Slide 1: The resources investment that pays
The resources investment that pays 1H23 Results Presentation February 2023
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 background information
Slide 3: Corporate overview
Corporate overview Share price1 $4.87 Managing Director, CEO Julian Andrews Shares on issue 528.5m Independent Non-Executive Chair Jenny Seabrook Market capitalisation $2.6bn Independent Non-Executive Director Graeme Devlin Cash (31 Dec 2022) $21.5m Independent Non-Executive Director Joanne Warner F
Slide 4: Business Highlights
Business Highlights REVENUE MAC royalty receipts (A$M) STRONGLY A$96.4M 4% & on pcp1 PERFORMING ASSETS NPAT A$63.4M, 95% EBITDA Margin 264.8 MAC production 62.7 Mwmt 46.0 A$350M POSITIONED Undrawn credit facility 139.6 FOR GROWTH Significant available liquidity for value accretive 2.0 126.1 91.9 tra
Slide 5: We offer investors a better way to invest in resources
We offer investors a better way to invest in resources Reduce operational exposure, Quality MAC royalty covers a world class iron ore hub, Operated by BHP the world’s largest mining company1 capture upside Margins 95% EBITDA Margin The nature of our business model means our investors are exposed to
Slide 6: Financial Results
Financial Results Simple business model continues to deliver strong financial performance
Slide 7: 1H23 Highlights
1H23 Highlights High quality assets delivering strong financial performance REVENUE $96M EBITDA1 $92M 95% EBITDA MARGIN PAYOUT NPAT $63M 100% NPAT DIVIDENDS $63M 12.00¢/sh FY23 Interim Dividend (declared) (1) See notes on slide 2 – Non-IFRS Measures. 7
Slide 8: Mining Area C Royalty Performance
Mining Area C Royalty Performance South Flank has contributed to significant volume growth at MAC MAC quarterly receipts and implied sales price AUD million, A$/tonne (FOB, Australia) • BHP’s MAC operation has performed strongly with 1H23 Revenue royalty (A$M) Capacity payment (A$M) production up 71
Slide 9: Simplified Income Statement
Simplified Income Statement Illustrative 1H’23 statement of profit or loss AUD million Total Costs $4.9 million1 Net Financing Costs $0.7 million2 MAC Royalty Revenue $96.0 million Net Tax Impact $27.5 million Total Revenue $96.4 million $63.4 million FY23 NPAT Other Royalties Revenue $0.4 million (
Slide 10: Capital structure for growth and returns
Capital structure for growth and returns The high-quality MAC cash flows and conservative capital management provides Deterra with strong capacity to fund growth and dividends Other New Royalty Cornerstone MAC Royalty Royalties Revenue New Royalty revenue = 1.232% of 5 x small investments Potential
Slide 11: Prioritised shareholder returns
Prioritised shareholder returns Continuing to build a track record of disciplined capital management and shareholder returns Dividend History AUD million Deterra’s capital management framework 116.7 • Prioritise returns to shareholders whilst Prioritise acknowledging the opportunity to invest in gro
Slide 12: Strategy and Outlook
Strategy and Outlook Maximise returns and grow value responsibly
Slide 13: 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. Low Costs Low Emissions L
Slide 14: Performing strongly – the Mining Area C Royalty
Performing strongly – 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) royalty area
Slide 15: Positioned for value accretive growth
Positioned for value accretive growth Prioritising opportunities where we have a competitive advantage Growth strategy focused on increasing earnings and diversification through value-accretive investments over time. Value and ESG Primary Size Commodity Geography Stage Quality of underlying assets r
Slide 16: Committed to sustainable shareholder returns
Committed to sustainable shareholder returns Our sustainability roadmap outlines our commitment to transparent reporting of our ESG performance and objectives Complete Next Steps • Established Climate Policy and achieved net-zero • Maintain emissions monitoring and net-zero operational GHG footprint
Slide 17: A better way to invest in resources
A better way to “Top line” cashflows Commodity price leverage Project optionality invest in resources Royalty revenue Asset expansions Direct exposure to and extensions derived from underlying drive value of Reduce operational exposure, asset’s revenue line. commodity price. royalty capture upside i
Slide 18: Investor and Media enquiries
Investor and Media enquiries Matthew Schembri Investor Relations Manager Mobile: + 61 (0) 427 821 380 Email: matt.schembri@deterraroyalties.com Brendan Ryan Chief Financial Officer Email: investor.relations@deterraroyalties.com Deterra Royalties Limited ACN 641 743 348 Level 5, 216 St Georges Terrac
Slide 19: Income Statement
Income Statement Half-year ended Half-year ended 31 Dec 2022 31 Dec 2021 Royalty Revenue 96,409 92,848 Operating Expenses (4,143) (3,666) Business Development Expenses (537) (482) Depreciation and Amortisation (199) (198) Operating profit before finance cost 91,530 88,502 Net finance income/(cost) (
Slide 20: Balance Sheet
Balance Sheet Consolidated statement of financial position ($’000) 31 Dec 2022 30 Jun 2022 Cash and cash equivalents 21,485 27,456 Trade and other receivables 45,883 113,220 Income tax assets 698 482 Prepayments 1,322 602 Total Current Assets 69,388 141,760 Royalty intangible assets 8,441 8,596 Othe
Slide 21: Underlying EBITDA and earnings adjustment
Underlying EBITDA and earnings adjustment Earnings and earnings adjustments ($’000)1 Half-year ended Half-year ended 31 Dec 2022 31 Dec 2021 $’000 $’000 Net Profit After Tax 63,381 61,702 add back income tax expense 27,495 26,751 Profit before tax 90,876 88,453 add back Net finance costs and FX gain