From One Asset to Eight: How Vox Royalty (TSX:VOXR) Is Building a Cash-Generating Royalty Powerhouse

May 29, 2025

Ask episode

Chapters

Transcript

Episode notes

Interview with Kyle Floyd, CEO, VOX Royalty

Our previous interview: https://www.cruxinvestor.com/posts/vox-royalty-tsxvoxr-strong-growth-potential-with-near-term-revenue-focus-5599

Recording date: 27 May 2025

VOX Royalty Corp has established itself as a distinctive player in the mining royalty sector by prioritizing fundamental value over commodity-specific strategies. CEO Kyle Floyd outlined the company's transformation from a single producing asset five years ago to a diversified portfolio of eight producing assets across nine ore bodies, while maintaining industry-leading return on invested capital.

The company's acquisition strategy targets assets 2-5 years from production, allowing VOX to secure favorable pricing while taking calculated development risks. Floyd emphasizes that unlike competitors who "buy assets at one-times NAV and hope to benefit from optionality," VOX requires "value on the front end in terms of what we're buying and the ultimate net asset value attached to that asset as it stands today."

Recent acquisitions exemplify this approach across different timelines. The Red Hill gold royalty, acquired in September 2023, represents a longer-term opportunity expected to generate "$15 million plus per annum" once Northern Star completes its $1.5 billion mill expansion within 18-24 months. Conversely, the producing Kanmantoo copper royalty acquired for $12 million offers immediate cash flow with significant expansion potential through a planned 60,000-meter drill program.

VOX demonstrated strong financial performance in 2024, achieving record positive free cash flow and increasing 2025 revenue guidance from $12-14 million to $13-15 million. The company maintains a healthy balance sheet with $9 million cash against $11.7 million debt, utilizing 6.8% cost debt financing to fund accretive acquisitions.

Geographic concentration in Western Australia reflects VOX's risk management philosophy, with Floyd calling it "the best mining jurisdiction you can possibly have exposure to as a royalty company." Current gold prices exceeding $5,000 per ounce in Australian dollars create favorable tailwinds for the portfolio.

As Floyd noted regarding the company's enhanced capabilities: "If it rains gold, don't put out the thimble, put out the bucket. I think we're in a position now where the bucket's ready."

Learn more: https://www.cruxinvestor.com/companies/vox-royalty