[Unaudited Condensed Interim Consolidated Statements of Financial Position](index=2&type=section&id=Unaudited%20Condensed%20Interim%20Consolidated%20Statements%20of%20Financial%20Position) This statement presents the company's financial position, including assets, liabilities, and equity, as of **March 31, 2025**, and **December 31, 2024** Condensed Interim Consolidated Statements of Financial Position (As at March 31, 2025 vs. December 31, 2024) | Category | March 31, 2025 ($) | December 31, 2024 ($) | | :----------------------- | :------------------- | :-------------------- | | **Assets** | | | | Total current assets | 12,634,375 | 12,129,014 | | Royalty interests | 37,199,066 | 37,984,188 | | Other non-current assets | 1,173,438 | 1,268,122 | | **Total assets** | **51,006,879** | **51,381,324** | | **Liabilities** | | | | Total current liabilities | 2,980,881 | 2,894,675 | | Deferred tax liabilities | 5,373,490 | 5,426,450 | | **Total liabilities** | **8,354,371** | **8,321,125** | | **Equity** | | | | Share capital | 69,750,937 | 69,528,762 | | Equity reserves | 5,086,479 | 4,722,776 | | Deficit | (32,184,908) | (31,191,339) | | **Total equity** | **42,652,508** | **43,060,199** | | **Total liabilities and equity** | **51,006,879** | **51,381,324** | [Unaudited Condensed Interim Consolidated Statements of Loss and Comprehensive Loss](index=2&type=section&id=Unaudited%20Condensed%20Interim%20Consolidated%20Statements%20of%20Loss%20and%20Comprehensive%20Loss) This statement details the company's **net loss and comprehensive loss** for the three months ended **March 31, 2025**, compared to the prior year Condensed Interim Consolidated Statements of Loss and Comprehensive Loss (Three Months Ended March 31) | Metric | March 31, 2025 ($) | March 31, 2024 ($) | | :-------------------------------- | :------------------- | :------------------- | | Royalty revenue | 2,680,194 | 2,882,512 | | Depletion | (785,122) | (468,373) | | Gross profit | 1,895,072 | 2,414,139 | | Total operating expenses | (1,791,541) | (1,803,625) | | Income from operations | 103,531 | 610,514 | | Other income (expenses), net | (11,655) | (109,799) | | Income before income taxes | 91,876 | 500,715 | | Income tax expense | (451,016) | (742,102) | | **Net loss and comprehensive loss** | **(359,140)** | **(241,387)** | | Basic and Diluted Loss per share | (0.01) | (0.00) | [Unaudited Condensed Interim Consolidated Statements of Changes in Equity](index=3&type=section&id=Unaudited%20Condensed%20Interim%20Consolidated%20Statements%20of%20Changes%20in%20Equity) This statement outlines changes in the company's **equity components** for the three months ended **March 31, 2025**, and **2024** Condensed Interim Consolidated Statements of Changes in Equity (Three Months Ended March 31, 2025 and 2024) | Item | March 31, 2025 ($) | March 31, 2024 ($) | | :-------------------------------- | :------------------- | :------------------- | | Balance, January 1 | 43,060,199 | 44,923,670 | | Share issue costs | (1,839) | (23,599) | | Dividends declared | (634,429) | (601,462) | | Shares issued – dividends reinvestment plan | 3,383 | - | | Settlement of RSUs | - | - | | Share-based compensation | 584,334 | 655,271 | | Net loss and comprehensive loss | (359,140) | (241,387) | | **Balance, March 31** | **42,652,508** | **44,712,493** | [Unaudited Condensed Interim Consolidated Statements of Cash Flows](index=4&type=section&id=Unaudited%20Condensed%20Interim%20Consolidated%20Statements%20of%20Cash%20Flows) This statement presents the company's **cash flows** from operating, investing, and financing activities for the three months ended **March 31** Condensed Interim Consolidated Statements of Cash Flows (Three Months Ended March 31) | Cash Flow Activity | March 31, 2025 ($) | March 31, 2024 ($) | | :-------------------------------- | :------------------- | :------------------- | | Net cash flows from operating activities | 1,038,814 | 1,212,154 | | Net cash flows from investing activities | - | 3,113 | | Net cash flows used in financing activities | (630,539) | (983,659) | | Increase in cash and cash equivalents | 408,275 | 231,608 | | Impact of foreign exchange on cash | (16,799) | (9,259) | | Cash and cash equivalents, beginning of period | 8,754,391 | 9,342,880 | | **Cash and cash equivalents, end of period** | **9,145,867** | **9,565,229** | [Notes to the Unaudited Condensed Interim Consolidated Financial Statements](index=5&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Interim%20Consolidated%20Financial%20Statements) These notes provide detailed explanations and disclosures supporting the **condensed interim consolidated financial statements** [1. Nature of operations](index=5&type=section&id=1.%20Nature%20of%20operations) Vox Royalty Corp. acquires producing or near-term royalty assets, with **85%** of its portfolio located in Australia, Canada, and the US - Vox Royalty Corp. is a mining royalty company focused on growing its royalty asset portfolio through **accretive acquisitions**[14](index=14&type=chunk) - The Company prioritizes acquiring royalties on **producing or near-term producing assets** (six months to three years from first production)[14](index=14&type=chunk) - Approximately **85%** of the Company's royalty assets by royalty count are located in Australia, Canada, and the United States[14](index=14&type=chunk) [2. Basis of preparation](index=5&type=section&id=2.%20Basis%20of%20preparation) Prepared under **IAS 34**, these interim financial statements use consistent policies, are in **USD** on a historical cost basis, consolidating subsidiaries - Statements are prepared in accordance with **International Accounting Standards 34, Interim Financial Reporting**, applying the same material accounting policies as the prior annual financial statements[15](index=15&type=chunk) - Statements are presented on a **historical cost basis** (except for financial instruments measured at fair value) and expressed in **United States dollars**[17](index=17&type=chunk) - The financial statements incorporate the accounts of Vox Royalty Corp. and its **wholly-owned subsidiaries**, fully consolidated from the date control is obtained[18](index=18&type=chunk)[19](index=19&type=chunk) - The Company is currently assessing the impact of **IFRS 18**, effective for reporting periods beginning on or after January 1, 2027[21](index=21&type=chunk) [3. Significant judgments, estimates and assumptions](index=5&type=section&id=3.%20Significant%20judgments,%20estimates%20and%20assumptions) The preparation of financial statements requires significant management judgments, estimates, and assumptions, consistent with prior annual statements - Management makes **judgments, estimates, and assumptions** that affect the reported amounts of assets, liabilities, and contingent liabilities, as well as revenues and expenses[22](index=22&type=chunk) - Estimates and assumptions are **continuously evaluated** based on management's experience and expectations of future events[22](index=22&type=chunk) - The areas involving a **higher degree of judgment or complexity** were the same as those applied to the Company's **annual financial statements for the year ended December 31, 2024**[24](index=24&type=chunk) [4. Accounts receivable](index=6&type=section&id=4.%20Accounts%20receivable) Accounts receivable, primarily royalties, totaled **$2,906,224** as of March 31, 2025, generally collected within **45 days** Accounts Receivable (As at March 31, 2025 vs. December 31, 2024) | Item | March 31, 2025 ($) | December 31, 2024 ($) | | :------------------ | :------------------- | :-------------------- | | Royalties receivable | 2,880,531 | 2,897,870 | | Sales tax recoverable | 25,693 | 19,810 | | **Total** | **2,906,224** | **2,917,680** | - **Royalties receivable** generally collected within **45 days** of quarter-end[25](index=25&type=chunk) [5. Royalty interests](index=6&type=section&id=5.%20Royalty%20interests) Royalty interests decreased to **$37,199,066** as of March 31, 2025, primarily due to depletion, with Australia holding the largest share Royalty Interests by Country (As at March 31, 2025 vs. December 31, 2024) | Country | March 31, 2025 ($) | December 31, 2024 ($) | | :------------ | :------------------- | :-------------------- | | Australia | 29,681,719 | 30,452,281 | | Canada | 2,756,817 | 2,756,817 | | USA | 2,204,452 | 2,210,330 | | South Africa | 1,914,844 | 1,914,844 | | Brazil | 595,625 | 604,307 | | Peru | 45,609 | 45,609 | | **Total** | **37,199,066** | **37,984,188** | Royalty Interests Breakdown (As at March 31, 2025) | Royalty | Country | Carrying Amount ($) | | :---------------------- | :---------- | :------------------ | | Wonmunna | Australia | 10,157,059 | | Royalty portfolio | Australia | 5,205,731 | | Janet Ivy | Australia | 3,764,741 | | Castle Hill portfolio | Australia | 2,956,942 | | Koolyanobbing | Australia | 727,063 | | South Railroad | USA | 2,142,880 | | Limpopo | South Africa | 1,150,828 | | Bowdens | Australia | 1,130,068 | | Bullabulling | Australia | 953,349 | | Goldlund | Canada | 1,258,810 | | Brits | South Africa | 764,016 | | Otto Bore | Australia | 539,631 | | Lynn Lake (MacLellan) | Canada | 873,088 | | Bulong | Australia | 497,557 | | Dry Creek | Australia | 361,331 | | Sulfur Springs/Kangaroo Caves | Australia | 467,983 | | Pedra Branca | Brazil | 450,131 | | Ashburton | Australia | 355,940 | | Anthiby Well | Australia | 311,742 | | Cardinia | Australia | 302,850 | | Brauna | Brazil | 145,494 | | Montanore | USA | 61,572 | | Mt Ida | Australia | 210,701 | | Other | Australia | 1,739,031 | | Other | Canada | 624,919 | | Other | Peru | 45,609 | | **Total** | | **37,199,066** | - **Deferred royalty acquisitions** as at March 31, 2025, were **$15,495**, representing costs incurred prior to the execution and closing of a royalty acquisition[28](index=28&type=chunk) [6. Credit facility](index=7&type=section&id=6.%20Credit%20facility) The company has a **$15,000,000** secured revolving credit facility with BMO, with no outstanding amounts as of March 31, 2025 - The Company has a **$15,000,000** secured revolving credit facility with the Bank of Montreal, with an accordion feature for an additional **$10,000,000**, maturing on **December 31, 2026**[29](index=29&type=chunk) - As at March 31, 2025, there were **no outstanding amounts** under the Facility, and Vox was in **compliance with all covenants**[29](index=29&type=chunk)[30](index=30&type=chunk) Interest and Finance Expenses (Three Months Ended March 31) | Item | March 31, 2025 ($) | March 31, 2024 ($) | | :-------------------------------- | :------------------- | :------------------- | | Amortization expense of Facility transaction costs | 64,294 | 48,767 | | Interest expense on Facility | 21,094 | 24,938 | | **Total** | **85,388** | **73,705** | Other Assets (Facility Transaction Costs) (As at March 31, 2025 vs. December 31, 2024) | Item | March 31, 2025 ($) | December 31, 2024 ($) | | :-------------------------------- | :------------------- | :-------------------- | | Balance, beginning of period | 279,491 | 271,029 | | Facility transaction costs incurred | - | 234,470 | | Amortization expense | (64,294) | (226,008) | | **Balance, end of period** | **215,197** | **279,491** | [7. Intangible assets](index=8&type=section&id=7.%20Intangible%20assets) Intangible assets, primarily the **MRO royalty database**, had a net book value of **$942,746** as of March 31, 2025, after amortization Intangible Assets (MRO Database) (As at March 31, 2025 vs. December 31, 2024) | Item | March 31, 2025 ($) | December 31, 2024 ($) | | :------------------------ | :------------------- | :-------------------- | | Cost | 1,837,500 | 1,837,500 | | Accumulated amortization | 894,754 | 848,869 | | **Net book value** | **942,746** | **988,631** | - Intangible assets are comprised of the **Mineral Royalties Online (MRO) royalty database**[33](index=33&type=chunk) [8. Accounts payable and accrued liabilities](index=8&type=section&id=8.%20Accounts%20payable%20and%20accrued%20liabilities) Total accounts payable and accrued liabilities decreased to **$992,167** as of March 31, 2025, mainly due to reduced accrued liabilities Accounts Payable and Accrued Liabilities (As at March 31, 2025 vs. December 31, 2024) | Item | March 31, 2025 ($) | December 31, 2024 ($) | | :-------------------- | :------------------- | :-------------------- | | Trade payables | 200,223 | 118,481 | | Sales tax payable | 499,159 | 487,901 | | Accrued liabilities | 292,785 | 784,125 | | **Total** | **992,167** | **1,390,507** | [9. Share capital](index=8&type=section&id=9.%20Share%20capital) As of March 31, 2025, **50,754,138** common shares were outstanding (**$69,750,937**), and a **$1,500,000** SRP renewal was approved Issued and Outstanding Common Shares (As at March 31, 2025 vs. December 31, 2024) | Item | March 31, 2025 | December 31, 2024 | | :---------------------------------------------------------------- | :------------- | :---------------- | | Number of common shares issued and outstanding | 50,754,138 | 50,658,776 | | Value of common shares issued and outstanding ($) | 69,750,937 | 69,528,762 | - On March 12, 2025, the Board of Directors approved the **renewal of a Share Repurchase Program (SRP)** for the repurchase of up to **$1,500,000** of its common shares[38](index=38&type=chunk) - The Company **did not repurchase any shares** under the SRP during the three months ended March 31, 2025[40](index=40&type=chunk) Dividends Declared (Three Months Ended March 31, 2025) | Declaration date | Dividend per common share ($) | Record date | Payment date | Dividends payable ($) | | :---------------- | :---------------------------- | :---------- | :----------- | :-------------------- | | February 20, 2025 | 0.0125 | March 31, 2025 | April 14, 2025 | 634,429 | | **Total** | **0.0125** | | | **634,429** | - Total dividends paid for the three months ended March 31, 2025, included **$3,383** paid in shares through the dividend reinvestment program, issuing **1,507 common shares** at a **5% discount**[44](index=44&type=chunk) [10. Equity reserves](index=9&type=section&id=10.%20Equity%20reserves) Equity reserves include **1,346,838** outstanding stock options and **829,915** RSUs granted during the three months ended March 31, 2025 Stock Option Activity (Three Months Ended March 31) | Item | March 31, 2025 (Number) | March 31, 2025 (Weighted average exercise price C$) | March 31, 2024 (Number) | March 31, 2024 (Weighted average exercise price C$) | | :-------------------------------- | :---------------------- | :----------------------------------------------- | :---------------------- | :----------------------------------------------- | | Outstanding, beginning and end of period | 1,346,838 | 3.70 | 1,347,398 | 3.70 | | Exercisable, end of period | 1,346,838 | 3.70 | 1,347,398 | 3.70 | Stock Options Outstanding as at March 31, 2025 | Expiry date | Exercise price (C$) | Number of options outstanding | Weighted average remaining contractual life (Years) | Number of options exercisable | Weighted average remaining contractual life (Years) | | :------------ | :------------------ | :---------------------------- | :-------------------------------------------------- | :---------------------------- | :-------------------------------------------------- | | June 30, 2026 | 3.25 | 680,703 | 1.25 | 680,703 | 1.25 | | March 9, 2027 | 4.16 | 666,135 | 1.94 | 666,135 | 1.94 | | **Total** | | **1,346,838** | **1.59** | **1,346,838** | **1.59** | - During the three months ended March 31, 2025, **829,915 Restricted Share Units (RSUs)** were granted, vesting in **25% increments** on **July 2, 2025, January 2, 2026, July 2, 2026, and January 2, 2027**[49](index=49&type=chunk) RSU Activity (Three Months Ended March 31) | Item | March 31, 2025 (Number) | March 31, 2025 (Weighted average fair value $) | March 31, 2024 (Number) | March 31, 2024 (Weighted average fair value $) | | :----------------------- | :---------------------- | :--------------------------------------------- | :---------------------- | :--------------------------------------------- | | Outstanding, beginning of period | 1,309,061 | 2.23 | 952,018 | 2.62 | | Granted | 829,915 | 2.26 | 964,564 | 2.00 | | Exercised | (93,855) | 2.35 | (136,748) | 2.67 | | Outstanding, end of period | 2,045,121 | 2.23 | 1,779,834 | 2.28 | | Vested, end of period | 713,376 | 2.36 | 436,098 | 2.66 | [11. General and administration](index=10&type=section&id=11.%20General%20and%20administration) General and administration expenses totaled **$1,134,538** for the three months ended March 31, 2025, with salaries and benefits as the largest component General and Administration Expenses (Three Months Ended March 31) | Item | March 31, 2025 ($) | March 31, 2024 ($) | | :-------------------- | :------------------- | :------------------- | | Corporate administration | 254,441 | 268,477 | | Professional fees | 117,101 | 103,652 | | Salaries and benefits | 676,981 | 662,141 | | Director fees | 40,130 | 29,979 | | Amortization | 45,885 | 45,885 | | **Total** | **1,134,538** | **1,110,134** | [12. Other income (expenses)](index=10&type=section&id=12.%20Other%20income%20(expenses)) Other income (expenses) resulted in a net income of **$73,733** for the three months ended March 31, 2025, a significant improvement from the prior year Other Income (Expenses) (Three Months Ended March 31) | Item | March 31, 2025 ($) | March 31, 2024 ($) | | :-------------------- | :------------------- | :------------------- | | Interest income | 92,284 | 121,651 | | Foreign exchange expense | (18,551) | (157,745) | | **Total** | **73,733** | **(36,094)** | [13. Related party transactions](index=11&type=section&id=13.%20Related%20party%20transactions) Key management personnel compensation, including short-term benefits and share-based compensation, totaled **$1,101,862** for the three months ended March 31, 2025 Key Management Personnel Compensation (Three Months Ended March 31) | Item | March 31, 2025 ($) | March 31, 2024 ($) | | :------------------------ | :------------------- | :------------------- | | Short-term employee benefits | 572,018 | 538,337 | | Share-based compensation | 529,844 | 595,364 | | **Total** | **1,101,862** | **1,133,701** | [14. Commitments and contingencies](index=11&type=section&id=14.%20Commitments%20and%20contingencies) The company faces ongoing litigation and has contingent milestone payments totaling **$9,051,149** related to royalty acquisitions - The Company has filed a statement of claim against **Titan Minerals Limited** in the Supreme Court of Western Australia seeking replacement royalties or damages for relinquished **Peruvian mining concessions**[60](index=60&type=chunk)[61](index=61&type=chunk) - Vox Australia filed a writ and statement of claim against **Aurenne MIT Pty Ltd** regarding the unreasonable withholding of consent to transaction and assignment documentation for the **Mt Ida royalty asset**[62](index=62&type=chunk) Minimum Annual Lease Payments and Consulting Agreements (As at April 1, 2025 to March 31, 2026) | Item | Amount ($) | | :-------------------- | :--------- | | Leases | 3,872 | | Consulting agreements | 49,493 | | **Total** | **53,365** | Contingent Milestone Payments for Royalty Acquisitions | Royalty | Amount ($) | | :-------------- | :--------- | | Limpopo | 6,190,874 | | Brits | 1,250,000 | | Bullabulling | 624,026 | | Koolyanobbing | 312,013 | | El Molino | 450,000 | | Uley | 137,286 | | Other | 86,950 | | **Total** | **9,051,149** | - Milestone payments may be settled in either **cash or common shares** of the Company, at the **Company's election**[66](index=66&type=chunk) [15. Supplemental cash flow information](index=12&type=section&id=15.%20Supplemental%20cash%20flow%20information) Supplemental cash flow information for the three months ended March 31, 2025, details changes in accrued assets, royalty acquisitions, and interest expense Supplemental Cash Flow Information (Three Months Ended March 31) | Item | March 31, 2025 ($) | March 31, 2024 ($) | | :------------------------------------ | :------------------- | :------------------- | | Change in accrued other assets | (2,615) | (246,436) | | Change in accrued deferred royalty acquisitions | 15,495 | 12,930 | | Change in accrued interest expense on Facility | 469 | - | [16. Segment information](index=13&type=section&id=16.%20Segment%20information) The company operates in one segment: royalty interest acquisition, with Australia generating the majority of revenue and non-current assets - The Company operated in **one reportable segment**: the **acquisition of royalty interests**[67](index=67&type=chunk) Revenue by Geographic Location (Three Months Ended March 31) | Geographic Location | March 31, 2025 ($) | March 31, 2024 ($) | | :------------------ | :------------------- | :------------------- | | Australia | 2,647,509 | 2,862,195 | | Brazil | 17,180 | 4,812 | | USA | 15,505 | 15,505 | | **Total** | **2,680,194** | **2,882,512** | Non-Current Assets by Geographic Location (As at March 31, 2025 vs. December 31, 2024) | Geographic Location | March 31, 2025 ($) | December 31, 2024 ($) | | :------------------ | :------------------- | :-------------------- | | Australia | 29,691,719 | 30,452,281 | | Canada | 2,977,509 | 3,036,308 | | USA | 2,204,452 | 2,210,330 | | South Africa | 1,914,844 | 1,914,844 | | Cayman Islands | 942,746 | 988,631 | | Brazil | 595,625 | 604,307 | | Peru | 45,609 | 45,609 | | **Total** | **38,372,504** | **39,252,310** | [17. Income taxes](index=13&type=section&id=17.%20Income%20taxes) Income tax expense for the three months ended March 31, 2025, was **$451,016**, a decrease from the prior year due to a deferred tax recovery Income Tax Expense (Three Months Ended March 31) | Item | March 31, 2025 ($) | March 31, 2024 ($) | | :------------------------ | :------------------- | :------------------- | | Current tax expense | 503,976 | 591,151 | | Deferred tax expense (recovery) | (52,960) | 150,951 | | **Income tax expense** | **451,016** | **742,102** | [18. Financial instruments](index=13&type=section&id=18.%20Financial%20instruments) The company manages credit, liquidity, currency, interest rate, and commodity price risks, with **$9,653,494** in working capital as of March 31, 2025 - **Credit risk** is primarily attributable to liquid financial assets and royalty receivables, mitigated by maintaining cash in high-quality financial institutions and closely monitoring receivables[73](index=73&type=chunk) - As at March 31, 2025, the Company had cash and cash equivalents of **$9,145,867** and working capital of **$9,653,494**, ensuring sufficient liquidity[74](index=74&type=chunk) - A **10%** increase (decrease) of the **Canadian and Australian dollar** relative to the **United States dollar** would increase (decrease) net loss and other comprehensive loss by **$452,000**[75](index=75&type=chunk) - A **1%** increase (decrease) in **nominal interest rates** would have increased (decreased) net loss and other comprehensive loss by approximately **$37,500**, due to the **floating interest rates on the Facility**[76](index=76&type=chunk) - The Company's royalties are subject to fluctuations from changes in market prices of underlying commodities (precious and base metals), which are the **primary drivers of profitability**, and future revenue is not hedged[78](index=78&type=chunk)[79](index=79&type=chunk) - The Company's primary objective in capital management is to **maximize returns for shareholders** by **growing its asset base through accretive acquisitions** of royalty interests, while **optimizing its capital structure**[82](index=82&type=chunk) [19. Subsequent events](index=14&type=section&id=19.%20Subsequent%20events) Subsequent to March 31, 2025, the company drew **$11.7 million** from its BMO Facility to fund the Kanmantoo royalty acquisition and declared a quarterly dividend - On May 14, 2025, the Company initiated a draw down of **$11.7 million** under the **BMO Facility** to purchase the **Kanmantoo royalty acquisition**, which was completed on **May 15, 2025**[86](index=86&type=chunk) - On May 15, 2025, the Board of Directors declared a quarterly dividend of **$0.0125** per common share, payable on **July 14, 2025**[87](index=87&type=chunk)

Core Viewpoint - Vox Royalty Corp. (VOXR) has shown strong year-to-date performance, significantly outperforming the Basic Materials sector, which has faced losses this year [1][4]. Company Performance - Vox Royalty Corp. has returned approximately 17.5% since the beginning of the calendar year, while the average return for Basic Materials stocks has been a loss of 6.4% [4]. - The Zacks Consensus Estimate for VOXR's full-year earnings has increased by 100% over the past three months, indicating a positive trend in analyst sentiment [3]. Industry Context - Vox Royalty Corp. is part of the Mining - Miscellaneous industry, which consists of 58 companies and currently ranks 166 in the Zacks Industry Rank. This industry has experienced an average loss of about 9% this year, highlighting VOXR's relative strength [5]. - In comparison, Yara International ASA, another stock in the Basic Materials sector, has a year-to-date return of 4.2% and belongs to the Fertilizers industry, which has seen a decline of 3% this year [4][6].

Core Insights - Laurentian Research is a veteran in the resource industry with a Ph.D. in geoscience and extensive investment experience [1] - The Natural Resources Hub aims to help members identify undervalued opportunities in the energy and mining sectors with significant growth potential [1] - The platform offers various resources including weekly newsletters, in-depth analyses, trade alerts, model portfolios, and a community for sharing investment ideas [2][3] Company Overview - The Natural Resources Hub is led by Laurentian Research, focusing on energy and mining sectors [1] - The hub emphasizes finding dividend growth opportunities from long-term growth industries [1] Member Benefits - Members receive weekly newsletters and proprietary analyses to aid in investment decisions [2] - Access to trade alerts and model portfolios is provided to enhance investment strategies [2] - Members benefit from private access to Laurentian Research and a community of fellow investors [2]

Company Overview - Aris Mining Corporation (ARMN) is part of the Basic Materials sector, which includes 232 companies and is currently ranked 16 in the Zacks Sector Rank [2] - ARMN has a Zacks Rank of 2 (Buy), indicating a favorable outlook based on earnings estimates and revisions [3] Performance Metrics - Year-to-date, ARMN has returned 28.9%, significantly outperforming the average gain of 8% for Basic Materials stocks [4] - In comparison to its specific industry, Mining - Gold, which has an average gain of 32% this year, ARMN is slightly underperforming [5] Industry Context - The Mining - Gold industry consists of 41 companies and is currently ranked 161 in the Zacks Industry Rank [5] - Another company in the Basic Materials sector, Vox Royalty Corp. (VOXR), has returned 15.8% year-to-date and has a Zacks Rank of 2 (Buy) [4][5] - The Mining - Miscellaneous industry, to which VOXR belongs, has seen a year-to-date increase of 7.3% and consists of 59 companies ranked 178 [6]

[Independent Auditor's Report](index=2&type=section&id=Independent%20Auditor%27s%20Report) Ernst & Young LLP issued an unqualified opinion on the consolidated financial statements, prepared under IFRS and PCAOB standards - Ernst & Young LLP issued an unqualified opinion on the consolidated financial statements, confirming fair presentation under IFRS[7](index=7&type=chunk) - The audit adhered to Public Company Accounting Oversight Board (PCAOB) standards[9](index=9&type=chunk) - Ernst & Young LLP has served as the company's auditor since 2021[11](index=11&type=chunk) [Consolidated Financial Statements](index=2&type=section&id=Consolidated%20Financial%20Statements) This section presents the company's core financial statements, including financial position, loss, equity, and cash flows [Consolidated Statements of Financial Position](index=2&type=section&id=Consolidated%20Statements%20of%20Financial%20Position) Total assets decreased to **$51.4 million** in 2024, while liabilities rose, resulting in total equity declining to **$43.1 million** Consolidated Statements of Financial Position (As at December 31) | Account | 2024 ($) | 2023 ($) | | :--- | :--- | :--- | | **Total current assets** | 12,129,014 | 13,282,702 | | **Total non-current assets** | 39,252,310 | 39,423,907 | | **Total assets** | **51,381,324** | **52,706,609** | | **Total current liabilities** | 2,894,675 | 2,903,950 | | **Total non-current liabilities** | 5,426,450 | 4,878,989 | | **Total liabilities** | **8,321,125** | **7,782,939** | | **Total equity** | **43,060,199** | **44,923,670** | | **Total liabilities and equity** | **51,381,324** | **52,706,609** | [Consolidated Statements of Loss and Comprehensive Loss](index=3&type=section&id=Consolidated%20Statements%20of%20Loss%20and%20Comprehensive%20Loss) Net loss widened to **$1.65 million** in 2024, primarily due to decreased royalty revenue and higher income tax expense Statement of Loss Highlights (For the years ended December 31) | Item | 2024 ($) | 2023 ($) | | :--- | :--- | :--- | | Royalty revenue | 11,047,763 | 12,310,594 | | Gross profit | 7,914,825 | 9,978,660 | | Income from operations | 1,094,149 | 1,728,948 | | Income tax expense | (2,625,113) | (2,514,058) | | **Net loss and comprehensive loss** | **(1,649,082)** | **(101,112)** | - Basic and diluted loss per share was **($0.03)** in 2024, compared to **($0.00)** in 2023[14](index=14&type=chunk) [Consolidated Statements of Changes in Equity](index=4&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Equity) Total equity decreased by **$1.86 million** in 2024 to **$43.1 million**, primarily due to net loss and dividends declared Changes in Equity for the year ended December 31, 2024 | Description | Amount ($) | | :--- | :--- | | Balance, December 31, 2023 | 44,923,670 | | Dividends declared | (2,419,309) | | Share-based compensation | 2,139,900 | | Net loss and comprehensive loss | (1,649,082) | | Other (share issue costs, DRIP, RSU settlement) | (34,986) | | **Balance, December 31, 2024** | **43,060,199** | [Consolidated Statements of Cash Flows](index=5&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations was **$5.5 million** in 2024, with investing and financing activities causing a **$0.6 million** net cash decrease Cash Flow Summary (For the years ended December 31) | Activity | 2024 ($) | 2023 ($) | | :--- | :--- | :--- | | Net cash flows from operating activities | 5,459,150 | 5,271,090 | | Net cash flows used in investing activities | (3,155,851) | (5,332,731) | | Net cash flows from (used in) financing activities | (2,866,837) | 5,250,936 | | **Increase (decrease) in cash** | **(563,538)** | **5,189,295** | | **Cash and cash equivalents, end of year** | **8,754,391** | **9,342,880** | [Notes to the Consolidated Financial Statements](index=6&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) This section provides detailed explanations of accounting policies, significant judgments, and financial statement line items [Note 1: Nature of operations](index=6&type=section&id=1.%20Nature%20of%20operations) Vox Royalty Corp. acquires mining royalty assets, focusing on stable jurisdictions and producing or near-term producing assets - The company's business model focuses on growing its royalty asset portfolio through accretive acquisitions[19](index=19&type=chunk) - Strategic focus is on acquiring royalties from producing or near-term producing assets[19](index=19&type=chunk) [Note 2: Material accounting policy information](index=6&type=section&id=2.%20Material%20accounting%20policy%20information) Financial statements adhere to IFRS, capitalizing royalty interests as assets depleted by units-of-production, with a single segment - Financial statements are prepared in accordance with IFRS as issued by the IASB[20](index=20&type=chunk) - Royalty interests are classified by stage, with producing interests depleted using the units-of-production method[27](index=27&type=chunk)[28](index=28&type=chunk) - The company operates in a single reportable segment: the acquisition of royalty interests[75](index=75&type=chunk) [Note 3: Significant judgments, estimates and assumptions](index=13&type=section&id=3.%20Significant%20judgments%2C%20estimates%20and%20assumptions) Financial statement preparation involves significant judgments and estimates, especially for mineral reserves, depletion, and impairment - Management uses significant judgment in estimating mineral reserves and resources, impacting royalty interest carrying value and depletion[85](index=85&type=chunk)[86](index=86&type=chunk) - Impairment assessment for royalty interests requires estimates of production, commodity prices, and discount rates[87](index=87&type=chunk) [Note 4: Accounts receivable](index=14&type=section&id=4.%20Accounts%20receivable) Accounts receivable decreased to **$2.9 million** in 2024, primarily comprising royalties receivable collected within 45 days Accounts Receivable Breakdown (As at December 31) | Category | 2024 ($) | 2023 ($) | | :--- | :--- | :--- | | Royalties receivable | 2,897,870 | 3,414,128 | | Sales tax recoverable | 19,810 | 93,443 | | **Total** | **2,917,680** | **3,507,571** | [Note 5: Royalty interests](index=14&type=section&id=5.%20Royalty%20interests) Royalty interests increased slightly to **$38.0 million** in 2024, with acquisitions and depletion impacting the carrying value - In May 2024, the company acquired the Castle Hill royalty portfolio in Australia for **$3,119,814** cash consideration[93](index=93&type=chunk) Royalty Interests Activity (Year ended December 31, 2024) | Description | Amount ($) | | :--- | :--- | | Opening Balance (Jan 1, 2024) | 37,443,198 | | Additions (Acquisitions) | 3,673,928 | | Depletion | (3,132,938) | | **Ending Balance (Dec 31, 2024)** | **37,984,188** | - In 2023, the company fully impaired **$1.5 million** in Peruvian royalties due to operator's failure to renew mining claims[104](index=104&type=chunk)[105](index=105&type=chunk) [Note 6: Credit facility](index=18&type=section&id=6.%20Credit%20facility) The company established a **$15 million** revolving credit facility with BMO, undrawn at year-end 2024, maturing in 2026 - The company entered a **$15 million** revolving credit facility with BMO, including a **$10 million** accordion feature[109](index=109&type=chunk) - As of December 31, 2024, no amounts were outstanding under the facility[111](index=111&type=chunk) - The facility's maturity date was extended to December 31, 2026[110](index=110&type=chunk) [Note 7: Intangible assets](index=19&type=section&id=7.%20Intangible%20assets) The MRO database, the company's sole intangible asset, decreased to **$988,631** in net book value due to amortization Intangible Asset - MRO Database | Item | Amount ($) | | :--- | :--- | | Cost | 1,837,500 | | Accumulated Amortization (Dec 31, 2024) | (848,869) | | **Net Book Value (Dec 31, 2024)** | **988,631** | | Net Book Value (Dec 31, 2023) | 1,172,170 | [Note 8: Accounts payable and accrued liabilities](index=19&type=section&id=8.%20Accounts%20payable%20and%20accrued%20liabilities) Accounts payable and accrued liabilities decreased to **$1.39 million** in 2024, driven by lower trade and sales tax payables Accounts Payable and Accrued Liabilities (As at December 31) | Category | 2024 ($) | 2023 ($) | | :--- | :--- | :--- | | Trade payable | 118,481 | 362,198 | | Sales tax payable | 487,901 | 653,792 | | Accrued liabilities | 784,125 | 824,102 | | **Total** | **1,390,507** | **1,840,092** | [Note 9: Share capital and additional paid-in capital](index=19&type=section&id=9.%20Share%20capital%20and%20additional%20paid-in%20capital) In 2024, the company declared **$2.42 million** in dividends and initiated a DRIP, with no SRP repurchases - A Share Repurchase Program for up to **$1,500,000** was approved in March 2024, with no shares repurchased[124](index=124&type=chunk)[126](index=126&type=chunk) Dividends Declared in 2024 | Declaration Date | Dividend per Share ($) | Total Payable ($) | | :--- | :--- | :--- | | March 7, 2024 | 0.012 | 601,462 | | May 8, 2024 | 0.012 | 602,883 | | August 7, 2024 | 0.012 | 607,059 | | November 6, 2024 | 0.012 | 607,905 | | **Total** | **0.048** | **2,419,309** | - A Dividend Reinvestment Plan (DRIP) was adopted in March 2024, issuing **39,913** common shares[129](index=129&type=chunk)[130](index=130&type=chunk) [Note 10: Equity reserves](index=21&type=section&id=10.%20Equity%20reserves) Equity reserves saw **6.4 million** warrants expire, with **240,000** stock options and **990,804** RSUs granted - All **6,407,883** outstanding warrants, with a C**$4.50** exercise price, expired unexercised in March 2024[131](index=131&type=chunk) RSU Activity (Year ended December 31, 2024) | Category | Number of RSUs | Weighted Avg Fair Value ($) | | :--- | :--- | :--- | | Outstanding, beginning of year | 952,018 | 2.62 | | Granted | 990,804 | 2.01 | | Exercised | (633,761) | 2.48 | | **Outstanding, end of year** | **1,309,061** | **2.23** | - **240,000** stock options were granted to a third-party service provider with a C**$4.16** exercise price[135](index=135&type=chunk)[136](index=136&type=chunk) [Note 11: General and administration](index=24&type=section&id=11.%20General%20and%20administration) General and administration expenses decreased to **$4.52 million** in 2024, driven by lower professional fees and no TSX listing costs General and Administration Expenses (For the years ended December 31) | Category | 2024 ($) | 2023 ($) | | :--- | :--- | :--- | | Salaries and benefits | 2,547,024 | 2,487,218 | | Corporate administration | 1,223,753 | 1,325,743 | | Professional fees | 415,788 | 713,475 | | Amortization | 183,539 | 183,539 | | Director fees | 147,478 | 114,663 | | TSX listing costs | - | 143,767 | | **Total** | **4,517,582** | **4,968,405** | [Note 12: Other income](index=24&type=section&id=12.%20Other%20income) Other income sharply decreased to **$197,186** in 2024, primarily due to the absence of a prior year fair value gain Other Income Breakdown (For the years ended December 31) | Category | 2024 ($) | 2023 ($) | | :--- | :--- | :--- | | Interest income | 482,853 | 398,955 | | Foreign exchange expense | (285,667) | (160,173) | | Fair value change of other liabilities | - | 445,216 | | **Total** | **197,186** | **683,998** | [Note 13: Related party transactions](index=24&type=section&id=13.%20Related%20party%20transactions) Key management personnel compensation increased to **$4.05 million** in 2024, driven by higher share-based compensation Key Management Personnel Compensation (For the years ended December 31) | Category | 2024 ($) | 2023 ($) | | :--- | :--- | :--- | | Short-term employee benefits | 2,115,432 | 2,080,826 | | Share-based compensation | 1,934,571 | 1,512,375 | | **Total** | **4,050,003** | **3,593,201** | [Note 14: Commitments and contingencies](index=24&type=section&id=14.%20Commitments%20and%20contingencies) The company faces ongoing litigation and significant contingent milestone payments, including over **$6 million** for Limpopo - The company filed a claim against Titan Minerals for replacement royalties or damages, potentially reversing up to **$1,000,000** of a 2023 impairment[152](index=152&type=chunk)[153](index=153&type=chunk) - A claim was filed against Aurenne MIT Pty Ltd regarding consent for Mt Ida royalty transaction documentation[154](index=154&type=chunk) - Future milestone payment commitments include **$6.2 million** for Limpopo, **$1.3 million** for Brits, and **$0.6 million** for Bullabulling[155](index=155&type=chunk) [Note 15: Supplemental cash flow information](index=26&type=section&id=15.%20Supplemental%20cash%20flow%20information) This note details non-cash investing and financing activities, notably **$2.8 million** in share issuances for acquisitions in 2023 - In 2023, the company issued **$2,821,454** in shares for royalty acquisitions and milestone payments, a significant non-cash activity[157](index=157&type=chunk) [Note 16: Segment information](index=26&type=section&id=16.%20Segment%20information) The company operates as a single royalty acquisition segment, with Australia dominating revenue and non-current assets Revenue by Geographic Location (For the years ended December 31) | Location | 2024 ($) | 2023 ($) | | :--- | :--- | :--- | | Australia | 10,915,392 | 11,250,950 | | Nigeria | - | 882,922 | | USA | 116,311 | 116,311 | | Brazil | 16,060 | 60,411 | | **Total** | **11,047,763** | **12,310,594** | Non-Current Assets by Geographic Location (As at December 31) | Location | 2024 ($) | 2023 ($) | | :--- | :--- | :--- | | Australia | 30,452,281 | 30,396,980 | | Canada | 3,036,308 | 3,027,846 | | USA | 2,210,330 | 2,254,422 | | South Africa | 1,914,844 | 1,914,844 | | Other | 1,638,547 | 1,830,815 | | **Total** | **39,252,310** | **39,423,907** | [Note 17: Income taxes](index=27&type=section&id=17.%20Income%20taxes) Income tax expense was **$2.6 million** in 2024, with **$10.9 million** in unrecognized deferred tax assets from Canadian losses Income Tax Expense (For the years ended December 31) | Category | 2024 ($) | 2023 ($) | | :--- | :--- | :--- | | Current tax expense | 2,077,652 | 626,500 | | Deferred tax expense | 547,461 | 1,887,558 | | **Total Income tax expense** | **2,625,113** | **2,514,058** | - As of December 31, 2024, the company had **$10,862,000** in unrecognized deferred tax assets, primarily from Canadian non-capital losses[164](index=164&type=chunk)[166](index=166&type=chunk) - Recognized deferred tax liabilities increased to **$5,426,450**, almost entirely related to Australian royalty interests[163](index=163&type=chunk) [Note 18: Financial instruments](index=28&type=section&id=18.%20Financial%20instruments) The company faces credit, liquidity, currency, interest rate, and unhedged commodity price risks, managing capital for returns - The company does not hedge commodity price fluctuations, providing shareholders full market price exposure[174](index=174&type=chunk) - A **10%** change in CAD/AUD vs USD would impact net loss by approximately **$440,000**[171](index=171&type=chunk) - The company's capital structure consists of **$43.1 million** in total equity as of December 31, 2024[180](index=180&type=chunk) [Note 19: Subsequent events](index=30&type=section&id=19.%20Subsequent%20events) Subsequent to year-end, on February 20, 2025, the Board declared a quarterly dividend of **$0.0125** per share - On February 20, 2025, the Board declared a quarterly dividend of **$0.0125** per common share[182](index=182&type=chunk)

Company Overview - Vox Royalty is a returns-focused mining royalty company with a portfolio of over 60 royalties across six jurisdictions [3] - The company was established in 2014 and has developed unique intellectual property, a technically focused transactional team, and a global sourcing network [3] - Since the beginning of 2020, Vox has completed over 30 transactions to acquire more than 60 royalties in the mining royalty sector [3] Executive Insights - Spencer Cole, Chief Investment Officer of Vox, shared insights about the company's strategy and performance in an interview with TMX Group [1] - The interview is part of the "View From The C-Suite" video series, which highlights perspectives from listed companies on the Toronto Stock Exchange [2]

Core Viewpoint - Vox Royalty has provided significant updates regarding its gold and silver royalty assets, indicating ongoing development and potential growth in these sectors [1] Group 1: Company Updates - The company reported advancements in its royalty assets, particularly in gold and silver, which are expected to enhance its revenue streams [1] - Specific projects under development include those in regions known for high-grade mineral deposits, suggesting a strong potential for increased production [1] Group 2: Industry Context - The gold and silver markets are experiencing fluctuations, but the demand for these precious metals remains robust, driven by various economic factors [1] - The ongoing development of royalty assets aligns with broader industry trends towards sustainable mining practices and resource optimization [1]

Core Viewpoint - Vox Royalty Corp. (VOXR) is experiencing significant selling pressure, with a 10.3% decline over the past four weeks, but is positioned for a potential trend reversal as it enters oversold territory, supported by analysts predicting better earnings than previously estimated [1]. Group 1: Stock Performance and Technical Indicators - The stock's Relative Strength Index (RSI) is currently at 23.87, indicating it is oversold, which suggests a possible reversal in trend as selling pressure may be exhausting [5]. - A stock is generally considered oversold when its RSI falls below 30, which helps investors identify potential entry points for a rebound [2][3]. Group 2: Earnings Estimates and Analyst Consensus - Over the last 30 days, the consensus earnings per share (EPS) estimate for VOXR has increased by 100%, indicating strong agreement among analysts regarding improved earnings for the current year [5]. - The upward trend in earnings estimate revisions typically correlates with price appreciation in the near term [5]. Group 3: Zacks Rank and Investment Potential - VOXR holds a Zacks Rank of 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting its potential for a turnaround [6].

[Unaudited Condensed Interim Consolidated Financial Statements](index=2&type=section&id=Unaudited%20Condensed%20Interim%20Consolidated%20Financial%20Statements) [Statements of Financial Position](index=2&type=section&id=Unaudited%20Condensed%20Interim%20Consolidated%20Statements%20of%20Financial%20Position) As of September 30, 2024, total assets slightly increased to $53.02 million, total liabilities rose to $8.77 million, and total equity decreased to $44.24 million Consolidated Statement of Financial Position (Unaudited) | | September 30, 2024 ($) | December 31, 2023 ($) | | :--- | :--- | :--- | | **Total Current Assets** | 12,293,252 | 13,282,702 | | **Total Non-current Assets** | 40,722,821 | 39,423,907 | | **Total Assets** | **53,016,073** | **52,706,609** | | **Total Current Liabilities** | 3,776,246 | 2,903,950 | | **Total Non-current Liabilities** | 4,997,185 | 4,878,989 | | **Total Liabilities** | **8,773,431** | **7,782,939** | | **Total Equity** | **44,242,642** | **44,923,670** | | **Total Liabilities and Equity** | **53,016,073** | **52,706,609** | [Statements of Income (Loss) and Comprehensive Income (Loss)](index=3&type=section&id=Unaudited%20Condensed%20Interim%20Consolidated%20Statements%20of%20Income%20(Loss)%20and%20Comprehensive%20Income%20(Loss)) For the nine months ended September 30, 2024, the company reported a net loss of $682,588, a significant shift from net income in 2023, primarily due to lower royalty revenue and higher income tax expense Financial Performance Summary (Unaudited) | Metric | Q3 2024 ($) | Q3 2023 ($) | Nine Months 2024 ($) | Nine Months 2023 ($) | | :--- | :--- | :--- | :--- | :--- | | **Royalty Revenue** | 2,428,809 | 3,514,929 | 8,150,438 | 9,313,168 | | **Gross Profit** | 1,887,501 | 3,109,818 | 6,408,628 | 7,906,163 | | **Income from Operations** | 276,726 | 1,898,856 | 1,095,658 | 2,324,096 | | **Net Income (Loss)** | (107,613) | 1,046,532 | (682,588) | 316,850 | | **Basic EPS** | (0.00) | 0.02 | (0.01) | 0.01 | | **Diluted EPS** | (0.00) | 0.02 | (0.01) | 0.01 | [Statements of Changes in Equity](index=3&type=section&id=Unaudited%20Condensed%20Interim%20Consolidated%20Statements%20of%20Changes%20in%20Equity) Total equity decreased from $44.92 million at year-end 2023 to $44.24 million as of September 30, 2024, primarily due to net loss and dividends, partially offset by share-based compensation and dividend reinvestment Equity Reconciliation for Nine Months Ended Sep 30, 2024 | Description | Amount ($) | | :--- | :--- | | **Balance, December 31, 2023** | **44,923,670** | | Dividends declared | (1,811,404) | | Shares issued – dividends reinvestment plan | 78,183 | | Settlement of RSUs | - | | Share-based compensation | 1,758,784 | | Net loss and comprehensive loss | (682,588) | | Share issue costs | (24,003) | | **Balance, September 30, 2024** | **44,242,642** | [Statements of Cash Flows](index=4&type=section&id=Unaudited%20Condensed%20Interim%20Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended September 30, 2024, net cash from operating activities was $5.33 million, while investing activities used $3.16 million and financing activities used $2.21 million, resulting in a slight decrease in cash and cash equivalents to $9.30 million Cash Flow Summary (Unaudited) | Cash Flow Activity | Nine Months 2024 ($) | Nine Months 2023 ($) | | :--- | :--- | :--- | | **Net cash from operating activities** | 5,333,752 | 2,929,309 | | **Net cash used in investing activities** | (3,155,349) | (4,411,045) | | **Net cash from (used in) financing activities** | (2,206,116) | 5,802,793 | | **Net increase (decrease) in cash** | (27,713) | 4,321,057 | | **Cash, beginning of period** | 9,342,880 | 4,174,654 | | **Cash, end of period** | 9,301,289 | 8,459,526 | [Notes to the Financial Statements](index=5&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Interim%20Consolidated%20Financial%20Statements) [Note 1: Nature of Operations](index=5&type=section&id=1%20.Nature%20of%20operations) Vox Royalty Corp. is a mining royalty company focused on acquiring royalties, with approximately 85% of its assets concentrated in Australia, Canada, and the United States - The company is a mining royalty company focused on accretive acquisitions[14](index=14&type=chunk) - Approximately **85%** of the Company's royalty assets are located in Australia, Canada, and the United States[14](index=14&type=chunk) - The Company's common shares trade on the TSX and Nasdaq under the ticker symbol 'VOXR'[13](index=13&type=chunk) [Note 2: Basis of Preparation](index=5&type=section&id=2.%20Basis%20of%20preparation) The unaudited condensed interim consolidated financial statements are prepared in United States dollars under IAS 34 and IFRS, consolidating company accounts, with no material impact from new accounting standards effective January 1, 2024 - The financial statements are prepared in accordance with **IAS 34, Interim Financial Reporting**, and do not include all disclosures required for annual statements[15](index=15&type=chunk) - The statements are presented in **United States dollars ($)**, which is the functional currency of the Company and its subsidiaries[17](index=17&type=chunk) - Amendments to **IAS 1** regarding non-current liabilities with covenants became effective January 1, 2024, but did not have a significant impact on the company's financial statements[21](index=21&type=chunk)[24](index=24&type=chunk) [Note 5: Royalty Interests](index=7&type=section&id=5.%20Royalty%20interests) Royalty interests increased to $38.87 million as of September 30, 2024, primarily due to the $3.14 million Castle Hill acquisition, with Australia remaining the largest portion of the portfolio - On May 14, 2024, the Company acquired the Castle Hill royalty portfolio in Australia for cash consideration of **$3,119,814**[35](index=35&type=chunk) Royalty Interests by Country | Country | Sep 30, 2024 ($) | Dec 31, 2023 ($) | | :--- | :--- | :--- | | Australia | 31,296,236 | 29,859,470 | | Canada | 2,756,817 | 2,756,817 | | USA | 2,248,545 | 2,254,422 | | South Africa | 1,914,844 | 1,914,844 | | Brazil | 610,010 | 612,036 | | Peru | 45,609 | 45,609 | | **Total** | **38,872,061** | **37,443,198** | - Depletion expense for the nine months ended September 30, 2024, was **$1,741,810**[32](index=32&type=chunk) [Note 6: Credit Facility](index=9&type=section&id=6.%20Credit%20facility) The company secured a **$15 million** revolving credit facility with BMO on January 16, 2024, maturing December 31, 2025, with no outstanding amounts drawn and full covenant compliance as of September 30, 2024 - The company entered into a **$15,000,000** secured revolving credit facility with BMO on January 16, 2024[42](index=42&type=chunk) - As of September 30, 2024, there were no outstanding amounts under the facility and the company was in compliance with all covenants[42](index=42&type=chunk)[43](index=43&type=chunk) Interest and Finance Expenses | | Q3 2024 ($) | Nine Months 2024 ($) | | :--- | :--- | :--- | | Amortization of Facility transaction costs | 58,716 | 166,362 | | Interest expense on Facility | 21,468 | 67,734 | | **Total** | **80,184** | **234,096** | [Note 9: Share Capital](index=10&type=section&id=9.%20Share%20capital) The company declared three quarterly dividends of **$0.012 per share** in the first nine months of 2024, totaling **$1,811,404**, with **$78,183** paid through its dividend reinvestment program Dividends Declared in 2024 | Declaration Date | Dividend per Share ($) | Record Date | Payment Date | Dividends Payable ($) | | :--- | :--- | :--- | :--- | :--- | | March 7, 2024 | 0.012 | March 29, 2024 | April 12, 2024 | 601,462 | | May 8, 2024 | 0.012 | June 28, 2024 | July 12, 2024 | 602,883 | | August 7, 2024 | 0.012 | Sep 27, 2024 | Oct 11, 2024 | 607,059 | | **Total** | **0.036** | | | **1,811,404** | - Total dividends paid included **$78,183** paid in shares through the dividend reinvestment program, representing **36,063** common shares issued at a **5%** discount[55](index=55&type=chunk) [Note 10: Equity Reserves](index=11&type=section&id=10.%20Equity%20reserves) During the first nine months of 2024, **3,600,000** warrants expired, while **240,000** stock options and **968,448** RSUs were granted, resulting in **1,346,838** options and **1,353,378** RSUs outstanding - All **3,600,000** outstanding warrants expired during the nine months ended September 30, 2024[56](index=56&type=chunk) - During the nine months ended September 30, 2024, the company granted **240,000** stock options and **968,448** RSUs[59](index=59&type=chunk)[62](index=62&type=chunk) RSU Activity for Nine Months Ended Sep 30, 2024 | | Number of RSUs | Weighted Avg Fair Value ($) | | :--- | :--- | :--- | | **Outstanding, beginning of period** | 952,018 | 2.62 | | Granted | 968,448 | 2.00 | | Settled | (567,088) | 2.51 | | **Outstanding, end of period** | **1,353,378** | **2.22** | [Note 15: Commitments and Contingencies](index=14&type=section&id=15.%20Commitments%20and%20contingencies) The company faces a legal proceeding against Titan Minerals Limited for replacement royalties, potentially reversing a **$1 million** impairment, and has future commitments of **$83,267** plus contingent milestone payments totaling approximately **$9.57 million** - The company has filed a statement of claim against Titan Minerals Limited seeking replacement royalties or damages for relinquished mining concessions in Peru, where a successful outcome could lead to the reversal of a **$1,000,000** impairment charge taken in 2023[75](index=75&type=chunk)[77](index=77&type=chunk)[78](index=78&type=chunk) Contingent Milestone Payments | Royalty | Amount ($) | | :--- | :--- | | Limpopo | 6,593,081 | | Brits | 1,250,000 | | Bullabulling | 691,385 | | Koolyanobbing | 345,692 | | El Molino | 450,000 | | Other | 244,705 | | **Total** | **9,574,863** | [Note 17: Segment Information](index=16&type=section&id=17.%20Segment%20information) The company operates in a single segment of royalty interest acquisition, with Australia being the primary source of **$8.13 million** (99.8%) of royalty revenue and the largest portion of non-current assets - The Company operates in one reportable segment, which is the acquisition of royalty interests[82](index=82&type=chunk) Revenue by Geographic Location (Nine Months Ended Sep 30) | Location | 2024 ($) | 2023 ($) | | :--- | :--- | :--- | | Australia | 8,130,121 | 8,364,415 | | Nigeria | - | 882,922 | | Brazil | 4,812 | 50,326 | | USA | 15,505 | 15,505 | | **Total** | **8,150,438** | **9,313,168** | Non-Current Assets by Geographic Location | Location | Sep 30, 2024 ($) | Dec 31, 2023 ($) | | :--- | :--- | :--- | | Australia | 31,818,899 | 30,396,980 | | Canada | 3,050,399 | 3,027,846 | | USA | 2,248,545 | 2,254,422 | | South Africa | 1,914,844 | 1,914,844 | | Cayman Islands | 1,034,515 | 1,172,170 | | Brazil | 610,010 | 612,036 | | Peru | 45,609 | 45,609 | | **Total** | **40,722,821** | **39,423,907** | [Note 19: Financial Instruments and Risk Management](index=17&type=section&id=19.%20Financial%20instruments) The company manages various financial risks including liquidity, currency, and commodity price exposure, with capital management focused on maximizing shareholder returns through accretive royalty acquisitions - The company manages liquidity risk by maintaining sufficient cash, utilizing its credit facility, and monitoring cash flows, with working capital at **$8,517,006** as of September 30, 2024[89](index=89&type=chunk) - A **10%** change in the Canadian and Australian dollar relative to the USD would impact net loss by approximately **$525,000**[90](index=90&type=chunk) - The company's future revenue is not hedged, providing shareholders with full exposure to changes in the market prices of underlying commodities[93](index=93&type=chunk) - The primary objective of capital management is to maximize shareholder returns by growing the asset base through accretive royalty acquisitions[97](index=97&type=chunk) [Note 20: Subsequent Events](index=18&type=section&id=20.%20Subsequent%20events) Following the end of the reporting period, on November 6, 2024, the Board of Directors declared a quarterly dividend for the fourth quarter - On November 6, 2024, the Board of Directors declared a quarterly dividend of **$0.012 per common share**, payable on January 14, 2025, to shareholders of record as of December 31, 2024[99](index=99&type=chunk)

[Unaudited Condensed Interim Consolidated Financial Statements](index=2&type=section&id=Unaudited%20Condensed%20Interim%20Consolidated%20Financial%20Statements) This section presents the company's financial position, performance, and cash flows for the interim period, prepared in accordance with IAS 34 [Unaudited Condensed Interim Consolidated Statements of Financial Position](index=2&type=section&id=Unaudited%20Condensed%20Interim%20Consolidated%20Statements%20of%20Financial%20Position) As of June 30, 2024, total assets were $52.8 million, a slight increase from $52.7 million at the end of 2023, driven by an increase in royalty interests offset by a decrease in cash and cash equivalents, while total liabilities rose to $8.2 million from $7.8 million, and total equity slightly decreased to $44.6 million from $44.9 million Consolidated Statements of Financial Position (Balance Sheet) | | June 30, 2024 ($) | December 31, 2023 ($) | | :--- | :--- | :--- | | **Total current assets** | 11,411,718 | 13,282,702 | | Cash and cash equivalents | 7,802,713 | 9,342,880 | | **Total non-current assets** | 41,368,253 | 39,423,907 | | Royalty interests | 39,413,369 | 37,443,198 | | **Total assets** | **52,779,971** | **52,706,609** | | **Total current liabilities** | 3,166,127 | 2,903,950 | | **Total non-current liabilities** | 5,053,504 | 4,878,989 | | **Total liabilities** | **8,219,631** | **7,782,939** | | **Total equity** | **44,560,340** | **44,923,670** | | **Total liabilities and equity** | **52,779,971** | **52,706,609** | [Unaudited Condensed Interim Consolidated Statements of Loss and Comprehensive Loss](index=3&type=section&id=Unaudited%20Condensed%20Interim%20Consolidated%20Statements%20of%20Loss%20and%20Comprehensive%20Loss) For the six months ended June 30, 2024, the company reported a net loss of $575k, an improvement from a net loss of $730k in the same period of 2023, with royalty revenue for the first half of 2024 at $5.72 million, slightly down from $5.80 million year-over-year, though Q2 2024 revenue of $2.84 million showed a 28% increase over Q2 2023 Financial Performance Highlights | Metric | Six Months ended June 30, 2024 ($) | Six Months ended June 30, 2023 ($) | Change (YoY) | | :--- | :--- | :--- | :--- | | Royalty Revenue | 5,721,629 | 5,798,239 | -1.3% | | Gross Profit | 4,521,127 | 4,796,345 | -5.7% | | Income from Operations | 818,932 | 425,240 | +92.6% | | Net Loss | (574,975) | (729,682) | +21.2% (Improvement) | | Basic Loss Per Share | (0.01) | (0.02) | +50.0% (Improvement) | Quarterly Financial Performance (Q2) | Metric | Three Months ended June 30, 2024 ($) | Three Months ended June 30, 2023 ($) | Change (YoY) | | :--- | :--- | :--- | :--- | | Royalty Revenue | 2,839,117 | 2,217,384 | +28.0% | | Gross Profit | 2,106,988 | 1,831,488 | +15.0% | | Net Loss | (333,588) | (48,443) | -588.6% (Worsened) | [Unaudited Condensed Interim Consolidated Statements of Changes in Equity](index=3&type=section&id=Unaudited%20Condensed%20Interim%20Consolidated%20Statements%20of%20Changes%20in%20Equity) Total equity decreased from $44.9 million at the beginning of the period to $44.6 million as of June 30, 2024, primarily due to dividends declared ($1.2 million) and the net loss for the period ($0.6 million), partially offset by share-based compensation ($1.4 million) Reconciliation of Equity (Six Months Ended June 30, 2024) | Description | Amount ($) | | :--- | :--- | | **Balance, December 31, 2023** | **44,923,670** | | Dividends declared | (1,204,345) | | Shares issued – dividends reinvestment plan | 48,334 | | Share-based compensation | 1,391,659 | | Net loss and comprehensive loss | (574,975) | | Other (share issue costs, RSU settlement) | 593,318 | | **Balance, June 30, 2024** | **44,560,340** | [Unaudited Condensed Interim Consolidated Statements of Cash Flows](index=4&type=section&id=Unaudited%20Condensed%20Interim%20Consolidated%20Statements%20of%20Cash%20Flows) For the first six months of 2024, net cash from operating activities was $3.2 million, a significant increase from $1.6 million in the prior-year period, with cash used in investing activities at $3.1 million mainly for a royalty acquisition, and cash used in financing activities at $1.6 million primarily for dividend payments, resulting in a net decrease in cash of $1.5 million, bringing the cash and cash equivalents balance to $7.8 million Cash Flow Summary (Six Months Ended June 30) | Cash Flow Activity | 2024 ($) | 2023 ($) | | :--- | :--- | :--- | | Net cash flows from operating activities | 3,221,584 | 1,569,808 | | Net cash flows used in investing activities | (3,136,909) | (59,713) | | Net cash flows from (used in) financing activities | (1,611,849) | 5,614,705 | | **Net decrease (increase) in cash** | **(1,527,174)** | **7,124,800** | | **Cash and cash equivalents, end of period** | **7,802,713** | **11,278,440** | [Notes to the Unaudited Condensed Interim Consolidated Financial Statements](index=5&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Interim%20Consolidated%20Financial%20Statements) This section provides detailed explanations of the accounting policies, judgments, and specific line items presented in the consolidated financial statements for the three and six months ended June 30, 2024, covering the company's operations, basis of preparation, specific asset and liability accounts, equity components, commitments, contingencies, and financial risks [Note 1: Nature of operations](index=5&type=section&id=1.%20Nature%20of%20operations) Vox Royalty Corp. is a mining royalty company listed on the TSX and Nasdaq under the ticker 'VOXR', focusing on accretive acquisitions with approximately 85% of its royalty assets located in Australia, Canada, and the United States, prioritizing royalties on assets that are either already in production or are near-term producers - The company's business model is a mining royalty company focused on accretive acquisitions[12](index=12&type=chunk) - Geographic focus is on Australia, Canada, and the United States, which account for about **85%** of its royalty assets[12](index=12&type=chunk) - The company's strategic priority is acquiring royalties on producing or near-term producing assets[12](index=12&type=chunk) [Note 2: Basis of preparation](index=5&type=section&id=2.%20Basis%20of%20preparation) The unaudited condensed interim consolidated financial statements are prepared in accordance with International Accounting Standards (IAS) 34, applying the same accounting policies as the 2023 annual statements and presented in United States dollars, with new accounting standards adopted on January 1, 2024, having no material impact on the company's financial statements - The financial statements are prepared in accordance with IAS 34, Interim Financial Reporting, and do not include all disclosures required for annual statements[13](index=13&type=chunk) - The presentation currency is United States dollars ($), which is also the functional currency for the company and its subsidiaries[15](index=15&type=chunk) - New accounting standards adopted effective January 1, 2024, did not have a material impact on the company's reporting[18](index=18&type=chunk) [Note 4: Accounts receivable](index=6&type=section&id=4.%20Accounts%20receivable) As of June 30, 2024, total accounts receivable amounted to $3.31 million, a decrease from $3.51 million at year-end 2023, with the balance composed almost entirely of royalties receivable ($3.21 million), which are typically collected within 45 days of the quarter-end Accounts Receivable Breakdown | | June 30, 2024 ($) | December 31, 2023 ($) | | :--- | :--- | :--- | | Royalties receivable | 3,212,899 | 3,414,128 | | Sales tax recoverable | 97,968 | 93,443 | | **Total** | **3,310,867** | **3,507,571** | - Royalties receivable are generally collected within **45 days** of the end of a quarter[28](index=28&type=chunk) [Note 5: Royalty interests](index=7&type=section&id=5.%20Royalty%20interests) The carrying amount of royalty interests increased to $39.4 million as of June 30, 2024, from $37.4 million at the end of 2023, primarily driven by the acquisition of the Castle Hill royalty portfolio in Australia for $3.1 million, with depletion expense for the first six months of 2024 at $1.2 million - On May 14, 2024, the Company acquired the Castle Hill royalty portfolio for cash consideration of **$3,119,814**[30](index=30&type=chunk) Royalty Interests Summary | Description | Amount ($) | | :--- | :--- | | Opening Balance (Dec 31, 2023) | 37,443,198 | | Additions (incl. Castle Hill) | 3,170,673 | | Depletion (H1 2024) | (1,200,502) | | **Carrying Amount (June 30, 2024)** | **39,413,369** | - In June 2023, the company recorded a **$500,000 impairment charge** on the Alce royalty after the operator did not renew the mining concessions[33](index=33&type=chunk) [Note 6: Credit facility](index=8&type=section&id=6.%20Credit%20facility) On January 16, 2024, the company established a $15 million secured revolving credit facility with the Bank of Montreal (BMO), which includes a $10 million accordion feature and matures on December 31, 2025, with no amounts drawn as of June 30, 2024, and the company in compliance with all covenants, incurring total transaction costs of $459,944 - The company entered into a **$15,000,000** secured revolving credit facility with BMO on January 16, 2024[34](index=34&type=chunk) - The facility includes an accordion feature for an additional **$10,000,000** of availability[34](index=34&type=chunk) - As of June 30, 2024, there were **no amounts outstanding** under the Facility, and the company was in compliance with all covenants[34](index=34&type=chunk)[35](index=35&type=chunk) [Note 9: Share capital](index=9&type=section&id=9.%20Share%20capital) As of June 30, 2024, the company had 50.24 million common shares outstanding, with two quarterly dividends of $0.012 per share declared during the first half of 2024, totaling $1.20 million, and a portion of the April dividend settled through the issuance of 24,491 shares under the dividend reinvestment program - As of June 30, 2024, there were **50,240,245 common shares** issued and outstanding[44](index=44&type=chunk) Dividends Declared in H1 2024 | Declaration Date | Dividend per Share ($) | Record Date | Payment Date | Total Payable ($) | | :--- | :--- | :--- | :--- | :--- | | March 7, 2024 | 0.012 | March 29, 2024 | April 12, 2024 | 601,462 | | May 8, 2024 | 0.012 | June 28, 2024 | July 12, 2024 | 602,883 | | **Total** | **0.024** | | | **1,204,345** | - The April 12, 2024 dividend payment included **$48,334** paid in **24,491 shares** through the dividend reinvestment program[46](index=46&type=chunk) [Note 10: Equity reserves](index=10&type=section&id=10.%20Equity%20reserves) During the first six months of 2024, all 3.6 million outstanding warrants expired, while the company granted 240,000 new stock options and 968,448 Restricted Share Units (RSUs), resulting in 1.35 million options and 1.69 million RSUs outstanding as of June 30, 2024 - All **3,600,000 outstanding warrants**, with an exercise price of C$4.50, expired during the first six months of 2024[48](index=48&type=chunk) - In H1 2024, the company granted **240,000 stock options** and cancelled 240,560, leaving **1,346,838 options outstanding**[51](index=51&type=chunk) - In H1 2024, the company granted **968,448 RSUs** and settled 230,652, bringing the total outstanding to **1,689,814**[54](index=54&type=chunk) [Note 12: General and administration](index=13&type=section&id=12.%20General%20and%20administration) General and administration expenses for the six months ended June 30, 2024, totaled $2.23 million, a 22% decrease from $2.86 million in the same period of 2023, primarily driven by lower salaries and benefits and professional fees General and Administration Expenses (Six Months Ended June 30) | Expense Category | 2024 ($) | 2023 ($) | | :--- | :--- | :--- | | Corporate administration | 561,516 | 663,957 | | Professional fees | 206,568 | 417,010 | | Salaries and benefits | 1,302,893 | 1,476,513 | | Director fees | 66,458 | 60,357 | | Amortization | 91,770 | 91,770 | | TSX listing costs | - | 147,327 | | **Total** | **2,229,205** | **2,856,934** | [Note 14: Related party transactions](index=13&type=section&id=14.%20Related%20party%20transactions) Compensation for key management personnel and directors for the first six months of 2024 amounted to $2.33 million, an increase from $1.96 million in H1 2023, primarily due to a significant increase in share-based compensation, which grew to $1.26 million from $0.70 million year-over-year Key Management Personnel Compensation (Six Months Ended June 30) | Compensation Type | 2024 ($) | 2023 ($) | | :--- | :--- | :--- | | Short-term employee benefits | 1,068,879 | 1,260,961 | | Share-based compensation | 1,264,181 | 703,433 | | **Total** | **2,333,060** | **1,964,394** | [Note 15: Commitments and contingencies](index=14&type=section&id=15.%20Commitments%20and%20contingencies) The company is involved in litigation against Titan Minerals Limited, seeking replacement royalties or damages potentially valued at up to $1.0 million, and has fixed commitments of $117,937 for leases and consulting agreements over the next year, additionally facing up to $9.44 million in contingent milestone payments related to various royalty acquisitions, payable upon achievement of specific production or revenue thresholds - The company has filed a statement of claim against Titan Minerals Limited to enforce its rights for replacement royalties or damages, potentially reversing a **$1,000,000 impairment charge** from 2023[65](index=65&type=chunk)[66](index=66&type=chunk) - The company has future commitments of **$117,937** for leases and consulting agreements[67](index=67&type=chunk) - The company has contingent milestone payments totaling **$9,441,311**, which are dependent on certain royalty revenue or production thresholds being met[68](index=68&type=chunk)[69](index=69&type=chunk) [Note 17: Segment information](index=15&type=section&id=17.%20Segment%20information) The company operates as a single reportable segment focused on the acquisition of royalty interests, with Australia being the most significant region, generating $5.70 million (99.6%) of the company's revenue in the first half of 2024 and holding $32.36 million (78%) of its non-current assets - The company operates in **one reportable segment**: the acquisition of royalty interests[71](index=71&type=chunk) Revenue by Geography (Six Months Ended June 30, 2024) | Geography | Revenue ($) | % of Total | | :--- | :--- | :--- | | Australia | 5,701,312 | 99.6% | | USA | 15,505 | 0.3% | | Brazil | 4,812 | 0.1% | | **Total** | **5,721,629** | **100.0%** | Non-Current Assets by Geography (June 30, 2024) | Geography | Assets ($) | % of Total | | :--- | :--- | :--- | | Australia | 32,359,730 | 78.2% | | Canada | 3,109,115 | 7.5% | | USA | 2,248,545 | 5.4% | | South Africa | 1,914,844 | 4.6% | | Other | 1,735,619 | 4.2% | | **Total** | **41,368,253** | **100.0%** | [Note 19: Financial instruments](index=16&type=section&id=19.%20Financial%20instruments) The company is exposed to various financial risks, including credit, liquidity, currency, interest rate, and commodity price risk, managing liquidity with $7.8 million in cash and an undrawn credit facility, and is sensitive to foreign exchange fluctuations, with a 10% change in CAD/AUD rates estimated to impact net loss by $519,000, importantly, the company does not hedge its commodity price exposure, providing shareholders with full exposure to metal price movements - The company manages liquidity risk with cash and cash equivalents of **$7.8 million** and working capital of **$8.2 million** as of June 30, 2024[77](index=77&type=chunk) - The company is exposed to currency risk; a **10% change** in the CAD and AUD relative to the USD would impact net loss by approximately **$519,000**[78](index=78&type=chunk) - The company's future revenue is **not hedged**, providing shareholders with full exposure to changes in the market prices of underlying commodities[82](index=82&type=chunk) [Note 20: Subsequent events](index=17&type=section&id=20.%20Subsequent%20events) Following the end of the reporting period, on August 7, 2024, the Board of Directors declared a quarterly dividend of $0.012 per common share - On August 7, 2024, the Board of Directors declared a quarterly dividend of **$0.012 per common share**, payable on October 11, 2024, to shareholders of record on September 27, 2024[87](index=87&type=chunk)