 Take this unique opportunity here and welcome CEO Kyle Floyd here. He's the CEO of Vox Royalty just completed my deep dive of the company founded in 2014 and Really looking forward to this get to hear it right from the boss's mouth What we've got going on exciting stuff as we get into this interview Kyle Thank you so much for coming on to the the show this evening Give us a quick rundown for those investors that are not familiar with Vox Royalty if you'd be so kind tell us a little bit About yourself and the exciting things you've got going on with Vox Royalty Absolutely Ryan be my pleasure So Vox Royalty Court was founded back in 2014 And it was created to solve a problem and the problem that I saw in the markets was that investors needed more exposure to commodities And frankly wanted more exposure to commodities But couldn't trust the platform for that exposure whether it was mining companies whether it was ETS with whether it was the physical you name it all of those Outlets for exposure really came with really subpar risk adjusted returns And so Royalty companies for the last 25 years have outperformed the physical and really any commodity-based benchmark that you compare them to Also the S&P 500 and so in 2013 2014 I started building a concept that I believed would present better risk adjusted exposure to investors that weren't commodity Experts weren't mining engineers weren't geologists hadn't been in the industry investing for the better part of two decades But to allow a an opportunity for you know your everyday investor that wants that exposure Especially in an inflationary time like we find ourselves in today To find a vehicle and to find you know in this case of stock in a company that really has You know the right intentions in terms of building value for shareholder and the right capability to do so as well And so that's kind of the genesis of Vox Royalty corp And a little bit on my background And so what we do is we go out around the world and we look at interesting Event-driven catalysts typically on mining assets and what we do is we buy what's called third-party royalties Those are royalties that are held by say the prospect or a geologist or junior mining company That typically was responsible for finding the geological anomaly in the first place And then buying those assets from them So they have nothing to do with the operation to the mine But that asset that royalty asset what that really means is that they will get a percentage of the revenue Generated from that mine typically for the life of that mine And so we go buy those and by buying those we get the same exposure that you get in terms of the upside of owning a Mining company upside exposure to the metal price upside exposure to Expansion of resources and reserves and expansion of production So we get all that upside that really typically tends to be leveraged upside But with a lot less downside We're never on the hook for putting more money into that company when they have cost overruns that doesn't impact us when there's Inflation on your cost as a mining company because they're impacted by inflationary pressures as well. We don't have that we have a very relatively smaller fixed cost structure that doesn't share that variable cost structure than a mining company does So we limit a lot of the risk but realize just as much upside if not more and we're never deluded our interest in that revenue Never deluded so a lot to unpack there and a little bit more verbose But I wanted to give your viewers a really good kind of nutshell perspective on what box does And I think that's really important when you touched on the diversification element I I typically stay away from the junior mining space altogether because even if I own a basket of a half a dozen of them That's only a half a dozen. Whereas if I get exposure to box now. I'm not only geographically diverse I'm diverse across, you know, a number of different precious metals applications So they don't all have to work at the same time. Am I thinking about that right, Kyle? It's absolutely right. I mean we have 55 streams and royalties and so that's across a Multitude of projects. I believe it's 53 projects separate projects and I believe it's more than 40 separate operators So the diversification is real the other thing is We went public in may of last year to give your viewers a little bit more background We went public with one production stage asset. We now fit sit at five production stage assets We're expected to have 10 production stage assets by the time we exit 2023 with I believe upside to that number That won't count additional acquisitions that we can make And then 17 the portfolio we feel really confident are going to be in production Over called the medium term. Well, if you look at 10 producing assets that are generated revenue for our business To get that type of exposure to mining company You're talking about a very large cap Typically probably five to ten billion dollar plus mining company that has that many producing assets You get that level diversification and all the upside that comes along with it in a hundred and twenty million dollar market cap company like Vox So you get the upside with a lot less risk and that was the entire premise of building this company Over the last decade was that we could offer that for investors With the right kind of discipline the right kind of team and the right kind of competitive advantages that we built It's incredible kyle. So I picked up on this with your producing now at five Soon to be 10 going into 2023 Let's talk about the other side of the spectrum with your intellectual property with your 8 000 existing royalties in your database You guys are the standalone company that can boast this Give me some sort of an idea of the range of the tip of the iceberg Which is your producing assets and what that database means for your for your business The database is is hugely helpful. What we Have built our business around is kind of three key legs of the stool and the one of those legs is the database This and everything working to find the best deals of the best valuation for our shareholders in volume as well But one of those legs is our database So that's 8 000 proprietary royalties that we're able to utilize when we find an asset that's had an interesting development That we believe is worth doing more work on then if our mining engineers and our gel just like what they're seeing Then we go into our database and we see if there's a royalty over that project that we can go buy the other leg of that stool is Absolutely the management team and our technical capabilities to analyze the mining asset on behalf of our shareholders And that's the key it is around creating shareholder value But you know a lot of times you're dealing with assets. Look the mining industry is esoteric It's not, you know, a widget. We're not widget manufacturers We're not a tech company with a certain amount of users and eyeballs You kind of need a really nuanced and detailed level experience to analyze these projects And our mining team has that we built around that so their mining engineers their geologists They're able to really understand the project and the development Opportunities for these projects and the risks that go alongside of that And so when they Look at a royalty or they look at a project and they like it and there's a royalty that exists on it We've gone into the database to find that then the last leg of the stool that sometimes and often comes into play Is over the last decade. We've built a relationship and an apparatus With deal-sourcing agents that help us find the owners of these disparate royalties all over the world So whether it's the ivory coast or it's in argentina or in the bush of western australia We're able to if we don't have a person on the ground there to get in touch and make it personal in terms of our ability to transact And buy that royalty from what that you know for that group It's typically a noncore asset which means they're typically more interested in selling and so that's how the whole model Works together to find really great value for our shareholders in volume Your team specifically your technical team has been Killing it over the last couple years 24 transactions in the last since 2019 Can you put that into context compared to your peers out there? If I was looking across the landscape, what sets vox royalty apart from your peers It's certainly growth and I think it's quality of growth And if you compare it to say some of the very large cap names in our industry They these are multi-billion dollar companies. They've been around now for 20 plus years in some cases They're years that they won't do a single transaction and that's look that's okay for them Then there's a middle group of companies that will do maybe two to three transactions But us completing more than 24 separate transactions Bringing in more than 40 royalties over the last two years is unprecedented in the in the history of the industry It is unprecedented and but it's not the growth. Well, we have led the industry in growth Um in almost every respect quantity of royalties acquired revenue growth kind of you name it where we've led the industry Um in relative growth. So what I would say is the most important thing that separates us though Is our ability to find really deep value in how we are able to acquire royalties. We're not paying Premiums to bring in royalties. We're finding them at really good value and that's what's really moving the needle So when we look at metrics like return on invested capital We're really blowing away the competition and the industry and that capacity and I think for our investors That's what really matters the most. That's the most tangible validation and Value-creating initiative that our firm can possibly bring forth for our shareholders So what kyle's talking about there for our would-be patrons to the message Visit uh vox royalty dot com and you can catch a lot of the interviews done by Spencer spencer breaks this down In a way that I just what an asset for the company, you know to to find these deals and and to apply the three-tier criteria That you're talking about to to push those transactions Uh talk a little bit about your uh geopolitical uh involvement, right? Yet about 80 percent of the assets that are over in australia It's worth spending a few moments to touch base and and really kind of understand why the focus is there In those tier one countries australia canada and and the us of course But let's spend a few moments if you wouldn't just highlight us on on ys australia if you would go It's one of the things I could go on and on for for hours, which we don't have unfortunately ryan, but What we've built I think is really special We have the second largest holding of hard rock mining royalties on the continent of australia And most of those are in western australia, which last year was ranked by the frazier institute as the best mining jurisdiction That agency does a pretty good job, but it does oscillate depending on where people are investing capital but what I would tell you is On it from a on the ground perspective It is the best mining jurisdiction to build a gold mine It has one of the fastest turnaround times from discovery to production of any jurisdiction on the planet the rule of law is fantastic As a royalty holder you want good rule of law you want that no matter what mining assets and however you've invested in those But the quality of the people the quality of the rule of law The quality of the geological endowments that we have royalties over All of that make it in my opinion by far the best mining jurisdiction And by far the best mining jurisdiction have royalties that are linked to such quality assets and so What we've built is really a very low geopolitical risk portfolio And that you know the bigger players in our space traded a premium when they have a lot of nevada exposure Well, western australia is a better place to be than nevada that's saying something because nevada is truly a great mining jurisdiction Us having the second largest holding of hard rock mining royalties there is worth a premium in my opinion at the end of the day We don't get that yet. I think we will but that low geopolitical risk We do have some assets. We have an asset that's in just came into production Nigeria We sold royalties that were in Madagascar We have certainly had assets at various points in time and still do in what would certainly not be called tier one jurisdictions But the fact that we have 80 of our royalty assets or over north american or australian projects Means our investors can sleep well at night that those are in some of the best jurisdictions you can possibly be in But what we're seeing is the growth especially in western australia is driving so much value in our portfolio That's you know, I think yet to be fully appreciated in terms of our stock price I concur. Uh, I was looking over my deep dive doing my due diligence on box royalty And I kept earmarking value in a lot of different pockets of your business Let's talk about the stock Stock is uh, it doesn't fit into this camp. You're trading right now at about about 0.7 net asset value Compared to your peers. It just doesn't stack up You're about half of what the industry normally garners for a royalty company 2% up today trading at about 258 at the time of filming this video here But you guys just came off a blowout quarter. It was impressive all the way across Uh, bottom line gross profits of a million bottom line net income to 1.3 of net income You guys blew it away and you're guiding it 100 percent here for q3 So what's being missed here kyle? I hate to touch on a source spot But it was the only source spot that I can find so what gives Yeah, we're pretty candid with what our weaknesses are and what we have to improve by Absolutely can tell you the fundamentals of our business Are going so solidly in the right direction And that's a testament to the competitive advantages that we built the hard work of the team and the capabilities of our team And the execution that we've brought forth for our investors has been very very significant Um, you know in terms of guidance. Look, you're absolutely right. We doubled guidance for the year You know last quarter was amazing. We had a couple really big things That I think really drove a lot of value one was we sold royalties that we had acquired for a multiple of what we acquired We also believe there's you know a bunch of upside We we vended those royalties out to a company called electric royalties. They just fit better in their portfolio We're more precious metal focused. So there are a lot of synergies On that transaction. Also, we have while most of our business is oriented towards precious We had a blowout quarter as iron ore was all-time high prices Um, and so that you know, that's the upside that you get when you're picking the right assets Is those types of things happen and that allowed us to double our revenue guidance? For what it had been previous to a month and a half ago And so yes the fundamentals are improving but when it comes to the stock price, you know Brian what I would say is we're pretty direct on where we need to improve One of the big areas that we need to improve upon was We've been a private company For a while. We're not a you know while we just went public in may We're not a new company. There are the new companies that have entered this space and they kind of are chasing it Um, and they don't really have any competitive advantages They don't really, you know, frankly have a bunch of expertise in the space But they're there because it is um a very very good business model and executed well But we've been around for a while, but we were private and there is a you know, frankly I think I underestimated the learning curve And some of the experience that needed to be gained to be a successful publicly traded business And a lot of that is the right kind of investor awareness And making sure that hey that old proverbial saying that if a tree falls in the woods and no one's there here It doesn't really make a sound I think that applied to us a little bit But that's our fault and we're working on that and we are I think getting much better exposure now We're putting the effort that needs to be put into that capacity of the business to be successful for our shareholders To make sure that people understand box is a very viable option for commodity exposure And we believe The right kind of opportunity for a lot of investors looking for that exposure From your perspective kyle as the ceo, this is one of my my selfish personal questions that I had in the back of my mind When I was doing my deep deep dive What do you feel like in your perspective is going to be the sustain sustainability? Over the short medium and longer term Of vox as some of these, you know, you're you're paying royalties Expands you do new transition and you're building the business out Five years down the line 10 years and maybe even 20 years Is there sustainability in in a royalty company and especially for for vox Well, I think there's proven sustainability if you look at sustainability if you look at franken avada They've been around now in various forms for about 20 years. They went public when private came back public again Wheaton precious metals is a streaming company, but very very similar model of royalties I think they started in 2004. So they're closing in on 20 years here Royal gold has been around for over 20 years. That's a nasdaq listed Denver based company So there's track record for companies being very very successful over the long term, you know I would love to run the business for 20 years I think we you know the long-term value that would be created with us doing what we're doing over 20 years would be Exponential in a lot of regards, but the reality is I think we you know I don't know that we'll be around 20 years because our cost of capital is higher when we're a small cap company It's exceedingly higher than those companies that I just mentioned their cost of capital is low single digits Ours is much higher than that and so ultimately I think you know, we probably will make more sense for someone just to buy out um That has happened in the industry and I think you know While I we could be running this company for 20 years and you know, I probably love every second of it I think at some stage, um, it probably makes more sense. There is consolidation happening in the industry Uh, and for someone that has a lower cost of capital It's immediate arbitrage value for their shareholders as well when when we're acquired. So I'd say it's probably lower odds that we're around 20 years from now than you know being acquired over call it the near medium term Absolutely. Thank you for that. I appreciate the insight Kyle on that. Talk a little bit about Your key producing assets, especially focused in the in the australia and the cullia now being Segola and the janet ivy. I saw just had a press release Yesterday, so if you've got any new breaking news for our audience, that'd be awesome to touch on those key producing assets for us The really exciting part about these assets ryan is that we bought most of them pre production We've only one asset was in production. That was the browner. That's the largest producing diamond wine in south america and for what that's worth Um, and that was the only asset that we bought that was presently in production And we bought that because we got it to call it one and a half times cash flow I know you're a value investor So I'll bring up some of the value investor themes that run through our business because we're the same We just have a niche and nuance and the capability to bring value forward to to for our shareholders And so brown was the only one that was in production Then we have dry creek which is three open pits that feed was called the higginsville operation in western australia We bought that pre production. We had intelligence that led us to believe that that would come into production over the near term It exceeded our expectations hit production sooner. That's been fantastic. That's bought at, you know, color One and a half times revenue So we'll make multiples on our investment on that multiples on multiples potentially Um, same thing can be said for the second logo asset in nigeria. We bought that Um at one quarter of what we estimate that it will bring in for us over the next three years It is capped. I'll always be candid. That's capped. So you get that optionality upside But when you're expected to generate 4x what you purchased the royalty for over just a couple of year time horizon You absolutely take those deals and that's part of the value play for us Tony and I have the same thing we bought that royalty from a from a that's a producing iron operation now for us We bought that royalty from a telecom business And that's you know, when you ask like, how does that database manifest in terms of creating value for your shareholders? Finding that royalty in a telecom business is a unique feat In its own right and we bought that royalty prior to it being in production It then came into production and it was absolutely knocked out of the park for us We expect to make multiples on multiples on our money and that on that investment as well Um, and I'm missing one That would be we've named off dry creek brown a Segula Janet ivy Janet ivy jenna and that's probably the biggest one. So we bought that royalty We got intelligence that it's a big mine come in ziggins. They're based at Hong Kong listed 30 billion dollar company They have a subsidiary called norton that runs some of their gold operations in australia and we essentially got intelligence that They were going to be working on commissioning what is now and they're in process on now Is going to be the largest heap leaching project in all of australia, which is saying something So it's 400 plus million dollars of capital invested in it But we bought a royalty for about 5 million that we had pretty I mean Nothing's concrete. Nothing's concrete in this world But as good as you could feel about revenue potential as you possibly could on the near term So we had it it started producing. It's really about that that ramp up that's happening right now And so we bought it for five We expected to generate 20 or more for us at the end of the day over a nine 10 year time horizon And there's a lot of upside baked in there So that we expect will be realized, but that's what we look for So, you know your thesis of looking for value we find value Most of our competition is actually buying royalties because of the option value Look, there is option value in royalties And that's what we do that jan and ivy royalty Has upside potential beyond that 20 million dollars of revenue to us that we purchased for five It has a lot of upside potential We don't price a lot of that in when we're buying these assets obviously, but they exist other royalty companies They're basically buying assets that the gold price needs to run There needs to be discover discoveries that happen that increase the total size of the resources and reserves Production needs to increase just for them to get their money back We're buying royalties that we expect to get multiples on our invested capital over, you know rational I would call them short term duration No one else in the industry has been able to do that not not to The extent that we have with the volume that we have for our shareholders That's incredible is There's significant insider 15 percent of you guys own the shares anyway So there's some vested interest is something that I I key off on a little bit Another one of my questions and you know, we're getting toward the end of the the interview here kyle Tell our investors how it is and I typically don't cover royalty companies So this was a real treat for me to kind of do a deep dive for you guys but How is it that an investor that doesn't know a lot about royalty companies How are we supposed to value a company and you can answer this question on behalf of vox royalty And and try to distinguish, you know, some of those similarities. What makes a good royalty company? What's the pedigree that exists? What are the some of those things that we should be looking at as investors If we're going to be looking to take a potential investment or we're looking at your company It's a great question because there are certain relative valuation metrics that Essentially survive in these industries. We are a niche or a nuance in call it the overall commodity sector How you look at royalty companies? There's a couple of different key multiples to to pay attention to One is and this is the most probably consistent across across the sector is relative valuation or relative multiple net asset value And that asset value is basically the discounted future value of your cash flow Um, and so we trade at 0.7 to 0.6 times that asset value where most of our closest peers are trading at North of one and a half times, but typically even north of two times an asset value So just with what we have now we would expect to realize a re-rating at some point for our shareholders We're working very hard on that part of that's fundamentals driven part of that is investor awareness driven um, but That's a that's a very significant bump up in share price from where we stand today The other the other multiple that you would look at would be cash flow and some of our closest columns are trading at Um, and again, I'm not sitting here to validate some of these multiples, but I know you point to them as references Are trading at 200 times? Revenue, um, and if you look at 2023 as our revenue starts to I think it's going to continue on the trajectory That's been on they call it a normalized rate of you know analysts expecting it to be around 8 million 8 to 10 million We're trading at the low end of the range on that basis as well So we have I think one of the most deeply discounted businesses in terms of share price and and relative valuation that exists in the industry We're starting to see momentum in the right direction Some of the things that we needed to do better in terms of how we you know control stock that comes into the market and things like that We've done we've raised 30 million since we went public. We have no intention of going back to the markets To raise equity so really I think we've really now Got the ship with a lot of momentum going the right direction We fixed the things that we needed to fix so that the fundamentals could prove out and also be rewarded in share price Sure do What do we miss kyle? For the viewers that tune into the channel and there there are a lot that are interested in your company. There's no doubt I'm one of them What did we miss we fill our investors in on on something that we didn't highlight that you want to make sure and get through To our to our viewers Well, first of all, greatly appreciate the opportunity to be an independent investor. It's it's truly a privilege For me and and for vox Royalty corp to be on the program You know, what I would tell you is we built I built this company The the reason it was built was for a generous investor that wants exposure to commodities We obviously find ourselves in one of the most I think um You know difficult times from an inflation perspective of where where do you put your investment? Where can you make money and where can you you know? You can call it a hedge or you can call it. I need to make money even when there's inflation And I need to make more of it when there's inflation Well, how do you do that because it's it's typically a deleterious time for for most stocks and most industries Whereas we usually have a tailwind from that type of thematic unfolding really before our eyes So this business was built for this time. It just so happens I mean back when I founded the company and started building it 2013 2012 Inflation was not at the top of everyone's minds But I wanted to have that build an outlet that was reliable That was straightforward that offers investors the right risk-adjusted exposure without you having to be an expert in geology or mining engineering, but understanding that You have that exposure you have that leveraged upside to metal prices But you've got a lot less downside and that comes in the form of just the quantity of Assets that we have both in production coming into production The different commodity mix that we present even though it's mostly precious metals 70 precious You still get the tailwinds that kick in when other metals do exceedingly well Like we've seen in iron ore and copper and other metals So we've really tried to create a business that we believe distilled the best kind of value You could possibly be looking for when you're looking for a good investment in commodities I think we've delivered that and we're going to continue building shareholder value So it's it's really about continuing to build what we've already started We've got tailwinds to our business the fundamentals continue to prove out And I believe you know, we've got the momentum going in the right direction I review a lot of companies kyle and I believe you will do that Keep your nose to the grindstone keep leaning on that technical team Because I tell you what you guys got of expertise that is unparalleled Across the industry when compared to your peers for the would-be investors canadian tsx ventures ticker assemble vox On the us markets. It's a otc quality board markets ticker symbol is vox cf If you didn't get that I will provide all the description in The below for this video Please kyle if investors need further information. Can you point them in the direction where they can find that stuff? Please Yeah, so vox royalty comm is a great place to start to to continue to learn about our business And if you want to get in touch with me or anyone on our team i are at vox royalty comm Is the is the email address? We're obviously also in all the the relevant social channels as well But those are a couple avenues to to to get questions into us or if you want more information Always happy to provide it and and happy to engage kyle. Thank you so much for coming on the program CEO vox royalty mr. Kyle floyd. Thank you so much for your time, sir We're going to be putting you on the radar and good luck to you into the future of a big Bright future for you going going into forward. It's going to be awesome to track the progress of vox royalty. Thank you so much, mr. Floyd Thank you ryan. It's been a pleasure. I appreciate it. Thank you