 Fantastic, I'd love to welcome everybody back into the independent investor channel studio here We have an absolutely special guest with Fox royalty the chief investment officer mr Spencer Cole here talk about one of the most intriguing companies that I've had the pleasure of reviewing here as of late Company stock price is just one on absolute. It's been on a tear here last five days up 11% Month up 32% and what we're talking over the last six months 65% and over the last year 60% So these guys are absolutely doing something right. They're absolutely banking on a lot of transactions I'm sure we'll get into that. Well without further ado Spencer I'm gonna kick over the floor to you and give us a general introduction For yourself and and the company that you represent Absolutely Ryan and thanks so much for having me here today My name is Spencer Cole. I'm the chief investment officer of Vox Royalty corp A little bit about myself as you can hear from my unfortunate accent and hopefully it's not painful on your listeners It is I'm from Australia originally but based in Toronto now I'm a mining engineer and have worked with some of the largest mining companies globally such as BHP and South 32 And I guess, you know my role and how I came to be at Vox was I co-founded a business called mineral royalties online And we developed the world's largest proprietary database of mining royalties And then we merged that that business into into Vox a few years ago And so that was our myself and one of our colleagues entry points to Vox Vox as a company We are a precious metals focused high-growth mining royalty investment company listed on the TSX venture exchange and the OTC QX market our business in a nutshell is acquiring Really attractive royalty streams on other people's minds Where we can see, you know, significant amounts of yield and revenue for our investors going forward And I'm happy to unpick that through subsequent questions, Ron Absolutely, and just from my viewing audience just what Spencer was talking about here TSX Venture under the ticker symbol Vox here on the US exchange is the OTC quality board markets Vox CF and I will provide all that Information as well as some amplifying I used in the production of the coverage of Vox in the description below So Spencer just unwrapped for us a little bit what what a mining royalty is For some of our investors I had to do some homework when I dug into Vox and I'm sure there's a lot of investors out there that would love to take You know a shot at Vox, but they just want to understand a little bit What what gives below the surface on what an actual royalty is? Sure thing Ryan. So a royalty or a mining royalty is really just a contract between two parties it's typically a contract between a mining company and Another company or an individual and what it entitles that the holder of that royalty to Is a future revenue stream or an income stream? And it's typically a percentage of revenue usually about one to three percent of all the revenue from that mine Now the way that these mining royalties are most commonly created is let's say Ryan You you you find a you know you hit the mother load and you find a gold deposit But you don't have two hundred million dollars in your back pocket I don't know if you do maybe if you do maybe you don't but you typically these prospectors don't have two hundred million dollars to build The mine themselves. So what's very common is they will sell that discovery To a larger mining company who can build the mine and in return that Prospector will be given a mining royalty contract that gives them a future percentage of revenue or profit If the mine gets brought into production that that's incredible. Yeah, I I was super intrigued when I did my it's kind of like mineral rights Is that kind of the same idea Spencer? So typically the difference is that the mining company holds the mineral rights So they have the right to mine and then as sort of a I guess an obligation Attached to those mining rights. Yeah, the royalty holder gets a percentage of any of the profit or revenue from those mineral rights So the mining company holds the mineral rights the royalty holder owns a contract that is sort of almost like a mortgage Over those mineral rights Understood. So if I'm an investor, what are the benefits of investing and mining royalties versus other commodity based assets Spencer? So it's a great question Ryan And I guess some of the key benefits to owning a royalty rather than you know a different type of commodity So, you know if you're an investor and you're worried about inflation I think all of us are worried about inflation at the moment I'm I'm currently planning my wedding at the moment in in in Southern California And I can assure you I'm facing a lot of inflation from every single cost line item in the budget So I'm feeling it but if you're if you're looking to get a hedge on inflation Commodities, you know historically have always performed well in high inflation environments So, you know, you can obviously have your pick of a lot of different commodity based benchmarks You could buy a physical metal. You could buy bars of gold. You could buy the mining company You know, you could buy that the gdx or an equity based industry Or you could buy a company like a royalty company a royalty company offers you the benefit of all of the upside Link that a mining company gets so when the price of gold goes up you get that upside as a royalty holder When the company hits, you know further exploration success, you get that benefit as a royalty holder When the company the mining company expands production, you get that production upside and your revenue increases for the royalty But then importantly a royalty company doesn't face any of the downside that a mining company does So, you know, we as a royalty investment company, we don't pay operating costs We don't pay capital costs our first checking out and our first investment is our last investment So we're in a attractive position where we sit back and we collect checks from, you know all the different royalty properties that we have royalties on And we get the benefit also of diversification So we have 54 separate royalties if one of those mines, you know, God forbid collapsed or one of those companies went bankrupt We've got a host of other over 50 other Royalty investments So investors get all of the upside that they would otherwise get, you know from any other commodity based investment without any of the downside In a much more diversified risk Portfolio fashion Yeah, that's exactly what I saw when I was looking at it You know really limited the risk but it spread your you know the diversification across multiple Properties and multiple jurisdictions around the world to Spencer. What makes a royalty company successful in other words, you know There's other royalty companies out there that I looked at as well just to try to cross compare with what you guys have got You know, what what makes what is the pedigree that goes into a successful? Royalty company and kind of give us an idea of what maybe differentiates you guys from your peers Absolutely, so I think one of the key One of the key things that makes a royalty company successful is, you know The ability to truly understand mining properties and mining assets And so to truly understand where is the value in the ground here? Where are the risks? You know mining is obviously a very risky business And and and what is the true probability that this discovery will be brought into production? So at vox our business has been specifically constructed for generalist investors who perhaps, you know, aren't mining engineers themselves So they they aren't able to pick the right mining projects Investors in vox get the benefit of our management team consists of mining engineers and geologists on the front lines of our business So anytime we're evaluating a new royalty investment We have our own engineering team and our own my geology team Who's reviewing the drill holes reviewing the engineering work? To be able to say that every time we allocate a dollar of capital to a new royalty investment We truly understand what the risk adjusted returns on that investment are going to be So one thing for investors to be wary about is, you know, not all royalty companies offer the same deep technical expertise that vox has You know historically there have been some royalty companies that have perhaps had too many mining investment bankers Who perhaps outsourced some of their technical due diligence? We we do almost all of our technical due diligence in-house to ensure that we're picking the right minds and the right mining projects So that's one key aspect of what makes a royalty company successful is a technical management team like vox's Another key aspect to our business ryan that is absolutely critical to create value for shareholders is How do you source mining royalties? And how do you ensure that when you buy them, you know, you're paying disciplined attractive prices For those assets because you know, there's a lot of royalties on the planet You know in our royalty database. We have over 8,000 that we're aware of but Paying too much for royalties results in, you know poor returns for investors obviously so As a company we we rely heavily on some really Interesting sort of innovative ways to source royalties that our competitors are blind to So for example, you know, we historically bought a royalty from a hearing aid technology company We bought another royalty from an automotive parts company Another royalty from a telecommunications company So we're able to consistently use our royalty database, which you know, we've developed in house Which is the world's largest royalty database And a deal sourcing network Around the globe to find royalties that are really attractive from a mining and geology perspective But importantly, we're able to get in front of those deals without any of our competitors aware of them So we're able to pay very attractive prices. So that, you know, we're we're allocating, you know, the right amount of money to the right assets So that our investors get all the benefit of that upside as those mines, you know start generating revenue on our royalties So I think those are two of the key elements that make a royalty company successful technical management picking the right projects And a deal sourcing machine that can that can source large volumes of attractively priced royalty deals Fantastic. How does cash flow versus risk need to be managed, Spencer? Yeah, so this is a really interesting question, Ryan, because a lot of investors Can get, you know, seduced by revenue You know, and and and it's easy, you know, when you see a company spitting out a bunch of revenue It's it's easy to say well Is that success, you know, is does that define the success of the business? But obviously, you know dollars or dollars or dollars, but They don't necessarily come with the same volume of risk So for example, you know a a dollar of royalty revenue that comes from the democratic republic of congo Is not going to be equal to a dollar of royalty revenues from Western Australia Um, so, you know, I guess when when we as as vox when we're evaluating new investments, you know, we're really obsessive about looking at What what what is the potential revenue profile? But equally importantly, how much risk is coming with each each dollar of revenue? Um, which is why when you look at our portfolio of 54 royalties, we're heavily weighted towards what we'd call safer jurisdictions So 80 percent of our royalties are in Australia. Um, the united states and canada by design because If we can reduce the amount of risk associate while maximizing the the royalty revenues in our portfolio On, you know, for our investors, that's the best possible way to maximize truly risk-adjusted returns Rather than just blindly chasing revenue that may have a huge amount of risk attached to it Yeah, absolutely going after those tier one jurisdictions that you talk about spencer. Absolutely Take a step back to talk a little bit about the history of of vox royalty, you know, when and why it was created How it's grown and and what makes vox unique you've talked about it a little bit But I was able to earmark a ton of different differentiating factors The the one is the one that's in all of your guys' side The fact that you're trading at such a discount on the stock to the market as good as the numbers are I think I think there's still an an immense amount of value here And you're just touching on a small pocket about it But just give us a little rundown of the history of vox if you would spencer Absolutely run. So vox as a company has been around for eight years And the original I guess the seed of an idea that that grew into what vox is today was a group of a group of Family office investors in the united states who really liked Really liked the you know the the exposure to commodities and really wanted to get an inflation hedge But they didn't like the returns and frankly, I guess some of the how risky the the junior end of the Of the mining industry was so they said, you know to our to our our founder kyle They said is there a better way for us to get this commodity based Upside without taking on all the risk of just you know throwing darts at a junior mining dartboard And out of that the company was seeded with with seven and a half million dollars Eight years ago That's been patiently grown In in terms of our royalty portfolio. So from that seven and a half million dollars We've grown it and we've allocated about 30 million dollars of capital to build our portfolio of 54 royalties And now you know the the market capitalization of that is about 150 million dollars So we've been quietly and efficiently building a portfolio of royalties that is in is one of the largest portfolios in the world But in a very capital efficient and disciplined manner Because we were we were a private company for for seven years That that discipline of of not having you know not being able to issue equity In public markets that discipline of being very capital light has stayed with us as we've gone public last year So I guess that's a little bit about the history of the company And why it was created. So in terms of how we've grown Um, you know, there's there's there's two ways to acquire royalties One is is to acquire existing royalties, which I touched on before which is I guess going to the prospector that made the mineral discovery And buying the existing royalty. That's what we focus on The other way that um, you can buy royalties is I guess funding mining companies So writing them a check to help them build their minds and we've back tested You know thousands of royalties that have been sold historically and Consistent that we've seen much better returns through buying existing royalties for prospectors. So that's how we've grown we've typically bought royalties from prospectors and groups that originally held the mining projects Rather than the other side of the other path, which is funding mining companies, which we don't think the returns are there for us um And then you know to your last point on your question What makes uh vox unique, you know, I touched on a few points earlier The fact that we have a heavily technical management team of mining engineers and geologists I touched a little bit on our royalty database Of over 8 000 royalties, which allows us to to identify forgotten but really attractive royalties Um beyond that, you know, you did touch on I guess valuation I think one one thing that is sort of an An opportunity within our portfolio is because we have so many australian royalties, but we are listed in canada I think there is still a bit of an understanding gap in terms of the value and the quality of the royalties that we have in australia um And that was one criticism when we went public last year ryan was you know Business model sounds interesting, but I don't know all these australian mines and these australian mining companies Despite the fact they're listed on the australian stock exchange. Um, so We we have been quite heavily discounted because of that heavy weighting towards australia Which for us seems a bit irrational because we view australia particularly western australia as probably You know the best place on the planet to build and operate a gold mine. So um I think that is one unique aspect to our business that We are we're the second largest holder of mining royalties in australia Second only to a 30 billion dollar company franken nevada So I think that exposure to australia and that first mover advantage in australia Sets us apart from a lot of competitors and gives us a real edge In continuing to grow in a market like australia So Segway is perfectly into my next question. What what does the future hold for vox royalty? I know right now and correct me if the Information has changed five producing assets right now looking to grow Really into 2022 but really into 2023 as you guys look to Potentially double that book of producing assets that that is incredible The amount of transactions that you guys have been able to make but give us a little bit of a synopsis on where you think the future What the future holds for vox royalty as you look to expand the portfolio base I think you've hit the nail on the head brine You know one of the key aspects to our our the coming quarters that investors can really look forward to Is just a huge amount of organic growth? within our royalty portfolio so As you mentioned we expect to to organically increase from five producing royalties To 10 producing royalties by late 2023 and we think there's there's a healthy amount of upside on that as well So that's without a single additional dollar of capital required That's just based on the 54 royalties that we have in the portfolio today So naturally as we double the number of producing royalties, it um, you know revenue will will follow from that So analysts have our revenue More than doubling over the next two years, which is you know quite quite exciting Beyond that, you know, I think we're continuing to work on our our sort of investor awareness campaigns So I think commencing trading on the otc exchange In the us was it was a huge step forward for us because it helped us connect better with us based investors And in the medium term we are looking at getting, you know, a main board listing in the united states That's something that's currently under review And then beyond that, you know, we're continuing to work with a number of investment banks and brokers To get some more research coverage. We currently have three independent brokers Covering us from a research perspective and we expect to get An extra couple of brokers over the coming months and quarters are going to initiate research coverage on us so That that should be really helpful for investors to be able to understand our portfolio a bit better And then I think from a from an acquisition perspective, you know, we're certainly not sitting on our hands Ryan so we've got a few really exciting deals that we're working on where, you know, we think we've got a proverbial tiger by the tail or a few tigers by the tail On on other acquisitions where, you know, we're Identifying royalties that we think could be in production longer than we as management will even be alive So we're we're we're looking at some some some royalties where they're multi-decade potential mind lives So and without getting, you know, without losing understanding on price price and the deals so investors can look forward to some very attractively priced, but large royalty acquisitions Where we're not going to need to raise any further equity You know, we're not going to do any capital raising to do those deals We're doing them in a very sort of capital efficient way To bring that value into our portfolio So that's a little bit of about what's what we think the future holds for vox and our shareholders That's incredible. I have to I have to ask you one question from my own personal playbook Spencer. I it's one that I've Wondered and I had it earmarked for you to ask You were just quoted on a news release here talking about some of the drilling Results that had come back on some of the growth properties Within the portfolio I I know it's of interest to look at the tip of the iceberg right those producing assets and adding to that That's those are really the home runs in the portfolio But I would say that there's a beneath the surface type of value That I hope you're getting credit for Because each and every one of those progressions that are made on the growth and even some of the early stage projects Does that create value even though it might not be an asset producing yet? Because you just announced a host of that stuff and i've been covering you guys for the last month since I Researched you and you guys have got news coming out all the time On progressions that are being made on royalties that you hold on companies that are marching toward that producing Stage can you comment a little bit about the below the surface? value at vox royalty Yeah, absolutely right. So I guess when investors think about our portfolio of royalties So as you mentioned, we've got five producing royalties currently We have about 20 20 other royalties that are in some stage of development Whether that they're either in construction about to move into production or That you know, the engineering work is just being finalized or you know, they're moving They're moving into sort of some form of engineering study So those projects, I guess we have a clearer line of sight as to how they go from their current stage into production And look when and then we've got about 30 royalties that we would call I guess exploration stage Which are aggressively being drilled out now When we look at the rates of return And how many times our money we want to make on different investments, you know, typically for our producing royalties those are investments where, you know, we aim to make anywhere from say 3x to you know, 8x our money on those investments Where ideally we can get payback on our money within, you know, ideally within 12 to 24 months Now if that sounds attractive to investors, which hopefully it does You know, what's even more attractive is When you go into the exploration stage bucket of royalties So we've got 30 royalties in that bucket and those are royalties that typically cost us anywhere between 50,000 to say 200,000 Now What the types of returns we're aiming for on those properties are between, you know 20x to 50x So buying a royalty today for $50,000 which, you know, we think could make us, you know Call it three to six million dollars You know, when we when we say $50,000 people say well, it sounds like a little tiny deal But when you're targeting so 20x to 40x to 60x Return on your money And you've got 30 of those projects You know Each month as these properties are drilled The probability that they move into production increases So, you know, the probability that we make 20x or 30x on on some of these exploration royalties increases with each drill hole And the benefit for us as a company is, you know, we don't pay for any of that drilling So, you know, god forbid Brian if if our management team got hit by a bus tomorrow, which we hope doesn't happen You know our royalty portfolio Similar to a, you know, a wine seller would just continue to appreciate in value So as these exploration properties are drilled out that the probability they return cash flow to us And get brought into production increases materially so Vox investors get the benefit of every month where it is gifted with a huge amount of drilling and a huge amount of discovery Exactly on which we pay no extra dollars for So it's you know, it's it's easy to get excited about that because it's such a capital efficient and high return business model Yes, I had to ask you that because I've watched a lot of your interviews online And you hadn't been asked quite that question in in my way. So thank you very much for that Last question and then we'll kind of conclude the interview a little bit As a vox shareholder yourself What are you most excited about? Uh, look, I I'm most excited about just delivering what we've already committed to investors. That sounds really boring But um, you know, I've got four of my brothers and sisters of ox shareholders as well Ryan And um, I can assure you that you know, god forbid any day the share price goes down I'm getting you know phone calls from from, you know, multiple brothers and sisters saying, uh, what's going on So, you know, it is quite it is very personal For for us as management. We own 15 of the company and our family's own, you know, extra extra on top of that So look, I think delivering on what we've committed to so delivering on exponential revenue growth Delivering on, you know, organic growth in the number of producing royalties we have Continuing to find diamonds in the rough new royalty acquisitions And then importantly continuing to have the share price reflect the value of this really unique business that we've created You know, that is what really excites us is, you know, creating something It's very different and then having you know, our friends family and You know, all of our shareholders reward that be rewarded with that really unique business that we've built Spencer Cole chief investment officer vox royalty If you guys want more information, I highly encourage you to kick over to the very very useful website at vox royalty dot com The otc quality board markets here of vox cf ticker assemble I will share in the description of this video Spencer, I will kick it over to you for the last word here Thank you so much for being a guest on the independent investor channel. Awesome. Awesome interviews. Great to have you No, thanks. Thanks so much for your time, ryan and and look thanks so much for your listeners for tuning in Um, we would welcome with open arms, uh, your listeners to to join us on this On this this rocket ship adventure, uh, that we that we're we're we're building at vox Um, you know, we're extremely excited about what we've built and and what's ahead of us Um, we we really do believe we're really just at the tip of the iceberg in terms of you know What what we can deliver for shareholders. So, uh, yeah, thanks for your time and well welcome to vox Yeah, I appreciate that. Thank you so much. Spencer. Be well and and keep keep it up All right, keep up the keep up the great work. Take it easy my friend. Thanks ryan