Freedom flags small-cap gold royalty company Vox as deeply undervalued by market

The market is underestimating the growth potential of Canadian gold royalty company Vox Royalty, Freedom Broker believes. Vox delivered stronger third-quarter results than the analysts expected, while the acquisition of 10 new assets is set to further improve its financial position. Freedom Broker believes the current share price offers investors an attractive entry point.

The market values Vox Royalty shares “unjustifiably low”: on an EV/EBITDA basis, the stock trades at more than a 50% discount to peers, Freedom Broker said in a note seen by Oninvest. Given this, Freedom Broker reiterated its “buy” rating on the stock and its $5.80 per share target price, implying 47% upside relative to the November 14 close.

“Investors should view the current levels as an attractive entry point ahead of improved financial performance in 2026,” the note said.

Vox’s third-quarter results exceeded Freedom Broker’s expectations. Revenue rose 57% year over year to a record $3.80 million, 3.4% above Freedom Broker’s forecast. Net income reached $161,673, versus a loss of $107,613 in the third quarter of 2024. Profit was four times higher than the analysts projected. Freedom Broker said the results highlight exceptional operating leverage – profits are rising faster than revenue – along with a more disciplined approach to costs by the management.

The firm also pointed to Vox’s improving outlook. In July, Vox said its operating partners had advanced several projects to new development phases. In September, it announced the acquisition of 10 assets from Deterra Royalties. Freedom Broker writes that these assets are expected to generate roughly $7 million in annual royalty revenue starting in 2026.

Vox positions itself as a mining royalty company. It describes royalties as an increasingly popular way for investors to gain exposure to the sector without the risks tied to owning miner stocks. Investors fund a project but receive royalties – a share of revenue – rather than an ownership stake. Once considered an alternative structure, it is now widely used, according to the company.

Vox holds a portfolio of more than 70 royalty-generating projects, with most located in North America and Australia.

MarketWatch data shows that Wall Street analysts assign five “buy” ratings to Vox Royalty shares. Their average target price is $5.75 per share, which implies roughly 46% upside from the last close.

The AI translation of this story was reviewed by a human editor.