Source: Streetwise Reports 09/04/2020
Paradigm Capital calls Vox Royalty “the highest acquisitive story in the industry.”
In a Sept. 2 research note, analyst David Davidson reported that Paradigm Capital initiated coverage on , calling it “the highest acquisitive story in the industry” and “a high-growth, precious metal-focused stream and royalty company with a portfolio of over 40 transactions spanning seven jurisdictions.” (VOX:TSX.V)
Paradigm likes the Vox story for its “significant growth opportunity,” Davidson noted. The Toronto-headquartered company owns an exclusive database containing 7,000-plus potential transactions, which often leads to it being the sole bidder for assets. “The company has secured an industry leading 17 transactions for 38 royalties since January 2019 and now holds a collection of 43 royalties and streams,” the analyst wrote. Many of its acquisitions have been on projects nearing production.
Further potential upside for Vox comes from the exploration-stage properties on which it holds a royalty. Currently, more than 100,000 meters are being drilled over some of those, which should result in resource expansion and new discoveries.
“VOX’s acquisitions are underpinned by a strong technical focus which considers mineral endowment, historical exploration, prospectivity and metallurgy,” Davidson highlighted.
“These factors, coupled with non-technical inputs, such as tenure security, operator quality, country risk and fiscal terms, enable the company to quickly identify and prioritize the best risk-adjusted royalty investment opportunities.”
Davidson noted that Vox also is attractive because of its primary focus on precious metals and politically safe jurisdictions, including North America, Australia, Brazil and Peru.
“Royalty companies that exhibit these positive attributes tend to trade at premiums to peers,” Davidson pointed out.
A third positive key attribute of Vox is its valuation, added the analyst. For example, Paradigm values Vox’s Koolyanobbing iron ore royalty at $7 million, its Segilola gold royalty at $5.7 million and its Ashburton gold royalty at $3.1 million. Based on its discounted cash flow valuation, Paradigm assigned Vox a CA$3.75 per share price target, which compares to its current share price of about CA$3.12. Paradigm rates Vox a Buy.
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Vox Royalty. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Vox Royalty, a company mentioned in this article.
Disclosures from Paradigm Capital,, Initiation Report, September 2, 2020
The analyst (and associate) certify that the views expressed in this report accurately reflect their personal views about the subject securities or issuers. No part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendations expressed in this research report.
Analysts are compensated through a combined base salary and bonus payout system. The bonus payout is determined by revenues generated directly or indirectly from various departments including Investment Banking, based on a system that includes the following criteria: reports generated, timeliness, performance of recommendations, knowledge of industry, quality of research and investment guidance and client feedback. Analysts are not directly compensated for specific Investment Banking transactions.
Paradigm Capital Inc. has assumed an underwriting liability for, and/or provided financial advice for consideration to the subject companies during the past 12 months.
Paradigm Capital Inc. expects to receive or intends to seek compensation for investment banking services from the subject companies in the next 3 months.
( Companies Mentioned: VOX:TSX.V,
Portofino Resources Enters the Lithium Big Leagues with Argentinian Government Agreement
The Argentinian government made a surprise announcement earlier this month…
Fortuna Announces Share Repurchase Program
VANCOUVER, British Columbia, April 28, 2022 (GLOBE NEWSWIRE) — Fortuna Silver Mines Inc. (NYSE: FSM) (TSX: FVI) ("Fortuna" or the "Company") announced…
BMO Expects Inflation to Cloud over Miners Q1 Results
On April 18, BMO released their first quarter preview on their metals and mining coverage, asking the question “Should We
The post BMO Expects Miners…
Energy & Critical Metals13 hours ago
Nevada Sunrise Receives Final Lithium Analyses from Borehole GEM22-02 – Mineralized Intersection Improves to 1,101 ppm Lithium over 730′
Precious Metals14 hours ago
Five Warning Signs The End Of Dollar Hegemony Is Near… Here’s What Happens Next
Energy & Critical Metals17 hours ago
Wait for Mullen Stock to Give Away Solid-State Battery Partnership Gains
Economics12 hours ago
Why We Must Resist Geoeconomic Fragmentation—And How
Economics3 hours ago
Bloated Inventories Hit Walmart, Target And Other Retailers’ Profits, Trucking Demand
Economics12 hours ago
How Will Utility Stocks Perform in 2022?
Economics14 hours ago
Cracks Appear As Subprime Borrowers Miss Loan Payments Amid Recession Threats
Energy & Critical Metals17 hours ago
Nio’s Product Diversity Makes It a Long-Term Buy