Slide 1: FY2023 Results Presentation
FY2023 Results Presentation 15 August 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 summary information abo
Slide 3: FY23 Highlights
FY23 Highlights High quality REVENUE Mining Area C (MAC) royalty receipts AUD million assets delivering $229 million& strong financial NPAT $152 million, 96% EBITDA1 Margin performance Mining Area C (MAC) production 126 Mwmt 265 46 228 13 Supporting shareholder 16.85¢/share 140 126 119 Fully franked
Slide 4: Financial Results
Financial Results Simple business model continues to deliver strong financial performance 4
Slide 5: FY23 Highlights
FY23 Highlights High quality assets continue to deliver strong financial performance REVENUE $229 million EBITDA1 $219 million 96% EBITDA MARGIN PAYOUT NPAT $152 million 100% NPAT 16.85 ¢/sh 28.85 ¢/sh DIVIDENDS $152 million FINAL (Declared) FULL YEAR2 (Fully Franked) (1) See notes on slide 2 – Non-
Slide 6: Mining Area C final push to full capacity
Mining Area C final push to full capacity Volume growth at South Flank offsets the decline in AUD iron ore pricing Performance against last Financial Year MAC Performance MAC quarterly receipts: volume and realised price AUD million, Million dry metric tonne, A$/tonne (FOB, Western Australia) • Sale
Slide 7: Mining Area C has a long history of growth
Mining Area C has a long history of growth MAC continues to ramp up volumes with $113 million in Capacity Payments since 2004 MAC Life of Mine Production1 & Capacity Payment Annual Capacity Payments Million dry metric tonne, A$M • BHP’s MAC operation has performed strongly with Capacity Payment 118
Slide 8: Simplified Income Statement
Simplified Income Statement Illustrative FY23 statement of profit or loss Total Costs $10.3 million1 Net Financing Costs $1.2 million2 Total Revenue Net Tax $65.3 million MAC Royalty $228.2 million $229.3 million PAYOUT $152.5 million 100% Other Royalties FY23 NPAT $1.1 million NPAT (1) Total Costs
Slide 9: 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 116.7 Returns DRR shareholders • More than $400 mil
Slide 10: Strategy and Outlook
Strategy and Outlook Building a platform for investment and growth 10
Slide 11: 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 12: Increasing volume of opportunities reviewed
Increasing volume of opportunities reviewed Level of business development activity has increased significantly in FY23 FY23 breakdown Opportunity pipeline continues to Number of assessed targets by type grow as business builds awareness Bulks Commodity and internal capacity, and access 3x to traditi
Slide 13: 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 FY23 •
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 Complete Next Steps • Continue to refine our ESG due diligence • Continually improve of our ESG due diligence criteria process, ESG data coll
Slide 15: 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 16: For more information
For more information Investor and media enquiries Brendan Ryan 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: Corporate overview
Corporate overview Share price1 $4.49 Managing Director, CEO Julian Andrews Shares on issue 528.5m Independent Non-Executive Chair Jenny Seabrook Market capitalisation1 $2.4bn Independent Non-Executive Director Graeme Devlin Cash (30 June 2023) $29.5m Independent Non-Executive Director Joanne Warner
Slide 18: Income Statement
Income Statement Consolidated statement of Profit or Loss ($’000) Year ended Year ended 30 June 2023 30 June 2022 Royalty Revenue 229,264 265,155 Operating Expenses (1,395) (729) Business Development Expenses (8,528) (7,642) Depreciation and Amortisation (396) (393) Operating profit before finance c
Slide 19: Balance Sheet
Balance Sheet Consolidated statement of financial position ($’000) 30 June 2023 30 June 2022 Cash and cash equivalents 29,491 27,456 Trade and other receivables 73,104 113,220 Income tax assets 620 482 Prepayments 558 602 Total Current Assets 103,773 141,760 Royalty intangible assets 8,289 8,596 Pro
Slide 20: EBITDA
EBITDA Earnings before interest tax and depreciation (EBITDA1) Year ended Year ended ($’000) 30 June 2023 30 June 2022 Net Profit After Tax 152,458 178,462 add back income tax expense 65,254 77,070 Profit before tax 217,712 255,532 add back Net finance costs and FX gains 1,233 859 Operating profit b
Slide 21: 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 22: 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) production M