Vox Royalty Corp (CVE:VOX) (OTCMKTS:VOXCF) posted revenue of C$668,600 during the first quarter, placing it in line to hit its full-year guidance of between C$1.7 million to C$2.5 million.
The preliminary revenue figure – a record for the young company – was solely derived from royalties rather than streams, according to a statement. As a result, the cash operating margin was 100% for the quarter.
Vox told investors that its quarterly revenue was thanks in part to “increased royalty-linked production” by Mineral Resources Limited (ASX:MIN) (OTCMKTS:MALRF) (FRA:F5J) and record iron ore prices at Koolyanobbing.
READ: Vox Royalty expects to end this year with seven producing royalties as it posts full year results
The company also saw the benefits of increased production by Karora Resources Inc (TSE:KRR) (OTCMKTS:KRRGF) (FRA:5RN1) from the Hidden Secret deposit at Higginsville covered by the Dry Creek royalty and rebounding quarterly diamond prices associated with the Brauna royalty.
During the quarter ended March 31, 2021, Vox saw its first revenue from Koolyanobbing, which is an uncapped 2% free-on-board sales value royalty on iron ore from the recently commissioned Altair Pit and part of the Deception Pit.
CEO Kyle Floyd told shareholders in a statement that the company’s record quarterly revenue signals the start of Vox's anticipated revenue growth through 2023, as numerous royalty assets are expected to start production.
“The company's preliminary quarterly revenue is in line with previously announced 2021 full-year revenue guidance of C$1.7 million to C$2.5 million,” Floyd said.
“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."
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