Deterra Royalties Ltd · ASX:DRR
Deterra Royalties — H1 FY2024 Earnings Presentation
19 slides from Deterra Royalties's earnings presentation, Feb 16, 2024
Slide 1: Half Year FY2024 Results Presentation
Half Year FY2024 Results Presentation 16 February 2024
Slide 2: Important notices and disclaimer
Important notices and disclaimer This presentation has been prepared by Deterra Royalties Limited (“Deterra”, “the Company”). By accessing this presentation you acknowledge that you have read and understood the following statement. The material in this presentation is general summary information abo
Slide 3: 1H24 Highlights
1H24 Highlights High quality REVENUE Mining Area C (MAC) royalty receipts AUD million assets delivering $119 million& strong financial NPAT $79 million, 95% EBITDA1 Margin performance Mining Area C (MAC) production 61 Mwmt 265 46 228 13 Supporting shareholder 14.89¢/share 140 126 119 Fully franked 1
Slide 4: Financial Results
Financial Results Simple business model continues to deliver strong financial performance 4
Slide 5: 1H24 Highlights
1H24 Highlights High quality assets continue to deliver strong financial performance REVENUE $119 million EBITDA1 $113 million 95% EBITDA MARGIN PAYOUT NPAT $79 million 100% NPAT DIVIDENDS $79 million 14.89 ¢/sh Interim (Declared), fully franked 5 (1) See notes on slide 2 – Non-IFRS Measures
Slide 6: 1H24 Highlights: Revenue
1H24 Highlights: Revenue Stronger AUD realised iron ore pricing offsets lower sales volume at MAC MAC Performance 1H2024 v. 1H2023 MAC half yearly receipts: volume and realised price AUD million, Million dry metric tonne, A$/tonne (FOB, Western Australia) • Sales volume: 56.4 Mdmt 4% Royalty revenue
Slide 7: Simplified Income Statement
Simplified Income Statement Illustrative 1H24 statement of profit or loss D&A Total Costs $0.2 million $5.6 million1 Financing $0.7 million2 Tax $33.7 million MAC Royalty Total Revenue EBITDA $118.4 million $119 million $113.4 million $78.7 million PAYOUT 1H24 NPAT 100% NPAT Other Royalties $0.5 mil
Slide 8: A track record of strong shareholder returns
A track record of strong shareholder returns Disciplined capital management and return of excess cash to shareholders Deterra’s dividend history AUD million • Discipline to return capital when not required for investment or balance sheet management DRR shareholders Returns 116.7 • More than $480 mil
Slide 9: Strategy and Outlook
Strategy and Outlook Building a platform for investment and growth 9
Slide 10: Targeting value accretive growth
Targeting value accretive growth Opportunity to become a leading listed royalty company outside precious metals Targeted growth • Quality: world class foundation in long-life MAC Royalty Prioritising opportunities where we • Liquidity: cash flow and debt facilities provide differentiated investment
Slide 11: Capital framework for growth and returns
Capital framework for growth and returns Returning excess cash in the context of maintaining liquidity for future investments Deterra’s capital management framework is designed to ensure sufficient liquidity for investment whilst maintaining discipline on cash allocation Framework Outcome for 1H24 •
Slide 12: A better way to invest in resources
“Top line” Commodity price Project optionality cashflows leverage A better way to Royalty revenue Direct exposure Asset expansions and extensions invest in resources derived from asset’s revenue line to underlying commodity price drive value of royalty investments Our business model gives exposure t
Slide 13: For more information
For more information Investor and media enquiries Jason Clifton Chief Financial Officer Email: investor.relations@deterraroyalties.com Deterra Royalties Limited ACN 641 743 348 Level 16, 140 St Georges Terrace Perth WA 6000 Telephone: +61 (0)8 6277 8880 www.deterraroyalties.com 13
Slide 14: Corporate overview
Corporate overview Share price1 $5.11 Managing Director, CEO Julian Andrews Shares on issue 528.6m Independent Non-Executive Chair Jenny Seabrook Market capitalisation1 $2.7bn Independent Non-Executive Director Graeme Devlin Cash (31 Dec 2023) $24.9m Independent Non-Executive Director2 Joanne Warner
Slide 15: Income Statement
Income Statement Consolidated statement of Profit or Loss ($’000) Half-year ended Half-year ended 31 Dec 2023 31 Dec 2022 Royalty Revenue 118,984 96,409 Operating Expenses (4,293) (4,143) Business Development Expenses (1,288) (537) Depreciation and Amortisation (229) (199) Operating profit before fi
Slide 16: Balance Sheet
Balance Sheet Consolidated statement of financial position ($’000) 31 Dec 2023 30 Jun 2023 Cash and cash equivalents 24,938 29,491 Trade and other receivables 62,888 73,104 Income tax assets 1,771 620 Prepayments 1,714 558 Total Current Assets 91,311 103,773 Royalty intangible assets 8,138 8,289 Pro
Slide 17: EBITDA
EBITDA Earnings before interest tax and depreciation (EBITDA1) Half-year ended Half-year ended ($’000) 31 Dec 2023 31 Dec 2022 Net Profit After Tax 78,721 63,381 add back income tax expense 33,711 27,495 Profit before tax 112,432 90,876 add back Net finance costs and FX gains 742 654 Operating profi
Slide 18: High quality asset – the Mining Area C Royalty
High quality asset – the Mining Area C Royalty The South Flank expansion is BHP’s newest and most technically advanced operation and will make Mining Area C the world’s largest iron ore hub, producing some of the lowest cost and lowest carbon emitting iron ore in the world. Large Scale Low Costs Low
Slide 19: High quality asset – the Mining Area C Royalty
High quality asset – the Mining Area C Royalty Low risk exposure to a long-life operation with near term growth and potential for further extension Realising organic growth through South Further resource extension potential in a low-risk jurisdiction Flank expansion Mining Area C (MAC) production MA