Deterra Royalties Ltd · ASX:DRR
Deterra Royalties — FY2024 Earnings Presentation
23 slides from Deterra Royalties's earnings presentation, Aug 20, 2024
Slide 1: FY2024 Results Presentation
FY2024 Results Presentation 20 August 2024 | ASX : DRR
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 ab
Slide 3: FY24 Highlights
FY24 Highlights Royalty business model continues to deliver strong financial performance o Revenue increased 5% to $240.5 million (FY23: $229.3 million) o EBITDA of $227.9 million at a margin of 95% o Net Profit After Tax (NPAT) of $154.9 million South Flank ramped up to full production capacity of
Slide 4: Financial Results
Financial Results Simple business model continues to deliver strong financial performance
Slide 5: FY24 Highlights
FY24 Highlights MAC underwrites strong financial performance and provides a solid foundation for value accretive growth REVENUE High quality assets delivering $241 million& strong financial NPAT $155 million, 95% EBITDA1 Margin performance Mining Area C (MAC) production 125 Mwmt 257 219 228 168 115
Slide 6: FY24 Highlights: Revenue
FY24 Highlights: Revenue Stronger AUD realised iron ore pricing offsets lower sales volume at Mining Area C Performance against last Financial Year MAC Performance MAC quarterly receipts: volume and realised price AUD million, Million dry metric tonne, A$/tonne (FOB, Western Australia) • Sales volum
Slide 7: Simplified Income Statement
Simplified Income Statement Illustrative FY24 statement of profit or loss Total Costs $13.1m1 Net Financing Costs $1.7m2 Non-Cash Derivative Loss $4.1m3 Total Revenue Net Tax $66.7m MAC Royalty $239.3m $240.5m $154.9m PAYOUT FY24 NPAT 100% Other Royalties NPAT $1.2m (1) Total Costs include $9.1 mill
Slide 8: Capital management framework balances future growth and shareholder returns
Capital management framework balances future growth and shareholder returns Capital management framework • Cash flow and access to funding an • Existing bi-lateral facilities of $500 million important competitive advantage (at BBSY + weighted avg. ~135 b.p. margin) Liquidity • Maintain flexibility t
Slide 9: Strategy and Outlook
Strategy and Outlook Building a platform for investment and growth 9
Slide 10: Pursuing value through growth and diversification
Pursuing value through growth and diversification 9 28 Key focus for disciplined growth Market Capitalisation (US$bn) 8 2.0x 24 7 Value accretive growth delivers: 6 1.5x • Quality: building on world class foundational MAC = P/NAV1 9 5 Royalty with additional large, long-life, low-cost 4 1.0x assets
Slide 11: Differentiated growth focus
Differentiated growth focus Deterra is a leading listed royalty company outside precious metals Listed Royalty Opportunity Pool of Non-Precious Focused Listed Royalty Companies1 Existing Royalties2 Companies1 Total US$74bn market capitalisation 37% of Existing Royalties with only 6 % Non-Precious Fo
Slide 12: Disciplined in pursuit of growth
Disciplined in pursuit of growth Prioritising where we have a competitive advantage Targeting value accretive opportunities Quality: world class foundation in long-life MAC royalty Size Commodity Geography Stage Liquidity: cash flow and debt facilities provide investment Broad mandate • Bulks Develo
Slide 13: Execution of growth strategy: acquisition of Trident Royalties plc
Execution of growth strategy: acquisition of Trident Royalties plc Transaction Overview Timeline to completion3 • On 13 June 2024, Deterra Royalties Limited (through its wholly owned subsidiary Deterra Global Holdings Pty Ltd) (Deterra) announced an all-cash offer to acquire the entire issued 13-Jun
Slide 14: Trident portfolio overview
Trident portfolio overview 21 royalty and royalty-like offtake assets providing exposure to base, precious, bulk and battery metals, including lithium, gold, silver, copper, zinc, mineral sands and iron ore 12 Thacker pass By Commodity1 Lithium royalty 21 Assets Cash 6 Commodities 11 Lithium flowing
Slide 15: The power of royalty assets
“Top line” Commodity price Project The power of royalty cashflows leverage optionality assets Royalty revenue derived from asset’s Direct exposure to underlying Asset expansions and extensions drive revenue line, or with commodity price royalty values Lower exposure to capital and limited, defined o
Slide 16: 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 16
Slide 17: Deterra corporate snapshot
Deterra corporate snapshot The largest and only significant royalty company on the ASX CAPITAL STRUCTURE Cornerstone, Tier 1 Mining Area C (MAC) iron ore royalty Share price1 A$3.75 Non-precious metals focus – bulks, base and battery metals Shares on issue 528.6m Market capitalisation1 A$2.0bn Activ
Slide 18: Income Statement
Income Statement Consolidated statement of Profit or Loss ($’000) Year ended Year ended 30 June 2024 30 June 2023 Royalty Revenue 240,509 229,264 Operating Expenses (9,083) (8,528) Business Development Expenses (3,521) (1,395) Depreciation and Amortisation (462) (396) Operating profit before finance
Slide 19: Balance Sheet
Balance Sheet Consolidated statement of financial position ($’000) 30 June 2024 30 June 2023 Cash and cash equivalents 31,064 29,491 Trade and other receivables 58,660 73,104 Income tax assets 1,487 620 Prepayments 1,065 558 Total Current Assets 92,276 103,773 Royalty intangible assets 7,982 8,289 P
Slide 20: EBITDA
EBITDA Earnings before interest tax and depreciation (EBITDA1) Year ended Year ended ($’000) 30 June 2024 30 June 2023 Net Profit After Tax 154,886 152,458 add back income tax expense 66,702 65,254 Profit before tax 221,588 217,712 add back Net finance costs and FX gains 5,855 1,233 Operating profit
Slide 21: Mining Area C Royalty
Mining Area C Royalty A world-class foundation asset 21
Slide 22: Mining Area C Royalty: a world-class cornerstone asset
Mining Area C Royalty: a world-class cornerstone asset Mining Area C (MAC) royalty provides top line exposure to one of the premier iron ore mines globally by scale, cost position, quality of the operator and remaining asset life • World’s largest iron ore hub1 At full capacity Mining Area C will ac
Slide 23: Delivering volume growth
Delivering volume growth Realising near-term growth via South Flank expansion Low Costs 145 Mining Area C (MAC) production • USD3.6 billion investment in South Flank Financial years, Mwmt1,2 126 125 Iron ore FOB cash cost curve (2025F)2 expansion began commissioning in FY2021: 111 1st quartile 2nd q