Vox Royalty Corp. CEO Kyle Floyd (TSXV: VOX) (OTCQX: VOXCF) – September 9, 2021 – Vox Royalty Corp. (TSXV: VOX) (OTCQX: VOXCF) (“Vox” or the
Are you tired of watching boring old press releases then you’ve come to the right place the right channel the number one channel for ceo interviews and company overviews welcome to rich tv live subscribe to our channel and make sure to hit the like button on our videos to help with the youtube algorithm for more information and in-depth discussions and analysis
Join our trading club at richpixdaily.com and don’t forget to subscribe and hit the bell for notifications to get alerted when our next co interview is released so you can discover the next 10 bagger hi how are you doing today i’m your host rich and we have a rich tv live with our very special guest kyle floyd the ceo of box royalty how you doing today kyle
Rich really good great to be with you today i’m super excited to learn more about your company i’ve done some due diligence we did a review and i was really impressed with what i found so kyle tell us a little bit about yourself and how you got involved with vox royalty yeah excited to bring vox royalty corp to your viewers look vox royalty corp was started i
Started working on this project in 2012 2013. i previously ran the mining investment banking division for a firm called roth capital and this company was created to solve a problem for investors which was and what i saw firsthand it was not in a position to do anything about which was it was very difficult to generate great risk adjusted returns buying small cap
Buying stocks it’s possible but it’s difficult and having seen a lot of companies that do what they said they were going to do not deliver the results that they were even capable of i went about building this business to solve that problem and that is to generate the best risk adjusted returns in the commodity sector and so approached a group of investors and
Said this is the mission this is what we’re going to try to accomplish so it was really a company built for investors by investors to solve that problem generating the best risk adjuster returns you possibly could in the commodity sector and so we formally incorporated 2014 we started with seven and a half million dollars we built the company into around 100
Million dollar business now but the exciting part is the best days are ahead of us the tailwinds are behind us the hard work that we’ve put in really over a decade in this industry in 40 years collectively with what our management team is now we have immense potential right in front of us and we’re continuing to deliver results and demonstrate that to market
And validate our business um so we’re very very excited about where vox is today but we were created to solve that problem for investors and we continue to solve that problem for investors that sounds great now you guys have had a very strong start to 2021. can you go through some of the milestones that have been hit so far in the first six months of 2021 and
What some of your main goals are for the last remaining months of 2021 for vox royalty sure it’s been a really exciting year for us and i think it’s a little it’s helpful to go back a little bit in time and just say where we started when we commenced we’re we’ve only been public for a little over well almost a year and a half and we went public in may of 2020
And we had one production stage asset and and the court of vox is finding good value in royalties good value when you consider the risk good value when you consider the return and use our mining engineers and our geologists our technical team to find great assets with great royalties so we focus on buying royalties that are 3 to 24 months out of production
That’s where you find the best values where we’re able to realize our expertise to bring great returns to our shareholders so we went public with one production stage asset we are now at five production stage assets and over the last quarter we recognized record revenue from each of those productions those production stage assets so what’s really exciting
And that’s what drove the results we came out and we we doubled our revenue guidance from around two million canadian to between four and five million canadian and so that was driven by the success of picking the right assets and having that that validated um and those results to report to the market well that’s when you looked at the next six months it’s a
Continuance of that so we have five production stage assets now we expect up to another three production stage assets with just what’s in the portfolio now not what we’re paying for in terms of new mobility acquisitions what’s in there right now to drive production growth what wasn’t in those numbers was the sega little gold mine that just announced first gold
Pour on july 30th we expect that to hit in the fourth quarter and we have a few other deposits that are looking like with very strong conviction going to be in production in the next 12 to 18 months so we believe in that period of time we’re gonna go from five production stage assets to probably more like 10 if not more and that doesn’t count the acquisitions
That we’re going to make at great value so we right now present i think a very very good near-term opportunity for investors but most importantly we’re focused on the long term and we’re continuing to build that value at very disciplined acquisition prices wow that’s incredible incredible growth and opportunity for investors here at rich tv live to get involved
In a company that’s really just getting started like you’ve explained as a public vehicle and you guys have so much excitement when it comes to your membership and your team so talk to me a little bit about your team and what the key members bring to the table yeah the key rich is that we were we were a purpose-built company we were built to solve this risk
Adjuster return equation in the commodity well i think investors are really up underrepresented in terms of their commodity exposure in their portfolios and for the macroeconomic backdrop that we have today i don’t think there’s a better time to be building that exposure but we don’t build our business around being gold bugs we’re not gold bugs we’re pragmatic
About how we approach finding value in the community sector and we price commodities lower than where they trade today when we’re picking deals so what we personally think that metal prices are going to be you know outperforming let’s just leave it at that over the foreseeable future we’re building our business to take that risk out for your investors so they can
Get great exposure where we actually think metal prices are going down and if they go up that’s just again that there’s just immense leverage to that but we built a team to be able to find those assets that can win in an even lower price metal environment so our chief investment officer he’s a mining engineer he worked at bhp south 32 helped build their royalty
Portfolios he was in charge of finding some of their lost royalties all over the world and built mineral royalties online which is that database that we acquired which is 8 000 proprietary royalties all over the world is the other co-founder of that business ryan easter who’s in our executive vice president out of australia renowned geologist he’s helped lead
Some of those interesting greenfield exploration campaigns all around the world for majors he was also the other co-founder because they worked at bhp they saw how all these third-party royalties which is what we buy get lost and forgotten about all over the globe and they created this database that we bought and then it’s also complemented by simon cooper
Who’s our evp of corporate development he’s a mining engineer and a geologist two-in-one deal on simon he’s worked at the most interesting minds all around the world so we bring that expertise to the front lines of our business foreign shareholders looking for great value it was purpose-built you can’t understand a mining asset at the levels that you need to
If you’re not if you haven’t had experience working on assets if you’re not technical by trade and so there’s a lot of companies out there that have you know again i consider myself a reformed investment banker investment bankers just doing deals for the sake of doing deals we don’t do any deal for sake of doing a deal we look for deals that are going to add
Value to our shareholders and we have the expertise to pick those opportunities and that last quarter that we referenced that’s validating that business model uh and it’s bringing in outsized returns for our shareholders yeah i was super impressed when i was doing the review on your company a few days ago and i saw pages and pages of assets like all over the
World and literally mining everything i was like wow you guys have got your hands involved everything so can you give our viewers an idea of how vox royalty selects the projects it wants to get involved with to build its portfolio and to give the best return to investors and what is the company’s overall ebitda so it’s an exciting process to talk about to be
Honest so we have the database of 8 000 proprietary royalties that’s not a static document and it continues to grow that database really does for us is we’re scanning the globe day and night we have team members all over the world so we’re kind of a company that never sleeps we’re looking for developments on projects that we think are really interesting where
We get an information from a certain source that there’s drilling or there’s you know something exciting going on with the project i can and we don’t have time for in this interview but i go through countless examples where we get intelligence it says this is going to be a really interesting asset and then we go into our database and look to see if there’s a
Royalty over we like to see does it cover the resources cover the reserves who is the owner and then we work on getting in touch with these disparate sellers all over the world and so that’s that’s our process is we’re looking for interesting assets that have the royalties and opposed to some of the might the royalty companies certain companies that currently
Exist most of their business is financing mining companies well they’re really restricted in their opportunity set because they have to they need a mining company to need capital to be able to get that opportunity and by the way typically it’s a deleterious event when a mining company needs capital you want the companies that don’t need capital you want the
Assets that don’t need capital and so we’re able to find those assets via this model of third-party royalty acquisitions so what does all that mean in terms of driving performance the bottom line look we announced uh earnings per share last quarter which for a royalty company of our size and our stage of development just entering the public markets five cents
Per share look that’s going to balance out to probably around one to two cents for the year um but that was really significant we’re driving bottom line performance we’ve gone operational cash flow positive and and then again that’s a key milestone for investors in that we’re really not there’s not cash burned now our assets are bringing enough revenue in um that
We’re operating profitably uh at a cash flow level and so we’ve turned that corner we’re really at that inflection point and i think you’re talking to us at a really opportune time because that revenue and that income is going to continue to compound as more and more of these assets come online and a lot of our assets just continue to outperform their last year
Was a record quarter for essentially every production stage royalty that we had and so we’re excited about what the future quarters and future years have in store for us that sounds really exciting if vox royalty were to compare itself to its competitors in the sector and this is obviously a very competitive sector mining is a huge huge business what would you
Say sets you guys apart look i you know no one likes to talk about it in the mining space um but we’ll talk about it i think it’s return on invested capital it’s return on invested capital we’ve deployed about a little over 30 million dollars in royalties analysts had us doing two million this year we obviously have forecasted between four and five million the
Next year analyst consensus on us is six the year after that’s eight so let’s just take eight as an example eight over 32 is more than 25 percent return on invested capital but it’s the growth the growth is kicking in more than that it’s growing more significant than that most royalty companies are investing capital at rates of return to zero to three percent
And that means if metal prices go down just one one smidge you’re now in the red on those deals and so our ability to find great royalties at great value at great volume no one’s grown faster than us but i we don’t even talk about that very much and we won’t talk about it very much because that’s not what matters it only matters if you’re growing with the
Right kind of assets the right kind of prices and that’s what we’re doing and we’re doing it in volume that’s never been seen in the industry so we will continue to bring those types of opportunities forward for shareholders and continue to grow this business creatively here at rich tv live we love to identify undervalued underappreciated underexposed companies
Before they explode we love to understand the fundamentals of a company so let’s talk about your share structure which i was i really liked how do you plan with your share structure to attract more institutional and retail investors it’s a great question numeration and we’re in process on that again the nice thing is your viewers aren’t finding us when we went
Public in may and we had a lot of work to do on our investor awareness marketing and understanding how to to build really the awareness on box we’re starting to do a better job we still have a lot of room to grow in that capacity um but what we ought have built is and to put this in context when we went public in may after being private for almost seven years
We actually had to forward split the stock so we’re very very sensitive and disciplined in terms of what we’re deploying capital into and maximizing value for shareholders and we’re continuing to do that we have no intentions of going back to the equity markets anytime soon so we’re keeping our share structure very tight we’re well funded cash flow positive
And we believe really the sky is the limit for our business and look that’s defensible that’s just based on what we’ve delivered we’ve led the industry and growth so our share structure i think provides you know again further assurances of what’s motivating us management owns 15 insiders in terms of founding investors management that’s probably another 50
Um and then we’ve we’ve had some of the world’s who’s who of great you know gold investors all around the world invest like gold 2000 conway is a big investor in us u.s global adrian day europe pacific gold fund and then kind of a hootsuite of others that have also been building positions so we’re starting to attract the right kind of funds and institutional
Ownership as well and all of that is in right now we only have 39.5 million shares out we have 5 million warrants out we strike at 450 so um you know significantly out of the money we’ve really and no debt we’ve really managed to keep a very tight share structure and that’s after we forged with the stock two for one when we went public no debt growing revenue
But a positive you’re checking every single box and that’s what we love to do here rich tv live is identify those companies before anybody else on the planet congratulations on building a business the right way i always say that if a company has under 50 million shares it’s bingo that’s literally what i call it and i love the fact that you understand that and
That you that you’ve built this to be tight so that there’s huge return potential for investors and this is always the biggest negative with companies is they create so many shares to raise capital but you guys are doing it the right way so i commend you on how you’re building and and growing your company you’re doing it the right way and because of that i
Believe you guys have enormous success potential around the corner not to mention the fact you’ve already been successful so in saying that if there was one thing that you want shareholders to know about box royalty today what would that be look it’s it’s hard to pin it pin it down to just one thing but what i would tell you is we are steadfast steadfastly
Focused on finding value for you around the globe commodity exposure is something that i think every investor should have but it’s really important to understand what kind of formats what kind of forms you’re generating that exposure through and i believe vox is the best risk-adjusted play in the commodity sector right now for generating the exposures that you
Want at very very reasonable risk but a lot of upside and we purposely built this company to achieve that for you we’re working tirelessly every day around the clock to find the best assets at the best prices in the best form which is third-party royalties and delivering for that for our investors and by the way that’s how franco got started that’s how royal
Got started that’s where they’ve delivered the outsize returns that have led to what is the leading 30 billion dollar company in the space and probably the highest performer when you look at it over the last 20 years in royal gold that’s how they built their businesses we went back to first principles basics built a business around distilling those values and
We’re continuing to deliver that for our shareholders day after day after day i love it i love everything i’m hearing now we’ve got investors literally all over the world and specifically in the three major markets frankfurt the united states and canada the major big three trading markets that we like to focus on and that we like to talk to investors in so
For those investors that are interested in learning more about the company potential shareholders have already invested that have any questions for the company what’s the best way for them to reach you box realty.com good place to start uh ir box royalty.com is a great email address if you have any questions we’re obviously in all the the typical social media
Platforms as well so happy to engage with you on any of those platforms and uh and always appreciative interested investors that we can help learn more about our business um and explain what’s going on because we’re really excited about it that is so fantastic and i’m excited too and so is our community i must remind everyone that rich tv live is strictly for
Information education purposes please do your due diligence through your research before you invest in anything that we talk about or discuss hearing rich tv live in saying that i’m very impressed with box royalty put on your watch list put on your radar thank you for joining us ceo kyle floyd a box royalty corp today thank you for joining us today kyle rich
It’s been a real pleasure thank you for having us on always a pleasure love to invite you back anytime you have big breaking news or you just want to talk or just talk to community members or shareholders we’d love to invite you back and for those of you guys are watching remember if you’re not winning you’re not watching we bring you the winners and we bring
Them to you first is your boy rich from rich to be live best and the best the best is blessed and you deserve the best have a nice day everybody we’ll talk to you soon you
Transcribed from video
Vox Royalty Corp. CEO Kyle Floyd (TSXV: VOX) (OTCQX: VOXCF) By RICH TV LIVE
