November 23, 2021
Vox Royalty Corp. (TSXV:VOX, BUY, C$5.65 target, David A. Talbot) reported operating and financial results for Q3/21 ended September 30, 2021. As previously reported (read more), the company received record breaking revenue of ~US$1.22M on the back of record royalty-linked production from several operating partners. Net loss for the quarter was US$1.25M or -US$0.03/sh (RCS estimate of -US$0.002/sh) impacted by higher than expected share-based compensation expense (US$0.52M) and derivative/foreign exchange loses (US$0.73M). With over over 50 royalties and streams in its portfolio, we expect the positive revenue trend to continue through Q4/21 and into FY/22. The company expects to end the year towards the upper end of its guidance range of C$4M to C$5M, up from previously provided guidance of C$1.7M to C$2.5M. Vox currently has five paying royalties in its portfolio, and we expect it to have seven royalty-paying assets by H1/22. Vox currently trades at a discount to its peers on a P/NAV basis at 1.0x vs. 1.3x and we expect this valuation gap to close as the company becomes cash flow positive in 2022. Read more
