EX-99.1 2 voxr_ex991.htm FINANCIAL STATEMENTS voxr_ex991.htm

EXHIBIT 99.1

 

 

UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

 

FOR THE THREE MONTHS ENDED MARCH 31, 2023 AND 2022

(Expressed in United States Dollars)

 

 

    

 

 

 

VOX ROYALTY CORP.

 

UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

 

FOR THE THREE MONTHS ENDED MARCH 31, 2023 AND 2022

(Expressed in United States Dollars)

 

INDEX

 

Unaudited Condensed Interim Consolidated Statements of Financial Position

 

1

 

 

 

 

 

Unaudited Condensed Interim Consolidated Statements of Loss and Comprehensive Loss

 

2

 

 

 

 

 

Unaudited Condensed Interim Consolidated Statements of Changes in Equity

 

3

 

 

 

 

 

Unaudited Condensed Interim Consolidated Statements of Cash Flows

 

4

 

 

 

 

 

Notes to the Unaudited Condensed Interim Consolidated Financial Statements

 

5 – 15

 

 

 

Table of Contents

 

Vox Royalty Corp.

Unaudited Condensed Interim Consolidated Statements of Financial Position

(Expressed in United States Dollars)

 

 

 

 

 

As at

 

 

 

Note

 

 

March 31,

2023

 

 

December 31,

2022

 

 

 

 

 

$

 

 

$

 

Assets

 

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

 

 

 

 4,166,474

 

 

 

 4,174,654

 

Accounts receivable

 

 

 4

 

 

 

 3,584,110

 

 

 

 2,000,062

 

Prepaid expenses

 

 

 

 

 

 

 622,150

 

 

 

 595,531

 

Total current assets

 

 

 

 

 

 

 8,372,734

 

 

 

 6,770,247

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-current assets

 

 

 

 

 

 

 

 

 

 

 

 

Royalty, stream and other interests

 

 

 5

 

 

 

 32,740,016

 

 

 

 32,860,568

 

Intangible assets

 

 

 6

 

 

 

 1,309,824

 

 

 

 1,355,709

 

Restricted cash

 

 

 

 

 

 

 700,000

 

 

 

 700,000

 

Deferred royalty acquisitions

 

 

 5

 

 

 

 114,161

 

 

 

 118,932

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

 

 

 

 

 

 43,236,735

 

 

 

 41,805,456

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable and accrued liabilities

 

 

 7

 

 

 

 2,127,960

 

 

 

 1,766,131

 

Dividends payable

 

 

 8

 

 

 

 496,397

 

 

 

 447,583

 

Income taxes payable

 

 

 

 

 

 

 171,141

 

 

 

 584,148

 

Other liabilities

 

 

 10

 

 

 

 1,893,907

 

 

 

 176,434

 

Total current liabilities

 

 

 

 

 

 

 4,689,405

 

 

 

 2,974,296

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-current liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Other liabilities

 

 

 10

 

 

 

 -

 

 

 

 425,281

 

Deferred taxes payable

 

 

 

 

 

 

 3,595,516

 

 

 

 2,991,431

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities

 

 

 

 

 

 

 8,284,921

 

 

 

 6,391,008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

 

 

 

 

 

 

 

 

 

 

 

Share capital

 

 

 8

 

 

 

 57,858,947

 

 

 

 57,020,116

 

Equity reserves

 

 

 9

 

 

 

 3,179,674

 

 

 

 3,303,503

 

Deficit

 

 

 

 

 

 

 (26,086,807 )

 

 

 (24,909,171 )

 

 

 

 

 

 

 

 

 

 

 

 

 

Total equity

 

 

 

 

 

 

 34,951,814

 

 

 

 35,414,448

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities and equity

 

 

 

 

 

 

 43,236,735

 

 

 

 41,805,456

 

 

Commitments and contingencies (Note 14)

Subsequent events (Note 19)

 

Approved by the Board of Directors on May 10, 2023

 

Signed                           “Kyle Floyd”                          , Director

Signed                       “Robert Sckalor”                                  , Director

 

See accompanying notes to the unaudited condensed interim consolidated financial statements

 

 
1

Table of Contents

 

Vox Royalty Corp.

Unaudited Condensed Interim Consolidated Statements of Loss and Comprehensive Loss

For the three months ended March 31, 2023 and 2022

(Expressed in United States Dollars)

 

 

 

Note

 

 

Three months

ended

March 31,

2023

 

 

Three months

ended

March 31,

2022

 

 

 

 

 

$

 

 

$

 

Revenue

 

 

 

 

 

 

 

 

 

Royalty revenue

 

 

 

 

 

 3,580,855

 

 

 

 1,155,935

 

Other revenue

 

 

 

 

 

 -

 

 

 

 315,084

 

Total revenue

 

 

 16

 

 

 

 3,580,855

 

 

 

 1,471,019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

 

 

 

 

 

 

 

 

 

 

 

Depletion

 

 

 5

 

 

 

 (615,998 )

 

 

 (306,726 )

Gross profit

 

 

 

 

 

 

 2,964,857

 

 

 

 1,164,293

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

General and administration

 

 

 11,13

 

 

 

 (1,301,245 )

 

 

 (1,212,998 )

Share-based compensation

 

 

 9,10,13

 

 

 

 (680,824 )

 

 

 (239,663 )

Project evaluation expenses

 

 

 5

 

 

 

 (39,810 )

 

 

 -

 

Total operating expenses

 

 

 

 

 

 

 (2,021,879 )

 

 

 (1,452,661 )

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from operations

 

 

 

 

 

 

 942,978

 

 

 

 (288,368 )

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expenses)

 

 

 

 

 

 

 

 

 

 

 

 

Realized loss on investments

 

 

 

 

 

 

 -

 

 

 

 (156,538 )

Unrealized loss on investments

 

 

 

 

 

 

 -

 

 

 

 (40,309 )

Other income (expenses)

 

 

 12

 

 

 

 (841,155 )

 

 

 348,669

 

Income (loss) before income taxes

 

 

 

 

 

 

 101,823

 

 

 

 (136,546 )

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

 

 17

 

 

 

 (783,062 )

 

 

 (103,846 )

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss and comprehensive loss

 

 

 

 

 

 

 (681,239 )

 

 

 (240,392 )

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

 

 

 

 

 

 44,976,602

 

 

 

 39,507,127

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss per share

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

 

 

 

 

 

 (0.02 )

 

 

 (0.01 )

 

See accompanying notes to the unaudited condensed interim consolidated financial statements

 

 
2

Table of Contents

 

Vox Royalty Corp.

Unaudited Condensed Interim Consolidated Statements of Changes in Equity

For the three months ended March 31, 2023 and 2022

(Expressed in United States Dollars)

 

 

 

Number of

Shares

 

 

Share

Capital

 

 

Equity

Reserves

 

 

Deficit

 

 

Total

Equity

 

 

 

#

 

 

 $

 

 

 $

 

 

$

 

 

$

 

 

 

(Note 8)

 

 

(Note 8)

 

 

(Note 9)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, December 31, 2021

 

 

 39,379,199

 

 

 

 43,648,023

 

 

 

 1,163,397

 

 

 

 (24,101,745 )

 

 

 20,709,675

 

Exercise of RSUs

 

 

 84,474

 

 

 

 170,112

 

 

 

 (170,112 )

 

 

 -

 

 

 

 -

 

Exercise of warrants

 

 

 103,432

 

 

 

 304,471

 

 

 

 (60,118 )

 

 

 -

 

 

 

 244,353

 

Share redemption (normal course issuer bid)

 

 

 (21,700 )

 

 

 (41,369 )

 

 

 -

 

 

 

 (23,741 )

 

 

 (65,110 )

Share-based compensation

 

 

 -

 

 

 

 -

 

 

 

 272,475

 

 

 

 -

 

 

 

 272,475

 

Net loss and comprehensive loss

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 (240,392 )

 

 

 (240,392 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, March 31, 2022

 

 

 39,545,405

 

 

 

 44,081,237

 

 

 

 1,205,642

 

 

 

 (24,365,878 )

 

 

 20,921,001

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, December 31, 2022

 

 

 44,758,269

 

 

 

 57,020,116

 

 

 

 3,303,503

 

 

 

 (24,909,171 )

 

 

 35,414,448

 

Shares issued for royalty milestone payments

 

 

 215,769

 

 

 

 495,446

 

 

 

 -

 

 

 

 -

 

 

 

 495,446

 

Dividends declared

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 (496,397 )

 

 

 (496,397 )

Exercise of RSUs

 

 

 152,918

 

 

 

 343,385

 

 

 

 (343,385 )

 

 

 -

 

 

 

 -

 

Share-based compensation

 

 

 -

 

 

 

 -

 

 

 

 219,556

 

 

 

 -

 

 

 

 219,556

 

Net loss and comprehensive loss

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 (681,239 )

 

 

 (681,239 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, March 31, 2023

 

 

 45,126,956

 

 

 

 57,858,947

 

 

 

 3,179,674

 

 

 

 (26,086,807 )

 

 

 34,951,814

 

 

See accompanying notes to the unaudited condensed interim consolidated financial statements

 

 
3

Table of Contents

 

Vox Royalty Corp.

Unaudited Condensed Interim Consolidated Statements of Cash Flows

For the three months ended March 31, 2023 and 2022

(Expressed in United States Dollars)

 

 

 

Note

 

 

Three months

ended

March 31, 2023

 

 

Three months

ended

March 31, 2022

 

 

 

 

 

$

 

 

 $

 

Cash flows from (used) in operating activities

 

 

 

 

 

 

 

 

 

Net loss for the period

 

 

 

 

 

 (681,239 )

 

 

 (240,392 )

Adjustments for:

 

 

 

 

 

 

 

 

 

 

 

Fair value change of other liabilities

 

 

 10

 

 

 

 830,924

 

 

 

 (282,372 )

Deferred tax expense (recovery)

 

 

 17

 

 

 

 604,085

 

 

 

 (92,862 )

Foreign exchange gain on cash and cash equivalents

 

 

 

 

 

 

 7,869

 

 

 

 48,895

 

Share-based compensation

 

 

 9,10

 

 

 

 680,824

 

 

 

 239,663

 

Amortization

 

 

 6

 

 

 

 45,885

 

 

 

 45,885

 

Depletion

 

 

 5

 

 

 

 615,998

 

 

 

 306,726

 

Realized loss on investments

 

 

 

 

 

 

 -

 

 

 

 156,538

 

Unrealized loss on investments

 

 

 

 

 

 

 -

 

 

 

 40,309

 

 

 

 

 

 

 

 

 2,104,346

 

 

 

 222,390

 

Changes in non-cash working capital:

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

 

 

 

 

 

 (1,584,048 )

 

 

 (590,790 )

Prepaid expenses

 

 

 

 

 

 

 (26,619 )

 

 

 64,148

 

Accounts payable and accrued liabilities

 

 

 

 

 

 

 419,345

 

 

 

 (297,281 )

Income taxes payable

 

 

 

 

 

 

 (413,007 )

 

 

 196,708

 

Net cash flows from (used in) operating activities

 

 

 

 

 

 

 500,017

 

 

 

 (404,825 )

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows (used in) from investing activities

 

 

 

 

 

 

 

 

 

 

 

 

Deferred royalty acquisitions

 

 

 

 

 

 

 (52,745 )

 

 

 -

 

Proceeds from sale of investments

 

 

 

 

 

 

 -

 

 

 

 831,240

 

Net cash flows (used in) from investing activities

 

 

 

 

 

 

 (52,745 )

 

 

 831,240

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows (used in) from financing activities

 

 

 

 

 

 

 

 

 

 

 

 

Dividends paid

 

 

 8

 

 

 

 (447,583 )

 

 

 -

 

Share redemption (normal course issuer bid)

 

 

 8

 

 

 

 -

 

 

 

 (65,110 )

Exercise of warrants

 

 

 

 

 

 

 -

 

 

 

 244,353

 

Net cash flows (used in) from financing activities

 

 

 

 

 

 

 (447,583 )

 

 

 179,243

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Decrease) increase in cash and cash equivalents

 

 

 

 

 

 

 (311 )

 

 

 605,658

 

Impact of foreign exchange on cash and cash equivalents

 

 

 

 

 

 

 (7,869 )

 

 

 (48,895 )

Cash and cash equivalents, beginning of the period

 

 

 

 

 

 

 4,174,654

 

 

 

 5,064,802

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents, end of the period

 

 

 

 

 

 

 4,166,474

 

 

 

 5,621,565

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental cash flow information (Note 15)

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes to the unaudited condensed interim consolidated financial statements

 

 
4

Table of Contents

 

Vox Royalty Corp.

Notes to the Unaudited Condensed Interim Consolidated Financial Statements

For the three months ended March 31, 2023 and 2022

(Expressed in United States Dollars)

 

1. Nature of operations

 

Vox Royalty Corp. (“Vox” or the “Company”) was incorporated under the Business Corporations Act (Ontario). The Company’s registered office is 66 Wellington Street West, Suite 5300, TD Bank Tower Box 48, Toronto, ON, M5K 1E6, Canada. The Company’s common shares trade on the TSX Venture Exchange under the ticker symbol “VOX”, and on the Nasdaq Stock Market LLC (“Nasdaq”) under the ticker symbol “VOXR”.

 

Vox is a mining royalty company focused on accretive acquisitions. Approximately 80% of the Company’s royalty and streaming assets by royalty count are located in Australia, Canada and the United States. Further, the Company is prioritizing acquiring royalties on producing or near-term producing assets to complement its portfolio of exploration and development stage royalties.

 

2. Basis of preparation

 

(a) Statement of compliance

 

These unaudited condensed interim consolidated financial statements are prepared in accordance with International Accounting Standards 34, Interim Financial Reporting (“IAS34”), as issued by the International Accounting Standards Board (“IASB”) and apply the same accounting policies and application as disclosed in the annual financial statements for the year ended December 31, 2022. They do not include all of the information and disclosures required by IFRS for annual statements. In the opinion of management, all adjustments considered necessary for fair presentation have been included in these unaudited condensed interim consolidated financial statements. Operating results for the period ended March 31, 2023 are not necessarily indicative of the results that may be expected for the full year ended December 31, 2023. For further information, see the Company’s annual financial statements including the notes thereto for the year ended December 31, 2022.

 

These unaudited condensed interim consolidated financial statements were reviewed, approved, and authorized for issue by the Company’s Board of Directors on May 10, 2023.

 

(b) Basis of presentation

 

These unaudited condensed interim consolidated financial statements have been prepared on a historical cost basis, except for financial instruments, which have been measured at fair value. These unaudited condensed interim consolidated financial statements are presented in United States dollars (“$”), which is also the functional currency of the Company and its three wholly-owned subsidiaries.

 

(c) Principles of consolidation

 

These unaudited condensed interim consolidated financial statements incorporate the accounts of the Company and its three wholly-owned subsidiaries, SilverStream SEZC (Cayman Islands), Vox Royalty Australia Pty Ltd. (Australia) and Vox Royalty Canada Ltd. (Ontario, Canada).

 

Subsidiaries are fully consolidated from the date the Company obtains control and continue to be consolidated until the date that control ceases. Control is achieved when the Company is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. All intercompany balances, transactions, revenues and expenses have been eliminated on consolidation.

 

(d) Changes in accounting policies

 

Certain new accounting standards and interpretations have been published that are currently effective requirements. These standards did not have a material impact on the Company’s current or future reporting periods.

 

(e) Recent accounting pronouncements

 

Certain pronouncements were issued by the IASB or the International Financial Reporting Interpretations Committee that are mandatory for accounting periods commencing on or after January 1, 2024. Many are not applicable or do not have a significant impact to the Company and have been excluded. The following have not yet been adopted and are being evaluated to determine their impact on the Company.

 

Amendments to IAS 1 – Classification of Liabilities as Current or Non-current

 

Effective on January 1, 2024, the amendments clarify how conditions with which an entity must comply within twelve months after the reporting period affect the classification of a liability.

 

3. Significant judgments, estimates and assumptions

 

The preparation of the Company’s unaudited condensed interim consolidated financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the reported amounts of assets, liabilities and contingent liabilities at the date of the unaudited condensed interim consolidated financial statements and reported amounts of revenues and expenses during the reporting period. Estimates and assumptions are continuously evaluated and are based on management’s experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. However, actual outcomes can differ from these estimates. The unaudited condensed interim consolidated financial statements include estimates, which, by their nature, are uncertain. The impact of such estimates are pervasive throughout the unaudited condensed interim consolidated financial statements and may require accounting adjustments based on future occurrences.

 

 
5

Table of Contents

 

Vox Royalty Corp.

Notes to the Unaudited Condensed Interim Consolidated Financial Statements

For the three months ended March 31, 2023 and 2022

(Expressed in United States Dollars)

 

The estimates and underlying assumptions are reviewed on a regular basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised and in any future periods affected. The areas involving a higher degree of judgment or complexity, or areas where the assumptions and estimates are significant to the consolidated financial statements were the same as those applied to the Company’s annual financial statements for the year ended December 31, 2022.

 

4. Accounts receivable

 

 

 

March 31,

2023

 

 

December 31,

2022

 

 

 

$

 

 

 $

 

Royalties receivable

 

 

 3,469,097

 

 

 

 1,921,670

 

Sales tax recoverable

 

 

 115,013

 

 

 

 78,392

 

 

 

 

 

 

 

 

 

 

 

 

 

 3,584,110

 

 

 

 2,000,062

 

 

Royalties receivable represents amounts that are generally collected within 45 days of quarter-end.

 

5. Royalty, stream and other interests

 

As at and for the three months ended March 31, 2023:

 

 

 

 

Cost

 

 

Accumulated Depletion

 

 

 

Royalty

 

Country

 

Opening

 

 

Additions

 

 

Disposal

 

 

Ending

 

 

Opening

 

 

Depletion

 

 

 Disposal

 

 

Ending

 

 

Carrying

Amount

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wonmunna

 

Australia

 

 

 14,527,467

 

 

 

 -

 

 

 

 -

 

 

 

 14,527,467

 

 

 

 (830,176 )

 

 

 (329,826 )

 

 

 -

 

 

 

 (1,160,002 )

 

 

 13,367,465

 

Janet Ivy

 

Australia

 

 

 2,494,285

 

 

 

 -

 

 

 

 -

 

 

 

 2,494,285

 

 

 

 (29,633 )

 

 

 -

 

 

 

 -

 

 

 

 (29,633 )

 

 

 2,464,652

 

Koolyanobbing

 

Australia

 

 

 2,649,738

 

 

 

 -

 

 

 

 -

 

 

 

 2,649,738

 

 

 

 (1,198,243 )

 

 

 (123,822 )

 

 

 -

 

 

 

 (1,322,065 )

 

 

 1,327,673

 

South Railroad

 

USA

 

 

 2,316,757

 

 

 

 -

 

 

 

 -

 

 

 

 2,316,757

 

 

 

 (79,814 )

 

 

 (5,877 )

 

 

 -

 

 

 

 (85,691 )

 

 

 2,231,066

 

Limpopo

 

South Africa

 

 

 1,150,828

 

 

 

 -

 

 

 

 -

 

 

 

 1,150,828

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 1,150,828

 

Bowdens

 

Australia

 

 

 1,130,068

 

 

 

 -

 

 

 

 -

 

 

 

 1,130,068

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 1,130,068

 

Bullabulling

 

Australia

 

 

 953,349

 

 

 

 -

 

 

 

 -

 

 

 

 953,349

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 953,349

 

Brits

 

South Africa

 

 

 764,016

 

 

 

 -

 

 

 

 -

 

 

 

 764,016

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 764,016

 

Otto Bore

 

Australia

 

 

 583,612

 

 

 

 -

 

 

 

 -

 

 

 

 583,612

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 583,612

 

Segilola

 

Nigeria

 

 

 706,425

 

 

 

 -

 

 

 

 -

 

 

 

 706,425

 

 

 

 (528,220 )

 

 

 (144,895 )

 

 

 -

 

 

 

 (673,115 )

 

 

 33,310

 

Lynn Lake    

 

Canada

 

 

 873,088

 

 

 

 -

 

 

 

 -

 

 

 

 873,088

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 873,088

 

Bulong

 

Australia

 

 

 544,957

 

 

 

 -

 

 

 

 -

 

 

 

 544,957

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 544,957

 

Dry Creek

 

Australia

 

 

 475,723

 

 

 

 -

 

 

 

 -

 

 

 

 475,723

 

 

 

 (93,637 )

 

 

 -

 

 

 

 -

 

 

 

 (93,637 )

 

 

 382,086

 

Sulfur Springs/

 

Australia

 

 

 467,983

 

 

 

 -

 

 

 

 -

 

 

 

 467,983

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 467,983

 

Pedra Branca

 

Brazil

 

 

 450,131

 

 

 

 -

 

 

 

 -

 

 

 

 450,131

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 450,131

 

Ashburton

 

Australia

 

 

 355,940

 

 

 

 -

 

 

 

 -

 

 

 

 355,940

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 355,940

 

Anthiby Well

 

Australia

 

 

 311,742

 

 

 

 -

 

 

 

 -

 

 

 

 311,742

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 311,742

 

Cardinia

 

Australia

 

 

 302,850

 

 

 

 -

 

 

 

 -

 

 

 

 302,850

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 302,850

 

Brauna

 

Brazil

 

 

 262,328

 

 

 

 -

 

 

 

 -

 

 

 

 262,328

 

 

 

 (75,121 )

 

 

 (11,578 )

 

 

 -

 

 

 

 (86,699 )

 

 

 175,629

 

Montanore

 

USA

 

 

 61,572

 

 

 

 -

 

 

 

 -

 

 

 

 61,572

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 61,572

 

Mt Ida

 

Australia

 

 

 210,701

 

 

 

 -

 

 

 

 -

 

 

 

 210,701

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 210,701

 

Other

 

Australia

 

 

 1,606,079

 

 

 

 -

 

 

 

 -

 

 

 

 1,606,079

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 1,606,079

 

Other

 

Peru

 

 

 1,545,609

 

 

 

 -

 

 

 

 -

 

 

 

 1,545,609

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 1,545,609

 

Other

 

Canada

 

 

 950,164

 

 

 

 495,446

 

 

 

 -

 

 

 

 1,445,610

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 950,164

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 35,695,412

 

 

 

 495,446

 

 

 

 -

 

 

 

 36,190,858

 

 

 

 (2,834,844 )

 

 

 (615,998 )

 

 

 -

 

 

 

 (3,450,842 )

 

 

 32,740,016

 

 

 
6

Table of Contents

 

Vox Royalty Corp.

Notes to the Unaudited Condensed Interim Consolidated Financial Statements

For the three months ended March 31, 2023 and 2022

(Expressed in United States Dollars)

 

Total royalty, stream and other interests include carrying amounts in the following countries:

 

 

 

March 31,

2023

 

 

December 31,

2022

 

 

 

$

 

 

$

 

Australia

 

 

 24,009,157

 

 

 

 24,462,805

 

USA

 

 

 2,292,638

 

 

 

 2,298,515

 

South Africa

 

 

 1,914,844

 

 

 

 1,914,844

 

Canada

 

 

 2,318,698

 

 

 

 1,823,252

 

Peru

 

 

 1,545,609

 

 

 

 1,545,609

 

Brazil

 

 

 625,760

 

 

 

 637,338

 

Nigeria

 

 

 33,310

 

 

 

 178,205

 

 

 

 

 

 

 

 

 

 

 

 

 

 32,740,016

 

 

 

 32,860,568

 

 

Deferred royalty acquisitions

 

Deferred royalty acquisitions as at March 31, 2023 of $114,161 (December 31, 2022 - $118,932) relate to costs incurred prior to the execution and closing of a royalty acquisition. Deferred royalty acquisition costs are reallocated to royalty, stream and other interests upon signing of a definitive agreement. If management determines not to proceed with a proposed acquisition, the deferred costs are reallocated to project evaluation expenses.

 

6. Intangible assets

 

Intangible assets are comprised of the Mineral Royalties Online (“MRO”) royalty database.

 

 

 

Database

 

 

 

$

 

Cost at:

 

 

 

December 31, 2022

 

 

 1,837,500

 

Additions

 

 

 -

 

March 31, 2023

 

 

 1,837,500

 

 

 

 

 

 

Accumulated amortization at:

 

 

 

 

December 31, 2022

 

 

 481,791

 

Additions

 

 

 45,885

 

March 31, 2023

 

 

 527,676

 

 

 

 

 

 

Net book value at:

 

 

 

 

December 31, 2022

 

 

 1,355,709

 

March 31, 2023

 

 

 1,309,824

 

 

7. Accounts payable and accrued liabilities

 

 

 

March 31,

2023

 

 

December 31,

2022

 

 

 

$

 

 

$

 

Trade payables

 

 

 530,766

 

 

 

 448,206

 

Sales tax payable

 

 

 408,997

 

 

 

 345,036

 

Accrued liabilities

 

 

 1,188,197

 

 

 

 972,889

 

 

 

 

 

 

 

 

 

 

 

 

 

 2,127,960

 

 

 

 1,766,131

 

 

 
7

Table of Contents

 

Vox Royalty Corp.

Notes to the Unaudited Condensed Interim Consolidated Financial Statements

For the three months ended March 31, 2023 and 2022

(Expressed in United States Dollars)

 

8. Share capital and additional paid-in capital

 

Authorized

 

The authorized share capital of the Company is an unlimited number of common shares without par value.

 

The number of common shares issued and outstanding as at March 31, 2023 and at December 31, 2022 is as follows:

 

 

 

March 31,

2023

 

 

December 31,

2022

 

 

 

$

 

 

$

 

Issued and outstanding: 45,126,956 (December 31, 2022: 44,758,269) common shares

 

 

 57,858,947

 

 

 

 57,020,116

 

 

Share issuances for the three months ended March 31, 2023

 

On January 24, 2023, the Company issued 215,769 common shares as a second milestone payment relating to the Goldlund royalty, for total consideration of $495,446.

 

Dividends

 

On November 14, 2022, the Board of Directors of the Company declared a dividend of $0.01 per common share payable on January 13, 2023 to shareholders of record as of the close of business on December 30, 2022. Total dividends of $447,583 were payable as at December 31, 2022, which were paid on January 13, 2023.

 

On March 13, 2023, the Board of Directors of the Company declared a quarterly dividend of $0.011 per common share payable on April 14, 2023 to shareholders of record as of the close of business on March 31, 2023. Total dividends of $496,397 were payable as at March 31, 2023, which were paid on April 14, 2023.

 

9. Equity reserves

 

Warrants

 

The following summarizes the warrant activity for the three months ended March 31, 2023 and 2022:

 

 

 

March 31, 2023

 

 

March 31, 2022

 

 

 

Number

 

 

Weighted average exercise price

 

 

Number

 

 

Weighted average exercise price

 

 

 

#

 

 

C$

 

 

#

 

 

C$

 

Outstanding, beginning of period

 

 

 3,600,000

 

 

 

 4.50

 

 

 

 251,762

 

 

 

 3.00

 

Exercised

 

 

 -

 

 

 

 -

 

 

 

 (103,432 )

 

 

 3.00

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Outstanding, end of period

 

 

 3,600,000

 

 

 

 4.50

 

 

 

 148,330

 

 

 

 3.00

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exercisable, end of period

 

 

 3,600,000

 

 

 

 4.50

 

 

 

 148,330

 

 

 

 3.00

 

 

The following table summarizes information of warrants outstanding and exercisable as at March 31, 2023:

 

Expiry date

 

Number of

warrants

outstanding

 

 

Exercise

price

 

 

Weighted average remaining contractual life

 

 

 

#

 

 

C$

 

 

Years

 

May 25, 2024

 

 

 3,600,000

 

 

 

 4.50

 

 

 

 0.99

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 3,600,000

 

 

 

 4.50

 

 

 

 0.99

 

 

See Note 10 for additional warrants classified as other liabilities.

 

Options

 

The Company maintains an omnibus long-term incentive plan dated May 19, 2020 (the “Plan”) whereby certain key employees, officers, directors and consultants may be granted options to acquire common shares of the Company. The maximum number of common shares that are issuable under the Plan is fixed at 20% of the number of common shares issued and outstanding as of May 19, 2020. As at March 31, 2023, the maximum number of common shares that are issuable under the Plan is 6,413,750. The exercise price and vesting terms are determined by the Board of Directors.

 

 
8

Table of Contents

 

Vox Royalty Corp.

Notes to the Unaudited Condensed Interim Consolidated Financial Statements

For the three months ended March 31, 2023 and 2022

(Expressed in United States Dollars)

 

The following summarizes the stock option activity for the three months ended March 31, 2023 and 2022:

 

 

 

March 31, 2023

 

 

March 31, 2022

 

 

 

Number

 

 

Weighted average exercise price

 

 

Number

 

 

Weighted average exercise price

 

 

 

#

 

 

C$

 

 

#

 

 

C$

 

Outstanding, beginning of period

 

 

 1,603,984

 

 

 

 3.71

 

 

 

 799,826

 

 

 

 3.25

 

Granted

 

 

 -

 

 

 

 -

 

 

 

 804,158

 

 

 

 4.16

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Outstanding, end of period

 

 

 1,603,984

 

 

 

 3.71

 

 

 

 1,603,984

 

 

 

 3.71

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exercisable, end of period

 

 

 1,001,951

 

 

 

 3.62

 

 

 

 199,957

 

 

 

 3.25

 

 

The following table summarizes information of stock options outstanding as at March 31, 2023:

 

 

 

 

 

Options Outstanding

 

 

Options Exercisable

 

Expiry date

 

Exercise

price

 

 

Number of

options

outstanding

 

 

Weighted average remaining contractual life

 

 

Number of options exercisable

 

 

Weighted average remaining contractual life

 

 

 

C$

 

 

#

 

 

Years

 

 

#

 

 

Years

 

June 30, 2026

 

 

 3.25

 

 

 

 799,826

 

 

 

 3.25

 

 

 

 599,871

 

 

 

 3.25

 

March 9, 2027

 

 

 4.16

 

 

 

 804,158

 

 

 

 3.94

 

 

 

 402,080

 

 

 

 3.94

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 1,603,984

 

 

 

 3.60

 

 

 

 1,001,951

 

 

 

 3.53

 

 

Restricted Share Unit Plan

 

The Plan provides that the Board of Directors may, at its discretion, grant directors, officers, employees and consultants non-transferable RSUs based on the value of the Company’s share price at the date of grant. The Board of Directors has the discretion to issue cash or equity settle the vested RSUs. The RSUs issued were treated as equity-settled instruments and measured at the grant date fair value because the Company does not have a present obligation to settle the issued RSUs in cash.

 

The share-based compensation expense related to RSU grants is recorded over the vesting period.

 

The following summarizes the RSU activity for the three months ended March 31, 2023 and 2022:

 

 

 

March 31, 2023

 

 

March 31, 2022

 

 

 

Number

 

 

Weighted average fair value

 

 

Number

 

 

Weighted average fair value

 

 

 

#

 

 

$

 

 

#

 

 

$

 

Outstanding, beginning of period

 

 

 615,044

 

 

 

 2.56

 

 

 

 581,696

 

 

 

 2.13

 

Granted

 

 

 -

 

 

 

 -

 

 

 

 263,548

 

 

 

 3.01

 

Exercised

 

 

 (152,918 )

 

 

 2.25

 

 

 

 (84,474 )

 

 

 2.01

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Outstanding, end of period

 

 

 462,126

 

 

 

 2.59

 

 

 

 760,770

 

 

 

 2.45

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Vested, end of period

 

 

 241,789

 

 

 

 2.51

 

 

 

 74,975

 

 

 

 2.31

 

 

10. Other liabilities

 

The following summarizes the other liabilities balance:

 

 

 

March 31,

2023

 

 

December 31,

2022

 

 

 

$

 

 

$

 

Warrants

 

 

 1,276,140

 

 

 

 445,216

 

PSUs

 

 

 617,767

 

 

 

 156,499

 

 

 

 

 1,893,907

 

 

 

 601,715

 

Less: current portion

 

 

 1,893,907

 

 

 

 176,434

 

 

 

 

 

 

 

 

 

 

Non-current portion

 

 

 -

 

 

 

 425,281

 

 

 
9

Table of Contents

 

Vox Royalty Corp.

Notes to the Unaudited Condensed Interim Consolidated Financial Statements

For the three months ended March 31, 2023 and 2022

(Expressed in United States Dollars)

 

Warrants

 

The following summarizes the warrant activity for three months ended March 31, 2023 and 2022:

 

 

 

March 31, 2023

 

 

March 31, 2022

 

 

 

Number

 

 

Weighted average exercise price

 

 

Number

 

 

Weighted average exercise price

 

 

 

#

 

 

C$

 

 

#

 

 

C$

 

Outstanding, beginning and end of period

 

 

 5,097,550

 

 

 

 4.50

 

 

 

 5,097,550

 

 

 

 4.50

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exercisable, end of period

 

 

 5,097,550

 

 

 

 4.50

 

 

 

 5,097,550

 

 

 

 4.50

 

 

The following table summarizes information of warrants outstanding and exercisable as at March 31, 2023:

 

Expiry date

 

Number of

warrants

outstanding

 

 

Exercise

price

 

 

Weighted average remaining contractual life

 

 

 

#

 

 

C$

 

 

Years

 

May 14, 2023

 

 

 2,289,667

 

 

 

 4.50

 

 

 

 0.12

 

March 25, 2024

 

 

 2,807,883

 

 

 

 4.50

 

 

 

 0.99

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 5,097,550

 

 

 

 4.50

 

 

 

 0.60

 

 

The Company used the BSM to estimate the period end fair value of warrants during the period using the following weighted average assumptions:

 

 

 

Three months

ended

March 31, 2023

 

 

Three months

ended

March 31, 2022

 

Expected stock price volatility

 

 

 42 %

 

 

 47 %

Risk-free interest rate

 

 

 3.78 %

 

 

 2.27 %

Expected life

 

0.60 years

 

 

1.60 years

 

Period end share price

 

 $ 3.05

 

 

 $ 2.84

 

Expected dividend yield

 

 

 1.81 %

 

 

 -

 

 

Performance Share Unit Plan

 

The Plan provides that the Board of Directors may, at its discretion, grant directors, officers, employees and consultants, non-transferable PSUs based on the value of the Company’s share price at the date of grant. The Board of Directors has the discretion to issue cash or equity settle the vested PSUs. The PSUs issued were treated as derivative instruments because the number of shares to be eventually issued is based on a percentage of the common shares outstanding at the time the performance hurdle is met. The share-based compensation expense will be recorded over the vesting period, which is the date that specific share price hurdles are met.

 

The following summarizes the PSU activity for the three months ended March 31, 2023 and 2022:

 

 

 

March 31, 2023

 

 

March 31, 2022

 

 

 

Number

 

 

Weighted

average fair

value

 

 

Number

 

 

Weighted

average fair

value

 

 

 

#

 

 

$

 

 

#

 

 

$

 

Outstanding, beginning of period

 

 

 895,166

 

 

 

 0.23

 

 

 

 787,584

 

 

 

 1.36

 

Increase for the period

 

 

 7,374

 

 

 

 0.68

 

 

 

 3,324

 

 

 

 1.22

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Outstanding, end of period

 

 

 902,540

 

 

 

 0.68

 

 

 

 790,908

 

 

 

 1.22

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Vested, end of period

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 
10

Table of Contents

 

Vox Royalty Corp.

Notes to the Unaudited Condensed Interim Consolidated Financial Statements

For the three months ended March 31, 2023 and 2022

(Expressed in United States Dollars)

 

The Company used the Monte Carlo simulation model to estimate the period end fair value of PSUs during the period using the following weighted average assumptions:

 

 

 

Three months

ended

March 31, 2023

 

 

Three months

ended

March 31, 2022

 

Expected stock price volatility

 

 

 38 %

 

 

 44 %

Risk-free interest rate

 

 

 4.34 %

 

 

 2.16 %

Expected life

 

0.48 years

 

 

0.93 years

 

Period end share price

 

 $ 3.05

 

 

 $ 2.84

 

Expected dividend yield

 

 

 1.81 %

 

 

 -

 

 

11. General and administration

 

The Company’s general and administrative expenses incurred for three months ended March 31, 2023 and 2022 are as follows:

 

 

 

Three months

ended

March 31, 2023

 

 

Three months

ended

March 31, 2022

 

 

 

$

 

 

$

 

Corporate administration

 

 

 316,799

 

 

 

 367,666

 

Professional fees

 

 

 221,030

 

 

 

 114,087

 

Salaries and benefits

 

 

 689,537

 

 

 

 685,360

 

Director fees

 

 

 27,994

 

 

 

 -

 

Depreciation

 

 

 45,885

 

 

 

 45,885

 

 

 

 

 

 

 

 

 

 

 

 

 

 1,301,245

 

 

 

 1,212,998

 

 

12. Other income (expenses)

 

The Company’s Other income (expenses) for the three months ended March 31, 2023 and 2022 are as follows:

 

 

 

Three months

ended

March 31, 2023

 

 

Three months

ended

March 31, 2022

 

 

 

$

 

 

$

 

Fair value change of other liabilities

 

 

 (830,924 )

 

 

 282,372

 

Foreign exchange gain

 

 

 (63,863 )

 

 

 63,226

 

Interest income

 

 

 53,632

 

 

 

 3,071

 

 

 

 

 

 

 

 

 

 

 

 

 

 (841,155 )

 

 

 348,669

 

 

13. Related party transactions

 

Key management personnel compensation

 

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Company, directly or indirectly, and also comprise the directors of the Company.

 

The remuneration of directors and other members of key management personnel during the three months ended March 31, 2023 and 2022 are as follows:

 

 

 

Three months

ended

March 31, 2023

 

 

Three months

ended

March 31, 2022

 

 

 

$

 

 

$

 

Short-term employee benefits

 

 

 677,211

 

 

 

 575,860

 

Share-based compensation

 

 

 641,599

 

 

 

 160,254

 

 

 

 

 

 

 

 

 

 

 

 

 

 1,318,810

 

 

 

 736,114

 

 

 
11

Table of Contents

 

Vox Royalty Corp.

Notes to the Unaudited Condensed Interim Consolidated Financial Statements

For the three months ended March 31, 2023 and 2022

(Expressed in United States Dollars)

 

14. Commitments and contingencies

 

As at March 31, 2023, the Company did not have any right-of-use assets or lease liabilities.

 

The Company is, from time to time, involved in legal proceedings of a nature considered normal to its business. The Company believes that none of the litigation in which it is currently involved or have been involved with, individually or in the aggregate, is material to its consolidated financial condition or results of operations.

 

The Company is committed to minimum annual lease payments for its premises, which renews on a quarterly basis, and certain consulting agreements, as follows:

 

 

 

April 1, 2023

to

March 31, 2024

 

 

 

$

 

Leases

 

 

 12,980

 

Consulting agreements

 

 

 18,248

 

 

 

 

 

 

 

 

 

 31,228

 

 

The Company is responsible for making certain milestone payments in connection with royalty acquisitions, which become payable on certain royalty revenue or cumulative production thresholds being achieved, as follows:

 

Royalty

 

 

$

 

Limpopo(1)(3)

 

 

 6,576,517

 

Janet Ivy(1)(4)

 

 

 2,008,424

 

Goldlund(1)(5)

 

 

 369,467

 

Brits(1)(6)

 

 

 1,250,000

 

Bullabulling(2)(7)

 

 

 669,475

 

Koolyanobbing(8)

 

 

 334,737

 

El Molino(9)

 

 

 450,000

 

Uley(1)(10)

 

 

 147,284

 

Winston Lake(11)

 

 

 73,893

 

Norbec & Millenbach(11)

 

 

 18,473

 

 

 

 

 

 

 

 

 

 11,898,270

 

 

(1)

The milestone payments may be settled in either cash or common shares of the Company, at the Company’s election.

(2)

The milestone payments may be settled in cash or ½ cash and ½ common shares of the Company, at the Company’s election

(3)

Milestone payments include: (i) C$1,500,000 upon cumulative royalty receipts from Limpopo exceeding C$500,000; (ii) C$400,000 upon cumulative royalty receipts from Limpopo exceeding C$1,000,000; and (iii) C$7,000,000 upon cumulative royalty receipts from Limpopo exceeding C$50,000,000.

(4)

A milestone payment of A$3,000,000 due upon cumulative royalty receipts from Janet Ivy exceeding A$750,000.

(5)

A milestone payment of C$500,000 or issue up to a maximum of 184,399 common shares in December 2023.

(6)

Milestone payments include: (i) $1,000,000 once 210,000t have been mined over a continuous six-month period, and (ii) a further $250,000 once 1,500,000t have been mined over a rolling 3-year time horizon.

(7)

Milestone payments include: (i) A$500,000 upon the Operator receiving approval of a mining proposal from the West Australian Department of Mines, Industry Regulation and Safety; and (ii) A$500,000 upon the Company receiving first royalty revenue receipt from the Bullabulling project.

(8)

Milestone payment due upon achievement of cumulative 5Mdmt of ore processed.

(9)

Milestone payment due upon registration of the El Molino royalty rights on the applicable mining title in Peru and the satisfaction of other customary completion conditions.

(10)

Milestone payment due upon commencement of commercial production.

(11)

Milestone payment due upon (i) the exercise of a separate third-party option agreement, (ii) the issuance of the royalty to the previous royalty owner, and (iii) the assignment of the royalty to Vox.

 

15. Supplemental cash flow information

 

 

 

Three months

ended

March 31, 2023

 

 

Three months

ended

March 31, 2022

 

 

 

$

 

 

 $

 

Change in accrued deferred royalty acquisitions

 

 

 (57,516 )

 

 

 -

 

Share issuance for royalty milestone payments

 

 

 495,446

 

 

 

 -

 

 

16. Segment information

 

For the three months ended March 31, 2023 and 2022, the Company operated in one reportable segment being the acquisition of royalty interests.

 

 
12

Table of Contents

 

Vox Royalty Corp.

Notes to the Unaudited Condensed Interim Consolidated Financial Statements

For the three months ended March 31, 2023 and 2022

(Expressed in United States Dollars)

 

For the three months ended March 31, 2023 and 2022, revenues generated from each geographic location is as follows:

 

 

 

Three months

ended

March 31, 2023

 

 

Three months

ended

March 31, 2022

 

 

 

$

 

 

$

 

Australia

 

 

 2,819,734

 

 

 

 741,678

 

Nigeria

 

 

 717,883

 

 

 

 380,995

 

Brazil

 

 

 27,733

 

 

 

 17,757

 

USA

 

 

 15,505

 

 

 

 15,505

 

Canada

 

 

 -

 

 

 

 315,084

 

 

 

 

 

 

 

 

 

 

Total

 

 

 3,580,855

 

 

 

 1,471,019

 

 

The Company has the following non-current assets in eight geographic locations:

 

 

 

March 31,

2023

 

 

December 31,

2022

 

 

 

$

 

 

$

 

Australia

 

 

 24,709,157

 

 

 

 25,162,805

 

USA

 

 

 2,292,638

 

 

 

 2,298,515

 

Canada

 

 

 2,432,859

 

 

 

 1,942,184

 

South Africa

 

 

 1,914,844

 

 

 

 1,914,844

 

Peru

 

 

 1,545,609

 

 

 

 1,545,609

 

Cayman Islands

 

 

 1,309,824

 

 

 

 1,355,709

 

Brazil

 

 

 625,760

 

 

 

 637,338

 

Nigeria

 

 

 33,310

 

 

 

 178,205

 

 

 

 

 

 

 

 

 

 

Total

 

 

 34,864,001

 

 

 

 35,035,209

 

 

17. Income taxes

 

For the three months ended March 31, 2023 and 2022, income tax recognized in net loss and comprehensive loss is comprised of the following:

 

 

 

Three months

ended

March 31, 2023

 

 

Three months

ended

March 31, 2022

 

 

 

$

 

 

$

 

Current tax expense

 

 

 178,977

 

 

 

 196,708

 

Deferred tax expense (recovery)

 

 

 604,085

 

 

 

 (92,862 )

 

 

 

 

 

 

 

 

 

Income tax expense

 

 

 783,062

 

 

 

 103,846

 

 

18. Financial instruments

 

The Company’s risk exposures and the impact on the financial instruments are summarized below. There have been no material changes to the risks, objectives, policies and procedures during the three months ended March 31, 2023 and the year ended December 31, 2022.

 

Credit risk

 

Credit risk is the risk of potential loss to the Company if the counterparty to a financial instrument fails to meet its contractual obligations. The Company’s credit risk is primarily attributable to its liquid financial assets including cash and cash equivalents and royalty receivables in the ordinary course of business. In order to mitigate its exposure to credit risk, the Company maintains its cash in high quality financial institutions and closely monitors its royalty receivable balances. The Company’s royalty receivables are subject to the credit risk of the counterparties who own and operate the mines underlying Vox’s royalty and streaming portfolio.

 

Liquidity risk

 

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they come due. The Company’s approach to managing liquidity is to ensure it will have sufficient liquidity to meet liabilities when due. In managing liquidity risk, the Company takes into account anticipated cash flows from operations and holding of cash and cash equivalents. As at March 31, 2023, the Company had cash and cash equivalents of $4,166,474 (December 31, 2022 - $4,174,654) and working capital of $3,683,329 (December 31, 2022 - $3,795,951).

 

 
13

Table of Contents

 

Vox Royalty Corp.

Notes to the Unaudited Condensed Interim Consolidated Financial Statements

For the three months ended March 31, 2023 and 2022

(Expressed in United States Dollars)

 

Currency risk

 

Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. Financial instruments that impact the Company’s net income due to currency fluctuations include cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities, income taxes payable and other liabilities denominated in Canadian and Australian dollars. Based on the Company’s Canadian and Australian-denominated monetary assets and liabilities at March 31, 2023, 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 $649,000.

 

Interest rate risk

 

The Company has cash balances with rates that fluctuate with the prevailing market rate. The Company’s current policy is to invest excess cash in cash accounts or short-term interest-bearing securities issued by chartered banks. The Company periodically monitors the investments it makes and is satisfied with the credit ratings of its banks. The Company does not use any derivative instrument to reduce its exposure to interest rate risk.

 

Commodity and share price risk

 

The Company’s royalties are subject to fluctuations from changes in market prices of the underlying commodities. The market prices of precious and base metals are the primary drivers of the Company’s profitability and ability to generate free cash flow. All of the Company’s future revenue is not hedged in order to provide shareholders with full exposure to changes in the market prices of these commodities.

 

The Company’s financial results may be significantly affected by a decline in the price of precious, base and/or ferrous metals. The price of precious and base metals can fluctuate widely, and is affected by numerous factors beyond the Company’s control.

 

Fair value of financial instruments

 

The carrying amounts for cash and cash equivalents, accounts receivables, accounts payable and accrued liabilities, and income tax liabilities on the unaudited condensed interim consolidated statements of financial position approximate fair value because of the limited term of these instruments.

 

The Company classifies fair value measurements using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The fair value hierarchy has the following levels:

 

 

-

Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities;

 

-

Level 2 - Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and

 

-

Level 3 - Inputs for the asset or liability that are not based on observable market data (unobservable inputs).

 

As at March 31, 2023 and December 31, 2022, the Company does not have any financial instruments measured at fair value after initial recognition, except for other liabilities, which are estimated using Level 3 inputs.

 

The following table provides information about financial assets and liabilities measured at fair value in the unaudited condensed interim consolidated statements of financial position and categorized by level according to the significance of the inputs used in making the measurements.

 

As at March 31, 2023

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

 

$

 

 

$

 

 

$

 

 

$

 

Other liabilities

 

 

 -

 

 

 

 -

 

 

 

 (1,893,907 )

 

 

 (1,893,907 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 -

 

 

 

 -

 

 

 

 (1,893,907 )

 

 

 (1,893,907 )

 

 
14

Table of Contents

 

Vox Royalty Corp.

Notes to the Unaudited Condensed Interim Consolidated Financial Statements

For the three months ended March 31, 2023 and 2022

(Expressed in United States Dollars)

 

Level 3 Hierarchy

 

The following table presents the changes in fair value measurements of financial instruments classified as Level 3 as at March 31, 2023 and December 31, 2022. These financial instruments are measured at fair value utilizing non-observable market inputs. The gains and losses are recognized in the unaudited condensed interim consolidated statements of loss and comprehensive loss.

 

 

 

March 31,

2023

 

 

December 31,

2022

 

 

 

$

 

 

$

 

Balance, beginning of period

 

 

 601,715

 

 

 

 3,327,672

 

Change in valuation of financing warrants (Note 10)

 

 

 830,924

 

 

 

 (2,200,312 )

Share-based compensation expense on PSUs (Note 10)

 

 

 461,268

 

 

 

 (525,645 )

 

 

 

 

 

 

 

 

 

Balance, end of period

 

 

 1,893,907

 

 

 

 601,715

 

 

Capital management

 

The Company’s primary objective when managing capital is to maximize returns for its shareholders by growing its asset base through accretive acquisitions of royalties, streams and other interests, while optimizing its capital structure by balancing debt and equity. As at March 31, 2023, the capital structure of the Company consists of $34,951,814 (December 31, 2022 - $35,414,448) of total equity, comprising of share capital, equity reserves, and deficit. The Company was not subject to any externally imposed capital requirements.

 

19. Subsequent events

 

On May 10, 2023, the Board of Directors of the Company declared a quarterly dividend of $0.011 per common share payable on July 14, 2023 to shareholders of record as of the close of business on June 30, 2023.

 

 
15