Deterra Royalties (ASX:DRR) has provided its quarterly portfolio update for the period ended 31 December 2024.
HIGHLIGHTS:
- Portfolio revenue of $59.3 million for the December 2024 quarter, up 11.7% from the prior quarter:
- Mining Area C (MAC) delivered record volumes from the Central Pilbara hub, driving iron ore revenue royalties of $53.0 million, up 4.6% on prior quarter on both higher sales and realised pricing
- Gold offtakes delivered net realised margin of $5.2 million from 109.8 thousand ounces (koz) delivered
- Other royalty revenues of $1.0 million up $0.5 million from prior quarter
- Lithium Americas Corporation (LAC) made significant progress at Thacker Pass Lithium Project, Nevada, including:
- Closing of the US$2.26 billion loan from the U.S. Department of Energy
- Closing of the US$625 million investment agreement with strategic partner General Motors Holdings LLC (GM) to fund, develop, construct and operate Thacker Pass which will result in GM holding a 38% joint venture interest in the project
- Providing limited full notice to proceed to EPCM contractor Bechtel and other major contractors with first production anticipated in Q4 CY2027
- Subsequent to the quarter end, an increase in the NI 43-1014 (non-JORC) mineral resource estimate such that Thacker Pass now contains the largest measured lithium reserve and resource in the world, supporting a doubling in the planned production capacity to 160ktpa lithium carbonate equivalent (LCE) and an increase in planned mine-life to 85 years
- Restructuring of Deterra’s global team following the integration of Trident Royalties plc (Trident) ensuring delivery of future synergies
Deterra Managing Director and Chief Executive Officer, Julian Andrews said:
“It is pleasing to report another quarter of strong revenues from our royalty portfolio. With the South Flank expansion at Mining Area C complete, this royalty continues to deliver consistent cash flow.
In addition, the Trident acquisition has outperformed expectations. We saw the first full quarter of contribution from these assets, which has provided additional sources of revenue and growth. The significant updates from LAC on the Thacker Pass Lithium Project highlight the unique and tangible benefits of the royalty model, and Deterra’s countercyclical diversification strategy.
Taken together, the closing of the U.S. Department of Energy’s US$2.26 billion loan, and the US$625 million joint venture agreement with GM to fund, develop, construct and operate the Thacker Pass has significantly de-risked the project, and largely secured capex for Phase 1.
We are also particularly delighted with LACs early-January update, noting that Thacker Pass has grown to have the largest global lithium resource and reserve, doubled the planned production profile, and increased the life-of-mine to 85-years while maintaining a competitive operating cost profile. Importantly, these milestone achievements at Thacker Pass required no additional capital expenditure by Deterra.
We look forward to a positive FID at Thacker Pass, which has been flagged for early 2025, and other significant updates from our precious and base metals assets.”
