Vox Royalty Corporation heralds record September quarter, on target for upper end of revenue guidance

Vox Royalty TSXV 2021 quarter results royalties
Vox Royalty Corporation doubled its FY2021 revenue guidance in July and is on track to hit the upper end of its C$4-5 million estimate.

Vox Royalty Corporation (TSXV: VOX) (OTCQX: VOXCF) has heralded record quarterly revenue for the three months ending September (Q3 FY2021) and remains on track to meet the upper end of its 2021 revenue guidance of C$4-5 million (A$4.37-5.46 million).

The company’s revenue for Q3 FY2021 exceeded C$1.22 million on the back of gold production from Karora Resources’ (TSX: KRR) Hidden Secret deposit within the Higginsville operation in Western Australia, which was covered by the Dry Creek royalty.

High production from Mineral Resources’ (ASX: MIN) Koolyanobbing operation in WA also underpinned the record revenue.

As well as the $1.22 million in revenue, Vox also reported record cash flows from operating activities of almost C$1.35 million.

This resulted in a gross profit for the period of C$946,711, compared to C$5,486 in Q3 FY2020 and revenue of C$10,252.

For the nine months ending 30 September 2021, Vox’s revenue was US$3.077 million, with a gross profit of almost US$2.5 million to generate a net income of US$188,893.

Organic growth

Commenting on the quarterly performance Vox chief executive officer Kyle Floyd said it was also contributed to by organic growth, with company now having five producing royalties after commercial production was declared at Thor Exploration’s (TSXV: THX) Segilola gold mine at the start of October.

“Based on strong Q3 FY2021 royalty revenues, Vox remains on track to meet the upper-end of 2021 annual revenue guidance of C$4-5 million, which was doubled in July 2021.”

“Vox shareholders can look forward to catalyst-rich upcoming quarters as the company continues its rapid organic growth from five to 10 producing assets by late 2023,” Mr Floyd noted.

Vox anticipates revenue in the near-term after construction began on Norton Gold Fields’ Binduli North heap leach expansion which is covered by three pits under Vox’s Janet Ivy gold royalty.

Revenue is also not too far off at Aurenne Alt Resources’ Mt Ida gold project in WA after a A$73 million construction contract was awarded in September.

Vox holds a 1.5% net smelter royalty after the first 10,000 ounces of gold has been produced at Mt Ida.

Strong balance sheet to continue expanding

Mr Floyd attributed some of the company’s Q3 performance to record trading liquidity, with Vox shares open for trade on the OTCQX from mid-August.

Vox closed out the Q3 FY2021 with a strong balance sheet.

It had US$4.67 million in cash, with working capital of US$7.8 million and total assets exceeding US$28.1 million.

Vox has a portfolio comprising more than 50 royalties and streams across eight jurisdictions.

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