Deterra Royalties Ltd · ASX:DRR
Deterra Royalties — Investor Presentation (October 2021)
16 slides from Deterra Royalties's investor presentation, Oct 14, 2021
Slide 1: Australian Securities Exchange Notice
3 Australian Securities Exchange Notice 13 October 2021 ASX: DRR Corporate Presentation Deterra Royalties Limited (ASX: DRR) (Deterra or Company) is pleased to attach a copy of the presentation provided to be used in meetings between the Managing Director and CEO with shareholders and analysts. This
Slide 2: The resources investment that pays
The resources investment that pays Corporate Presentation October 2021
Slide 3: 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 4: Corporate overview
Corporate overview Capital Structure1 Board and Management Team Share price $3.77 Managing Director, CEO Julian Andrews Shares on issue 528.5m Independent Chair Jenny Seabrook Market capitalisation $2.0bn Non-Executive Director Graeme Devlin Cash (30 June 2021) $24.2m Non-Executive Director Joanne W
Slide 5: What we offer investors
What we offer investors MAC royalty covers a world class iron ore hub, Quality operated by BHP the world’s largest mining company1 Margins 96% EBITDA Margin2 Dividends 100% of NPAT, Fully Franked3 South Flank expected to grow MAC volumes by 2.4x 4 Growth Patient and disciplined approach to value acc
Slide 6: A better way to invest in resources
A better way to invest in resources “Top Line” Commodity Price Project Optionality Cashflows Leverage Reduce operational exposure, capture upside. Royalty revenue derived from Direct exposure to underlying Asset expansions and extensions drive value of asset’s top line revenue. commodity price. roya
Slide 7: Delivering strong financial outcomes
Delivering strong financial outcomes Statutory accounts1 Attributable to2: Total Revenue Revenue Revenue $145.2M $29.3M $115.9M Underlying EBITDA3 Underlying EBITDA Underlying EBITDA $135.5M $24.4M $111.1M NPAT NPAT NPAT $94.3M $20.4M $73.9M Dividends per share4 DPS4 DPS 17.83¢ 3.86¢ 13.97¢ (100% of
Slide 8: Royalty and streaming company landscape
Royalty and streaming company landscape Deterra holds a leading position in the non-gold royalty streaming sub-sector Listed Royalty Universe1 Existing Royalties2 Non-Gold Listed Royalty Universe1 Total US$65bn market cap 30% of Existing Royalties Deterra has a dominant position in with only 8% Non-
Slide 9: Our core asset – the Mining Area C Royalty…
Our core asset – the Mining Area C Royalty… Low-risk exposure to a large, low-cost iron ore mining complex that is set to grow its volumes by approximately 2.4 times Low-cost operations with long life Significant near-term growth Resource upside in a low-risk through South Flank expansion jurisdicti
Slide 10: … is leveraged to South Flank growth
… is leveraged to South Flank growth Deterra’s MAC Royalty revenue is determined by BHP’s realised iron ore prices, sales volumes and foreign exchange rates MAC Royalty annual receipts – Illustrative production and price sensitivity1 Revenue royalty payment of 1.232% of realised (AUD million) AUD FO
Slide 11: Targeted growth strategy focused on value-accretive investment
Targeted growth strategy focused on value-accretive investment Deterra’s screening process and investment criteria prioritise opportunities where it has a competitive advantage Primary royalties Creating new royalties for: How we prioritise opportunities • Project capital Investment criteria • Balan
Slide 12: Benefits of royalty financing to a mining partner
Benefits of royalty financing to a mining partner Royalty financing brings many advantages versus traditional forms of financing Longer terms and no fixed payments Not dilutive to existing shareholders Simpler to execute No brokerage fees Vs Limited covenant package No market discount Vs Debt Equity
Slide 13: Capital structure and funding for growth
Capital structure and funding for growth The high-quality MAC cash flows and conservative capital management provides Deterra with strong capacity to fund growth New Other New Cornerstone MAC Royalty Royalties Royalty Investments Retain strong Net cash position at 30 June 2021 Revenue balance sheet
Slide 14: 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 • Applied to become signatory to the UN Global Compact • Established a Human Rights Policy Current • Published our first Corporate Governance
Slide 15: A better way to invest in the resources industry
A better way to invest in the resources industry Summary Our Business Model 1 MAC royalty is one of the world’s best royalty assets. 2 Superior EBITDA margin of 96% in FY211. 3 100% NPAT dividend payout ratio, fully franked2. South Flank to grow MAC volumes by 2.4x3 and a 4 growth mandate to provide
Slide 16: For more information:
For more information: 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,
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