Deterra Royalties Ltd · ASX:DRR
Deterra Royalties — H1 FY2025 Earnings Presentation
25 slides from Deterra Royalties's earnings presentation, Feb 18, 2025
Slide 1: Half Year Results
December 2024 Half Year Results 18 February 2025 | 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: Deterra – high quality resource royalties
Deterra – high quality resource royalties Lower risk exposure to mining through royalties and streams Cornerstone MAC iron ore royalty CAPITAL STRUCTURE Share price1 $4.25 Royalty over world-scale Thacker Pass lithium project Shares on issue 528.8m Market capitalisation1 $2.2bn Active and discipline
Slide 4: 1H25 Portfolio Highlights
1H25 Portfolio Highlights Producing assets performing strongly o Mining Area C (MAC) delivered record production volumes from the Central Pilbara hub1, offsetting iron ore price movement o Gold offtakes delivered record ounces and prices2 Key development assets advancing o Thacker Pass closed Genera
Slide 5: 1H25 Financial Highlights
1H25 Financial Highlights New revenue sources offset lower iron ore price Underlying EBITDA1 $106 million, down 7% o Mining Area C royalty revenue $104 million, down 12% on 1H24, on stronger volumes offset by lower realised iron ore price o Gold offtakes generated $7 million net margin2 on record go
Slide 6: 1H25 Financial Performance
1H25 Financial Performance Solid underlying result reflecting new revenue sources Profit and Loss ($m)1 Page 1H252 1H24 Mvmt $ Mvmt % Per share information 1H25 1H24 MAC royalty 7 103.7 118.4 (14.7) (12%) Basic weighted avg shares (m) 528.8 528.6 Gold offtakes 8 7.2 n/a 7.2 n/m Basic EPS (c/share) 1
Slide 7: MAC royalty revenue
MAC royalty revenue Higher sales volumes offset by lower AUD realised iron ore pricing Performance against 1H24 MAC half year receipts: volume and realised price AUD million, Million dry metric tonne, A$/tonne (FOB, Western Australia) Royalty revenue (A$M) Capacity payment (A$M) Sales volumes (Mdmt)
Slide 8: Gold offtake revenue
Gold offtake revenue Higher ounces delivered and strong gold price Performance against 1H24 Gold offtake half year receipts: volume and realised margin1,3 AUD million4, ounces delivered, US$/ounce Gold Offtake Performance 1H251 Revenue (A$M) Ounces '000 194 • Delivered ounces 193.6koz 35% • Realised
Slide 9: 1H25 Operating Costs: recurring and one-off
1H25 Operating Costs: recurring and one-off 1H25 vs 1H24 Ongoing Recurring: • Period of increased staff overlap BD expenditure variable Operating costs $6.4m up $0.8m • Synergies across insurance, director fees, listing and depending on activity compliance fees Depreciation and amort $3.2m up $3.0m
Slide 10: Balance Sheet
Balance Sheet Remains strong and in line with capital management framework Revolving Credit Facilities Maturity Profile • $500 million revolving credit lines across 5 bi-lateral facilities AUD Million • c$200 million available liquidity for investment • Net debt to Underlying EBITDA covenant <4.0x 1
Slide 11: Capital management framework
Capital management framework Balances future growth and shareholder returns Capital management framework Dividend policy A minimum payout of 50% of NPAT, with the Board exercising • Maintain flexibility to invest counter- discretion for higher dividend payout ratios based on factors cyclically which
Slide 12: Liquidity
Liquidity Capacity to fund value-accretive investment through multiple sources LEVERS OF FUNDING CAPACITY Available liquidity1 Revolving Credit Facilities Net Drawn Debt Strong cash flow generating capacity AUD • Access to the Revolving Credit Facilities providing Established cash generating platfor
Slide 13: Strategy and outlook
Strategy and outlook 13
Slide 14: Building value through investment and portfolio optionality
Building value through investment and portfolio optionality Business model provides lower risk exposure to resources activity whilst retaining exposure to the upside through expansions and extensions Optionality Investment Portfolio contains short-term catalysts and long-term Key focus for disciplin
Slide 15: Consistent and disciplined approach to investment
Consistent and disciplined approach to investment 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 manda
Slide 16: Key Assets
Key Assets 16
Slide 17: High quality portfolio with growth optionality
High quality portfolio with growth optionality Key assets Operator Interest Mining Area C BHP 1.232% of Iron Ore revenue + capacity payments Thacker Pass Lithium 1.05% GRR royalty over Americas Thacker Pass Project1 Revenue Asset Valuations2 Country Bulks North Base America Australia Battery 1. Afte
Slide 18: Foundation Mining Area C iron ore royalty
Foundation Mining Area C iron ore royalty Operated by BHP, top line exposure to the world’s largest iron ore hub1 with 9% of global seaborne iron ore supply2 The MAC Operation 1 The MAC Royalty Large 145Mtpa hub Agreement type Gross revenue royalty Long Life 45+ year mine life Royalty rate 1.232 % o
Slide 19: Thacker Pass lithium royalty
Thacker Pass lithium royalty Operated by Lithium America Corp, provides top line exposure to world’s largest lithium reserve1 The Thacker Pass Operation2 The Thacker Pass Royalty Large Phase 1 planned capacity of 40,000tpa LCE Agreement type Gross revenue royalty Long Life Project economics outlined
Slide 20: 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 21: For more information
For more information Investor enquiries Media enquiries Jason Clifton Gerard McArtney Chief Financial Officer Purple Email: investor.relations@deterraroyalties.com Mobile: +61 (0) 487 934 880 Email: gmcartney@purple.au Deterra Royalties Limited ACN 641 743 348 Level 16, 140 St Georges Terrace Perth
Slide 22: Financial Results
Financial Results 6 Deterra ROYALTIES
Slide 23: Income Statement
Income Statement Consolidated statement of Profit or Loss ($’000) Half-year ended Half-year ended 31 December 2024 31 December 2023 Royalty Revenue 105,131 118,984 Income from offtake contracts 7,200 - Operating Expenses (6,382) (5,581) Amortisation and depreciation like charges (3,167) (229) Triden
Slide 24: Balance Sheet
Balance Sheet Consolidated statement of financial position ($’000) 31 December 2024 30 June 2024 Cash and cash equivalents 5,516 31,064 Trade and other receivables 63,864 58,660 Income tax assets 3,264 1,487 Prepayments 1,760 1,065 Total Current Assets 74,404 92,276 Royalty intangible assets 323,802
Slide 25: Underlying EBITDA and NPAT
Underlying EBITDA and NPAT Net Profit After Tax (NPAT) ($’000) Half-year ended Half-year ended 31 December 2024 31 December 2023 Net Profit After Tax 63,912 78,721 Income tax expense 30,342 33,711 Amortisation and depreciation like charges 3,167 229 Net finance costs 6,623 729 Revaluation of financi