 And we're going to take this opportunity and welcome back Kyle Floyd here of Vox Royalty with a huge announcement here. The company is firing away on all cylinders and it is just everything we can do to keep up with the progress of this high growth third-party royalty company and it has everything to do with investors' favorite word and that is dividend. But I want to welcome Kyle back to the Independent Investor Channel and have him discuss the particular surrounding that big announcement in the company. Kyle, take it away. Oh, thanks Ryan, always a pleasure to be with you and thank you for the opportunity. Vox has consistently demonstrated that we can find really, really great royalties in all the places that people would at least expect and we built a business model around finding value for investors and so we have continually demonstrated our ability to find royalties pre-production, in-production and across that spectrum at great value and this announcement that we made last week about our dividend is just a furtherance of the development of this business, its focus around investors, making sure that investors also see the benefits of what we are producing at the company level and it's really just a product of us and the company building a systematic advantage in an industry that has really yet to have a company go and focus on creating competitive advantages, creating a natural property that enable it to find the value that we are able to find in the third party royalty landscape and the dividend is just the furtherance of our capability and the demonstration that we are focused on our investors, we are focused on returns, we are focused on finding values so that investors can find a home to invest in commodities that is going to respect them and shareholders that is going to deliver the returns that they should expect and continue to execute in a disciplined fashion and so the dividend is just reinforcing all those key pillars and the foundations of Vox. Now Kyle, this dividend that you've declared here is a one cent per share right, puts the annual yield at what 1.8%? Where does that place you in the who's who of your competitors in the royalty space and this information is actually told in the investor presentation on VoxRoyalty.com but I want you to elaborate a little bit on kind of where this puts you in context of your competition out there that also offers that dividend yield. Yeah, and Ryan, what's really exciting about this is when we discussed this going back months ago about how we're focused on generating returns for investors, we were going to look at how we started to return some of the excess capital that we're generating back to our shareholders and so this 1.8% yield is very significant. We think it's meaningful. We believe that it's sustainable and we expect if we continue to execute that it will be growing and when you put that in comparison to a lot of our peers, as you can see from our latest investor presentation, they're much larger companies and we are in the range if not in the top four tile in terms of the precious metals weighted royalty companies and the dividends that they're offering. So we're excited about where we are in terms of the landscape of our peers and what peers are offering but ultimately it's really about what we think we can and believe that we're going to continue generating as a company which is a very sustainable, free cash flow and one that's capable of supporting a growing dividend and so that's the expectation internally. That's what we expect to deliver and the reason for that we believe is a very meaningful dividend and the capacity to hopefully expand that is that we have been able to find royalties pre-production that are now coming online and growing into very meaningful producing assets also complemented by royalties over assets that we picked up that have gone into production and now are expanding their production capacity and so these are kind of the core tenants that you and I now have spoken about on your program multiple times and the dividend in that context is just the evidence that we continue to find these great royalties with our mining geologists and our mining engineers on the front line and we're bringing those assets into the portfolio at very good valuations and then in turn being able to deliver those returns to our shareholders. Yeah I think you guys are right there at the top, you guys are tops in my mind in the space. I cover the space intimately, I'm a big proponent to Vox Royalty and those videos that have been released through the evolution of the independent investor, I'm going to leave links to those because it's imperative that anybody that's interested in the space and with the current volatility in the market guys you need to pay attention to this stuff and I'd like Kyle to kind of get into with the volatility in the markets and how royalty companies have fared over the last 10 years through bull markets in the S&P 500. I think it's going to be interesting to track at least Vox Royalty's progress over the coming years but what is to expect over the next decade in the royalty business as a whole with what we're dealing with right now, unprecedented volatility in markets. How does Vox Royalty provide some level of insulation to would-be investors Kyle? Yeah Ryan I think Vox is a really interesting investment story and opportunity with where we sit today both in terms of what Vox is delivering and what the macro environment is and that backdrop. And so I think it's worth reminding everyone that's watching because we're a royalty company and our fundamental interest they're called NSR, Net Smelter in terms of royalties and what those are basically one to two percent usually percent on the top line revenue that's generated by a mining operation and the great thing about that is we get the benefit of all the capital that mining companies spend whether it's for expansion increasing resources and reserves you name it all the areas where they're out there investing to increase the size scale and scope of their business and ultimately the cash flow profile of business we get a percentage of that without having to contribute any of those costs and so an inflationary environment that we all see and feel as consumers and businesses Vox is a really unique business and that because it's a top line revenue percentage and we don't contribute any of the capital to the expenditures that mining companies need to make those input cost inflation the capital expenditure cost inflation that does not affect us so our top line revenue is insulated from those increased costs that are that the mining companies are feeling and what's contracting their margins what we are benefiting from is to be honest with you a very sustained buoyancy and metal prices and we're seeing that and you're seeing it very specifically within our portfolio where a lot of assets are going undergoing expansions Janet Ivy and our Vinduli North royalty is you know I would say a case study in that where we bought the royalty was essentially go going back into production but it was around a much expanded production case and that's because metal prices have been sustained at a very high level the one mood of producing iron ore royalty we bought that at four to five million tons per annum run rate in terms of production now that's going up to potentially double that number maybe even more so we're seeing that consistently within the portfolio where we are getting the benefits of a very high sustained metal price without the drag from inflation and then when you overlay what Vox is doing fundamentally yes it's a very volatile market right I mean I think we're all feeling that seeing that investors have been beaten up really across the board and almost any asset class except for the dollar and so where Vox sits with paying it and where you can look at our investor presentation when you stack up the comps we believe we're the cheapest royalty company out there from a relative valuation perspective as well that is lowering the volatility in general with what the share price is doing I mean we've been one of the better performers that being said being flat in is never necessarily a victory lap but our volatility is low and I think that's a unique it's a unique position for investors to be in where you've got really explosive upside in Vox with what we're generating and the development stage assets that we have but being one of the cheaper royalty companies out there are relative valuation basis means you're not exposed to excessive promotion premiums and you know really inflated asset values so I think we're a great place to be for investing capital especially at this point in time where we continue to deliver the upside to investors but with where we're trading and the relative valuations and the dividend I think we present a unique opportunity to weather the storm as well. You do you've unpacked a ton there Kyle I just want to talk about you said you think you are undervalued you know you are I mean let's just speak facts to facts you guys are sitting at about 0.6 you guys have lost a little bit on the nav which is incredible because your revenues have increased and I think remaining flat in this market I think you're to be commended and I think to put it into context for investors I think you need to compare the stock performance of some of the competitors in the space and and Vox just like any other company has not been immune to just the headwind that has been delivered in the stock market I mean the baby's being thrown out right now with every company irrespective of really what they're doing. Kyle I digress if I'm a stock I'm interested in the commodity space and I'm intrigued by the Vox royalty story do I have to understand everything there is to know about the junior mining space do I need to understand everything there is to know about the royalty space which is pretty complex or is there some value there to be had with scrutinizing the management I think Vox royalty is right up there with the best of them and I think you would agree with that. How is it that I can take some solace in becoming an interested party in the royalty space specifically and understanding that you guys are kind of doing the legwork for me as a would-be investor. No Ryan you're absolutely right I mean Vox was created for investors that was the impetus and the motivation and the genesis of this business was to be there for investors that aren't mining engineers you're not you're not a geologist you maybe haven't been investing in the space through three cycles and three decades the commodity spaces is unique I think within the general industries in the equity markets and that is very complex it's an esoteric industry with esoteric risks and also unique upsides as well and what I would take solace in as an investor is when I looked at the landscape of how to invest in commodities when you looked at the returns the empirical evidence and the empirical returns of royalties as just their own asset class they have outperformed any relative commodity benchmark by magnitudes that's the pure asset being a royalty then you overlay that the the larger royalty companies have outperformed the gdxj they've outperformed the physical they've outperformed pretty again any commodity they spent ready to compare them to Frank Nevada's outperformed the nasdaq and the s and p 500 and they've done that because they find they found the right royalties and leveraged around that and that's what box does but on top of that where I think we're different than most of the junior sector in the royalty in the royalty space is that we have a team of mining engineers and geologists on the front lines of our business as a former investment banker I think I get I'm entitled to disparage the industry a little bit it's not bankers doing deals for the sake of deals and scale for the sake of scale this is our technical team understanding the risks understanding the upside and overlaying that to find the best value in what we believe is by far away the best asset class which is owning royalties a lot of your viewers would have seen this success in the oil and gas space the royalty world and oil and gas has also done very well and it's because that unique position that royalties hold which is it's more secure they typically run with the land so in up cycles and down cycles you know you still typically have your interest in the revenue generating capability so you it's more secure than equity it's not diluted like equity and you get all the benefits of the investment that the equity holders are making that hold these mining companies for growth without having to contribute any capital to it so these assets have well performed we do the right kind of diligence we do the right kind of work and underlying all of that is the most significant competitive advantage of the industry with our royalty database so when you put all of that together that's why we are obviously so bullish and positive on the prospects of our business and our ability to keep finding value creating value for our shareholders well let me drill down on that point would you suggest that vox royalty is about as strong as it's ever been in its history and i want to follow on with an idea that what is keeping some of these large institutions to the side and looking at this value proposition look i'm just a small fry on youtube kyle right but i look at these fundamentals that you guys boast and and they are incredible and it's it's not going to last forever this flat stock price is not i think the the fair market that they've got for you guys with the analysts that cover the stock have you guys just shy of five dollars cad with right now i think the last us stock price which is what i track it in was had yet about 214 is are they just remaining on the side or can you speak about any type of institutional interest in this company from the commodities perspective looking at your companies and saying something's got to give here this is this is getting getting kind of ridiculous well what i would say is we are starting to see that and a lot of it is you know we haven't been around for very long as a public trade business we were a private go very heads down doing what we were doing focused on finding value building our competitive advantages in the royalty sector and doing that very successfully we've only been public for two and a half years and really you and i on you know on there together we've talked about what was coming for vox and how that projected out and we've delivered on that the reality is the last nine months have been the most explosive growth for our firm that we've ever realized and the next nine months continue on that trajectory but that's overlaying with what has been for the last nine months i would i would say a very significant bear market so the success that we're bringing to the table has largely been kind of lost in the noise of a very very bad equity market so but you started to see a lot of stabilization in our share price most of the peers are you know while we're still undervalued most of those peers are very very significant contractions of their share price so i think we're really well positioned we're seeing the investor appetite and the large institutional appetite certainly increase we've had some of the large institutions we've seen from their filings that they've made i won't name them but they've increased their portion than us recently and you know we're about to embark on a two-week road show in europe speaking to many of the who's who and some of the most notorious and successful both general investors and commodity focused investors on the planet so i'm really excited about what we have in front of us we've been out in front of a lot of the institutional investment community over the last few weeks and will continue to be for the next few weeks purely non-deal we're just generating the awareness on vox because what we believe we're doing is special and it is generating returns that i think investors should be aware of it is it's incredible i want to share a link with my investor audience as well the emerging growth conference kyle you spoke at it a couple of weeks ago i thought that was a phenomenal breakdown i'm going to share that link to our would-be investors as well for the sake of transparency let's drill down a little bit on the performing assets right now currently sits at six you guys are looking to project moving out of 2023 with over 10 can you just talk a little bit about your organic pipeline and what that means to the vox royalty portfolio and the opportunity that it could present right now with this prolonged opportunity i'm just going to tell it for what it is i mean this flat stock price is just prolonging the opportunity for you guys to realize and walk this road along your organic pipeline can you speak a little bit about that go yeah and so from from a internal vox perspective what we look at is clearly those revenue interests so when we start collecting checks from mining companies that's what's generating the revenue and so it's really that crystallization of assets going into production and also assets expanding once they're already in production and in the portfolio and so when you look at the the vox presentation and you look at the chart of producing asset count so we went public ryan in may of 2020 we said this is what's coming investors especially in small cap world which is where we live for better or worse right now you know it's very much a show me and then i'll value it and so what we did is we said we're going to have this five six producing assets that we do now we've done that we've actually exceeded our expectations and that's been delivered and then as you point out we believe that we're going to be in double digit producing asset count as we exit 2023 most of those assets are already in construction or i have just entered production and so we feel really good about those assets coming online and generating meaningful revenue for box shareholders and so that's that's where you see the growth our capability in finding those assets one two three years out from production having those actually crystallized come into production and then ultimately you know hopefully as well expand production within the portfolio that's what's generating this outsized growth we're not going out and paying exorbitant values for in production assets and hoping that we get our money back we're finding really really deep value on assets that you know have performed generally better than expected within the portfolio and investors are certainly benefiting from that so really excited about the trajectory of the business that's what supports our obviously our confidence in coming out with a very meaningful dividend and it being sustainable and also what we would expect would be a growing dividend as well i don't think being in public markets for two years you would have anticipated offering a 1.8 annualized dividend this this soon in the game i that's impressive i i was very surprised to read the news release when you guys announced it and i thought what a what a power statement you guys are making because what surprises me is the fundamentals that you guys do boast within a company fundamentals are there kyle but on the flip side you guys and i don't mean any offense by this you guys are fairly conservative operators and in other words you guys trust the process that you guys go through to scrutinize royalties and it has to go through some rigor before it's introduced into the vox royalty portfolio and i commend you guys for it so if you want to speak a little bit on that but also speak about i think right now you guys are at the precipice of needing needing an uplifting is there any possibility of looking at any time in the foreseeable future or potential of getting the visibility because you guys have got the fundamentals to boast but a nasdaq listing would really provide you guys and and blow open the doors to transparency which i think is the key pet agree to what you guys need right now yeah look absolutely agree i think we were always built the problem that we were solving for investors was you know there it's it's very difficult to get your hands around the right type of exposures in the commodity sector in the commodities equity markets and that was why the company was created and so we've seen very good uptake with some of the very sophisticated mining investors out there but that was truly never who vox was created for it's great that they see the value what we're doing and we're thrilled and appreciate their support of shareholders but it's really for you know audiences like yours ryan that want the commodity exposure but need to find it in in the right ways and so we did we file the 40f to be listed on nasdaq that was back late june and we're in that process with the sec in terms of just addressing some comments they have it's it's you know it's a usual process to go so we're you know we're expecting we could be on the nasdaq and what i would say is just the near future we certainly believe we qualify and kind of every material respect so it's a matter of just going through that process but i agree with you that's going to open up the investor awareness around us it's you know the nasdaq is a very liquid exchange and that's probably some of what's held us back is that we've been somewhat closely held there haven't been a lot of shareholders that wanted to sell and we've been really new to the public markets and generating that investor market so i agree with you i think the nasdaq is going to be a very very big milestone for us i'm very excited about that i think that's coming in the near future but you know we continue to find ways to build value around really good assets and that's what it's about when you look at the outperformance of companies in the sector it's can you get a royalty over good assets and we turned down you know you talked about the discipline that we employ for the benefit of our shareholders i'll tell you right now we have more deal flow than anybody in this industry we turn more deals down as a result of that than anybody in this industry we get to be very very picky on what we bring into our portfolio it's got to be good assets with great prospects where we understand the risk we understand the upside and then those brought in a very good value for our shareholders and we consistently perform on those metrics and so when you look at where the business is in terms of the strength of the business the fundamentals are as strong as they've ever been our pipeline is as strong as it's ever been and you know despite very challenging markets you know i believe that we're a company that's built so much value that's not represented in the share price going back flashback to may of 2020 when we went public we actually went public in a slight premium to nav that's common in our industry i'm talking about the the biggest company in the industry trades at north of two times npv or na nav traditionally so that was normal what isn't normal is that we have added so much net asset value per share cash flow per share and we're trading at you know about flat stock price to down stock price from where we were at that point in time with a dividend with an inflection point in terms of the cash flow that we're generating for our shareholders so i i find it very difficult to argue for any reason of why we be valued the way that we are i think there's a tremendous amount of upside and a tremendous amount of strength and up swelling in our business yeah agreed and just for complete transparency here want to invite everybody uh to visit voxroyalty.com i'm going to share that in the description below as well as the previous interviews with kyle kyle's one of the most forward CEOs that i talk with and it is absolutely appreciated you heard it here first um he does this for you guys and if you're lucky enough to catch this corner of social media talking about a company voxroyalty man it absolutely is my honor uh to pay forward this opportunity because what they're doing behind behind closed doors making these deals the way that they do um it is absolutely incredible and their story needs to be told we're glad to do it kyle i'll round it out and i'll defer back to you for anything you think we've missed here any updates on the portfolio that you've got any announcements anything looming that we should be aware of uh to keep our eye on um as we track this voxroyalty store we're going forward well we touched on the nascent listing i sincerely believe that that's going to be a very big catalyst for us it is kind of what i would say is connecting the dots and bringing us full circle what this company was created to be and the problems that it was created to solve and so i'm really excited about that overlay that with just the the burgeoning successful performance of assets within our portfolio that should continue to show what's being generated quarter over quarter over quarter so i get more excited every time we get close to a quarter and for what we're going to be able to show investors in terms of our our financial performance and those fundamentals that we've talked about so i'm really excited where our business is i understand for investors is a very difficult investment climate to be in but you know there are certain companies and certain opportunities that i think stand out and and you know frankly should be very well considered during this this specific time and backdrop that we have and i think vox stands out in terms of you know the kind of opportunity where investors can be comfortable with their where they're putting money and with the prospects of the returns are for a company like us so it's always an absolute pleasure to be with you ryan we're excited about how the business is positioned we have both the fundamental catalyst nasdaq listing coming what we believe is in the near future and and couldn't be more pleased with how the business is performing my charge for anybody that's catching this interview spend a few moments it'll cost you nothing other than time to educate yourself up on the vox royalty opportunity guys you heard it here first from the boss himself mr kyle floyd ceo vox royalty thank you so much for your time kyle and good luck in in all all things in the future as we track this story going forward thank you so much thank you ryan always a privilege you got it