Vox Royalty (TSX-V:VOX) Corp has reported record revenues and gross profit in the first quarter ended March 31, 2022.
Revenues for the quarter reached $1,471,019, a 172% increase from the corresponding quarter of 2021, while gross profit hit $1,164,293 for the quarter, both at a record high.
“The first quarter of 2022 was incredibly productive for Vox, with record quarterly revenues and gross profit, significant organic growth in development stage assets and the progression of an initial application to list on the Nasdaq Stock Market,” said the company's CEO Kyle Floyd in a statement.
"I am excited about the next chapter of the company's corporate development -- a period of expanded investor awareness and rapid organic growth from five to 10 producing assets by late 2023. During these uncertain inflationary and macroeconomic times, Vox continues to deliver sector-leading returns on deployed capital through its differentiated and disciplined royalty strategy and presents as a strong outlet for investors to counter many inflationary pressures," he added.
READ: Vox Royalty says it expects revenues from its Otto Bore royalty in 2023
The precious metals royalty company also reported a strong balance sheet position at the end of the quarter, including cash on hand of $5,621,565, working capital of $6,371,247 and total assets of $27,008,128.
Vox Royalty noted some significant operating partner updates in Q1, including a feasibility study released by Gold Standard Ventures for the South Railroad gold project in Nevada; a 106% increase in mineral resource by Valore Metals at the Pedra Branca platinum group element project in Brazil; a gold resource estimate for Maiden Puzzle North from Genesis Minerals (ASX:GMD) in Western Australia; and a 113% increase in gold resource estimate from Norwest Minerals at the Bulgera gold project in Western Australia.
After the end of 1Q, the company completed the acquisition of a portfolio of two PGM (Platinum Group Metals) royalties from a private, South African registered company for total consideration of up to $10.4 million, including an upfront consideration of $1.5 million, settled by the issuance of 409,500 common shares.
On April 26, 2022, Vox entered into a sale and purchase agreement with a subsidiary of Nuheara Ltd (ASX:NUH)., to acquire all of Terrace Gold's rights and interests in an agreement with Lumina Copper SAC, which includes the right to receive the El Molino royalty. The consideration comprises $50,000 in common shares issued upfront and $450,000 payable in cash or shares, at the company's sole election, following the registration of the El Molino royalty rights on the applicable mining title in Peru and the satisfaction of other customary completion conditions.
Vox said preparation for open pit mining at the Otto Bore gold deposit in Western Australia has started, adding that Otto Bore is expected to become Vox's sixth producing asset later in 2022.
Vox has a portfolio of over 50 royalties and streams spanning eight jurisdictions. Since the beginning of 2020, Vox has announced over 20 separate transactions to acquire over 45 royalties.
Contact the author at jon.hopkins@proactiveinvestors.com