Vox Royalty (VOXR) - 2025 Q2 - Quarterly Report

Unaudited Condensed Interim Consolidated Statements of Financial Position Financial Position Overview As of June 30, 2025, Vox Royalty Corp. reported total assets of $62.59 million, an increase from $51.38 million at December 31, 2024, driven by increased royalty interests and a new credit facility, while total liabilities rose to $20.26 million from $8.32 million, and total equity slightly decreased to $42.33 million from $43.06 million Financial Position Summary | Metric | June 30, 2025 ($) | December 31, 2024 ($) | Change ($) | Change (%) | | :----------------------- | :------------------ | :-------------------- | :--------- | :--------- | | Assets | | | | | | Total current assets | 13,618,367 | 12,129,014 | 1,489,353 | 12.28% | | Royalty interests | 47,893,583 | 37,984,188 | 9,909,395 | 26.09% | | Total assets | 62,586,700 | 51,381,324 | 11,205,376 | 21.81% | | Liabilities | | | | | | Total current liabilities | 3,135,231 | 2,894,675 | 240,556 | 8.31% | | Credit facility | 11,700,000 | - | 11,700,000 | N/A | | Total liabilities | 20,258,032 | 8,321,125 | 11,936,907 | 143.45% | | Equity | | | | | | Total equity | 42,328,668 | 43,060,199 | (731,531) | -1.70% | Unaudited Condensed Interim Consolidated Statements of Loss and Comprehensive Loss Loss and Comprehensive Loss Overview For the three months ended June 30, 2025, net loss increased to $387,957 from $333,588 in the prior year, and for the six months, it widened to $747,097 from $574,975, primarily due to higher depletion, interest, and income tax expenses despite increased other income Loss and Comprehensive Loss Summary | Metric | Three months ended June 30, 2025 ($) | Three months ended June 30, 2024 ($) | Six months ended June 30, 2025 ($) | Six months ended June 30, 2024 ($) | | :-------------------------------- | :----------------------------------- | :----------------------------------- | :--------------------------------- | :--------------------------------- | | Royalty revenue | 2,765,145 | 2,839,117 | 5,445,339 | 5,721,629 | | Depletion | (1,018,232) | (732,129) | (1,803,354) | (1,200,502) | | Gross profit | 1,746,913 | 2,106,988 | 3,641,985 | 4,521,127 | | Total operating expenses | (1,924,686) | (1,898,570) | (3,716,227) | (3,702,195) | | Income (loss) from operations | (177,773) | 208,418 | (74,242) | 818,932 | | Interest and finance expenses | (182,564) | (80,207) | (267,952) | (153,912) | | Other income | 200,208 | 149,000 | 273,941 | 112,906 | | Income (loss) before income taxes | (160,129) | 277,211 | (68,253) | 777,926 | | Income tax expense | (227,828) | (610,799) | (678,844) | (1,352,901) | | Net loss and comprehensive loss | (387,957) | (333,588) | (747,097) | (574,975) | | Basic Loss per share | (0.01) | (0.01) | (0.01) | (0.01) | | Diluted Loss per share | (0.01) | (0.01) | (0.01) | (0.01) | Unaudited Condensed Interim Consolidated Statements of Changes in Equity Changes in Equity Overview Total equity decreased from $43.06 million at January 1, 2025, to $42.33 million at June 30, 2025, mainly due to declared dividends and net loss, partially offset by share-based compensation and dividend reinvestment plan share issuances Changes in Equity | Metric | January 1, 2025 ($) | June 30, 2025 ($) | Change ($) | | :-------------------------- | :------------------ | :---------------- | :--------- | | Share Capital | 69,528,762 | 69,756,304 | 227,542 | | Equity Reserves | 4,722,776 | 5,779,683 | 1,056,907 | | Deficit | (31,191,339) | (33,207,319) | (2,015,980) | | Total Equity | 43,060,199 | 42,328,668 | (731,531) | - Share issue costs: $(2,241)[7] - Dividends declared: $(1,268,883)[7] - Shares issued – dividends reinvestment plan: $9,152[7] - Settlement of RSUs: $0 (net effect on equity components)[7] - Share-based compensation: $1,277,538[7] - Net loss and comprehensive loss: $(747,097)[7] Unaudited Condensed Interim Consolidated Statements of Cash Flows Cash Flows Overview For the six months ended June 30, 2025, operating cash flows decreased to $2.80 million, investing activities used $11.71 million primarily for royalty acquisitions, and financing activities generated $10.35 million from a new credit facility, resulting in a $1.44 million increase in cash and cash equivalents to $10.17 million Cash Flow Summary | Metric | Three months ended June 30, 2025 ($) | Three months ended June 30, 2024 ($) | Six months ended June 30, 2025 ($) | Six months ended June 30, 2024 ($) | | :----------------------------------- | :----------------------------------- | :----------------------------------- | :--------------------------------- | :--------------------------------- | | Net cash flows from operating activities | 1,756,729 | 2,009,431 | 2,795,543 | 3,221,584 | | Net cash flows used in investing activities | (11,705,057) | (3,140,022) | (11,705,057) | (3,136,909) | | Net cash flows from (used in) financing activities | 10,982,327 | (628,191) | 10,351,788 | (1,611,849) | | Increase (decrease) in cash and cash equivalents | 1,033,999 | (1,758,782) | 1,442,274 | (1,527,174) | | Cash and cash equivalents, end of the period | 10,172,099 | 7,802,713 | 10,172,099 | 7,802,713 | - Acquisition of royalties significantly increased cash used in investing activities, reaching $11,794,678 for the six months ended June 30, 2025, compared to $3,165,173 in the prior year[9] - Proceeds from the credit facility of $11,700,000 were a major contributor to cash flows from financing activities for the six months ended June 30, 2025[9] Notes to the Unaudited Condensed Interim Consolidated Financial Statements 1. Nature of operations Vox Royalty Corp. is a mining royalty company focused on expanding its royalty asset portfolio through accretive acquisitions, primarily in Australia, Canada, and the United States, with a strategic emphasis on producing or near-term producing assets - Vox Royalty Corp. is a mining royalty company focused on growing its royalty asset portfolio through accretive acquisitions[14] - Approximately 90% of the Company's royalty assets by royalty count are located in Australia, Canada, and the United States[14] - The Company prioritizes acquiring royalties on producing or near-term producing assets (six months to three years from first production)[14] 2. Basis of preparation These unaudited condensed interim consolidated financial statements are prepared in accordance with IAS 34, presented in United States dollars on a historical cost basis, and the Company is assessing the impact of the new IFRS 18 standard effective January 1, 2027 - Statements are prepared in accordance with International Accounting Standards 34, Interim Financial Reporting[15] - The financial statements are presented in United States dollars, which is the functional currency of the Company and its wholly-owned subsidiaries[17] - The Company is currently assessing the impact of IFRS 18 – Presentation and Disclosure in Financial Statements, which is effective for reporting periods beginning on or after January 1, 2027[21] 3. Significant judgments, estimates and assumptions The preparation of financial statements requires management to make significant judgments, estimates, and assumptions, which are continuously evaluated based on experience and future expectations, with complex areas consistent with prior annual statements - Management makes judgments, estimates, and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses[22] - Estimates and assumptions are continuously evaluated and are based on management's experience and expectations of future events[22] - 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[23] 4. Accounts receivable Accounts receivable totaled $2,986,652 as of June 30, 2025, a slight increase from $2,917,680 at December 31, 2024, with the majority consisting of royalties receivable typically collected within 45 days Accounts Receivable Summary | Category | June 30, 2025 ($) | December 31, 2024 ($) | | :--------------- | :---------------- | :-------------------- | | Royalties receivable | 2,979,736 | 2,897,870 | | Sales tax recoverable | 6,916 | 19,810 | | Total | 2,986,652 | 2,917,680 | - Royalties receivable generally collected within 45 days of quarter-end[24] 5. Royalty interests Total royalty interests significantly increased to $47,893,583 at June 30, 2025, from $37,984,188 at December 31, 2024, primarily due to the $11,712,749 acquisition of the Kanmantoo copper-gold royalty, with Australia holding the largest share Royalty Interests by Country | Country | June 30, 2025 ($) | December 31, 2024 ($) | | :------------ | :---------------- | :-------------------- | | Australia | 40,384,292 | 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 | 587,569 | 604,307 | | Peru | 45,609 | 45,609 | | Total | 47,893,583 | 37,984,188 | - On May 15, 2025, the Company acquired the producing Kanmantoo copper-gold royalty for a net purchase price of $11,712,749[28] - Deferred royalty acquisitions of $26,987 as at June 30, 2025, relate to costs incurred prior to the execution and closing of a royalty acquisition[28] 6. Credit facility The Company established a $15 million secured revolving credit facility with BMO, drawing $11.7 million by June 30, 2025, for the Kanmantoo royalty acquisition, and subsequently repaid $5 million while remaining compliant with all covenants - The Company has a $15,000,000 secured revolving credit facility with BMO, with an accordion feature for an additional $10,000,000[29] - On May 14, 2025, an initial drawdown of $11,700,000 was made under the BMO Facility, with proceeds allocated to the acquisition of the Kanmantoo copper-gold royalty[30] - Subsequent to June 30, 2025, the Company repaid $5,000,000 of the outstanding Facility balance[31] Interest and Finance Expenses | Expense Category | Three months ended June 30, 2025 ($) | Three months ended June 30, 2024 ($) | Six months ended June 30, 2025 ($) | Six months ended June 30, 2024 ($) | | :-------------------------------- | :----------------------------------- | :----------------------------------- | :--------------------------------- | :--------------------------------- | | Amortization of Facility transaction costs | 64,295 | 58,879 | 128,589 | 107,646 | | Interest expense on Facility | 118,269 | 21,328 | 139,363 | 46,266 | | Total Interest and finance expenses | 182,564 | 80,207 | 267,952 | 153,912 | 7. Intangible assets Intangible assets, consisting solely of the Mineral Royalties Online (MRO) royalty database, decreased in net book value to $896,861 at June 30, 2025, from $988,631 at December 31, 2024, due to amortization - Intangible assets are comprised of the Mineral Royalties Online (MRO) royalty database[34] Intangible Assets Net Book Value | Metric | December 31, 2024 ($) | June 30, 2025 ($) | | :---------------------- | :-------------------- | :---------------- | | Cost | 1,837,500 | 1,837,500 | | Accumulated amortization | 848,869 | 940,639 | | Net book value | 988,631 | 896,861 | - Amortization expense for the six months ended June 30, 2025, was $91,770[35] 8. Accounts payable and accrued liabilities Accounts payable and accrued liabilities decreased to $1,221,203 at June 30, 2025, from $1,390,507 at December 31, 2024, primarily due to a reduction in accrued liabilities Accounts Payable and Accrued Liabilities | Category | June 30, 2025 ($) | December 31, 2024 ($) | | :---------------------- | :---------------- | :-------------------- | | Trade payables | 123,585 | 118,481 | | Sales tax payable | 563,603 | 487,901 | | Accrued liabilities | 534,015 | 784,125 | | Total | 1,221,203 | 1,390,507 | 9. Share capital As of June 30, 2025, the Company had 50,756,371 common shares outstanding, renewed a Share Repurchase Program for up to $1.5 million without repurchases during the period, and declared quarterly dividends of $0.0125 per share, with a Dividend Reinvestment Plan Common Shares Issued and Outstanding | Metric | June 30, 2025 | December 31, 2024 | | :---------------------------------------------------------------- | :------------ | :---------------- | | Issued and outstanding common shares | 50,756,371 | 50,658,776 | | Share capital ($) | 69,756,304 | 69,528,762 | - The Board of Directors approved the renewal of a Share Repurchase Program (SRP) for up to $1,500,000 of its common shares on March 12, 2025[40] - The Company did not repurchase any shares under the SRP during the six months ended June 30, 2025[42] Dividends Declared | Declaration date | Dividend per common share ($) | Record date | Payment date | Dividends declared ($) | | :--------------- | :---------------------------- | :---------- | :----------- | :--------------------- | | February 20, 2025 | 0.0125 | March 31, 2025 | April 14, 2025 | 634,426 | | May 15, 2025 | 0.0125 | June 30, 2025 | July 14, 2025 | 634,457 | | Total | 0.0250 | | | 1,268,883 | - Total dividends paid for the six months ended June 30, 2025, included $9,152 paid in shares through the dividend reinvestment program (3,740 common shares issued at a 5% discount)[46] 10. Equity reserves Equity reserves include stock options, restricted share units (RSUs), and warrants, with 848,010 RSUs granted during the period and 6,407,883 warrants expiring unexercised in 2024 10.1 Options Stock option activity for the six months ended June 30, 2025, showed no new grants or cancellations, maintaining 1,346,838 options outstanding with a weighted average exercise price of C$3.70, all exercisable at period end Stock Option Activity | Metric | June 30, 2025 (Number) | June 30, 2024 (Number) | | :------------------------ | :--------------------- | :--------------------- | | Outstanding, beginning of period | 1,346,838 | 1,347,398 | | Granted | - | 240,000 | | Cancelled | - | (240,560) | | Outstanding, end of period | 1,346,838 | 1,346,838 | | Exercisable, end of period | 1,346,838 | 1,226,838 | Outstanding and Exercisable Options | Expiry date | Exercise price (C$) | 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 | 1.00 | 680,703 | 1.00 | | March 9, 2027 | 4.16 | 666,135 | 1.69 | 666,135 | 1.69 | | Total | | 1,346,838 | 1.34 | 1,346,838 | 1.34 | 10.2 Restricted Share Unit Plan During the six months ended June 30, 2025, 848,010 Restricted Share Units (RSUs) were granted, increasing total outstanding RSUs to 2,063,216 and vested RSUs to 962,939, with vesting schedules extending into 2027 - 829,915 RSUs were granted to directors, officers, and employees, vesting in 25% increments on specific dates from July 2, 2025, to January 2, 2027[50] - An additional 18,095 RSUs were granted to an employee, vesting on September 16, 2025[50] Restricted Share Unit Activity | Metric | June 30, 2025 (Number) | June 30, 2024 (Number) | | :------------------------ | :--------------------- | :--------------------- | | Outstanding, beginning of period | 1,309,061 | 952,018 | | Granted | 848,010 | 968,448 | | Exercised | (93,855) | (230,652) | | Outstanding, end of period | 2,063,216 | 1,689,814 | | Vested, end of period | 962,939 | 761,591 | 10.3 Warrants During the six months ended June 30, 2024, 6,407,883 warrants expired unexercised - 6,407,883 warrants expired unexercised during the six months ended June 30, 2024[52] 11. General and administration General and administration expenses for the six months ended June 30, 2025, were $2,245,663, a slight increase from $2,229,205 in the prior year, with salaries and benefits remaining the largest component General and Administration Expenses | Expense Category | Three months ended June 30, 2025 ($) | Three months ended June 30, 2024 ($) | Six months ended June 30, 2025 ($) | Six months ended June 30, 2024 ($) | | :-------------------- | :----------------------------------- | :----------------------------------- | :--------------------------------- | :--------------------------------- | | Corporate administration | 320,198 | 293,039 | 574,639 | 561,516 | | Professional fees | 98,627 | 102,916 | 215,728 | 206,568 | | Salaries and benefits | 606,265 | 640,752 | 1,283,246 | 1,302,893 | | Director fees | 40,150 | 36,479 | 80,280 | 66,458 | | Amortization | 45,885 | 45,885 | 91,770 | 91,770 | | Total | 1,111,125 | 1,119,071 | 2,245,663 | 2,229,205 | 12. Other income Other income for the six months ended June 30, 2025, significantly increased to $273,941 from $112,906 in the prior year, primarily driven by a foreign exchange recovery offsetting decreased interest income Other Income Breakdown | Category | Three months ended June 30, 2025 ($) | Three months ended June 30, 2024 ($) | Six months ended June 30, 2025 ($) | Six months ended June 30, 2024 ($) | | :-------------------------- | :----------------------------------- | :----------------------------------- | :--------------------------------- | :--------------------------------- | | Interest income | 106,262 | 124,531 | 198,546 | 246,182 | | Foreign exchange recovery (expense) | 93,946 | 24,469 | 75,395 | (133,276) | | Total | 200,208 | 149,000 | 273,941 | 112,906 | 13. Related party transactions Key management personnel compensation for the six months ended June 30, 2025, totaled $2,189,595, a decrease from $2,333,060 in the prior year, encompassing short-term employee benefits and share-based compensation Key Management Personnel Compensation | Compensation Type | Three months ended June 30, 2025 ($) | Three months ended June 30, 2024 ($) | Six months ended June 30, 2025 ($) | Six months ended June 30, 2024 ($) | | :------------------------ | :----------------------------------- | :----------------------------------- | :--------------------------------- | :--------------------------------- | | Short-term employee benefits | 480,253 | 530,542 | 1,052,271 | 1,068,879 | | Share-based compensation | 607,480 | 668,817 | 1,137,324 | 1,264,181 | | Total | 1,087,733 | 1,119,359 | 2,189,595 | 2,333,060 | 14. Commitments and contingencies The Company is involved in legal proceedings, including a Mt Ida settlement and ongoing claims for Red Hill and against Titan Minerals, alongside commitments for lease and consulting payments, and contingent milestone payments totaling over $9.4 million for royalty acquisitions 14.1 Litigation matter Vox Australia settled a claim regarding the Mt Ida royalty asset, is defending a claim related to the Red Hill royalty assignment, and is pursuing a claim against Titan Minerals Limited for replacement royalties or damages - Vox Australia discontinued its claim in the Supreme Court of Western Australia regarding the Mt Ida royalty asset after reaching a settlement agreement on May 28, 2025[59] - Vox Australia is a second defendant in a claim regarding the Red Hill royalty assignment, with the plaintiff alleging a breach of a right of first refusal; the Company denies the claim and will defend the action[61][62] - SilverStream filed a claim against Titan Minerals Limited to enforce its rights to be issued replacement royalties and/or damages for Titan's failure to maintain mining concessions in Peru, which led to the impairment of four royalties in 2023[64][65] 14.2 Commitments The Company has minimum annual lease payments of $3,872 and consulting agreement payments of $58,797 for the period July 1, 2025, to June 30, 2026 Annual Commitments | Category | July 1, 2025 to June 30, 2026 ($) | | :------------------ | :-------------------------------- | | Leases | 3,872 | | Consulting agreements | 58,797 | | Total | 62,669 | 14.3 Contingencies The Company is committed to potential milestone payments totaling $9,443,332 for various royalty acquisitions, payable upon achieving specific thresholds and mostly settleable in cash or common shares at the Company's election Contingent Milestone Payments | Royalty | Milestone Payment ($) | | :------------------ | :-------------------- | | Limpopo | 6,523,492 | | Brits | 1,250,000 | | Bullabulling | 655,941 | | Koolyanobbing | 327,970 | | El Molino | 450,000 | | Uley | 144,307 | | Other | 91,622 | | Total | 9,443,332 | - Most milestone payments may be settled in either cash or common shares of the Company, at the Company's election[67][68] 15. Supplemental cash flow information Supplemental cash flow information details non-cash working capital changes, including adjustments for accrued other assets, deferred royalty acquisitions, royalty interests, interest expense on the credit facility, and share issue costs Supplemental Cash Flow Adjustments | Category | Three months ended June 30, 2025 ($) | Three months ended June 30, 2024 ($) | Six months ended June 30, 2025 ($) | Six months ended June 30, 2024 ($) | | :------------------------------------ | :----------------------------------- | :----------------------------------- | :--------------------------------- | :--------------------------------- | | Change in accrued other assets | - | (24,594) | (2,615) | (271,029) | | Change in accrued deferred royalty acquisitions | (3,438) | 10 | 12,057 | 12,940 | | Change in accrued royalty interests | - | 5,500 | - | 5,500 | | Change in accrued interest expense on Facility | 29,655 | (3,610) | 29,186 | 21,328 | | Change in accrued share issue costs | - | (23,599) | - | - | 16. Segment information The Company operates in a single reportable segment of royalty interest acquisition, with Australia remaining the primary source of revenue and holding the largest share of non-current assets for the six months ended June 30, 2025 - The Company operated in one reportable segment: the acquisition of royalty interests[70] Revenue by Geographic Location | Geographic Location | Six months ended June 30, 2025 (Revenue $) | Six months ended June 30, 2024 (Revenue $) | | :------------------ | :--------------------------------------- | :--------------------------------------- | | Australia | 5,396,544 | 5,701,312 | | Brazil | 33,290 | 4,812 | | USA | 15,505 | 15,505 | | Total | 5,445,339 | 5,721,629 | Non-current Assets by Geographic Location | Geographic Location | June 30, 2025 (Non-current assets $) | December 31, 2024 (Non-current assets $) | | :------------------ | :----------------------------------- | :--------------------------------------- | | Australia | 40,384,292 | 30,452,281 | | Canada | 2,934,706 | 3,036,308 | | USA | 2,204,452 | 2,210,330 | | South Africa | 1,914,844 | 1,914,844 | | Cayman Islands | 896,861 | 988,631 | | Brazil | 587,569 | 604,307 | | Peru | 45,609 | 45,609 | 17. Income taxes Income tax expense for the six months ended June 30, 2025, was $678,844, a decrease from $1,352,901 in the prior year, primarily due to lower current tax expense and a deferred tax recovery Income Tax Expense Breakdown | Tax Component | Three months ended June 30, 2025 ($) | Three months ended June 30, 2024 ($) | Six months ended June 30, 2025 ($) | Six months ended June 30, 2024 ($) | | :---------------------- | :----------------------------------- | :----------------------------------- | :--------------------------------- | :--------------------------------- | | Current tax expense | 178,517 | 587,235 | 682,493 | 1,178,386 | | Deferred tax expense (recovery) | 49,311 | 23,564 | (3,649) | 174,515 | | Income tax expense | 227,828 | 610,799 | 678,844 | 1,352,901 | 18. Financial instruments The Company's financial instruments are exposed to credit, liquidity, currency, interest rate, and commodity/share price risks, which are managed through various strategies including maintaining cash in high-quality institutions and not hedging future revenue 18.1 Credit risk Credit risk primarily arises from cash and cash equivalents and royalty receivables, mitigated by maintaining cash in high-quality financial institutions and closely monitoring royalty receivable balances - The Company's credit risk is primarily attributable to its liquid financial assets, including cash and cash equivalents and royalty receivables[74] - To mitigate credit risk, the Company maintains cash in high-quality financial institutions and closely monitors royalty receivable balances[74] 18.2 Liquidity risk The Company manages liquidity risk by ensuring sufficient funds to meet obligations, holding $10,172,099 in cash and cash equivalents and $10,483,136 in working capital as of June 30, 2025 - The Company's approach to managing liquidity is to ensure it will have sufficient liquidity to meet liabilities when due[75] Cash and Working Capital | Metric | June 30, 2025 ($) | December 31, 2024 ($) | | :-------------------------- | :---------------- | :-------------------- | | Cash and cash equivalents | 10,172,099 | 8,754,391 | | Working capital | 10,483,136 | 9,234,339 | 18.3 Currency risk The Company is exposed to foreign currency risk from Canadian and Australian dollar-denominated financial instruments, where a 10% fluctuation would impact net loss and comprehensive loss by approximately $418,000 - Financial instruments denominated in Canadian and Australian dollars expose the Company to foreign currency risk[76] - A 10% increase (decrease) of the value of the Canadian and Australian dollar relative to the United States dollar would increase (decrease) net loss and other comprehensive loss by $418,000[76] 18.4 Interest rate risk The Company is exposed to interest rate risk from its floating-rate credit facility, with a 1% rate change impacting net loss by approximately $75,000, and manages this by investing excess cash in short-term interest-bearing securities without using derivatives - The Company is exposed to interest rate risk due to the Facility being subject to floating interest rates[77] - A 1% increase (decrease) in nominal interest rates would have increased (decreased) net loss and other comprehensive loss by approximately $75,000 for the period ended June 30, 2025[77] - The Company's policy is to invest excess cash in cash accounts or short-term interest-bearing securities and does not use derivative instruments to reduce interest rate risk[78] 18.5 Commodity and share price risk The Company's royalties and profitability are significantly affected by fluctuations in underlying commodity market prices, particularly precious and base metals, with all future revenue unhedged to provide full shareholder exposure - The Company's royalties are subject to fluctuations from changes in market prices of the underlying commodities, which are the primary drivers of profitability and free cash flow[79] - All of the Company's future revenue is not hedged to provide shareholders with full exposure to changes in market prices of commodities[79] 18.6 Fair value of financial instruments The carrying amounts of cash, receivables, payables, and income taxes payable approximate their fair value due to their limited term, and the Company had no financial instruments measured at fair value after initial recognition as of June 30, 2025, and December 31, 2024 - The carrying amounts for cash and cash equivalents, accounts receivables, accounts payable and accrued liabilities, and income taxes payable approximate fair value[81] - As at June 30, 2025, and December 31, 2024, the Company does not have any financial instruments measured at fair value after initial recognition[82] 18.7 Capital management The Company's primary capital management objective is to maximize shareholder returns through accretive royalty acquisitions and an optimized capital structure, regularly reviewing cash flow forecasts and ensuring credit facility covenant compliance - The Company's primary objective when managing capital is to maximize returns for its shareholders by growing its asset base through accretive acquisitions of royalty interests, while optimizing its capital structure[83] - As at June 30, 2025, the capital structure consists of $42,328,668 of total equity[83] - The Company is not subject to any externally imposed capital requirements other than those disclosed for the Facility[84] 19. Subsequent events Subsequent to June 30, 2025, the Company repaid $5,000,000 of its credit facility on July 14, 2025, and declared a quarterly dividend of $0.0125 per common share on August 13, 2025, payable on October 14, 2025 - On July 14, 2025, the Company repaid $5,000,000 of the outstanding balance owing under the Facility[85] - On August 13, 2025, the Board of Directors declared a quarterly dividend of $0.0125 per common share, payable on October 14, 2025[85]