Vox Royalty (US:VOXR)2023-11-09 01:30Financial Performance - Total revenue for the three months ended September 30, 2023, was $3,514,929, representing a 10.5% increase from $3,181,574 in the same period of 2022[5]. - Royalty revenue for the nine months ended September 30, 2023, reached $9,313,168, up 53.5% from $6,088,263 in the prior year[5]. - Net income for the three months ended September 30, 2023, was $1,046,532, compared to $83,940 in the same period of 2022, indicating a significant increase[5]. - The company generated total revenues of $9,313,168 for the nine months ended September 30, 2023, representing a 45.0% increase from $6,403,347 in the prior year[62]. Assets and Equity - Total assets as of September 30, 2023, amounted to $50,720,916, an increase of 21.4% from $41,805,456 at the end of December 2022[3]. - Total equity as of September 30, 2023, was $43,133,104, up 21.8% from $35,414,448 at the end of December 2022[3]. - The company's total non-current assets increased to $38,081,447 as of September 30, 2023, compared to $35,035,209 at the end of 2022, marking an increase of approximately 5.8%[64]. - The company's working capital as of September 30, 2023, was $9,749,118, up 157% from $3,795,951 on December 31, 2022[68]. Cash Flow - Cash and cash equivalents increased to $8,459,526 as of September 30, 2023, compared to $4,174,654 at the end of December 2022, reflecting a growth of 102.5%[3]. - Net cash flows from operating activities for the nine months ended September 30, 2023, were $2,929,309, an increase from $966,106 in the same period of 2022[10]. - The company reported a net cash outflow from investing activities of $(4,351,332) for the nine months ended September 30, 2023, compared to an inflow of $1,376,402 in the same period of 2022[10]. - The company’s cash flows from financing activities showed a net inflow of $188,088 for the nine months ended September 30, 2023, compared to an outflow of $(268,351) in the same period of 2022[10]. Shareholder Returns - The company declared dividends totaling $1,562,829 during the nine months ended September 30, 2023[6]. - Total dividends declared for the nine months ended September 30, 2023, amounted to $1,562,829, with a per share dividend of $0.033[40]. - The board of directors declared a quarterly dividend of $0.011 per common share, payable on January 12, 2024, to shareholders of record as of December 29, 2023[83]. Expenses - Operating expenses for the three months ended September 30, 2023, were $1,210,962, a decrease from $1,683,196 in the same period of 2022[5]. - General and administrative expenses for the nine months ended September 30, 2023, totaled $3,989,001, an increase of 5.8% compared to $3,769,020 for the same period in 2022[54]. - The Company incurred professional fees of $533,718 for the nine months ended September 30, 2023, which is a 38.2% increase compared to $386,227 in the same period of 2022[54]. Market and Operational Insights - The company prioritized acquiring royalties on producing or near-term producing assets, with approximately 80% of its royalty and streaming assets located in Australia, Canada, and the United States[12]. - The company's royalties are subject to fluctuations in market prices of underlying commodities, which significantly affect profitability and free cash flow generation[72]. - The company does not hedge its future revenue to provide shareholders with full exposure to changes in market prices of commodities[72]. Share Capital and Stock Performance - The weighted average number of shares outstanding increased to 48,796,446 as of September 30, 2023, compared to 44,556,855 in the same period of 2022[5]. - The number of common shares outstanding increased to 48,796,446 as of September 30, 2023, from 44,758,269 at December 31, 2022[34]. - The Company reported a period-end share price of $1.99 as of September 30, 2023, down from $2.18 in the same period of 2022, reflecting a decrease of approximately 8.7%[51]. Acquisitions and Investments - Vox completed the acquisition of a portfolio of nine royalties for a total cash consideration of $4,363,285 (A$6,750,000) on September 12, 2023[26]. - On October 18, 2023, the company completed the acquisition of a pre-production gold royalty for a total cash consideration of $797,703 (A$1,250,000)[81]. - The company has committed to milestone payments totaling $11,790,424 related to royalty acquisitions, which may be settled in cash or common shares[59]. Impairments and Adjustments - The company recognized a reversal of past impairment charge of $250,000 for the British King royalty asset during the three and nine months ended September 30, 2023[27]. - The Alce royalty was fully impaired as of June 30, 2023, reducing its carrying value from $500,000 to $nil[28]. - Deferred royalty acquisitions decreased to $5,000 as of September 30, 2023, down from $118,932 at December 31, 2022[29]. Other Financial Metrics - Current tax expense for the nine months ended September 30, 2023, was $619,030, up from $287,703 in the same period of 2022, indicating a significant increase of 115.0%[65]. - The expected stock price volatility for the nine months ended September 30, 2023, was 51%, up from 36% in the same period of 2022, indicating increased market uncertainty[51]. - The fair value change of other liabilities for the nine months ended September 30, 2023, was $346,843, significantly lower than $2,142,865 reported in the same period of 2022[55]. - The fair value of financial instruments classified as Level 3 showed a decrease from $601,715 on December 31, 2022, to $98,373 as of September 30, 2023[79].