Vox Royalty Corp (VOXR): A Hidden Gem in the Mining Royalty Sector

The mining royalty sector has long been a niche investment theme, but few companies combine disciplined acquisitions, high-margin assets in stable jurisdictions, and a clear path to production growth like Vox Royalty Corp (VOXR). As global gold prices hover near record highs and commodity demand surges, VOXR's strategy of focusing on underappreciated Australian gold projects positions it for significant upside—particularly in 2026. Investors looking for a leveraged play on rising gold prices and a royalty model with improving capital efficiency should take note.

A Disciplined Acquisition Strategy, Backed by Strong ROIC Trends

VOXR's value creation hinges on its high-return, low-risk acquisitions of royalties and streams in politically stable regions like Western Australia. Unlike many peers chasing high-risk, early-stage projects, VOXR targets assets with operational certainty, such as its 3.0% net smelter return (NSR) royalty on the Horseshoe Lights copper-gold project. This focus has allowed the company to maintain a TTM ROIC of -4.94% as of June 2025, which, while still negative, marks a 33% improvement over its five-year average of -13.74%.

While the ROIC remains in negative territory, it's important to contextualize this within the sector. Companies like Iperionx (-83% ROIC) and Dolly Varden Silver (-15%) are struggling with capital allocation, whereas VOXR's improving metrics reflect its focus on high-margin, near-term cash flow assets. For instance, the Kanmantoo copper-gold royalty acquisition—finalized in May 2025—adds immediate revenue visibility and diversifies the portfolio into South Australia, a region with robust infrastructure.

Near-Term Catalysts: 2026 Production Ramp-Up and Toll Processing Gains

The company's 2026 production ramp-up is a critical catalyst. Nine royalty-linked gold deposits in Western Australia are set to begin production between mid-2024 and mid-2026, including:
- Myhree UG (Black Cat Syndicate): Expected to start in H1 2026, leveraging the Lakewood processing plant.
- Mt Ida (Aurenne Group): Scheduled for H2 2026, with its own processing facility.

These projects are part of a broader strategy to capitalize on Western Australia's gold boom, where high prices and efficient permitting are accelerating project timelines. Additionally, the Horseshoe Lights toll processing agreement, set to begin in late 2025, will generate royalty revenue from 500,000 tonnes of stockpiled material annually—a cash flow tailwind before full-scale production kicks in.

Undervalued Australian Asset Exposure and Sector Mispricing

North American investors often overlook Australian gold assets, even though they offer some of the world's lowest geopolitical risks and most advanced mining infrastructure. VOXR's portfolio benefits from this mispricing:
- Castle Hill Royalty Portfolio: Acquired in 2024, this includes Evolution Mining's Mungari 4.2 Project, set to contribute from early 2026.
- Plutonic East and Boundary deposits: Both benefit from existing infrastructure, reducing execution risk and boosting margins.

While gold prices have surged to over A$5,300/oz, VOXR's stock has lagged, offering a valuation discount. At current prices, the company trades at a 30% discount to its net asset value (NAV), based on conservative estimates of its royalty streams. This gap should narrow as production ramps up and investors recognize the optionality embedded in its Australian assets.

Risks and the Bull Case: Why 2026 Could Be a Breakout Year

Risks include commodity price volatility and reliance on third-party operators. However, with gold prices near all-time highs and major operators like Evolution Mining and Melody Gold advancing timelines, the upside outweighs the risks.

The bull case hinges on two factors:
1. ROIC improvement: As high-margin projects like Myhree UG and Mt Ida come online, the company's capital efficiency should rise sharply. A return to positive ROIC would reclassify VOXR from a laggard to a leader in capital allocation.
2. North American investor awareness: VOXR's recent inclusion in the Russell indexes and its upward earnings revisions (2025 guidance raised to $13–$15M) will attract broader attention, driving valuation catch-up.

Investment Thesis: A Compelling Buy for Growth Investors

VOXR checks all the boxes for a high-growth, undervalued royalty play:
- Disciplined acquisitions in stable jurisdictions.
- Near-term cash flow catalysts from 2026 production and toll processing.
- ROIC trajectory improving despite sector headwinds.
- Underappreciated NAV offering a margin of safety.

Investors should buy VOXR shares at current levels, with a target price of $4.50–$5.00 by end-2026, assuming gold prices remain elevated and production targets are met. The stock's 1.5% dividend yield (increasing for the third year) adds further comfort.

Final Thoughts

Vox Royalty Corp is a rare blend of strategic discipline, geographic focus, and timely execution in the mining royalty sector. With its 2026 production ramp-up and undervalued Australian assets, VOXR offers a leveraged play on gold's bull market—while avoiding the risk of chasing unproven projects. For growth investors willing to look beyond headline ROIC metrics, this could be one of the decade's best royalty stories.