Vox Royalty (TSX-V:VOX) Corp has doubled its outlook for royalty revenue for 2021 to between C$4 million and C$5 million, up from C$1.7 million to C$2.5 million previously as the firm continues to show impressive growth.
The company posted a record second quarter to June 30, 2021, with a preliminary royalty revenue figure of around C$1.6 million, up from C$668,600 in the first quarter to March 31, 2021.
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The latest quarter's revenue benefitted from increased royalty-linked production by Mineral Resources Limited (ASX:MIN) at Koolyanobbing and increased output by Karora Resources Inc from the Hidden Secret deposit at Higginsville covered by the Dry Creek royalty, both in Australia.
It also received the first royalty revenues earned from the Janet Ivy royalty (Australia) and saw increased production by the operator of the Brauna royalty (Brazil).
"This is the continuation of an exciting period in Vox's growth as revenue and profitability metrics start to reflect the true earnings power of the Vox Royalty (TSX-V:VOX) portfolio," said Kyle Floyd, Vox Royalty (TSX-V:VOX) CEO in a statement.
"We have consistently updated the market with operator updates concerning our royalty assets and noted that our portfolio continues to grow ahead of expectations. The coming quarters and years should continue to reflect a robust increase in revenues from both in production assets and development stage projects we expect to come online," he added.
Vox also noted that its two-fold increase in the 2021 revenue guidance was based on public forecasts and other disclosures by the third-party owners and operators of its assets.
The big uplift since the last company guidance was mainly due to higher royalty-linked production volumes at the Koolyanobbing iron ore operations across the Deception open pit (Australia) and the recently commissioned Altair open-pit (Burkina Faso), it added.
Also first production from the Segilola gold mine (Nigeria), which is anticipated in July 2021, and the continued quarter-on-quarter record royalty-linked production from the Hidden Secret deposit at Higginsville covered by the Dry Creek royalty (Australia).
The company noted that the revised 2021 outlook did not include the potential proceeds from two graphite royalties which are in the process of being sold, as announced on July 5 this year.
Vox was established in 2014 and has a portfolio of over 50 royalties and streams spanning nine jurisdictions. The company says it has 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.
Vox Royalty (TSX-V:VOX) shares in Canada added 6.7% to C$2.84 each.
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Contact the author at giles@proactiveinvestors.com