High growth royalty company Vox Royalty (TSX-V: VOX) (OTCQX: VOXCF) is on target to achieve the higher end of its revenue guidance of between C$4 million (A$4.29 million) and C$5 million in 2021 – underpinned by a strong September quarter.
The company revealed revenue of almost C$1.56 million for the September quarter – bringing it to C$3.86 million for the nine months ending September.
“We are pleased to announce another quarter of strong royalty revenue and multiple royalty-linked production records at Higginsville and Koolyanobbing,” Vox chief executive officer Kyle Floyd said.
“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.”
Mr Floyd added the company’s Segilola investment would generate first revenue in either the December or March quarter after the mine achieved commercial production last month.
Vox holds a 1.5% net smelter return royalty over Segilola, which is capped at US$3.5 million. The company anticipates it will hit the US$3.5 million cap within the mine’s first two years of full commercial production.
“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 five to 10 producing assets by late 2023,” Mr Floyd said.
Vox attributed the strong September quarter revenue to record gold production at Karora Resources Inc (TSX: KRR) Hidden Secret and Mousehollow deposits, within the Higginsville gold operation near Kalgoorlie in Western Australia.
September quarter revenue was also helped along by record iron ore production levels at Mineral Resources (ASX: MIN) Koolyanobbing mine (WA) despite a recent fall in the commodity price.
Consistent revenues were also generated from Vox’s investments in Norton Gold Fields’ Janet Ivy open cut gold mine in WA and Lipari’s Brauna diamond operation which is the largest in South America.
High growth royalty company
Describing itself as the world’s fastest growing company in the royalty sector, Vox has a portfolio of more than 50 royalties and streams across eight jurisdictions.
The company currently has 37 of those royalties in Australia – completing more royalty acquisitions in the country than any other in the sector.
Vox is also Australia’s second largest holder of hard rock mining royalties.