Deterra Royalties (ASX: DRR) has reported its financial results for the half-year to 31 December 2025.
HIGHLIGHTS 1H26 v 1H25
- Record first half NPAT of A$87.2m, up 36%.
- Revenue from continuing operations of A$117.2 million, up 12%:
- Mining Area C (MAC) revenue of A$116.0 million, up 12% from record sales and strong realised pricing.
- Divestment of non-core precious metal assets, primarily acquired as part of the Trident Royalties acquisition, for US$82 million (A$124m), delivering a ~28% pre-tax IRR including:
- A$107.6m received 1H26 and used to pay down debt;
- A$13.5m receivable due August 2026; and
- A$8.4m post-tax accounting gain on sale.
- Net debt of A$148.8m (31 December 2024 A$308.5m) with undrawn credit facilities capacity of A$344.0m.
- Underlying EBITDA of A$109.1 million, up 11% and with a margin of 93%.
- Fully franked interim dividend of 12.4 cents per share declared, up 38% and representing 75% of NPAT.
- Future dividend target remains 75% of NPAT.
- MAC achieved first-half production of 72.6 million wet metric tonnes (100% basis), up 6%.
- Significant progress at Thacker Pass Lithium Project in Nevada, USA:
- First draw of US$435 million on the US$2.23 billion U.S. Department of Energy (DOE) loan and DOE will receive a 5% equity stake in both Lithium Americas Corp (LAC) and the Thacker Pass project joint venture (JV);
- Project construction activities well progressed:
- Project de-risking continues with ~80% detailed engineering complete; and
- US$720 million of construction capital costs and other project-related costs capitalised to 30 September 2025.
CEO Transition Update
Jason Neal commenced his role as Interim Managing Director and CEO, effective as of 29 November 2025. Mr Neal was appointed as a Non-Executive Director on 30 November 2022 and has stepped into the MD and CEO role only as a bridge to the next CEO of our company, for which an active search process is underway. In this transitionary period, it has been business as usual and our team continues to advance various opportunities.
Commenting on the first-half result, interim managing director Jason Neal said:
“The half showcased the strong, consistent cashflow from our foundation asset, MAC, underpinned by record sales, as well as a strong pricing environment. Total consideration from the sale of non-core precious metals assets, acquired primarily as part of the Trident portfolio, delivered US$82 million, for approximately a 28% pre-tax return.
“The gold offtakes instruments were subject to delivered ounce caps and did not have the extension and expansion optionality inherent in mining royalties that are core to Deterra’s portfolio. Accordingly, we capitalised on a strong gold price environment to sell these assets and paydown net debt.
“Throughout the half, the Thacker Pass Lithium Project continued to advance toward first production and cashflow on our royalty. Project development is tracking well against the late CY27 target of first lithium carbonate production. The US$435 million first draw of the DOE Loan, and the equity positions taken by the DOE in LAC and the JV, provide 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.
“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. Largely through non-core asset sales in the half year, our undrawn debt capacity has increased to A$344m providing available funding to act opportunistically. Consistent with our capital allocation strategy of balancing shareholder return, value accretive investment and a strong balance sheet, the Board has maintained a dividend target payout of 75 per cent of net profit after tax going forward.”
