Deterra Royalties (ASX:DRR) has provided its financial results for the half-year ended 31 December 2024 (1H25).
HIGHLIGHTS
- Total revenue of $112.3 million (6% decrease: 1H24: $119 million)
- Mining Area C (MAC) record sales of 68.7 million wet metric tonnes (mwmt, 100% basis) generating $103.7 million revenue
- New revenue sources from Trident acquisition deliver $7.9 million revenue
- New revenue sources partially offset a 22% decrease in iron ore pricing
- Underlying EBITDA of $105.9 million at a margin of 94%
- Fully franked interim dividend of 9.0 cents per share declared – representing 74.5% of NPAT
Julian Andrews, Managing Director and Chief Executive Officer of Deterra said:
“We are signing off the half-year to 31 December 2024 with a healthy balance sheet and strong, consistent revenues underpinned by record volumes produced at MAC and new revenue sources from recently acquired gold assets.
“Deterra will pay a fully franked interim dividend of 9 cents per share for a payout ratio of 74.5% of NPAT consistent with our commitment to return a minimum of 50 per cent of NPAT as ordinary dividends in each six-month period.
“MAC is the main contributor to Deterra’s revenue sources, meaning the Company’s revenue is leveraged to iron ore prices in the near-to-medium-term.
“Factoring in iron ore pricing volatility is key to our commitment to deliver long-term shareholder value. This is reflected in our strategy to build a diversified portfolio through patient and disciplined investment in value accretive royalty assets that provide lower risk exposure to mining activity whilst retaining extension and expansion upside.
“Through the Trident acquisition we have capitalised on a counter-cyclical investment in high quality assets with substantial optionality. These assets have exceeded our expectations in both financial contribution from gold assets and progress on assets in development, particularly at the flagship Thacker Pass Project.
“The update from Lithium Americas Corporation in January 20252 substantially increased our economic interest for no additional capital outlay by Deterra. Thacker Pass now boasts the world’s largest global lithium reserve and resource supporting a doubling of planned production capacity and a life-of-mine of up to 85-years while maintaining an exceptionally competitive operating cost profile.
“Thacker Pass is well supported by its strategic partner General Motors as well as the US Department of Energy and we look forward to seeing Lithium Americas bring Thacker Pass online in 2027.”
