March 11, 2022
Vox Royalty Corp. (TSXV:VOX, BUY, C$6.40 target, David A. Talbot) announced preliminary FY/21 revenue of C$4.6M (US$3.65M) and Q4/21 revenue of C$728k (US$574.2k). While revenue was in line with guidance, it missed our aggressive forecast of C$5.4M. We anticipate FY/21 EPS of C$0.01, in line with consensus. Increased revenue for 2021 was largely expected given that Vox had considerably raised its topline guidance in mid-2021 from C$1.7-2.5M to C$4.0-5.0M. We anticipate revenue to over double to C$9.4M in 2022, rising further to C$11.8M in 2023, although future guidance has yet to be provided. We highlight that Vox currently receives royalties from five producing assets, which are likely to grow to seven in H2/22 and to 13 in the near term, providing a solid foundation for future growth prospects. P/NAV continues to rise, up from 0.9x to 1.0x QoQ, although the valuation gap with peers has risen slightly as the P/NAV of peers have risen from 1.2x to 1.4x. We expect this gap to decline as more royalties are brought online and revenue increases. It was also announced that Vox has applied for a NASDAQ listing, subject to applicable listing and regulatory requirements. The shares are now eligible for electronic clearing and settlements through the Depository Trust Company (DTC). Exposure to US markets should help enhance trading liquidity and create additional capital markets options. Read more
