Categories: Base Metals / Precious Metals
Topics: General Base Metals / General Precious Metals

Vox Royalty (TSX-V: VOX)(OTC: VOXCF) CIO Spencer Cole on Closing Out a Record Year of Partner-Funded Exploration & Setting Up For a Blockbuster 2022

Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the Chief Investment Officer for Vox Royalty, Mr. Spencer Cole. Spencer, great to have you back on. How have you been?

Spencer Cole: I'm very well. Thanks Gerardo. How are you doing?

Gerardo Del Real: I am excellent. Thank you so much for asking. The last time that you and I spoke, we talked about the approach that you and the team at Vox take to royalties and streams and that proprietary database that you possess that has been invaluable to you.

Today, you have an announcement with a pretty significant update from a number of operating partners. I would love for you to provide the update. The exploration updates on the multiple partners. I think it's like 170,000 meters that were drilled across 18 separate projects here recently. If you could provide some color to the release, I would love to hear it.

Spencer Cole: Absolutely Gerardo. As you mentioned, we shared some really exciting updates from some of our operating partners today. I guess what's most pleasing to us that you've already touched on is what we've just been able to share with the market is just a huge amount of free organic growth that our Vox shareholders get the benefit of without any dilution or incremental costs for Vox. What we shared today was drilling results and some new maiden resource estimates on four of our key royalty properties.

Our Uley Graphite projects which has a new maiden resource for a new discovery they've made on our royalty areas. Some really strong high grade drilling results from our Sulphur Springs copper and zinc asset in Western Australia. Some very high grade silver drilling results from our Bowdens Project in Australia. Then also some really exciting PGM drilling results at our Pedra Branca property in Brazil. Really pleased to be able to finish the year with some really exciting discovery news flow on some of our key royalty properties Gerardo.

Gerardo Del Real: I think the release did an exceptional job in highlighting a couple of points. The first being the exposure to the multiple commodities that you get through Vox Royalty and two, the diversification of jurisdiction. We talked about that a bit last time and how important that was. Can you speak a bit more to what 2022 is shaping up to look like? Because it looks like an absolute critical year for Vox and Vox Royalty shareholders.

Spencer Cole: Sure thing Gerardo. I mean, 2021 was probably the highest growth year in our company's eight year history. 2022 is shaping up to be an absolute monster of a year. In terms of what we are seeing from some of our royalty operating partners... I guess I'll start with some of the headline numbers.

We increased the number of producing royalty properties we had this year to five. Next year we expect that to grow to approximately eight producing royalties which is really pleasing because obviously that has pretty substantial implications for revenue and for cashflow.

From a development stage perspective, in the next 12 months we expect another four to six feasibility studies to be released on some of our key development stage properties. What that means is these are properties that are actively being moved forward to a construction decision. We actually expect multiple construction decisions to be made on some of our growth properties next year which will translate into cashflow and revenue over the next couple of years.

Then from an exploration perspective, next year's shaping up to be even more exciting. This year we had about 170,000 meters of partner funded drilling across 18 separate royalty properties. Now, to put that into perspective for listeners, the cost to fund all that drilling if Vox had to pay for that drilling, would be in the order of 50 to a hundred million dollars.

Now, what did we pay for that? We paid $0 for that. We expect that next year we should be on track for about 200,000 meters worth of partner funded drilling. Just a huge amount of organic developments and discoveries next year without a single dollar of extra capital required for Vox.

Gerardo Del Real: I couldn't help but notice the amount and diversity of battery metals that were included in this release. Right? Everything from graphite to copper to PGMs. Can you speak a little bit as the Chief Investment Officer to the commodity markets and what you expect to see in 2022?

Spencer Cole: Absolutely. I think we're obviously seeing a huge amount of strength in some of the key battery metals such as copper particularly. Then other metals such as some of the platinum group metals as well like palladium is still holding up very strongly. I think as we look ahead to 2022, obviously we don't have a crystal ball Gerardo, otherwise I'd be sitting on a beach drinking mojitos if we did have a commodity crystal ball but I guess in the short to medium term, we're seeing continued strength in all the key commodity prices that we're most heavily exposed to.

Look, because Vox is 70% precious metals weighted, I think with what we're seeing in inflation globally, we expect continued strength in some of our precious metal related commodity prices. With our heavy weighting towards gold and silver particularly, we think they're going to trade quite well going into 2022. Particularly as this inflation hedge thematic continues to play out.

Certainly a number of our key Vox shareholders that have come onto the register recently, have told us explicitly “we bought Vox because we saw it as a fantastic inflation hedge.”

Gerardo Del Real: An inflation hedge, a monetary policy hedge, a fiscal policy hedge and a battery metals hedge. Well done sir. Spencer, thank you so much for the update. Anything else you'd like to add?

Spencer Cole: No. Look, I mean I would just encourage listeners that want this sort of exposure and want these sorts of hedges, want all the considerable leverage that a royalty company such as Vox provides without any of the geopolitical or operational risks that a mining company provides, I'd strongly encourage listeners to have a look at our website voxroyalty.com. If they have any follow up questions, our management team would be more than happy to jump on the phone with any interested investors and have a follow up call with them. Thanks for their time. It was a pleasure being with you today Gerardo.

Gerardo Del Real: No. Thank you for your time Spencer. I love management teams that make themselves available to... Whether it's retail or institutions but make themselves available to everyone to answer questions. Nothing like hearing it straight from the company. Thanks again Spencer. Have a good one.

Spencer Cole: Thanks so much Gerardo.