Vox Announces Record 2023 Financial Results INCREASES QUARTERLY DIVIDEND AND PROVIDES 2024 OUTLOOK
Vox Announces Record 2023 Financial Results
INCREASES QUARTERLY DIVIDEND AND PROVIDES 2024 OUTLOOK
TORONTO, ON / ACCESSWIRE / March 7, 2024 / Vox Royalty Corp. (TSX:VOXR)
(NASDAQ:VOXR)("Vox" or the "Company"), a returns focused mining royalty company, is
pleased to announce its operating and financial results for the fourth quarter and year ended
December 31, 2023. All amounts in U.S. dollars unless otherwise indicated.
Full Year 2023 Highlights
• Record annual revenue of $12,310,594, up ~45% from $8,508,105 in 2022.
• Record annual gross profit of $9,978,660, up ~50% from $6,664,087 in 2022.
• Record annual cash flows from operations of $5,271,090, up ~157% from $2,047,169 in
2022.
• Strong balance sheet position at year end includes: (i) cash and accounts receivable of
$12,850,451; (ii) working capital of $10,378,752; and (iii) total assets of $52,706,609.
Fourth Quarter 2023 Highlights
• Q4 2023 revenue of $2,997,426, up ~42% from $2,104,758 in Q4 2022.
• Q4 2023 gross profit of $2,072,497, up ~30% from $1,591,909 in Q4 2022.
• Generated record cash flows from operations of $2,341,781, up ~38% from $1,695,717 in
Q4 2022.
Subsequent to the end of the Quarter
• On January 16, 2024, the Company entered into a definitive credit agreement with the
Bank of Montreal providing for a $15 million secured revolving credit facility (the
"Facility"). The Facility includes an accordion feature which provides for an additional
$10 million of availability subject to certain conditions.
Kyle Floyd, Chief Executive Officer, stated "We are pleased to announce our fourth quarter and
annual results, realizing record annual revenue, gross profit, and cash flow from operations. We
recognised approximately 45% annual revenue growth, which exceeded the midpoint of 2023
revenue guidance, and achieved approximately 157% growth in annual cash flows from
operations. These strong financial results were in addition to delivering major strategic
milestones during the year, such as graduation to the TSX, accretive royalty acquisitions in
Australia, and an innovative IP licensing agreement. The Company is also pleased to announce
that it has increased its quarterly dividend for shareholders by 9.1%, primarily due to strong
growth in cash flows from operations. As we look ahead to 2024 and beyond, we remain highly
focused on accelerating our business and continuing to deliver exceptional shareholder value."
Summary of Quarterly Results
Three
months
ended
December
31, 2023
Three
Months
ended
December
31,
2022
For the
year
ended
December
31, 2023
For the year
ended
December
31, 2022
$ $ $ $
Income Statement
Revenue 2,997,426 2,104,758 12,310,594 8,508,105
Gross profit 2,072,497 1,591,909 9,978,660 6,664,087
Operating expenses (1,580,439 ) (1,602,867 ) (6,912,506 ) (6,214,749 )
Net impairment charge(2) (1,087,206 ) - (1,337,206 ) -
Income (loss) from
operations (595,148 ) (10,958 ) 1,728,948 449,338
Other income(1) 366,184 96,862 683,998 1,346,742
Current tax (expense)
recovery (7,470 ) 68,297 (626,500 ) (219,406 )
Deferred tax expense (181,528 ) (102,139 ) (1,887,558 ) (1,248,495 )
Net income (loss) and
comprehensive income (loss) (417,962 ) 52,062 (101,112 ) 328,179
Income (loss) per share -
basic and diluted (0.01 ) 0.00 (0.00 ) 0.01
Statement of Cash Flows
Cash flows from operating
activities 2,341,781 1,695,717 5,271,090 2,047,169
Dividends declared per
share 0.011 0.01 0.044 0.02
1. Other income comprises fair value change of warrants, foreign exchange differences,
interest income, and loss on investments.
2. During the three months ended December 31, 2023, the Company became aware that the
operator of the Jaw, Phoebe, Cart and Colossus exploration projects ("Peru Projects")
did not renew all or substantially all of the relevant mining claims and therefore the
Peruvian Ministry of Energy and Mining extinguished the mining concessions. As a
result, the Company fully impaired the four royalties as of December 31, 2023, and the
carrying value of the investment of $1,000,000 has been reduced to $nil. The Company
has filed a statement of claim in the Supreme Court of Western Australia against the
operator of the Jaw, Phoebe, Cart and Colossus exploration projects. Pursuant to the
original agreement signed with the operator on July 15, 2021, if any of the four
exploration projects became relinquished within three years of signing the original
agreement, the operator must promptly provide Vox with a replacement royalty for each
relinquished royalty and with each replacement royalty having a value of at least
$250,000. To the extent Vox is granted one or more replacement royalties, the Company
expects to reverse up to $1,000,000 of the Q4 2023 impairment charge, which would
increase net income by the equivalent amount.
For complete details, please refer to the consolidated financial statements and associated
Management Discussion and Analysis for the years ended December 31, 2023, available on
SEDAR+ (www.sedarplus.ca), EDGAR (www.sec.gov) or on Vox's website
(www.voxroyalty.com).
Quarterly Dividend Increase
The Company is also pleased to announce that its Board of Directors has raised its quarterly
dividend and declared a quarterly dividend of $0.012 per common share, to be paid on April 12,
2024, to shareholders of record as of the close of business on March 29, 2024. This is a 9.1%
increase from the previous $0.011 per common share quarterly dividend and marks the second
consecutive annual increase for Vox shareholders.
For shareholders residing in Canada, the dividend will be paid in Canadian dollars based on the
daily exchange rate published by the Bank of Canada on March 28, 2024. The dividend qualifies
as an "eligible dividend" as defined in the Income Tax Act (Canada). The dividend is subject to
customary Canadian withholding tax for shareholders that are not resident in Canada.
Outlook
The operational performance of the Company's portfolio during 2023 was generally in line with
our expectations. On April 27, 2023, Vox estimated that 2023 royalty revenue guidance would
be in the range of $11 million to $13 million. For the year ended December 31, 2023, Vox's
royalty revenue exceeded the midpoint of the range, totalling $12,310,594.
For 2024, Vox estimates royalty revenue to total $11 million to $13 million. Our 2024 outlook
on royalty revenue is based on publicly available information of the owners or operators of
projects on which we have a royalty interest and which we believe to be reliable. When publicly
available forecasts on properties are not available, we obtain internal forecasts from the owners
or operators, if available, or use our own management estimation.
About Vox
Vox is a returns focused mining royalty company with a portfolio of over 60 royalties spanning
seven jurisdictions. The Company was established in 2014 and has since built unique intellectual
property, a technically focused transactional team and a global sourcing network which has
allowed Vox to target the highest returns on royalty acquisitions in the mining royalty sector.
Since the beginning of 2020, Vox has announced over 25 separate transactions to acquire over 60
royalties.
Further information on Vox can be found at www.voxroyalty.com.
For further information contact:
Kyle Floyd Pascal Attard
Chief Executive Officer Chief Financial Officer
+1-345-815-3939
+1-345-815-3939
Cautionary Statements to U.S. Securityholders
The financial information included or incorporated by reference in this press release or the
documents referenced herein has been prepared in accordance with International Financial
Reporting Standards as issued by the International Accounting Standards Board, which differs
from US generally accepted accounting principles ("US GAAP") in certain material respects,
and thus are not directly comparable to financial statements prepared in accordance with US
GAAP.
Cautionary Note Regarding Forward-Looking Statements and Forward-Looking
Information
This press release contains "forward-looking statements", within the meaning of the U.S.
Securities Act of 1933, as amended, the U.S. Securities Exchange Act of 1934, as amended, the
Private Securities Litigation Reform Act of 1995 and "forward-looking information" within the
meaning of applicable Canadian securities legislation. Any statements that express or involve
discussions with respect to predictions, expectations, beliefs, plans, projections, objectives,
assumptions or future events or performance (often, but not always, using words or phrases such
as "expects" or "does not expect", "is expected", "anticipates" or "does not anticipate" "plans",
"estimates" or "intends" or stating that certain actions, events or results " may", "could",
"would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact
and may be "forward-looking statements." Forward-looking statements are subject to a variety
of risks and uncertainties which could cause actual events or results to materially differ from
those reflected in the forward-looking statements.
The forward-looking statements and information in this press release include, but are not limited
to, statements regarding the payment of a quarterly dividend in April 2024 and on any future
date thereafter, expectations to realize revenue from producing and development stage royalty
assets or the IP Licensing Agreement over the medium- or long-term, and revenue expectations
for fiscal year 2024.
Forward-looking statements are subject to a variety of risks and uncertainties which could cause
actual events or results to materially differ from those reflected in the forward-looking
statements, including but not limited to: the impact of general business and economic conditions;
the absence of control over mining operations from which Vox will purchase precious metals or
from which it will receive royalty or stream payments, and risks related to those mining
operations, including risks related to international operations, government and environmental
regulation, delays in mine construction and operations, actual results of mining and current
exploration activities, conclusions of economic evaluations and changes in project parameters as
plans are refined; problems related to the ability to market precious metals or other metals;
industry conditions, including commodity price fluctuations, interest and exchange rate
fluctuations; interpretation by government entities of tax laws or the implementation of new tax
laws; the volatility of the stock market; competition; risks related to Vox's dividend policy;
epidemics, pandemics or other public health crises, geopolitical events and other uncertainties,
such as the conflicts in Ukraine and Israel, as well as those factors discussed in the section
entitled "Risk Factors" in Vox's annual information form for the financial year ended December
31, 2023 available at www.sedarplus.ca and the SEC's website at www.sec.gov (as part of Vox's
Form 40-F).
Should one or more of these risks, uncertainties or other factors materialize, or should
assumptions underlying the forward-looking information or statement prove incorrect, actual
results may vary materially from those described herein as intended, planned, anticipated,
believed, estimated or expected. Vox cautions that the foregoing list of material factors is not
exhaustive. When relying on Vox's forward-looking statements and information to make
decisions, investors and others should carefully consider the foregoing factors and other
uncertainties and potential events.
Vox has assumed that the material factors referred to in the previous paragraph will not cause
such forward-looking statements and information to differ materially from actual results or
events. However, the list of these factors is not exhaustive and is subject to change, and there can
be no assurance that such assumptions will reflect the actual outcome of such items or factors.
The forward-looking information contained in this press release represents the expectations of
Vox as of the date of this press release and, accordingly, is subject to change after such date.
Readers should not place undue importance on forward-looking information and should not rely
upon this information as of any other date. While Vox may elect to, it does not undertake to
update this information at any particular time except as required in accordance with applicable
laws.
None of the TSX, its Regulation Services Provider (as that term is defined in policies of the TSX)
or The Nasdaq Stock Market LLC accepts responsibility for the adequacy or accuracy of this
press release.
Technical and Third-Party Information
Except where otherwise stated, the disclosure in this press release is based on information
publicly disclosed by project operators based on the information/data available in the public
domain as at the date hereof and none of this information has been independently verified by
Vox. Specifically, as a royalty investor, Vox has limited, if any, access to the royalty operations.
Although Vox does not have any knowledge that such information may not be accurate, there
can be no assurance that such information from the project operators is complete or accurate.
Some information publicly reported by the project operators may relate to a larger property than
the area covered by Vox's royalty interests. Vox's royalty interests often cover less than 100%
and sometimes only a portion of the publicly reported mineral reserves, mineral resources and
production of a property.
SOURCE: Vox Royalty Corp.