Vox Royalty – Reviewing Q2 Financials, Royalty Partner Project Updates, And The Rerating Potential

Kyle Floyd, CEO and Chairman of Vox Royalty (TSX: VOXR) (NASDAQ: VOXR), joins me to review the key metrics and takeaways from the Q2 2024 financials, a few significant royalty partner project updates, and the potential for a valuation rerating that is more inline with peers and based on their growing revenues.  

Second Quarter 2024 Highlights

• Cash flows generated from operations:
  
  • $2,009,431 for the three months ended June 30, 2024, up ~88% from $1,069,791 in Q2 2023.
  • $3,221,584 for the six months ended June 30, 2024, up ~105% from $1,569,808 in 1H 2023.
• Q2 2024 revenue of $2,839,117 and year-to-date revenue of $5,721,629 (compared to revenue of $2,217,384 and $5,798,239 for the three and six months ended June 30, 2023, respectively). Revenue for the quarter and year-to-date is inline with expectations and overall 2024 guidance.
• General and administration expenditures decreased $436,618 (~28% decrease) for the quarter and $627,729 (decreased ~22%) for the year-to date compared to the comparative periods. The Company has made significant efforts to reduce its cost profile compared to the past periods.

Next we discussed how the team at Vox Royalty has continued to accretively build the portfolio with the completion of another Australian royalty portfolio acquisition during the last quarter, and we noted significant pre-production developments in their royalty portfolio that are expected to contribute to near-term revenues, including commencement of ore mining at Bulong/Myhree by royalty operating partner Black Cat Syndicate Ltd. Expanding upon this premise, we have Kyle outline one of the assets in the Vox Royalty portfolio that was acquired last year that they see deep longer-term value in their royalty portfolio – the royalty on Norther Star’s Red Hill mine within the context of the A$1.5B expansion of its KGCM operations.  Evolution Mining similarly provided updates on the construction-stage Castle Hill project and Kunanalling which has been flagged as likely baseload ore feed for the A$250M Mungari mine life extension and mill expansion project, expected to be completed in Q1 2026. 

We wrap up discussing the health of the Company balance sheet, their potential to be rerated higher more inline with smaller to mid-tier royalty peers, and some ways of thinking about how to value their current portfolio of royalty assets.

If you have any follow up questions for Kyle and the team at Vox, then please email me at  Shad@kereport.com.

• In full disclosure, Shad is a shareholder of Vox Royalty at the time of this recording.

Click here to visit the Vox Royalty website and read over the recent news releases.