Deterra Royalties Limited (ASX: DRR) (Deterra or Company) notes BHP’s (ASX: BHP) Operational Review released today.
To assist readers in understanding relevant operational matters relating to the Mining Area C (MAC) royalty, selected information from the report is reproduced below:
- MAC achieved production for the September 2024 quarter of 33.9 million wet metric tonnes (Mwmt) (100 per cent basis), a decrease of 0.8% per cent compared to the prior quarter.
The company receives an ongoing royalty of 1.232% of Australian dollar denominated quarterly FOB revenue from the MAC royalty area. Additional, one-off capacity payments of A$1 million per one million dry metric tonne (Mdmt) increase in annual mine production are determined for the period ending 30 June. The current demonstrated annual capacity level is set at 118 Mdmt.
As previously reported, South Flank completed ramp up to full production capacity of 80mwmt per annum (100 per cent basis) in FY24. Accordingly, Deterra will cease reporting MAC production volumes at the same time as BHP’s Quarterly Operational Reviews while continuing to include MAC sales volumes in Deterra’s Quarterly Royalty Update which is due at or around the end of the month following the end of each quarter.
