Deterra Royalties Ltd · ASX:DRR
Deterra Royalties — Investor Day (March 2025)
39 slides from Deterra Royalties's investor day presentation, Mar 12, 2025
Slide 1: Australian Securities Exchange Notice
Australian Securities Exchange Notice 12/03/2025 ASX: DRR Investor Briefing Day 2025 Deterra Royalties Limited (ASX: DRR) (Deterra or Company) advises that its Managing Director & Chief Executive Officer Julian Andrews will host today an Investor Briefing Day at which he will outline the Company’s s
Slide 2: ASX notice continuation and enquiries
presentation may contain information that Deterra would not be permitted to disclose under Australian securities regulation and should not be relied on by Deterra shareholders. Deterra makes no representation or warranty, express or implied, as to the fairness or accuracy of the content. This docume
Slide 3: About Deterra
ABOUT DETERRA Deterra is an ASX-listed diversified resource royalty company committed to providing shareholders with lower risk exposure to mining activity through value-accretive investment in resource projects, through either financing of projects by royalties or streams or the acquisition of simi
Slide 4: Deterra Royalties: Diversified resource royalties
Deterra Royalties Diversified resource royalties March 2025 | ASX: DRR
Slide 5: Disclaimers
Disclaimers This presentation has been prepared by Deterra Royalties Limited ACN 641 743 348 (“Deterra”, “the Company”). By accessing Development, expansion and operation of mining assets is very capital intensive and any inability of the operators of the mining this presentation, you acknowledge t
Slide 6: Agenda
Agenda Time Session Presenters 9.00am Introduction Jason Clifton 9.05am Deterra Overview and Strategy Julian Andrews 9.30am Lithium America’s Thacker Pass Jonathan Evans, President and CEO, Lithium Americas Corp. 10:00am Key Assets and Catalysts Adam Davidson, Tyron Rees, Jason Clifton 10.20am Break
Slide 7: Deterra Royalties Limited: A diversified resources royalty company
Deterra Royalties Limited A diversified resources royalty company CAPITAL STRUCTURE Cornerstone MAC iron ore royalty Share price1 $3.56 Shares on issue 528.8m Royalty over world-scale Thacker Pass lithium project Market capitalisation1 $1.9bn Active and disciplined in pursuit of investment opportuni
Slide 8: Overview and strategy
Overview and strategy 5
Slide 9: Introduction
Introduction We offer investors a simple investment proposition : Lower risk exposure to resources sector through an established business model High quality portfolio generating cash flow to support shareholder returns and significant optionality Consistent strategy targeting non- precious commoditi
Slide 10: Royalty/streaming model
Royalty/streaming model A simple business model that offers: Mining Company Physical Deterra Exposure to natural resources with a lower risk profile than Equity Commodity/ETF investing in mining businesses whilst retaining exposure to the “Top line” cashflows upside through expansions and extensions
Slide 11: Quality: World class cornerstone assets
Quality World class cornerstone assets Mining Area C (MAC) royalty Thacker Pass royalty (producing since 2003) (in development, first production targeted 2027) Operated by BHP, top line exposure to the world’s largest iron ore hub1 Operated by Lithium Americas Corp, provides top-line exposure to wor
Slide 12: Optionality
Optionality Pricing variation can drive short term returns, but expansion will drive sustainable value BHP announces development of Mining Area C – North Flank April 2002: ▪ Capex: US$213 million BHP announces development of South Flank, June 2018: ▪ Target capacity: 15mtpa by 2011 ▪ Capex: US$3.6 b
Slide 13: Current portfolio
Current portfolio 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 America Base Australia 1. After expected exercise of partial buybac
Slide 14: Consistent strategy to build value
Consistent strategy to build value Existing portfolio Future investment Short-term catalysts and long-term optionality: Selective and disciplined additions to the portfolio: • Value accretive investments deliver value in their own • Mining Area C: South Flank approaching nameplate right capacity (re
Slide 15: Strategy focused on competitive differentiation
Strategy focused on competitive differentiation Royalty and streaming sector is heavily weighted to precious metals – Deterra targets bulks, base and battery and electrification commodities Listed Royalty Non-Precious Focused Listed Royalty Companies1 Opportunity Pool Companies by Market Cap1 Total
Slide 16: Consistent and disciplined approach to investment
Consistent and disciplined approach to investment Prioritising opportunities where we have a competitive advantage Targeting value accretive opportunities New instruments: provide funding for project development, balance sheet repair or project acquisition Size Commodity Geography Stage Existing ins
Slide 17: Investment approach and criteria
Investment approach and criteria Review process is structured to screen opportunities efficiently and focus efforts on attractive and executable opportunities aligned with investment strategy 1. Initial Screening • Maintain internal technical, financial and commercial Opportunities are screened expe
Slide 18: Trident acquisition update
Trident acquisition update Acquisition basis Performance since acquisition • On strategy – portfolio with quality flagship asset and Thacker Pass has continued to de-risk immediate cash flow aligned with target commodities and • Phase 1 positioned to be fully funded3 “sweet spot” quantum • Significa
Slide 19: Jonathan Evans, CEO, Lithium Americas Corporation
Jonathan Evans CEO, Lithium Americas Corporation
Slide 20: Key assets and catalysts
Key assets and catalysts
Slide 21: Foundation Mining Area C iron ore royalty
Foundation Mining Area C iron ore royalty Operated by BHP, >45 mine life1, world’s largest iron ore hub1 with 9% of global seaborne iron ore supply at full capacity2 The MAC Operation1 The MAC Royalty Large 145Mtpa hub Agreement type Gross revenue royalty Long Life 45+ year mine life Royalty rate 1.
Slide 22: MAC - DRR Royalty Outlook
MAC - DRR Royalty Outlook The world’s leading iron ore business1 Mining Area C (“MAC”) Highlights MAC Indicative Future Revenue: • Two Iron Ore Hub’s producing a total of 145mwmtpa comprised of: • Further capacity payments totalling A$17m4 if MAC operates continuously at nameplate capacity; plus • N
Slide 23: Flagship Thacker Pass lithium royalty
Flagship Thacker Pass lithium royalty Operated by Lithium Americas 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 economic
Slide 24: Thacker Pass - DRR Royalty Outlook
Thacker Pass - DRR Royalty Outlook A “text book” royalty since Deterra acquisition Doubled targeted production and mine life1 Thacker Pass Indicative Future Revenue:2 • Phase 1: 40ktpa LCE, first production expected in Q4 CY2027 • One time buy back of US$13.2m; plus • General Motors strategic partne
Slide 25: Gold offtakes: Royalty-like returns
Gold offtakes: Royalty-like returns Strong 1H25 performance and capital management optionality 8 offtake contracts, 6 project operators, 10 mines Offtake contracts provide “royalty-like” exposure: • Returns are driven by gold price, volatility and production profile Gold Offtakes – Actuals and Guida
Slide 26: Gold offtake portfolio – ounces and catalysts
Gold offtake portfolio – ounces and catalysts Ounces Total ounces delivered in Operator Asset Location Deterra Offtake Offtake Cap delivered Catalysts 12 months to to Dec 24 Dec 24 • Recommencement of production subject to concluding 50% of gold the final community agreement1 Los Filos 1.1moz 512koz
Slide 27: Royalty portfolio – near term milestones and newsflow
Royalty portfolio – near term milestones and newsflow Asset Royalty Milestone Details Mining Area C 1.232% GRR • Nameplate capacity • Continuous operation at nameplate capacity of 145Mwmtpa (Fe) • US$13.2m contingent receipt6 • First production Thacker Pass 1.05% GRR1 expected in (Li) CY20272 • LAC
Slide 28: Capital management
Capital management i. sa p
Slide 29: Capital management framework
Capital management framework Balancing future growth and shareholder returns Capital management framework Dividend policy • Maintain flexibility to invest counter- A minimum payout of 50% of NPAT, with the Board exercising cyclically discretion for higher dividend payout ratios based on factors Liqu
Slide 30: Capital management levers
Capital management levers Capital management options provide flexibility to align with investment strategy and outcomes CAPITAL MANAGEMENT LEVERS Available liquidity Revolving Credit Facilities Net Debt at 31 Dec 2024 Strong cash flow generating capacity Flexibility to pay down net debt or deploy fo
Slide 31: Balance Sheet
Balance Sheet Remains strong and in line with capital management framework • $500 million revolving credit lines across 5 bi-lateral facilities Revolving Credit Facilities Maturity Profile • c$200 million available liquidity for investment AUD Million • Net debt to Underlying EBITDA covenant <4.0x 1
Slide 32: Board and management
Board and management
Slide 33: Top-tier team with deep applicable expertise – Directors and Management
Top-tier team with deep applicable expertise – Directors and Management Experts in global resource investment with deep experience in resources strategy, capital markets and project finance Board Board and Executive Executive Jenny Seabrook – Non-Executive Chair Julian Andrews – Managing Director &
Slide 34: Committed to sustainable shareholder returns
Committed to sustainable shareholder returns Operating with integrity and growing responsibly Deterra: Assessment criteria to facilitate consistent and thorough diligence of opportunities • Due diligence on environmental, social and governance Environment Social Governance aspects of assets and oper
Slide 35: Summary Asset Book
Summary Asset Book Refer Deterra web site - Deterra Asset Book for further information
Slide 36: Deterra Asset Summary - Bulk Assets
Deterra Asset Summary - Bulk Assets Iron Ore and Heavy Minerals Yoongarillup/ Asset Mining Area C Koolyanobbing Kwale Yandanooka Wonnerup Yalyalup Location Western Australia Western Australia Kenya Western Australia Western Australia Western Australia Tronox (Cable Sands (W.A) Operator BHP Mineral R
Slide 37: Deterra Asset Summary – Base and Battery Metal Assets
Deterra Asset Summary – Base and Battery Metal Assets Base and Battery Metals Asset Thacker Pass Sonora Paradox Antler Mimbula Pukaqaqa Big Kidd Location Nevada, USA Mexico Utah, USA Arizona, USA Zambia Peru BC, Canada Olympic Precious Operator Lithium Americas Ganfeng Lithium Anson Resources New Wo
Slide 38: Deterra Asset Summary - Precious Metals Assets
Deterra Asset Summary - Precious Metals Assets Gold / Silver Royalty Gold Offtake Ruby Green Hill/Cove/ Asset Lincoln Dandoko La Preciosa St Ives Los Filos Fazenda RDM Santa Luz Blyvoor Eagle Bonikro Sugar Zone stone Granite Creek Western Location USA Mali Mexico Mexico Brazil Brazil Brazil Canada S
Slide 39: 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 Deterra Royalties Limited Email: gmcartney@purple.au ACN 641 743 348 Level 16, 140 St Georges Terrace Perth