Strategic Gains Amid Growth as Mining Royalty Cash Flow and Production Surge

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Vox Royalty Corp. (VOXR:TSX.V) reported its Q3 2024 financial results, showcasing significant growth in operating cash flow and ongoing reductions in general and administrative costs. For the quarter ending September 30, 2024, Vox's operational cash flow totaled CA$2,112,168, marking a 55% increase from Q3 2023. Year-to-date, Vox's operational cash flow reached CA$5,333,752, representing an 82% rise compared to the same period in 2023.

Revenue for Q3 2024 was reported at CA$2,428,809, with year-to-date revenue of CA$8,150,438, reflecting a decline from Q3 2023 due to a one-time Puzzle Discovery Payment recognized in the previous year. Despite this, Vox achieved quarterly production records at its Janet Ivy gold mine and Wonmunna iron ore mine. Gross profit for Q3 2024 reached CA$1,887,501, bringing the nine-month gross profit to CA$6,408,628.

A strong cash position further bolstered Vox's financial standing, with CA$12,126,765 in cash and accounts receivable and working capital of CA$8,517,006 as of the period's end. Additionally, Vox announced a quarterly dividend of CA$0.012 per common share, payable on January 14, to shareholders of record as of December 31, 2024.

Key achievements in Q3 2024 included the first gold production at Vox's Bulong-Myhree royalty project in Western Australia and milestone quarterly tonnage production at the Janet Ivy and Wonmunna projects. The company also highlighted development progress at Castle Hill and Plutonic East, which are anticipated to drive further growth within its portfolio.

Why Commodity Mining?

In an October 25 report, Wealth Daily emphasized commodities as a vital asset class for hedging against rising inflation. Famed investor Paul Tudor Jones argued that "all roads forward lead to inflation," underscoring the government's approach of leveraging inflation to reduce debt burdens. Jones stressed that assets like "real estate and commodities" would become essential tools for protecting against currency devaluation, suggesting investors maintain exposure to commodities as inflationary pressures build.

Mike Kozak of Cantor Fitzgerald reiterated his positive outlook on Vox Royalty Corp., maintaining a Buy rating with a revised price target of US$5.25 per share.

Ahead of the Herd, in an article from October 28, noted that iron ore prices were responding positively to anticipated Chinese stimulus measures. China's latest policies aimed to bolster economic growth, with expectations that a significant stimulus package could push ferrous metals prices upward.

Deutsche Bank, cited in the report, projected that global iron ore prices could reach US$130 per tonne in 2025. Chinese megaprojects and increased steel consumption were seen as ongoing drivers. The report observed that China had maintained a steady demand for iron ore, importing nearly record volumes.

In terms of gold, The Telegraph, on November 5th, reported that the metal's recent rally reflected mounting concerns about global fiscal stability. Gold reached an all-time high of US$2,790, a movement Ross Norman, founder of Metals Daily, described as "heedless of traditional drivers," with global tensions and geopolitical factors increasingly influencing its demand. Norman remarked that this trend exhibited "massive conviction" and an opaque driver base, with unseen buyers likely accumulating gold as a hedge against escalating public debts in the U.S., Europe, and Japan.

The Catalysts Behind Vox Royalty

In its November 2024 investor presentation, Vox outlined strategic catalysts aimed at supporting its capital-light, returns-focused model and expanding its royalty portfolio. These catalysts include ongoing construction at Castle Hill, development efforts at Plutonic East with production expected by Q1 2025, and continued scaling of existing operations, as seen in the Wonmunna iron ore mine's increased production rates.

According to the presentation, management's forward-looking strategy centers on organic growth through projects in politically stable regions, primarily Australia and North America. This strategic weighting and a robust balance sheet position, with over 70 royalties and 90% exposure to Tier-1 jurisdictions, underscore Vox's goal to maximize returns on invested capital while minimizing operational and geopolitical risks.

Analysts on Vox Royalty

In a November 7 research note, Mike Kozak of Cantor Fitzgerald reiterated his positive outlook on Vox Royalty Corp., maintaining a Buy rating with a revised price target of US$5.25 per share.

The report noted that, despite Vox's Q3/24 revenue of US$2.4 million being slightly below expectations, the company's financial stability and increased valuation multiples in the precious metals royalty sector supported this target. According to Cantor, the revised price target, up from US$4.50 per share, reflected a target multiple increase from 1.50x to 1.75x NAVPS due to record-high gold prices and improving profit margins across the sector.

The same day, Jeff Valks of The Gold Advisor wrote about Vox Royalty. He went over the company's financials and wrote, "This company makes sound decisions, focuses on its financials, and targets mining sites in great areas. Leadership is strong, and I look forward to what's on the horizon for Vox."

He went on to write, "The stock is up 36% year-to-date. It’s down a little today as I write, but some investors misunderstand the decline in revenue, so we consider the dip an opportunity if you like this story like I do. I hold a long position. As Jeff Clark has said, he considers Vox to be the core royalty play for our portfolio."

Ownership and Share Structure

According to Refinitiv, management and insiders hold 18.11% of Vox Royalty. Those include Robert David Sckalor with 9.87%, Kyle Floyd at 5.71%, Spencer Cole with 1.19%, and Riaan Esterhuizen with an even 1%.

Institutions hold 44.02%, with ORG Partners LLC holding the most at 26.38%. Konwave AG owns 5.91%, US Global Investors holds 3.16%, and Sanders Morris LLC has 2.77%.

The rest is retail.

Vox Royalty has a market cap of CA$142.34 million with 41.43 million free float shares. Their 52 week range is CA$1.7000–$3.2400.