Deterra Royalties (ASX:DRR) has provided a portfolio update for the quarter ended 30 June 2025.
HIGHLIGHTS
- Portfolio revenue of $89.1 million for the June quarter, up 44% on the prior quarter
- Mining Area C (MAC) delivered $60.0 million in the June quarter, up 8% on the prior quarter with record sales volumes offset by lower realised pricing
- Record production at MAC delivered a $20 million capacity payment
- Gold offtakes delivered a record net realised margin of $8.7 million up 56% on the prior quarter with record margins achieved on 75.1 thousand ounces (koz) delivered
- Lithium Americas Corporation (LAC) and strategic partner General Motors Holdings LLC (GM), announced Final Investment Decision for Phase 1 of the Thacker Pass Lithium Project in Nevada, US
- Project construction is well underway with Bechtel as EPCM contractor and first lithium carbonate equivalent (LCE) production targeted for 2027. Project execution is substantially de-risked with first permanent concrete placed in early May 2025, all long-lead equipment awarded and detailed engineering more than 60% design-complete
- Thacker Pass utilises well proven technology and equipment – no novel equipment is required and the flowsheet consists of standard equipment that has been proven for decades
Julian Andrews, managing director and chief executive officer of Deterra said:
“Deterra has delivered another strong quarterly result. At MAC, South Flank exceeded nameplate capacity production in its first year following ramp up, delivering a record $20 million capacity payment to Deterra.
“In addition, the strong gold price and elevated volatility saw record margins delivered from the gold offtakes which were added to Deterra’s portfolio in 2024 as part of the Trident acquisition.
“The fully funded construction of Phase 1 of the Thacker Pass Lithium Project is now underway after Lithium Americas and its strategic partner General Motors made a Final Investment Decision during the quarter.
“Thacker Pass holds the world’s largest lithium deposit with first LCE production targeted for 2027. This long-life project is well-timed to capitalise on a forecast strong recovery in global lithium demand. With a targeted operating life of 85 years, Thacker Pass is expected to add a complementary and diverse long-term revenue stream to MAC.
“Our balance sheet is strong and offers flexibility for Deterra to provide ongoing shareholder returns as well as the strategic optionality to diligently pursue shareholder value creation opportunities through strict royalty investments and financing opportunities.
“This diligent and consistent approach extends to regular reviews of Deterra’s portfolio to evaluate value realisation opportunities for our non-core precious metal assets.”
