The Vox Royalty intraday chart has started to look technically more bullish. If the recent interviews with Crux Investor by the Vox CEO are telling of the fundamental reasons behind the sell-off, then this chart is showing that after a sweep of the lows, volume came into the stock and since then the price has started to stair-step higher. It's early days but worth keeping an eye on. CAD$3.50 looks to be the level that would signal a larger change in direction is possible, but until then we have a decent trading range, and on an intraday chart with obvious swing lows and highs to limit risk for the early speculators.
GEORGE TOWN, CAYMAN ISLANDS – May 4, 2021 – Vox Royalty Corp. (TSXV: VOX) (“Vox” or the “Company”) is pleased to announce that the Company has realized record preliminary revenue of C$668,600 (US$540,000) (1) for the three-month period ended March 31, 2021. All preliminary revenues were derived from royalties, not streams, as such, the cash operating margin(1) was 100% for the quarter. During the quarter, the Company recognized inaugural royalty revenue from the Koolyanobbing royalty, which is an uncapped 2% Free on Board sales value royalty from iron ore mined from the recently commissioned Altair Pit and a portion of the Deception Pit. Quarterly revenue benefitted from increased royalty-linked production by Mineral Resources Limited (ASX: MIN) and record iron ore prices at Koolyanobbing, increased production by Karora Resources Inc. (TSX: KRR ) from the Hidden Secret deposit at Higginsville covered by the Dry Creek royalty and rebounding quarterly diamond prices associated with the Brauna royalty. Kyle Floyd, Chief Executive Officer stated: “Record quarterly revenue for Q1 represents the start of Vox’s anticipated revenue growth through 2023 as numerous royalty assets are expected to commence production. The Company’s preliminary quarterly revenue is in line with previously announced 2021 full-year revenue guidance of C$1.7M to C$2.5M. Vox’s organic revenue growth is a product of the Company’s stated strategy of acquiring high quality, attractively priced royalties many of which are near term production opportunities. Vox held one producing royalty in May 2020 and anticipates finishing 2021 with seven producing assets based on its current portfolio of 50 royalties.” Vox is a growth precious metals royalty and streaming company with a portfolio of 50 royalties and streams spanning nine jurisdictions. The Company was established in 2014 and has since built unique intellectual property, a technically focused transactional team and a global sourcing network which has allowed Vox to become the fastest growing company in the royalty sector. Since the beginning of 2019, Vox has announced over 20 separate transactions to acquire over 45 royalties.
Dear TH Anlaysis, $540K top line revenue for the quarter. So lets say $2.5M in REVENUE for a year. It closed at $2.65 today, and there 40 million shares outstanding. That's a market-cap of about $105 million dollars. Now I ask you, if I owned a lemonade stand that brought in $250/year total.... before expenses(!)... would you buy it from me for $10,500? At a 60% net margin, you'll recover your investment in 70 years. But hey after that, its all profit. Dude, the thing trades less than 20K shares/day.... Any strength will be immediately sold into by the boys in Caymen that own the majority of those 40 million shares. Sell this thing and move on. That low on your chart will be revisited very soon. Its dead money. You can mark this post. Yours truly, -VZ Analysis (spelled right)
At the moment, VOX is a growth stock, not a yield stock. They've expressed confidence in recent interviews they can create more value by investing cash flow into royalty deals. They acquire royalties at half the value of their competitors, that is how they are creating value for investors. VOX has also communicated during interviews that as cash flows increase over the next few years then they will discuss a meaningful dividend. I took the interviews recent with Crux Investor as a good place to start my due diligence.
https://www.macrobriefing.com/post/vox-royalty-research a blog I read has a link to some other research that has Vox in a positive light
In 2021 Vox set out ambitious corporate targets for the year with an aim to grow and acquire additional NAV-accretive royalties. By February Vox Royalty announced that it had agreed to acquire a Western Australian gold royalty portfolio from Gibb River Diamonds Ltd for A$325,000 in cash. With a total of 31 Australian royalties, Vox is now the second-largest publicly traded holder of royalty interests in Australia by royalty count, behind Franco Nevada Corporation. Vox's gold royalty portfolio includes three advanced exploration gold royalties in Western Australia. The royalties include a 1% Net Smelter Return ( NSR ) royalty over the Bulgera Gold project operated by Norwest Mineral Ltd, a 1% NSR over the Comet Gold Project operated by Accelerate Resources Ltd, and a 1% NSR over the Mount Monger Gold Project operated by Accelerate and subject to a binding option agreement with Mt Monger Minerals Pty Ltd. The Bulgera Gold deposit has an estimated resource of 93,880 gold ounces at 1.0 g/t. With precious metals miners showing a positive reaction to the US10 year yields being capped under 1.7% currently, plus the weakening US dollar there is a real chance that producers ramp up production as prices of the yellow metal appreciate. $2k Gold seems to be the sweet spot for a lot of evaluations around the miners but there is sentiment building that the economy and monetary policy are going to be very supportive of traditional stores of wealth.
Report from Seeking Alpha: Out of the 20 followed companies, 16 experienced a share price growth in April. The best result, a 40.85% growth, was recorded by ELY Gold Royalties (OTCQX:ELYGF). The majority of its growth was recorded after April 23; however, the catalyst is hard to identify, as there was no company-specific news and also the gold price was relatively stable around this date. A more than 26% growth was recorded by Great Bear Royalties. The company is freshly established and it started trading on TSX only on April 5. Its only asset is a 2% NSR royalty on Great Bear Resources' (OTCQX:GTBDF) Dixie Project. Double-digit gains were recorded also by Sailfish Royalty (OTCQX:SROYF) and Nomad Royalty (OTCQX:NSRXF). On the other hand, the worst performance was recorded by three of the newly-covered companies, namely Star Royalties, Empress Royalty, and Trident Royalties. Their share prices declined by 6.52%, 5.56%, and 4.08% respectively.