Source: Streetwise Reports 08/10/2020
Vox Royalty sees its intellectual property and years of experience in the royalty industry as major competitive advantages.
Vox Royalty Corp. (VOX:TSX.V) has been around since 2014 and went public in May, and it has moved quickly to amass a precious metals weighted portfolio of 42 royalties and streams, 37 of which were acquired over the last 18 months across 16 separate transactions.
“We set about building a company that could create strategic advantages in the royalty and streaming markets,” CEO and Chairman Kyle Floyd told Streetwise Reports. “Even though the company is only six years old, we’ve been around longer than most of the new entrants, and that’s allowed us to build the competitive advantages that we sought: intellectual property, deal sourcing networks around the world, and a team that is very technically savvy on the front lines of our business.”
Analyst Derek Macpherson of Red Cloud Securities has been following Vox and wrote on July 13, “We are encouraged by Vox’s pace and disciplined growth strategy. The ongoing acquisition of overlooked royalties at bargain prices highlights what makes Vox a unique new entrant in the royalty space.”
Vox concentrates on acquiring existing royalties—third-party royalties—rather than buying new royalties to finance mining companies. “Finding these third-party royalties allows us to uncover royalties that have better value and better attributes because we’re not constrained by going out to companies that need capital to finance a project,” Floyd said.
“Typically, we buy from holders of royalties that see the asset as non-core. Think about a mining company that holds a few royalties it doesn’t see any value in, or royalties that are held by telecommunications companies, technology companies, hearing aid companies, automotive companies, and others that don’t have a long-term or core interest in holding them,” Floyd explained, adding, “Sometimes they don’t even know that they’re holding these royalties.”
Vox’s deal sourcing efforts are led from the head office in Grand Cayman by Simon Cooper, who is both a geologist and mining engineer who has worked from Australia to the Congo to Kyrgyzstan and has been instrumental to Vox’s exponential growth since 2016.
One of Vox’s secret weapons is its proprietary database of over 7,000 royalties that it acquired when it purchased Mineral Royalties Online (MRO). With that merger, MRO’s co-founders Spencer Cole and Riaan Esterhuizen joined Vox. “Spencer and Riaan are two of the most impactful executives in the royalty industry; adding the two co-founders of Mineral Royalties Online to the Vox team added technical expertise as well as a lot of firepower to our deal sourcing engine,” Floyd said.
To create the proprietary royalty database, “we reviewed tens of thousands of public filings. We reviewed terabytes worth of private exploration reports. Our team worked on arrangements with different mining departments to access proprietary exploration reports and other primary data,” Spencer Cole, Vox’s Executive Vice President, North America, explained. “That resulted in a database …read more
Source:: The Gold Report