My name is Aashi Shah, and I'm an analyst here at Sidoti. With me today, I have Vox Royalty Corp. It trades under the ticker VOXR, and I'm happy to welcome Spencer Cole, CIO of the company. We have about 30 minutes today, including the Q&A. If you have any questions, please submit them at the Q&A section at the bottom of your screen, and I will be sure to present it to the management. With that, Spencer, I will let you take over. Thank you.
Thanks so much for that. Thanks to the Sidoti Group for the opportunity to present the Vox Royalty story today. You're hearing about Vox at a really exciting time, both in terms of the company's 10-year history and also in terms of where we find ourselves in macro markets and certainly the gold price environment that we're in today. With gold at record levels over $3,000 an ounce, a lot of generalist investors are looking for leveraged investments, leveraged ways to play gold price specifically. Some of these generalist investors might have been burnt on mining stocks in the past. Small-cap royalty models that are heavily weighted towards gold, such as Vox Royalty, present a really interesting investment opportunity, particularly for generalist investors in these markets. With that, I'll dive into the presentation. I will be making some forward-looking statements.
I will refer you to the disclaimer on our corporate presentation on our website. As I touched on briefly before, Vox was created to solve a very specific problem. That problem really is mining equities have historically underperformed relative to most sort of equity indices. That is for a few different reasons. Mining is a tough business, as many investors know. It is highly capital-intensive. It presents really esoteric engineering and geological risks. Unfortunately, to progress a new discovery from exploration through development and production, it typically involves a lot of equity dilution, which can cause misalignment between management and investor. Vox was really created to solve these problems. We were seeded by generalist investors 10 years ago in the U.S. and created for markets very similar to the markets we find ourselves in today. We are a returns-driven mining royalty investment company.
What does that mean? It means we're targeting some of the highest return on invested capital in the entire mining royalty industry. I'll touch more on that later in the presentation. We were created by investors for investors. When you look at how much of the company management holds, we own over 10% of the company ourselves. We view ourselves as investors first and foremost. Every time we evaluate and acquire a new mining royalty investment, it's as investors ourselves with our own capital. Over the last 10 years, we've developed some really unique competitive advantages, including the world's largest proprietary database of these mining royalty contracts. That allows us to find forgotten royalty contracts that cover mines that are just on the cusp of being built. We offer a very capital-light and headcount-light investment platform.
We have a full team of six senior executives, but that encompasses a portfolio of approximately 70 separate mining royalty investments. As I mentioned previously, our team of senior executives are investors, and this is the majority of our personal wealth as well. What do we do and how do we differ from the other listed mining royalty investment companies? I said on the previous slide, our North Star or our guiding light is return on invested capital. That is more specifically compounding per-share returns on a truly risk-adjusted basis. We do that by focusing on what we call legacy mining royalties.
A mining royalty contract, for those who are unfamiliar, is really just a contract between two parties that entitles the holder of that royalty contract typically to a percentage of revenue from the mine as and when the mine is built and brought into production. There are two different ways to get exposure to mining royalty contracts. One way is to find historical legacy royalty contracts. For example, we did a deal with a family of ranchers in Nevada, and the grandfather, his ranch was prospective for gold. A mining company approached him for the gold mineral rights, and he was granted a 1% revenue contract if they ever made a discovery and built a mine. We would approach that family of ranchers and buy that legacy mining royalty contract.
The other way to create royalties, which we do not exclusively really focus on, is as a form of project finance. Some of the other larger royalty companies, such as Franco- Nevada, focus on writing project finance royalty contracts. We typically avoid that type of royalty creation. We find greater alpha or greater returns pursuing legacy or secondary royalty contracts. I mentioned we are really singularly focused on compounding per-share returns. For us, I guess one of the key metrics of success is we have generated a 92% CAGR on a cash flow per-share growth basis over the past three years. That is what success to us really is. We have a very strong competitive advantage. We have built a systematic, repeatable process to generate royalty deal flow with far less competition and at far more attractive prices than our competition.
We've built our portfolio of 70 royalties with extremely low geopolitical risk, some of the lowest in our entire industry. We're 90% weighted towards tier-one mining jurisdictions: Australia, U.S., and Canada. In terms of the actual characteristics of the mines that we focus on, we love simple. What I mean by that is mining is a difficult enough business without layering on optional technical mining risks. We try and avoid country risk. We try and avoid deep underground mines. We stick to basic, simple geology, simple engineering that's been done the same way for the last 50 to 100 years. All else being equal, our portfolio is heavily weighted towards shallow open-pit mines operated by large-cap mining companies that are well capitalized. Our management team is made up of technical experts on the front lines of the business.
We're a team of mining engineers and geologists who are obsessively focused on understanding both risk and reward when we do due diligence on royalty investments. A little bit about our capital structure and our royalty portfolio. We have a very tight capital structure. We've got about 51 million shares out, no warrants. We're about a $120 million-$125 million market cap company. We have approximately $10 million of net cash on the balance sheet. We have no debt, but we've got a credit facility that's fully undrawn of $25 million. So approximately $35 million of dry powder on the balance sheet for further royalty acquisitions.
When you look at our investor base, we have some of the who's who of large and sophisticated mining royalty investment groups, groups such as BlackRock, U.S. Global out of San Antonio, and some of the largest European mining and gold funds on the register as well. Importantly, there's a growing base of U.S. generalist investors and U.S. family offices who've been buying through our Nasdaq listing. Increasingly, we're viewed as sort of a generalist haven for leveraged exposure to metals, particularly through our U.S. Nasdaq listing. A little bit about our royalty portfolio. We have 70 royalties, as I mentioned. We're about 70% weighted towards precious metals. Most of that's in gold. The other 30% is across some base metals such as copper, some nickel, zinc, also some iron ore. I touched on our extremely low geopolitical risk.
I'll dive more into why Australia on a later slide. In terms of the number of producing royalties, we have seven out of our 70 royalties currently producing. The five analysts that cover the stock expect that to grow organically north of 20 over the coming years. That implies a lot of embedded organic revenue growth. Assuming we did no further royalty acquisitions, the sell side analysts expect quite considerable top-line revenue growth as we have new royalty properties coming into production and commencing payment to us. The left-hand side of this slide is just a reiteration of how heavily weighted towards Australia we are. Almost 100% of our current revenue is sourced from Australia. Approximately 70% of our value within our portfolio is weighted towards Australia. Australia is just the most pro-mining jurisdiction on the planet.
Because we focus on acquiring royalties before they come into production, before the mine is built, what we want is mining jurisdictions that are extremely pro-mining, that have abundant capital, abundant labor, where the probability of that royalty moving into construction and production is maximized. Those conditions are really optimized in parts of the world like Western Australia. On the right-hand side of the slide, this is really an anomaly for a company of our size, a $120 million company. Approximately two-thirds of our royalty portfolio is operated by some of the who's who of the mining industry, multi-billion dollar operators that have deep balance sheets and are aggressively bringing out our royalty properties into development and production.
One of the added reasons why we love acquiring royalties, particularly gold royalties in Western Australia, is most investors are aware that gold in U.S. dollar terms is at record levels. What a lot of people do not realize is when you convert that into local currency, so for example, our dominant weighting is to Australia, when you convert the U.S. dollar gold price into Australian dollars, it is almost at AUD 5,000 an ounce. What that means for our 51 royalties in Australia is these operators have local currency costs but are selling into a U.S. dollar gold price environment. Their margin expansion as gold increases in Australian dollar terms is not exponential, but pretty close to exponential. All that incremental free cash flow growth, a large part of that is being reinvested back into the ground and looking for any way to accelerate production forward.
Us being typically top-line revenue linked in our royalty contracts, we get all the benefit of that high gold price environment and all that production being accelerated forward. This is a busy slide, but what this is basically saying is on a backward-looking two-year and a forward-looking two-year basis, we have between five to eight royalties in Western Australia, gold royalties that have either just been brought into production or are on the cusp of being brought into production. Just a wealth of organic development and project acceleration that we're seeing in our West Australian gold royalties that is all to the benefit of Vox's investor base. This slide just touches on a little bit about some of our returns across our portfolio.
We've invested approximately $50 million into our royalty portfolio, and we're almost fully paid back on that total capital deployed, despite the fact that we have considerable mine life ahead of us. On the left-hand side of this slide, you see some of the multiple uninvested capital we've been generating from sort of 2x to, in some cases, up to 14x our money, typically generated within a payback period of two to three years on mine lives, often in excess of 10 years. Just a very scalable, high-return business model underpinned by our technical management team selecting the right mining assets that are moving forward. We have a number of other royalties that we're expected to get full payback on over the next 12 months. This slide just reiterates, I guess, our focus towards large-cap operators.
On the left-hand side, you see these are multi-billion dollar operators up to almost $60 billion with the Zijin Group out of Hong Kong in a safe jurisdiction of Australia with simple open-pit mines that are aggressively being moved forward. Per dollar of royalty revenue that comes back to our investors, we've got some of the lowest risk per dollar of royalty revenue. That's ultimately how we deliver a very high risk-adjusted return on capital for our investors. A little bit about our revenue growth in the last sort of three to four years. We've over-tripled revenue over the last three to four years.
We think the best is still yet to come in terms of the number of producing properties that are being accelerated and ultimately the number of paying properties that we'll have in our portfolio and then what that translates to in terms of organic revenue growth. Yeah, we're very excited about what we've delivered in the last three years. It really was transformational. In terms of the assets that are coming online in the coming quarters and years, we're equally optimistic about what we have in front of us. We do pay a dividend. We pay the highest dividend yield within the mining royalty industry. Candidly, the most consistent investor feedback is investors are buying us as a growth at reasonable price or GARP type strategy rather than us being a dividend yield per se. I touched on our revenue growth already.
Despite everything that I've shared with you to date, we still trade at a meaningful discount to the five brokers' consensus price target that they've independently set. We have a number of key catalysts coming up over the course of this year. A lot of that is around organic growth in our West Australian gold royalties. We are excited quarter on quarter, we are able to share just a wealth of organic news flow from our operating partners as they accelerate these projects into production and as we start to see incremental royalty revenue on these new producing lines. Whether you look at over the next six months, over the next two years, or beyond two years, we have just a wealth of new developments and properties that we expect to come into production for the first time.
That is ultimately what underpins a lot of the operating leverage in our stock. As I said from the outset, we are a team of six senior executives. We could double the size of our royalty portfolio without hiring any additional staff. We have hit this really attractive inflection point where the operating leverage has really been maximized in the business. Each incremental royalty that starts paying from here, we have a large amount of that drops through to the bottom line into free cash flow to either reinvest or to return to investors. With that, I will wrap up and take a breath. Thanks so much for everyone's time. If there is any follow-up, we will make ourselves available accordingly.
Thank you so much for your time, Spencer. I really appreciate it.
For the audience, I would like to remind everybody, if you have any questions, please submit them at the Q&A function at the bottom of your screen. Spencer, I just wanted to ask, what does a typical transaction look like? What are the economics around that? Why would someone sell to you? How does that work, basically?
Yeah, it's a great question, Aashi. I guess a typical transaction, I'll take a real example. We acquired a gold royalty from an automotive parts company. It sounds like a strange company to actually own a mining royalty contract. The backstory here was this was a listed company in Australia that historically was a listed mining exploration company. It was hollowed out as a shell company, and an automotive business was dropped into the shell.
That new management team from the automotive company did not realize that the shell company they inherited to go public actually still held this interesting gold royalty contract. We approached them and we said, "Look, we'd like to buy this forgotten royalty contract. We'll give you a few hundred thousand dollars for it." For them, it was found money. They did not even realize they owned that asset a few months earlier. We were able to buy it for a couple hundred thousand dollars in cash. Since then, a few years later, that royalty property has come into production. Now we expect to make north of 10x our money on that investment.
Wow. Can you tell us how does Vox evaluate the trade-off between reinvesting in new royalties and returning capital to shareholders?
Yeah. We are sort of an investor-driven company.
As owners of the business ourselves, we own 10% of the company, and four of my brothers and sisters are Vox shareholders. We really do view this as investors working for investors. Each incremental dollar of capital has to justify where it goes, whether that is the highest return on investment, actually acquiring new royalties, or if we do not see value in the market to acquire new royalties, we will look for ways to return that to investors. We do have an active buyback program. As I said, we are paying the highest dividend yield in the industry.
Each month and quarter, when we meet with our board, we sit down and we say, "Okay, what is the best incremental use of that incremental dollar?" There is a very lively discussion on a periodic basis internally about whether to return more capital or to deploy into really value-accretive deals. It is an ongoing conversation that we are constantly reassessing.
Right. Talking about new opportunities, are there any new opportunities in other minerals, such as rare earths, that could potentially drive growth in the launch portfolio?
Yeah. We are constantly looking at different new metals and commodities. I think with the one sort of health warning or caveat that some emerging or newer metal groups, particularly in the sort of battery electrification sort of thematic, some of them are, I guess, much more complicated from a mineral processing perspective.
Anytime you need a PhD chemistry set or a PhD sort of expert to explain how you're going to separate the metal, we start to think, "Okay, there's probably a bit too much technical mining or processing risk here." As I said, we love simple, and gold mining is generally very simple. If we can reduce that technical mining risk, it often means that we'll stay away from some of these niche metals that are a bit more challenging to process and extract or even to sell if you need a specific downstream customer. We'll look at them, but if the returns and the risk profile doesn't stack up relative to other conventional metals, we won't pursue them.
Right. Another question regarding the portfolio strategy. How do you assess new opportunities, and what are the key criteria when you're adding new assets?
I understand it has to be simple. The mining process has to be simple. Other than that, what are you looking at when you're adding things to the portfolio?
Yeah. We're looking at what's the quality of the actual geology, and does it have potential to expand? A lot of our royalties cover large areas of land. We like to see maybe it's an initial 10-year mine life, but we can see potential it could double or triple. We like expandable geology. Also, what we look for is mining operators who are well-capitalized, have very experienced teams who've mined in that region or that area before, and they've mined that specific sort of mine type. Obviously, from the jurisdiction, we want the right sort of supportive operating environment and government and community.
With all those things lined up, and we like the royalty sort of calculation or terms, that will absolutely pursue opportunities of that nature.
Right. No, that makes sense. How do you balance between the exposure between development stage projects and producing assets?
We think about our sort of portfolio as a bit of like a barbell, like you're lifting a weight. It needs to be balanced, and we're the two ends of the barbell. One is cash flow, and the other one is sort of longer-dated NPV. We always try and keep that in balance. We think if you're too heavily weighted towards immediate current cash flow, but you don't have the longer-term blue sky optionality in the ground, we think it's less compelling for investors.
We always try and stay balanced and have a healthy mix between currently producing and expected to produce in the future. Often, we'll buy a portfolio of royalties, and it might have one producing royalty today, but then, let's say, 5-10 earlier stage royalties. When we do these portfolio transactions, it balances out those two ends of the portfolio really nicely. It's a sort of an elegant way to stay balanced.
Right. How do you monitor your sites and the production? How much control do you have over that? Is it like a day-to-day meeting that you have with them, or how does that work?
Yeah. We typically have quarterly calls with our larger operating partners where we talk about what's happening on the ground.
We have the benefit of the overwhelming majority, over 90% of our royalty properties are operated by publicly traded companies. There is a lot of public market disclosure on these mining assets, which really helps monitoring the properties. We will also use things like satellite imagery. We will use drone surveys. Also, selectively, in our royalty contracts, we do have the ability to audit some of our operating partners. We will typically receive quarterly or monthly royalty statements. If we want to audit, we have that option. I would say it is a very constructive dialogue we have with our operating partners, typically on a quarterly touchpoint.
Okay. No, that makes sense. Great. As the final question, do you have any closing remarks for the investors here today?
Look, I mean, what all I would leave investors with is if you are looking for a smarter way to get exposure to the gold price or metal prices holistically, but you might have been burnt by one junior mining company in the past, or you might not have the toolkit to analyze mining stocks if you're not an engineer or geologist, I think take a closer look at Vox because I think we present a really attractive compounding model, particularly for generalist investors that want this leveraged exposure to metals without the downsides common to small-cap mining companies. Yeah, I think it's a great time to be hearing about the story. I just encourage, if anyone has questions, feel free to reach out directly to the company through our website. We'd love to have follow-up calls with anyone.
Great. Great. Thank you so much for your time today, Spencer. I would appreciate everybody here for taking time and speaking with us. Thank you so much. Have a great day.
Yeah. Thanks a lot.