Deterra Royalties (ASX: DRR) has provided a portfolio update for the quarter ended 30 September 2025.
HIGHLIGHTS
- Portfolio revenue of $58.5 million for the September 2025 quarter, up 10% on the prior year
- Mining Area C (MAC) delivered strong iron ore revenue royalties of $54.0 million, up 7% on the prior year on both higher realised pricing and sales volume
- Gold offtakes delivered net revenue of $4.2 million
- Divestment of non-core precious metal assets for US$82 million (~A$124 million) delivers a ~28% pre-tax IRR
- US$56 million sale of gold offtake portfolio
- US$4 million sale of Dandoko and St Ives gold royalty assets; and
- US$22 million sale of La Preciosa silver royalty asset
- Thacker Pass Lithium Project progress
- Subsequent to the quarter, Lithium Americas Corporation (LAC) and strategic partner General Motors Holdings LLC (GM) finalised and received the first draw of US$435 million (First Draw) on the US$2.23 billion U.S. Department of Energy (DOE) loan (DOE Loan)
- The DOE will receive a 5% equity stake in both LAC and the Thacker Pass project joint venture (JV).
- Project construction activities well progressed
- Project de-risking continues with ~70% detailed engineering complete;
- Bechtel appointed as EPCM contractor with $574.1 million of construction capital costs and other project-related costs capitalised to 30 June 2025; and
- First lithium carbonate equivalent (LCE) production targeted for the end of 2027
- Managing Director and Chief Executive Officer (CEO) transition
- Subsequent to the quarter, Deterra advised that Julian Andrews will step down as the Company’s Managing Director and CEO
- Non-executive Director, Mr Jason Neal, will be appointed interim Managing Director and CEO
- The Board has commenced the executive search for the Company’s next Managing Director and CEO
Julian Andrews, Managing Director and Chief Executive Officer of Deterra commented:
“The quarter showcased the strong, consistent cashflow from our foundation asset, MAC, the diligent work of our team and the strength of our strategy.
“Our portfolio revenue has increased 10% up on the prior year, underpinned by strong production and realised pricing at MAC.
“In Deterra’s 13 months of ownership, record gold prices and volatility saw the gold offtakes deliver $25.7 million in net revenue. Unlike project royalties, offtakes are subject to ounce caps and therefore are inherently finite, and Deterra capitalised on record gold prices to sell the assets.
“Proceeds from the sale of these non-core assets together with other precious metals assets, delivered US$82 million, for approximately a 28% pre-tax return.
“The investment we made in the Thacker Pass Lithium Project continues to offer attractive growth for shareholders at no additional capital outlay by Deterra.
“The quarter saw project development tracking well against the target of first lithium carbonate production in late-CY27. Together, the US$435 million First Draw of the DOE Loan and the equity positions taken by the DOE in LAC and the JV, provides pathways for the JV operators to accelerate the production timeline and reinforces the US government’s support of Thacker Pass as a project of strategic importance.
“With our portfolio optimised, and a strengthened balance sheet, we will continue to drive value from our core MAC and Thacker Pass royalties and earlier stage royalty assets, while also diligently pursuing opportunities for royalty investments and financing through the strict lens of shareholder value creation.”
