Deterra Royalties (ASX: DRR) has provided it’s full-year financial results for the financial year ended 30 June 2025.
HIGHLIGHTS
- Total revenue of $263.4 million, up 10% from the prior year:
- Mining Area C (MAC) revenue of $239.3 million
- Record production at MAC delivered a $20.0 million capacity payment
- Record sales volumes offset by lower realised pricing
- Gold offtakes net realised margin of $21.5 million on 281.4 thousand ounces
- Underlying EBITDA of $250.1 million, up 10% from the prior year at a margin of 95%
- Fully franked final dividend of 13.0 cents per share declared, representing 75% NPAT:
- Total FY25 dividend of 22.0 cents per share, fully franked representing 75 per cent of NPAT (including interim dividend of 9c per share)
- Future dividend target set at 75% of NPAT
- MAC achieved annual production of 140.1 million wet metric tonnes (100% basis), up 12.5% on prior year:
- Record volumes from South Flank as it exceeded nameplate capacity production in its first year following ramp up
- Significant progress at Thacker Pass lithium project in Nevada, USA:
- Updated NI 43-101 technical report supporting an expansion plan targeting 160,000tpa lithium carbonate equivalent (LCE) over an 85 year mine life
- Final Investment Decision (FID) announced 1 April 2025 for Phase 1:
- Construction progressing with completion targeted for late 2027.
- At 30 June 2025:
- All long-lead equipment has been awarded and detailed engineering is more than 70% design-complete
- US$574 million of construction capital and other project-related costs have been capitalised.
Julian Andrews, Managing Director and Chief Executive Officer of Deterra said:
“I am delighted to be reporting another strong set of results underpinned by increased revenues and high underlying earnings margins in a year of significant development for Deterra.
“Mining Area C has continued its outstanding performance with record volumes during the year delivering a $20 million capacity payment and offsetting lower realised iron ore prices, as South Flank exceeded nameplate capacity production in its first year following ramp up. In addition, new revenue sources from assets acquired during the year as part of the Trident portfolio contributed $22.6 million in the ten-month period of ownership.
“Our investment in the Trident assets has also brought significant option value to the Company and is ahead of our expectations in both financial contribution and progress on assets in development. Lithium Americas has announced a more than doubling of reserves and resources at the Thacker Pass project supporting a significant increase in the size and life of the project plan and commenced Phase 1 construction. We look forward to it becoming an important long-term revenue stream for many decades to come.
“Our balance sheet provides flexibility to support sustainable shareholder returns as well as the ability to pursue shareholder value creation through disciplined investment. Our diligent and consistent approach to capital allocation extends to regular reviews of Deterra’s portfolio to evaluate value realisation opportunities for non-core assets.
“Consistent with our capital allocation strategy of balancing shareholder returns with value accretive investment whilst maintaining a strong balance sheet, the Board has determined a dividend target payout of 75 per cent of net profit after tax going forward.”
