Vox Royalty Corp (CVE:VOX) (OTCMKTS:VOXCF) reported that it expects to generate royalty revenue of between C$1.7 million and C$2.5 million in 2021, about two-thirds of which will be derived from gold.
The company said it anticipates gold-equivalent ounces to be weighted towards the second half of the year following first production from the Segilola gold mine in Nigeria in June and the first ore production from the Altair open pit at the Koolyanobbing iron ore operations, complementing current production from the Deception pit.
“We are excited to share our maiden 2021 revenue guidance and exciting construction news flow from our operating partners with Vox investors. Our strategy of acquiring attractive royalties at disciplined prices that are approaching first production means our forecast revenue profile from 2021 to 2023 is expected to offer significant growth to investors,” Vox Royalty CEO Kyle Floyd said in a statement.
Vox Royalty shares climbed 16% to $2.50 in late-day trading Tuesday following the announcement.
READ: Vox Royalty rapidly grows its portfolio of low-risk mining assets, backed by cash and management experience
Floyd added: “The development milestones from Segilola and Bulong, along with the expected further revenue from our royalties over part of Karora Resources' Higginsville operations, the Brauna diamond mine in Brazil, and royalty over part of the Koolyanobbing iron ore mine operated by Mineral Resources Ltd, all support meaningful revenue growth year over year.”
“Vox looks forward to further announcements regarding the organic growth of our 50 royalties and streams already within the portfolio.”
Vox Royalty noted that the Segilola gold project, in which it holds a 1.5% net smelter return royalty (capped at US$3.5 million), saw its total probable reserve estimate increase by 28% to 517,800 ounces at 4.02 grams per tonne (g/t) gold. As well, the process plant design capacity was increased by 14% to 715,000 tonnes per annum, resulting in the optimizing of a life of mine plan to support increased process plant production rate.
Also, a resource update is expected to be released for the Bulong Gold Project in Western Australia, in which Vox holds a 1% net smelter return royalty over part of the Bulong project.
Toronto-based Vox holds a portfolio of over 45 royalties and streaming assets in Australia, Canada, Peru, Brazil, Mexico, the US, Madagascar and Nigeria. It has 35 operating partners. About three-quarters of its assets are located in Australia and are mainly precious metals, at over 50% of its net asset value.
Contact Sean at sean@proactiveinvestors.com
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