engineering studies being released and projects moving into production.”
Key Development Updates
Update on feasibility study, permitting and construction financing at the South Railroad gold project in Nevada by Gold Standard Ventures;
First production guidance reiterated for H2 2022 at Bulong gold project by Black Cat; and
Substantial drilling updates at the Bowdens silver project by Silver Mines, the Higginsville mine by Karora, the Pedra Branca platinum group metals (“PGM“) project by ValOre, and the Uley graphite project by Quantum.
South Railroad (Pre-Feasibility) – Feasibility Study Expected Q1 2022
Vox holds a 0.633% net smelter royalty with advance minimum royalty payments over part of the South Railroad gold project, which is located in the prolific Carlin Trend of Nevada;
Vox received initial advance minimum royalty payments of ~C$100,000 from the South Railroad royalty in October 2021;
On November 10, 2021, Gold Standard Ventures announced:
Vox Management Summary: The South Railroad project is advancing in line with Vox management expectations based on due diligence completed for the royalty acquisition in June 2021. The majority of the additional ~350,000 ounces expected in Pinion Phases 4 and 5 are expected to be royalty-linked and to generate meaningful royalty revenue for Vox. 2022 promises to be a transformational year for South Railroad with the release of a feasibility study, construction financing process updates and permitting progress.
Bulong (Pre-Construction) – Production on Track for Second Half of 2022
Vox holds a 1% net smelter royalty over part of the Bulong gold project;
Vox Management Summary: Black Cat management continues to rapidly advance the Bulong project towards first production in 2022 alongside an aggressive +80,000m regional discovery drilling program. Management expects that Vox shareholders can look forward to a combination of development and discovery newsflow regarding this highly prospective gold project in Western Australia over the coming months.
Substantial Drilling Updates
Bowdens Silver: Vox holds a 0.85% gross revenue royalty on the Bowdens silver-lead-zinc project and a 1% gross revenue royalty over surrounding regional exploration Tenure.
Higginsville Gold (Dry Creek): Vox holds a price-linked production royalty(1) that is equal to A$0.60/gram of gold produced at current gold prices (effective 0.85% net smelter return royalty economics) on part of the Higginsville gold mine held by Karora, covering part of the Hidden Secret, Mousehollow and Paleochannels deposits.
Pedra Branca PGM: Vox holds a 1% net smelter royalty on the Pedra Branca PGM project.
Uley Graphite: Vox holds a 1.5% gross revenue royalty on the Uley graphite project.
Vox Management Summary: Vox is unique in the emerging royalty industry in having ~20 separate royalty projects with active exploration programs, many of which are the flagship asset of their listed operating company. 2022 is shaping up to be a record year of drilling across the Vox royalty asset portfolio, which increases the probability of further discoveries and medium to long term royalty cashflow for Vox.
Normal Course Issuer Bid Renewal
The Company’s normal course issuer bid (“NCIB“) is being renewed after the existing NCIB expires on November 18, 2021. The current NCIB provides Vox with the option to purchase up to 1,628,289 common shares as appropriate opportunities arise from time to time. Under the terms of the renewed NCIB, the Company may repurchase for cancellation up to 1,968,056 common shares, being 5% of the total number of 39,361,137 common shares outstanding as at November 11, 2021. The purchases are to be made at market prices through the facilities of the TSXV or other recognized Canadian marketplaces during the period November 19, 2021 to November 18, 2022.
The Company believes that, from time to time, the market price of its common shares does not reflect the Company’s underlying value and future prospects and that, at such times, the purchase of the Company’s common shares represents an appropriate use of its financial resources and will enhance shareholder value. Independent Trading Group (ITG), Inc. has been appointed by Vox as its broker to assist with purchases pursuant to the normal course issuer bid.
In the last twelve months, the Company has purchased 804,400 common shares pursuant to its NCIB at a weighted average price of C$2.89 per common share through the facilities of the TSXV and other recognized Canadian marketplaces.
Qualified Person
Timothy J. Strong, MIMMM, of Kangari Consulting LLC and a “Qualified Person” under National Instrument 43-101 – Standards of Disclosure for Mineral Projects, has reviewed and approved the scientific and technical disclosure contained in this press release.
About Vox
Vox is a high growth precious metals royalty and streaming company with a portfolio of over 50 royalties and streams spanning eight jurisdictions. The Company was established in 2014 and has since built unique intellectual property, a technically focused transactional team and a global sourcing network which has allowed Vox to become the fastest growing company in the royalty sector. Since the beginning of 2019, Vox has announced over 20 separate transactions to acquire over 45 royalties.
Cautionary Note Regarding Forward Looking Information
This news release contains certain forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects” or “does not expect”, “is expected”, “anticipates” or “does not anticipate” “plans”, “estimates” or “intends” or stating that certain actions, events or results ” may”, “could”, “would”, “might” or “will” be taken, occur or be achieved) are not statements of historical fact and may be “forward-looking statements”.
The forward-looking statements and information in this press release include, but are not limited to, summaries of operator updates provided by management and the potential impact on the Company of such operator updates, statements regarding expectations for the timing of commencement of construction at and resource production from various mining projects, expectations regarding the size, quality and exploitability of the resources at various mining projects, future operations and work programs of Vox’s mining operator partners, the receipt of future royalty payments derived from various royalty assets of Vox, anticipated future cash flows and future financial reporting by Vox, requirements for regulatory approvals and the ability and intention of the Company to make a normal course issuer bid and to repurchase its common shares for cancellation.
Forward-looking statements and information are based on forecasts of future results, estimates of amounts not yet determinable and assumptions that, while believed by management to be reasonable, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Forward-looking statements and information are subject to various known and unknown risks and uncertainties, many of which are beyond the ability of Vox to control or predict, that may cause Vox’s actual results, performance or achievements to be materially different from those expressed or implied thereby, and are developed based on assumptions about such risks, uncertainties and other factors set out herein, including but not limited to: the requirement for regulatory approvals and third party consents, the impact of general business and economic conditions, the absence of control over the mining operations from which Vox will receive royalties, including risks related to international operations, government relations and environmental regulation, the inherent risks involved in the exploration and development of mineral properties; the uncertainties involved in interpreting exploration data; the potential for delays in exploration or development activities; the geology, grade and continuity of mineral deposits; the impact of the COVID-19 pandemic; the possibility that future exploration, development or mining results will not be consistent with Vox’s expectations; accidents, equipment breakdowns, title matters, labor disputes or other unanticipated difficulties or interruptions in operations; fluctuating metal prices; unanticipated costs and expenses; uncertainties relating to the availability and costs of financing needed in the future; the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations; currency fluctuations; regulatory restrictions, including environmental regulatory restrictions; liability, competition, loss of key employees and other related risks and uncertainties.
Vox has assumed that the material factors referred to in the previous paragraph will not cause such forward looking statements and information to differ materially from actual results or events. However, the list of these factors is not exhaustive and is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors. The forward-looking information contained in this press release represents the expectations of Vox as of the date of this press release and, accordingly, is subject to change after such date. Readers should not place undue importance on forward looking information and should not rely upon this information as of any other date. While Vox may elect to, it does not undertake to update this information at any particular time except as required in accordance with applicable laws.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Technical and Third-Party Information
Except where otherwise stated, the disclosure in this press release is based on information publicly disclosed by project operators based on the information/data available in the public domain as at the date hereof and none of this information has been independently verified by Vox. Specifically, as a royalty investor, Vox has limited, if any, access to the royalty operations. Although Vox does not have any knowledge that such information may not be accurate, there can be no assurance that such information from the project operators is complete or accurate. Some information publicly reported by the project operators may relate to a larger property than the area covered by Vox’s royalty interests. Vox’s royalty interests often cover less than 100% and sometimes only a portion of the publicly reported mineral reserves, mineral resources and production of a property.
References & Notes:
The Dry Creek royalty rate is A$0.12 per gram of gold per dry metric tonne of royalty ore, which is defined as mineralised material mined from the applicable tenements which contains an average grade greater than 1 gram of gold per dry metric tonne and not classified as waste or low grade, and the royalty is adjusted monthly as follows:
TORONTO, Nov. 2, 2021 /CNW/ – Vox Royalty Corp. (TSXV: VOX) (“Vox” or the “Company“), a high growth precious metals focused royalty company, is pleased to announce that it has realized preliminary quarterly royalty revenue of C$1,558,800 (US$1,223,400)(1) for the three-month period ended September 30, 2021.
Quarterly revenue benefitted from record royalty-linked gold production by Karora Resources Inc. (TSX: KRR) from the Hidden Secret and Mousehollow deposits at Higginsville covered by the Dry Creek royalty and record royalty-linked iron ore production volumes by Mineral Resources Limited (ASX: MIN) at Koolyanobbing, and consistent royalty revenues from each of the Company’s Janet Ivy gold royalty and Brauna diamond royalty. Royalty revenues relative to Q2 2021 were inline in spite of a significant reduction in realised iron ore pricing at Koolyanobbing.
Quarterly, year to date, and annual revenue guidance figures are summarized in the below table:
Three months endedSeptember 30, 2021
Nine months ended September 30, 2021 (Fiscal 2021 YTD)
2021 Annual Guidance
Royalty revenue (C$)
$1,558,800
$3,856,000
$4,000,000 – $5,000,000
Royalty revenue (US$)
$1,223,400(1)
$3,077,500
$3,200,000 – $4,000,000
Kyle Floyd, Chief Executive Officer stated: “We are pleased to announce another quarter of strong royalty revenue and multiple royalty-linked production records at Higginsville and Koolyanobbing. The Vox portfolio remains on track to deliver revenue at the higher end of our expectations, even in light of revenue guidance doubling in July 2021. Further, we anticipate first royalty revenue from our Segilola asset during Q4/Q1, following the achievement of commercial production at Segilola in October. The coming quarters present even more value accretive developments for Vox shareholders to look forward to, as we continue our industry leading organic growth trajectory from 5 to 10 producing assets by late 2023.”
About Vox
Vox is a high growth precious metals royalty and streaming company with a portfolio of over 50 royalties and streams spanning eight jurisdictions. The Company was established in 2014 and has since built unique intellectual property, a technically focused transactional team and a global sourcing network which has allowed Vox to become the fastest growing company in the royalty sector. Since the beginning of 2019, Vox has announced over 20 separate transactions to acquire over 45 royalties.
Cautionary Note Regarding Forward Looking Information
This news release contains certain forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects” or “does not expect”, “is expected”, “anticipates” or “does not anticipate” “plans”, “estimates” or “intends” or stating that certain actions, events or results ” may”, “could”, “would”, “might” or “will” be taken, occur or be achieved) are not statements of historical fact and may be “forward-looking statements”. Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to materially differ from those reflected in the forward-looking statements.
The forward-looking statements and information in this press release include, but are not limited to Vox’s anticipated outlook for the 2021 fiscal year, completion of certain anticipated milestones, transactions and developments by the operators of certain underlying projects and mines in respect of Vox’s royalty and stream portfolio, anticipated future cash flows, future financial reporting by Vox, the receipt of payments from Vox’s mining royalty and streaming portfolio, the requirements for regulatory approvals and third party consents, and the completion of mine construction, production and expansion under construction phases at the mines or properties that Vox holds an interests in.
Forward-looking statements and information are based on forecasts of future results, estimates of amounts not yet determinable and assumptions that, while believed by management to be reasonable, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Forward-looking statements and information are subject to various known and unknown risks and uncertainties, many of which are beyond the ability of Vox to control or predict, that may cause Vox’s actual results, performance or achievements to be materially different from those expressed or implied thereby, and are developed based on assumptions about such risks, uncertainties and other factors set out herein, including but not limited to: the requirement for regulatory approvals and third party consents, the impact of general business and economic conditions, the absence of control over the mining operations from which Vox will receive royalties, including risks related to international operations, government relations and environmental regulation, the inherent risks involved in the exploration and development of mineral properties; the uncertainties involved in interpreting exploration data; the potential for delays in exploration or development activities; the geology, grade and continuity of mineral deposits; the impact of the COVID-19 pandemic; the possibility that future exploration, development or mining results will not be consistent with Vox’s expectations; accidents, equipment breakdowns, title matters, labor disputes or other unanticipated difficulties or interruptions in operations; fluctuating metal prices; unanticipated costs and expenses; uncertainties relating to the availability and costs of financing needed in the future; the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations; currency fluctuations; regulatory restrictions, including environmental regulatory restrictions; liability, competition, loss of key employees and other related risks and uncertainties. Should one or more of these risks, uncertainties or other factors materialize, or should assumptions underlying the forward-looking information or statement prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Vox cautions that the foregoing list of material factors is not exhaustive. When relying on the Company’s forward-looking statements and information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events.
Vox has assumed that the material factors referred to in the previous paragraph will not cause such forward looking statements and information to differ materially from actual results or events. However, the list of these factors is not exhaustive and is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors. The forward-looking information contained in this press release represents the expectations of Vox as of the date of this press release and, accordingly, is subject to change after such date. Readers should not place undue importance on forward looking information and should not rely upon this information as of any other date. While Vox may elect to, it does not undertake to update this information at any particular time except as required in accordance with applicable laws.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Notes:
(1)
These figures have not been audited and are subject to change. As the Company has not yet finished its quarter-end close procedures, the anticipated financial information presented in this press release is preliminary, subject to final quarter-end closing adjustments, and may change materially.
TORONTO, ON / ACCESSWIRE / October 20, 2021 / Vox Royalty Corp. (TSXV:VOX)(OTCQX:VOXCF)(“Vox” or the “Company“), a high growth precious metals focused royalty company,is pleased to provide recent development and exploration updates from royalty operating partners Thor Explorations Ltd. (THX) (“Thor“), Jangada Mines plc (JAN) (“Jangada“), Kalamazoo Resources Limited (KZR) (“Kalamazoo“), Genesis Minerals Limited (GMD) (“Genesis“), and ValOre Metals Corp. (VO) (“ValOre“)
Spencer Cole, Chief Investment Officer stated, “The past month has delivered a number of key developments at projects linked to Vox’s royalty portfolio, including commercial production at Segilola, feasibility study progress at Pitombeiras, and further drilling success at Ashburton, Puzzle North and Pedra Branca. These operator developments are representative of Vox’s innovative event-driven acquisition model, designed to selectively acquire royalties immediately prior to major project developments that have a material impact on value.”
Key Development Updates
Commercial production milestone achieved at the Segilola Gold Mine by Thor;
Update on the near-term preparation of the Definitive Feasibility Study on the Pitombeiras vanadium project by Jangada;
High-grade drilling results at the Ashburton Gold Project by Kalamazoo;
Significant new wide, shallow drilling results from emerging Puzzle North discovery by Genesis; and
High-grade drilling results at the Pedra Branca platinum-group-elements (“PGE“) project by ValOre.
Segilola (Producing) – Commercial Production Milestone Achieved
Vox holds a 1.5% net smelter return royalty over the Segilola gold mine, capped at US$3.5M;
On October 5, 2021, Thor announced that commercial production had been achieved at the Segilola Gold Mine, highlighting:
First gold pour in July 2021;
The mine is fully operational and operating at the target daily mine production rate; and
the process plant is operating in-line with its design throughput capacity of 715,000 tonnes per annum.
Vox Management Summary: Based on production guidance from Thor issued on March 29, 2021, which forecast production of 46,000 ounces of gold in 2021 and 109,000 ounces of gold in 2022, Vox management estimates that total pre-tax royalty revenues of US$3.5M will be receivable within the first two full years of production.
Pitombeiras (PEA Stage) – Feasibility Study Expected in Q4 2021
Vox holds a 1% net smelter return royalty over the Pitombeiras vanadium-iron ore project;
On September 30, 2021, Jangada announced the following:
It has appointed an independent engineering advisory company to prepare a NI 43-101 compliant definitive feasibility study, which is expected to be completed in Q4 2021;
Having been granted a trial mining license to initiate the extraction of ferrovanadium from the Pitombeiras project through an open pit mine operation, Jangada hopes to fast-track the project to early production; and
Brian McMaster, Executive Chairman of Jangada, said: “Since its discovery in 2019, we have made significant progress in developing this exciting ferrovanadium deposit and have a high level of confidence in fast-tracking the Project to production. With the Project substantially de-risked and having demonstrated its robust economics during the Preliminary Economic Assessment stage, we are now working on the final details of the FS and look forward to providing further updates in due course.”
Vox Management Summary: Pitombeiras has been fast-tracked from discovery to feasibility in less than 3 years, which typically takes 6 – 10 years for most mining projects. This rapid progress is a testament to Jangada Mines’ management team and related stakeholders. Initial production and royalty revenue in 2022 looks increasingly likely given the current pace of development.
Ashburton (Exploration) – High Grade Drilling Results
Vox holds a 1.75% gross revenue gold royalty (>250koz cumulative production) on the Ashburton gold project;
It has completed its 14,772m drill program at the Ashburton gold project;
Drilling to the north-west and south-east of the Waugh Deposit has extended the moderate to high-grade mineralisation zone in the northern section of the Ashburton Gold Project to 2.5km long (“Waugh Zone“);
Stand out drill results have been received from several prospects across the Waugh Zone showing intercepts of moderate to high grade mineralisation including:
5m @ 7.37g/t Au from 93m including 2m @ 13.58g/t Au from 93m (KARC0065);
2m @ 9.49g/t Au from 40m including 1m @ 17.85g/t Au from 40m (KARC0122);
8m @ 3.56g/t Au from 1m including 1m @ 7.25g/t Au from 6m (KARC0015);
7m @ 2.07g/t Au from surface including 5m @ 2.75g/t Au from surface (KARC0016);
Significant new gold mineralisation discovered at the Annie Oakley Prospect at the north-western end of the Waugh Zone included drill assays from two holes 240m apart returning 8m @ 3.56g/t from surface (KARC0015) and 2m @ 9.49g/t Au (including 1m @ 17.85g/t Au (KARC0122)) from 40m;
Shallow conglomerate hosted gold mineralisation at Annie Oakley shares many similarities with the nearby Mt Olympus deposit and supports Kalamazoo’s aim to substantially increase the shallow oxide resources at the Ashburton Gold Project;
Several thick >1oz/t Au intercepts from historical drilling at the Waugh Deposit undertaken by Sipa Resources (ASX: SRI) in 2002 and thick moderate to high-grade down plunge intercepts by Northern Star Resources (ASX: NST) in 2012 and Kalamazoo in 2020 confirms the considerable high-grade potential of the 2.5km long Waugh Zone; and
Plans to commence an extensive drill program at Ashburton in early 2022.
Vox Management Summary: The drilling success that has extended the moderate to high-grade mineralisation zone in the northern section of the Ashburton project to 2.5km long indicates that Kalamazoo management’s exploration target of 2Moz – 3Moz is potentially achievable. We look forward to further newsflow on Kalamazoo’s development studies which are progressing in parallel with exploration drilling.
Kookynie (Pre-Feasibility) – Puzzle North Discovery Drilling Results
Vox holds a A$1/t production royalty on part of the Kookynie gold project(1);
Strong new results from Reverse Circulation (“RC“) and diamond drilling continue to confirm the potential to expand the 1.6Moz Mineral Resource at the Ulysses Gold Project near Leonora in WA;
It has completed a further 6,150m RC drilling and 433m diamond drilling at the royalty-linked Puzzle North project;
Broad zones of strong gold mineralisation were intersected from shallow depths in RC and diamond drilling at the emerging Puzzle North Prospect, including:
44.1m @ 3.51g/t gold from 58.9m (21USDH0184), including 10.2m @ 10.6g/t gold from 67.8m;
29m @ 4.26g/t gold from 28m (21USRC1038), including 4m @ 18.39g/t gold from 32m;
28.0m @ 1.99g/t gold from 161m (21USDH0184);
32m @ 1.42g/t gold from 58m (21USRC1013), including 5m @ 5.14g/t gold from 84m;
Drilling at Puzzle North has been completed over 500m of strike with the mineralisation remaining open both at depth and along strike. The northernmost hole, 21USRC1026, has returned an intercept of 11m @ 2.13g/t gold from 38m down-hole; and
Genesis Managing Director Michael Fowler said: “Drilling will resume here [at Puzzle North] in November to in-fill and extend the mineralised zone, allowing us to bring this exciting new discovery into our Mineral Resource inventory by the end of the year.”
Vox Management Summary: The high gold grades and broad intersections of this drilling suggests that the Puzzle North discovery has strong potential to host an economic orebody. Vox management believes that if Puzzle North is included in the broader Ulysses project feasibility study this potential orebody could be fast-tracked towards a construction decision within 12 months.
Pedra Branca (Preliminary Economic Assessment) – High Grade Drilling Results
Vox holds a 1% net smelter return royalty on the Pedra Branca PGE project;
Recent drilling returned high-grade, shallow PGE mineralized intercepts including:
7m at 2.95g/t 2PGE+Au from surface, including 45m at 4.76g/t 2PGE+Au, 0.1g/t Rh from 16m, and 6.4m at 16.92g/t 2PGE+Au and 0.52g/t Rh from 30m (DD21ES15C);
49m at 2.03g/t 2PGE+Au from 19m, including 4.6m at 11.94g/t 2PGE+Au, 0.25g/t Rh from 23.68m (DD21CU12A);
77m at 1.01g/t 2PGE+Au from surface (DD21PBE30A);
47m at 1.51g/t 2PGE+Au from surface (DD21CU12A); and
Metallurgical testwork is expected to commence in mid-October, with a primary focus on mineralogy and conventional processing circuits.
Vox Management Summary: These drilling results are some of the highest grade and broadest zones drilled to date at the Pedra Branca project. We look forward to the release of a resource update by ValOre in the coming months, particularly following recent exploration success at the Trapia 1 and Trapia 2 target areas, given their geological strike lengths have increased by factors of three and five respectively.
Qualified Person
Timothy J. Strong, MIMMM, of Kangari Consulting LLC and a “Qualified Person” under National Instrument 43-101 – Standards of Disclosure for Mineral Projects, has reviewed and approved the scientific and technical disclosure contained in this press release.
About Vox
Vox is a high growth precious metals royalty and streaming company with a portfolio of over 50 royalties and streams spanning eight jurisdictions. The Company was established in 2014 and has since built unique intellectual property, a technically focused transactional team and a global sourcing network which has allowed Vox to become the fastest growing company in the royalty sector. Since the beginning of 2019, Vox has announced over 20 separate transactions to acquire over 45 royalties.
Cautionary Note Regarding Forward-Looking Information
This news release contains certain forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects” or “does not expect”, “is expected”, “anticipates” or “does not anticipate” “plans”, “estimates” or “intends” or stating that certain actions, events or results ” may”, “could”, “would”, “might” or “will” be taken, occur or be achieved) are not statements of historical fact and may be “forward-looking statements”.
The forward-looking statements and information in this press release include, but are not limited to, summaries of operator updates provided by management and the potential impact on the Company of such operator updates, statements regarding expectations for the timing of commencement of construction at and resource production from various mining projects, expectations regarding the size, quality and exploitability of the resources at various mining projects, future operations and work programs of Vox’s mining operator partners, the receipt of future royalty payments derived from various royalty assets of Vox, anticipated future cash flows and future financial reporting by Vox and requirements for regulatory approvals.
Forward-looking statements and information are based on forecasts of future results, estimates of amounts not yet determinable and assumptions that, while believed by management to be reasonable, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Forward-looking statements and information are subject to various known and unknown risks and uncertainties, many of which are beyond the ability of Vox to control or predict, that may cause Vox’s actual results, performance or achievements to be materially different from those expressed or implied thereby, and are developed based on assumptions about such risks, uncertainties and other factors set out herein, including but not limited to: the requirement for regulatory approvals and third party consents, the impact of general business and economic conditions, the absence of control over the mining operations from which Vox will receive royalties, including risks related to international operations, government relations and environmental regulation, the inherent risks involved in the exploration and development of mineral properties; the uncertainties involved in interpreting exploration data; the potential for delays in exploration or development activities; the geology, grade and continuity of mineral deposits; the impact of the COVID-19 pandemic; the possibility that future exploration, development or mining results will not be consistent with Vox’s expectations; accidents, equipment breakdowns, title matters, labor disputes or other unanticipated difficulties or interruptions in operations; fluctuating metal prices; unanticipated costs and expenses; uncertainties relating to the availability and costs of financing needed in the future; the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations; currency fluctuations; regulatory restrictions, including environmental regulatory restrictions; liability, competition, loss of key employees and other related risks and uncertainties.
Vox has assumed that the material factors referred to in the previous paragraph will not cause such forward looking statements and information to differ materially from actual results or events. However, the list of these factors is not exhaustive and is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors. The forward-looking information contained in this press release represents the expectations of Vox as of the date of this press release and, accordingly, is subject to change after such date. Readers should not place undue importance on forward looking information and should not rely upon this information as of any other date. While Vox may elect to, it does not undertake to update this information at any particular time except as required in accordance with applicable laws.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Technical and Third-Party Information
Except where otherwise stated, the disclosure in this press release is based on information publicly disclosed by project operators based on the information/data available in the public domain as at the date hereof and none of this information has been independently verified by Vox. Specifically, as a royalty investor, Vox has limited, if any, access to the royalty operations. Although Vox does not have any knowledge that such information may not be accurate, there can be no assurance that such information from the project operators is complete or accurate. Some information publicly reported by the project operators may relate to a larger property than the area covered by Vox’s royalty interests. Vox’s royalty interests often cover less than 100% and sometimes only a portion of the publicly reported mineral reserves, mineral resources and production of a property.
References & Notes:
Kookynie Royalty is split in two separate terms: a. Kookynie (Melita) Royalty – which covers the Puzzle Deposit: A$1/t production royalty >650Kt cumulative ore mined and treated. b. Kookynie (Consolidated Gold) Royalty – which covers the Puzzle North Discovery: A$1/tonne (for each Ore Reserve with a gold grade <= 5g/t Au), for grades > 5g/t Au royalty = ((Ore grade per Tonne – 5) x 0.5)+1).
TORONTO, Oct. 5, 2021 /CNW/ – Vox Royalty Corp. (TSXV: VOX) (OTCQX: VOXCF) (“Vox” or the “Company“), a high growth precious metals focused royalty company, is pleased to announce an update on the producing Janet Ivy Gold Mine (“Janet Ivy“) in Western Australia, controlled by Norton Gold Fields Pty Ltd. (“Norton“); a subsidiary of Hong Kong and Shanghai-listed, Zijin Mining Group Co., Limited (“Zijin“). Vox holds an uncapped A$0.50/tonne production gold royalty over Janet Ivy, which forms the core of Zijin’s Binduli North heap leaching expansion project (“Binduli North“).
In addition to the Janet Ivy acquisition announcement by Vox on March 29, 2021, Vox has now filed on SEDAR a technical report, “NI 43-101 Technical Report, Janet Ivy Gold Mine (M26/446), Western Australia, Australia” dated October 5, 2021 by Kangari Consulting LLC.
According the Zijin’s latest public disclosures, the Binduli North expansion is targeted for completion as early as March 20221, which was the key near-term catalyst that Vox management anticipated when the royalty was acquired in March 2021. Vox congratulates Zijin on rapidly advancing the project to the commencement of construction in June 2021 and now looks forward to reaching the expansion completion milestone.
Riaan Esterhuizen, Executive Vice-President – Australia stated, “The Binduli expansion was the key near-term catalyst that Vox management anticipated when we acquired the Janet Ivy royalty in March 2021. The Binduli North heap leach expansion is expected to re-rate Janet Ivy royalty revenues from 2022 onwards. This royalty has the potential to generate A$1.5M – A$2.5M of annual revenues from Binduli North production on average across the life of mine and assuming a target production rate from Norton Gold of 5Mtpa from Binduli North.”
Asset Overview – Janet Ivy Gold Mine
Janet Ivy is located on mining lease, M26/446 and is located 10km to the west of Kalgoorlie. The deposit has been mined since 2017 as an open-cut mine to supplement baseload ore feed from the Enterprise open pit mine for the Norton-owned 3.7Mtpa Paddington Mill.2
On April 28, 2020, Zijin announced that the Zijin Board of Directors had approved the construction of the Binduli 15Mtpa heap leaching project, with the first phase at Binduli North expected to be completed and first production to commence in March 20221. The Vox royalty-linked tenure covers the core of Binduli North, including the full Janet Ivy resource as well as portions of the Fort William, Karen Louise and Fort Scott deposits (Figure 1).
In December 2020, Norton submitted a Mining Proposal (prepared by Talis Consultants Pty Ltd) to the Western Australian Environmental Protection Authority for the permitting of the Binduli North heap leach expansion, which proposed a 5Mtpa mining operation over 9 years from the Janet Ivy, Fort William, Karen Louise and Fort Scott pits.3 This Mining Proposal and an associated Application for Works Approval were approved by the Department of Water and Environmental Regulation on July 22, 2021 (Works Approval Number W6504/2021/1).4
On August 1, 2021, Zijin announced that the project design, application for permits and licenses and other preparatory work for Binduli North have been completed and that the construction had commenced in June 2021, that applications for permits and licenses for Binduli South heap leaching project is being studied and taking place, that after completion of all the Binduli construction work and upon reaching designated production capacity, approximately 7 tonnes of gold (approximately 225,000 ounces) can be produced in peak years, that the total capital cost of the combined Binduli expansion (5Mtpa Binduli North + 10Mtpa Binduli South) is A$462 million, and that investment in the project during the first half of 2021 was RMB 0.43B (A$90 million).5
Figure 1: Janet Ivy royalty tenure M26/446 in relation to Binduli North and Binduli South. (CNW Group/Vox Royalty Corp.)
Based on a Mining Proposal submitted to the Western Australian EPA in December 2020, the Binduli North expansion is a 5Mtpa heap leach project that is expected to mine 41Mt @ 0.6g/t Au over a 9 year mine life. The project covers the following royalty-linked deposits, that are approximately 85% royalty linked:
Table 1: Mining Design Results as of December 2020 (Source: Talis 2020) (CNW Group/Vox Royalty Corp.)
Timothy J. Strong, MIMMM, of Kangari Consulting Limited and a “Qualified Person” under National Instrument 43-101 – Standards of Disclosure for Mineral Projects, has reviewed and approved the scientific and technical disclosure contained in this press release.
About Vox
Vox is a high growth precious metals royalty and streaming company with a portfolio of over 50 royalties and streams spanning eight jurisdictions. The Company was established in 2014 and has since built unique intellectual property, a technically focused transactional team and a global sourcing network which has allowed Vox to become the fastest growing company in the royalty sector. Since the beginning of 2019, Vox has announced 20 separate transactions to acquire over 45 royalties.
Cautionary Note Regarding Forward Looking Information
This news release contains certain forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects” or “does not expect”, “is expected”, “anticipates” or “does not anticipate” “plans”, “estimates” or “intends” or stating that certain actions, events or results ” may”, “could”, “would”, “might” or “will” be taken, occur or be achieved) are not statements of historical fact and may be “forward-looking statements”.
The forward-looking statements and information in this press release include, but are not limited to, a summary of operator updates provided by management and the potential impact on the Company of such operator updates, statements regarding expectations for the timing of commencement of resource production from the project, expectations regarding the size, quality and exploitability of the resources associated with the project, future operations and work programs of Vox’s mining operator partner, the receipt of future royalty payments derived from the royalty asset, anticipated future cash flows and future financial reporting by Vox and requirements for regulatory approvals.
Forward-looking statements and information are based on forecasts of future results, estimates of amounts not yet determinable and assumptions that, while believed by management to be reasonable, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Forward-looking statements and information are subject to various known and unknown risks and uncertainties, many of which are beyond the ability of Vox to control or predict, that may cause Vox’s actual results, performance or achievements to be materially different from those expressed or implied thereby, and are developed based on assumptions about such risks, uncertainties and other factors set out herein, including but not limited to: the requirement for regulatory approvals and third party consents, the impact of general business and economic conditions, the absence of control over the mining operations from which Vox will receive royalties, including risks related to international operations, government relations and environmental regulation, the inherent risks involved in the exploration and development of mineral properties; the uncertainties involved in interpreting exploration data; the potential for delays in exploration or development activities; the geology, grade and continuity of mineral deposits; the impact of the COVID-19 pandemic; the possibility that future exploration, development or mining results will not be consistent with Vox’s expectations; accidents, equipment breakdowns, title matters, labor disputes or other unanticipated difficulties or interruptions in operations; fluctuating metal prices; unanticipated costs and expenses; uncertainties relating to the availability and costs of financing needed in the future; the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations; currency fluctuations; regulatory restrictions, including environmental regulatory restrictions; liability, competition, loss of key employees and other related risks and uncertainties. Should one or more of these risks, uncertainties or other factors materialize, or should assumptions underlying the forward-looking information or statement prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Vox cautions that the foregoing list of material factors is not exhaustive. When relying on the Company’s forward-looking statements and information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events.
Vox has assumed that the material factors referred to in the previous paragraph will not cause such forward looking statements and information to differ materially from actual results or events. However, the list of these factors is not exhaustive and is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors. The forward-looking information contained in this press release represents the expectations of Vox as of the date of this press release and, accordingly, is subject to change after such date. Readers should not place undue importance on forward looking information and should not rely upon this information as of any other date. While Vox may elect to, it does not undertake to update this information at any particular time except as required in accordance with applicable laws.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Technical and Third-Party Information
Except where otherwise stated, certain disclosure in this press release is based on information publicly disclosed by third parties (including but not limited to mining project operators and government departments) based on the information/data available in the public domain as at the date hereof, and none of this information has been independently verified by Vox. Specifically, as a royalty investor, Vox has limited, if any, access to the royalty operations. Although Vox does not have any knowledge that such information may not be accurate, there can be no assurance that such information from the project operators is complete or accurate. Some information publicly reported by the project operators may relate to a larger property than the area covered by Vox’s royalty interests. Vox’s royalty interests often cover less than 100% and sometimes only a portion of the publicly reported mineral reserves, mineral resources and production of a property.
Joining us for conversation is Kyle Floyd, the CEO and Chairman of Vox Royalty(TSX.V: VOX | OTCQX: VOXCF). Sir, it’s a pleasure to speak with you today, as we deep dive into the value proposition of Vox Royalty, which offers a smart way to invest in commodities. Before we begin, Mr. Floyd, please introduce us to Vox Royalty and the opportunity the company presents to shareholders.
Kyle Floyd:
Vox Royalty Corp has been around since 2014. Our business model focuses on buying third-party royalties, which we believe is the most value-enhancing way to play the commodity sector. And so, we have built what is the fastest-growing royalty company on the planet. We also believe one of the royalty companies trading at the most attractive valuations, and we have a management team and business entirely engaged and finding deep value by buying these third-party royalties all around the world. And we’ve been very, very successful in building Vox Royalty for our investors over the last eight years.
Maurice Jackson:
Before we take a step forward, let’s take a step back. What are some of the merits of royalty companies for shareholders?
Kyle Floyd:
Well, royalty companies offer a better risk-adjusted way to play commodity exposure. And there are a couple of key reasons for that. Royalties typically are revenue interests essentially that run with the mining assets. And so you take a top-line percentage interest in these projects. You’re not exposed to a lot of the costs and the risks that these mining companies face, which can be quite significant. If there’s a cost overrun, the royalty company gets to continue to generate its revenue from the project without having to fund any of the projects or being diluted. If that underlying entity needs to raise capital.
The other costs that the mining that the roads and conveys are not associated with the mining companies face are the general input costs, the variable cost structure, whether it’s for fuel people, you name it, all the inputs that go into mining companies, all those costs are increasing and royalty companies are exposed to that.
The other benefit, then, on the upside is there’s a lot of diversification you get from royalty companies. Vox Royalty has 5 production stage assets going to 10 production stage assets and beyond means that we’re diversified across a suite of assets. And so we don’t have single asset risks that you have in a lot of mining companies. So a lot less risk, but a lot of the same upside, if not better upside that you realize in mining companies in the form of metal prices going up helps increase the value of royalty companies, increase in production, increases in reserves, increasing resources. All of that goes to fuel royalty company growth. And we’re not on the hook for any of those costs in terms of building out those assets further. So that’s a quick synopsis on why we’re so bullish on royalties and we believe that’s backed up in the market as well to companies that outperform for the better part of the last two decades.
Maurice Jackson:
One of the virtues of royalty companies, several embedded optionality. And speaking of royalties, to truly appreciate the value proposition of Vox Royalty, Mr. Floyd, what is a royalty juxtaposed to a stream? We hear those terms often, but they get co-mingled, but they’re not the same.
Kyle Floyd:
That’s a great question. Royalties are these third-party interests. So, interest not held by the operating party of the mining company, they’re the prospector or the junior mining company or the family that owned a ranch that sold the asset eventually to the mining company and typically retained a royalty, which was that right in the upside of revenue generated for these mines typically for the life of those mines. A stream is a structure where you’re typically financing a mining company, and the counterparty is the mining company. You’re giving them capital and in return, you are taking a percentage of a certain metal that’s generated from that opportunity.
And you’re continuing to remit payments to get that metal over the life or over the term of that commercial arrangement. The big difference is typically on streams. You’re giving money to a mining company, so you need them to meet capital versus our royalty model. We’re not giving money to the mining company. We’re purchasing a right held by a third party. And typically those are non-core assets for these groups. Therefore, we’re not restricted by mining companies needing capital to find really interesting deals for our investors.
Maurice Jackson:
Now that we have a better understanding of the merits of royalty companies, Mr. Floyd, what differentiates Vox Royalty?
Kyle Floyd:
There are a few things that differentiate Vox Royalty and we built a business model to be differentiated, to offer better risk-adjusted exposure for investors. And one of the key differentiators is we focus exclusively on buying third-party royalties. We don’t compete at the big end of town trying to finance multi-billion dollar projects with streams. Our niche is finding third-party royalties all over the globe. We have a database that has 8,000 proprietary royalties that provide us a roadmap for finding great royalties in jurisdictions that range from West Africa to Australia, to North America, to South America. And we use a technical team made up of mining engineers and geologists that help screen for good projects that have these amazing royalties over them. And then we connect with these owners of these projects, with our deal sourcing agents all around the world to be able to transact on these opportunities.
Vox Royalty built this ecosystem, this business model around finding third-party royalties, where we think the best value is generated. And if you look at the historical returns of the Franco’s and the Royals, that’s where they’ve generated the best returns, buying these third party royalties, much less the streams and the financing of mining companies that have been completed over the last decade. That being said, they performed very, very well overall. And so that is our business model. Third-party royalties finding amazing assets with great royalties over them, all around the world. And those three kind of key pillars of that stool, the deal sourcing agent network that I think goes farther than probably anybody in our range, the technical team, and intellectual property in the form of a database. And all those combined to make us what has been the fastest-growing royalty company. And I believe also at the best value over the last three years.
Maurice Jackson:
Speaking of the database, Vox Royalty owns one of the world’s largest proprietary royalty databases, consisting of over 8,000, most of which are located in Australia, Canada, and the USA. Mr. Floyd, please introduce us to Vox Royalties property bank.
Kyle Floyd:
It’s a very exciting asset for us, and it’s a huge competitive advantage. Our database has been built over the better part of the last 10 years. Vox was building our database and building our intellectual property. But one of the things that we were acutely aware of is there was the potential that someone was farther ahead of us in terms of this effort to build out proprietary advantages in finding third-party royalties. And sure enough, there was a company that was farther ahead, and that was a company called Mineral Royalties Online.
So they had, at that time, it was a database of 7,000 third-party royalties in their database, all around the world. They had built this database bottoms-up through first principles and first-party data. They went into different mining ministries and exploration offices all around the world and made deals to essentially get this hard copy data and then translate that into data that was online. And so we purchased that database in 2019, that has underpinned a lot of our success and our growth rate. And so that database gives us an edge all around the globe in terms of finding these third-party royalties and being able to transact and closes and bring those into the portfolio.
Maurice Jackson:
I see that Vox has undertaken a keen interest in Australia. Why Australia?
Kyle Floyd:
Well, there’s not just one reason for Australia. There’s a lot of reasons for us in Australia. Australia is, and we’re slightly biased, but it’s also backed up by a lot of the third-party rating agencies, is one of the best, if not the best, mining jurisdictions on the planet. According to the Fraser Institute, Western Australia, which is home to most of our royalties, is the best mining jurisdiction. Investors understand the value of Nevada royalties because Australia is a better mining jurisdiction, in our opinion. We believe Australia is the place that you want to have significant exposure to, complimented by our IP, which has a very strong basis in Australian royalties, and technical team, three of our four key Business Development Executives are also Australian citizens. We understand what we believe is the best major mining market, as well as anybody, if not better than anybody else.
We’ve accumulated what is now the second-largest holding of hard rock mining royalties in Australia. And that’s significant because Australia, beyond just being a fundamentally great jurisdiction with great golden endowments, it has had a very buoyant gold price in Aussie dollar terms. It’s been trading at almost all-time high prices in Aussie dollars for the last almost four years. And so what’s happened is a lot of the exploration development projects that we forecasted would do well have exceeded expectations because the buoyant equity markets have allowed these companies to raise as much capital as needed to advance these projects. And so it’s been a huge boon to our business in terms of the growth of assets already in the portfolio, and having them grow ahead of expectations and realizing tremendous value for our investors. And so, us picking Australia as a place to focus on has paid off for our shareholders.
Maurice Jackson:
Sounds quite intriguing. Now within the property bank, Vox Royalty has producing assets and a pipeline of growth assets. Sir, please acquaint us with your top three key producing assets beginning in Australia.
Kyle Floyd:
This year we acquired the Janet Ivy, and we were engaged on it before it goes back into production. It’s now in production, but it has a huge expansion plan ahead of it, which we expect to take place late next year and that’ll make it a very, very significant cash flow for us. We also have the Koolyanobbing Royalty, which we bought from a telecom business, If you can believe that. It was held in one of their subsidiaries for a very long time, and we’re engaged on a pre at going into production.
That’s had a huge run and huge growth, obviously with the iron ore up in prices. And then we also have a host of other royalties that are in production, Coure Resources, Higginsville operations. We have three open-pits that feed that mill. And so that’s been running at a record pace for us. And then one that we’re excited about is the Segiolola Project that we bought pre-production. It is the highest-grade open-pit gold project in West Africa, and they just announced the first gold pour. So we expect to see revenue from that asset in Q4. So really a tremendous amount of growth in our portfolio from producing and production stage assets.
Maurice Jackson:
We’ve covered the key producing assets. Sir, please introduce us to the growth assets of your property bank.
Kyle Floyd:
I could go on for days about our growth assets. I’ve got to work hard to kind of narrow it down for the readers. I’ll name a couple that I’m excited about. The Ashburton is one. When we bought that royalty, which was in the portfolio of Northern Star. It was a little bit sleepy, but we saw a huge potential in the asset. And what we believed would eventually happen was that other Northern Star would start upping the development curve on this and the timeline on it, or it would transact to a more nimble junior. And sure enough, that happened just a few months after the acquisition of this royalty. The Ashburton is a 1.65 million-ounce gold resource in Western Australia. It’s owned by Calamos Resources now. They’ve got 12,000 meters of drilling going on and their target is three plus million ounces for this asset. So that’s a really exciting NSR royalty for us.
The other one that I’m excited about is The Bowdens Project, which is the largest developing primary silver project in all of Australia. It’s got great fundamentals. The Bowdens Project is an open-pit that’s now exploring the very strong potential to go underground either after the open-pit is exhausted or contemporaneous with open-pit mining. And that is a royalty that has a very multi-decade mine life potential. So those are a couple of the key development stage assets that we’re excited about.
We also have a host of royalties that are going to be coming into production in the very near term. The Pitombeiras is a Vanadium Project in Brazil that they are expecting to come into production in the first half of next year. The Bulong Gold Project is a development stage, production stage asset that’s expected to go into production in mid, next year, over Western Australia Gold Project. And then there’s many more that we can get into without belaboring the point that we have a tremendous amount of growth assets. We have 20 plus development-stage assets, many of which are aggressively moving forward. So it’s a fantastic portfolio of assets with real growth in front of it that’s being delivered to the market every quarter. And that’s increasing value for shareholders.
Maurice Jackson:
Realizing this is a forward-looking statement. We’re going to get into some members later in this discussion, but how much revenue potential is before us under the current market conditions, if we combine the producing and the growth assets?
Kyle Floyd:
And it’s very much a forward-looking statement. I would caution on that. We’ve done a fantastic job of finding royalties 3 to 24 months out before production, where we find the really good value we’re able to bring in those assets that are good fits within our portfolio. We take away the risk from the disparate holders of these third-party royalties all around the world on their non-core assets. So there’s risk asymmetry. They fit better in our portfolio. They don’t fit as one-off assets. And so we’re able to find really good value all around the world, finding these near-production assets. We came out and I think we’ve validated that business over the last 12, 18 months. We recently doubled revenue guidance. We’ll probably talk about that more, but that’s really on the basis that we’re finding these royalties pre-production and then allowing them the time. And usually, it’s not a very long time to go to get into production.
And so when we step out and look at our portfolio, I believe that there’s $15 to $20 million of long-life revenue potential in the portfolios. There’s reason for tremendous upside on that number as well. And that there are 15, 20 exploration stage assets. Some that are generating bonanza grade drill hits are increasing the possibility that those are going to become mines. So very active exploration projects that would kind of fuel growth on top of that. But I believe it’s one of the most undervalued royalty portfolios out there as very strong potential to generate that type of cash flow over the medium and long term. But again, I caution that it was a forward-looking statement. Those are numbers based on operator guidance. They’re based on the technical engineering studies that, that coincide with these assets. But we feel very good about the revenue-generating capability of this portfolio.
Maurice Jackson:
Now germane to revenue, how do mergers and acquisitions impact your portfolio?
Kyle Floyd:
Vox Royalty has a very disciplined approach to acquisitions. We have not the best of our knowledge have not won a single royalty in a sales process. Most royalty companies, in fact, almost all royalty companies, have been growing their business by winning sales processes. So that’s royalties that are being shopped by investment banks and they’re paying top dollar pretty much in every scenario to bring those royalties in the portfolio. What we do is we’ve built a business around finding, these third-party royalties, and disparate shareholders all around the world where these are non-core assets. And so we’ve been able to transact it a really good value. We’re very disciplined on what good value looks like. It has to be accretive across kind of three different key metrics: absolute return on investment basis, relative net asset value, and relative cash flow multiples. Most royalty companies cannot stack up to what Vox is accomplishing in terms of acquisition that’s bringing in across those three metrics. Usually, one, if not two, if not all, three of those metrics break down when other royalty companies are purchasing third-party royalties like we are.
Maurice Jackson:
Now, before we leave the property bank. The multilayered question, what is the next unanswered question for Vox Royalty? When can we expect a response and what will determine success?
Kyle Floyd:
Well, the next step for Vox is we continue to invest in our loyalty database. We will continue to build on that competitive advantage. It’s fueled a lot of our growth and given us a huge leg up on the competition. So we continue to invest in that asset for us, we continue to expand our relationships around the globe. We are finding interesting royalties from Australia to South America, to West Africa and everywhere, pretty much in between. And so, from Vox and what you’ll continue to see on us is expanding on that competitive advantage, expanding on the capability to find really good value for our investors on really exciting projects, where our mining engineers and our geologists understand the quality of those assets so that your readers and the generalist audience out there does not have to do that work. And I think that’s a big advantage that we present for investors is this competitive advantage, that’s good to find a good value.
Maurice Jackson:
Leaving the property bank. Let’s discuss the people responsible for increasing shareholder value. Mr. Floyd, please introduce us to your management team.
Kyle Floyd:
I’m excited about our management team, we’ve handpicked and recruited the management team that we have to fill the roles that we believe needed to be filled over the years to create shareholder value. I founded the concept back in 2013, 2014, and with the belief that we needed to have competitive advantages and skillsets that increase shareholder value and the capability to do so. And so, a few of our key management team members, Spencer Cole is our Chief Investment Officer with a background as a mining engineer, previously worked at South 32 and BHP, and BHP is where the Mineral Royalties Online business, the inspiration was found. Riaan Esterhuizen, who is one of our Executive Vice-Presidents out of Australia. Riaan’s a geologist, Riaan’s led some of the most interesting grassroots exploration campaigns for the who’s who of majors. They went about building Mineral Royalties Online. They built that business. They came into Vox and we acquired that business. And that’s been a huge part of our success. Simon Cooper has been with us for a very long time. Simon’s a mining engineer, a geologist, entrepreneurial, and brings a significant amount of technical capability. He’s worked with some of the most interesting projects all around the world, but also has a very good skill set in terms of finding acquisitions to bring in those acquisitions into our portfolio. And then we have a great CFO in Pascal Attard, and a great General Counsel in Adrian Cochrane. So we believe that we’ve built one of the most exciting and capable management teams in the small-cap royalty space. And it’s a huge asset for our business and our investors.
Maurice Jackson:
And here’s an opportunity to brag on yourself, who is Kyle Floyd, and what makes him qualified for the task at hand?
Kyle Floyd:
It’s always hard to talk about yourself. I’m supposed to be talking about others. But just a little bit about my background. I ran the Mining Investment Banking Division for a firm called Roth Capital. And the inspiration to build Vox was around helping mining companies raise capital, but then seeing that capital not get deployed in the right means and the right ways. And at the end of the day, not generating great risk-adjusted results for investors. And so I’d advise multiple companies on selling streams and royalties and acquiring streams and royalties.
And I believe that was the best business model for the generalist investor to get exposure to commodities. And I went about building a business model for investors, by investors? We started with a seven and a half million dollar investment and began building this company around generating better risk-adjusted returns in the commodity sector. And we’ve been very successful at doing so. And so that’s a little bit of my background. I graduated in Finance from the University of Washington, then a stint at Colorado School of Mines in the Mineral and Energy Economics Department, but a business built around achieving great risk-adjusted returns for our investors.
Maurice Jackson:
Switching gears, let’s look at some numbers, Mr. Floyd, please provide the capital structure for Vox Royalty.
Kyle Floyd:
Vox Royalty has a tight share structure of 39 million shares issued. We, when we went public in May of last year, we had to forward split the stock, which I would tell you, is almost an anomaly in the resource sector. We have 5 million warrants outstanding, at this stage they have a strike at $4.50, which is out of the money as we speak today, and no debt and a very, very strong working capital position. Vox is very well-financed. We have a tight capital structure. We have no intentions of going back to the equity markets anytime soon, and we will continue to be able to build our asset portfolio combination of debt and strategic acquisitions and minimize dilution in doing so. So I’m excited about where our capital structure is today for investors. I think it’s a very unique opportunity from that perspective,
Maurice Jackson:
Who are some of the major shareholders?
Kyle Floyd:
We’ve done a pretty good job of cultivating a nice institutional shareholder base. Management owns 15%. The founding investors own another 15% to 30%. And then we’ve got a nice institutional shareholder roster made up of Konwave, US Global, Adrian day, EuroPacific Gold Fund, and many others that have taken positions in us over the last year and a half.
Maurice Jackson:
In closing. Mr. Floyd, for current and prospective shareholders, why Vox and why now?
Kyle Floyd:
Vox, I believe is a tremendous opportunity emboldened by the fact that we are trading at the very low end, the relative valuation spectrum versus our peers. If you look at some of our closest comps, I’ll refrain from naming them, but they’re trading at multiples of our relative valuation. Yet we’re growing faster, we’re growing at a better value. We’re growing with better fundamentals. And we have competitive advantages that a lot of the industry wishes that they had. And so I believe we’re a tremendous growth opportunity. There is a lot lower risk given our lower relative multiple. So the risk of return upside, I think is there. We’re very optimistic about what we’re going to be achieving for investors over the immediate future and the long term. You have a management team that’s committed to the success of this business owning 15% combined. We look at this as solely an opportunity to create long-term shareholder wealth. And I think our business model is achieving that for our shareholders every day.
Maurice Jackson:
Last question. What did I forget to ask?
Kyle Floyd:
I think we’ve covered just about everything, and it’s really about finding the best risk-adjusted way to play commodities. That’s why we’re here. I believe we’re offering that for investors. We’ve continued to demonstrate that with our recent quarterly results and investors expect more of that as we continue to progress and build this business. And what I believe is realized a re-rating for our shareholders. And even if we don’t, we’re going to continue realizing and create value for our shareholders, and it should also be reflected in the share price and our share value at the end of the day.
Maurice Jackson:
Mr. Floyd, for someone that wants to learn more about Vox Royalty, please share the contact details.
Kyle Floyd:
Absolutely. Voxroyalty.com. We’re on all the social media channels as well. We are happy to engage. There’s also, IR@voxroyalty.com. Please, feel free to be in touch. We love engaging with our investors, and we’ll be happy to share more information.
Maurice Jackson:
Mr. Floyd, it’s been a pleasure to speak with you. Wishing you and Fox Royalty the absolute best sir.
And as a reminder, I am a licensed representative to buy and sell precious metals through Miles Franklin Precious Metals Investments, where we have several options to expand your precious metals portfolio, from physical delivery of gold, silver, platinum, palladium, and rhodium, to offshore depositories, and precious metals IRA’s. Give me a call at 855.505.1900 or you may email: Maurice@MilesFranklin.com. Finally, please subscribe to www.provenandprobable.com, where we provide: Mining Insights and Bullion Sales, subscription is free.
