Strong $164.2m net profit for FY26 delivers 10.8cps final dividend
Deterra Royalties (ASX: DRR) has reported its financial results for the full year to 30 June 2026.
HIGHLIGHTS FY26 v FY25
- Strong full-year NPAT of A$164.2m, up 5%.
- Revenue from continuing operations of A$236.2 million, up 6%. Mining Area C (MAC) revenue of A$234.4 million, up 7% from:
- Record production of 151.8 million wet metric tonnes (100% basis), up 8%;
- Record sales of 140.1 million dry metric tonnes (dmt), up 9%;
- Partially offset by lower AUD realised iron ore sales price of A$135.8/dmt, down 2%.
- Divestment of non-core precious metal assets, primarily acquired as part of the Trident Royalties acquisition, for US$82 million (A$124m), representing ~45% of the consideration paid for Trident and delivering a ~28% pre-tax IRR including:
- A$107.6m received 1H26 and used to pay down debt;
- A$12.7m receivable due August 20265; and
- A$8.4m post tax accounting gain on sale.
- Net debt of A$132.5 million (30 June 2025: A$270.6m) with undrawn credit facilities capacity of A$357.0 million.
- Underlying EBITDA6 of A$222.2 million, up 6% and with a margin of 94%.
- Fully franked final dividend of 10.8 cents per share declared, for a total FY26 declared dividend 23.2 cents per share, up 5% and representing 75% of NPAT. Future dividend target remains 75% of NPAT7.
- Thacker Pass advancing at full pace:
- Continued support of the U.S. Administration and the Department of Energy (DOE) with US$1.2 billion received advances of the US$2.2 billion DOE loan (DOE Loan);
- Project construction activities well progressed:
- Surpassed 95% detailed engineering design and over 80% procurement complete at June 2026;
- Bechtel is EPCM contractor with US$1.8 billion of construction capital costs and other project-related costs capitalised at 30 June 2026; and
- Mechanical completion targeted late 2027 with ramp-up to full production capacity (Phase 1) of 40,000 tonnes per annum (tpa) scheduled to occur during calendar year 2028.
Commenting on the FY26 results, interim managing director/CEO Jason Neal said:
“FY26 showcased the strong, consistent cashflow from our foundation asset, MAC, underpinned by record production and sales, partially offset by a lower AUD 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 pay down net debt.
“Throughout the year, the Thacker Pass Lithium Project continued to advance towards first production and cashflow on our royalty. Project development is tracking well against the late CY27 target of first lithium carbonate production. US$1.2 billion has been drawn from 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 continue to pursue opportunities for royalty and streams to add to our portfolio, building from the strong foundation of the MAC and Thacker Pass royalties. Largely through non-core asset sales during the year, our undrawn debt capacity has increased to A$357m, 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 payout of 75 per cent of net profit after tax”.
