Deterra Royalties Ltd · ASX:DRR
Deterra Royalties — Investor Presentation (July 2024)
27 slides from Deterra Royalties's investor presentation, July 2024
Slide 1: Corporate Presentation
Corporate Presentation July 2024 | ASX: DRR
Slide 2: Disclaimers
Disclaimers This presentation has been prepared by Deterra Royalties Limited ACN 641 743 348 (“Deterra”, “the Company”). By accessing Where any information in this document has been extracted or reproduced from published or otherwise publicly available sources, this presentation, you acknowledge tha
Slide 3: Disclaimers (cont’d)
Disclaimers (cont’d) Access to information regarding the operation of royalties Forward-looking statements As a royalty holder, Deterra generally has limited, if any, access to non-public data regarding the operations or to This presentation may contain forward-looking statements such as, without li
Slide 4: Agenda
Agenda Page 1. Deterra Royalties 5 2. Update on the acquisition of Trident Royalties 16 4
Slide 5: Deterra corporate snapshot
Deterra corporate snapshot The largest and only significant royalty company on the ASX CAPITAL STRUCTURE Cornerstone, Tier 1 Mining Area C (MAC) iron ore royalty Share price1 A$3.92 Non-precious metals focus – bulks, base and battery metals Shares on issue 528.6m Market capitalisation1 A$2.1bn Activ
Slide 6: A royalty vehicle with a difference
A royalty vehicle with a difference Existing royalty assets underwrite our strong financial performance and provide a solid foundation for value accretive growth High quality REVENUE assets delivering >$750 million since listing & 1 strong financial At an average 95% EBITDA2,3 Margin performance 257
Slide 7: Founded on a world-class cornerstone asset
Founded on a world-class cornerstone asset Mining Area C (MAC) royalty provides top line exposure to to one of the premier iron ore mines globally by scale, cost position, quality of the operator and remaining asset life • World’s largest iron ore hub1 At full capacity Mining Area C will account for
Slide 8: Delivering volume growth
Delivering volume growth Realising near-term growth via South Flank expansion 145 Mining Area C (MAC) production 126 • USD3.6 billion investment in South Flank Financial years, Mwmt1,2 111 124 expansion began commissioning in FY2021: 64 63 • Nameplate capacity of 80mwtpa reached on 61 61 62 62 57 56
Slide 9: Pursuing value through growth and diversification
Pursuing value through growth and diversification Key focus for disciplined growth 9 28 Market Capitalisation (US$bn) 8 2.0x 24 7 Value accretive growth delivers: 6 1.5x • Quality: building on world class foundational MAC = P/NAV1 9 5 Royalty with additional large, long-life, low-cost 4 1.0x assets
Slide 10: Differentiated growth focus
Differentiated growth focus Deterra is a leading listed royalty company outside precious metals Listed Royalty Opportunity Pool of Non-Precious Focused Listed Royalty Companies1 Existing Royalties2 Companies1 Total US$74bn market capitalisation 37% of Existing Royalties with only 6 % Non-Precious Fo
Slide 11: Disciplined in pursuit of growth
Disciplined in pursuit of growth Targeting value accretive opportunities Prioritising where we have a competitive advantage Quality: world class foundation in long-life MAC royalty Size Commodity Geography Stage Liquidity: cash flow and debt facilities provide investment Broad mandate • Bulks Develo
Slide 12: Capital management framework balances future growth and shareholder returns
Capital management framework balances future growth and shareholder returns Capital management framework • Cash flow and access to funding an important • Existing bi-lateral facilities of A$500 million competitive advantage (at BBSY + weighted avg. ~135 b.p. margin) • Net cash A$24.9 million (31 Dec
Slide 13: Corporate funding capacity
Corporate funding capacity High capacity to fund growth through multiple sources Deterra cash generation AUD million LEVERS OF FUNDING CAPACITY 111 Strong cash flow generating capacity 66 72 85 Established cash generating platform from the long-life 62 29 54 MAC Royalty H1 2021 H2 2021 H1 2022 H2 20
Slide 14: 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 15: Agenda
Agenda Page 1. Deterra Royalties 5 Update on the acquisition of Trident 2. 16 Royalties 15
Slide 16: Update on Deterra’s acquisition of Trident Royalties plc
Update on Deterra’s acquisition of Trident Royalties plc Transaction Overview Timeline to completion3 • On June 13, 2024, Deterra Royalties Limited (through its wholly owned subsidiary Deterra Global Holdings Pty Ltd) (Deterra) announced an all-cash offer to acquire the entire issued 13-Jun: R2.7 An
Slide 17: Transaction rationale aligned with stated growth strategy
Transaction rationale aligned with stated growth strategy Consistent with stated investment criteria, providing exposure to commodities within target of bulk, base and battery metals from mining operations largely located in stable and established mining jurisdictions at an attractive time in commod
Slide 18: Trident portfolio overview
Trident portfolio overview 21 royalty and royalty-like offtake assets providing exposure to base, precious, bulk and battery metals, including lithium, gold, silver, copper, zinc, mineral sands and iron ore 12 Thacker pass By Commodity1 Lithium royalty 21 Cash 6 11 Lithium Assets Commodities Countri
Slide 19: Diversified portfolio generating cash with growth options
Diversified portfolio generating cash with growth options 11 cashflow producing offtakes and royalties balanced with 10 future potential growth assets 2023 Production Commodity Base Bulk Precious Los Filos Gold Mimbula1 Kwale Dandoko Pukaqaqa Koolyanobbing La Preciosa Eagle Gold Antler Lincoln Gold
Slide 20: Thacker Pass overview
Thacker Pass overview Overview Location • Thacker Pass is a lithium clay project located in Northern Nevada, fully owned and USA McDermitt operated by Lithium Americas NV ID • Thacker Pass will be constructed over two phases with Phase 1 under construction CA whilst Phase 2 will be committed to late
Slide 21: Gold offtake portfolio overview
Gold offtake portfolio overview Overview Offtake Assets1 Gold offtakes summary Operator Asset Location Status Quotation Terms 1.33% royalty equivalent(2) Offtake on 50% of all refined gold production, up to Los Filos Producing 6 days cap of 1,100,000 ounces of refined gold Diversified asset: 8 offta
Slide 22: Paradox overview
Paradox overview Key Asset and Royalty Metrics Asset Location Asset Overview USA Delta Operator • Anson Resources UT Green River Deposit Type • Brine (Direct Lithium Extraction) Paradox Lithium Project Moab Asset Stage1 • DFS Completed in September 2022 Cedar City Paradox Lithium Project Commodities
Slide 23: La Preciosa overview
La Preciosa overview Key Asset and Royalty Metrics Asset Location Asset Overview MEXICO Operator • Avino Silver & Gold Mines Ltd DURANGO Gómez Palacio Torreón Platosa Mine Type • Open Pit & Underground La Preciosa Durango Asset Stage1 • Development La Preciosa • Silver Commodities Road • Gold Cities
Slide 24: Antler overview
Antler overview Key Asset and Royalty Metrics Asset Location USA Asset Overview Delta Operator • New World Resources UT Green River Deposit Type • Underground Paradox Lithium Project Moab • PFS results announced July-24 Asset Stage1 Cedar • DFS commenced and expected in late 2025 City Commodities •
Slide 25: Other Trident assets overview
Other Trident assets overview Asset Koolyanobbing Mimbula Kwale Sonora Lincoln Dandoko Pukaqaqa Location Australia Zambia Kenya Mexico California, USA Mali Peru Mineral Resources Moxico Resources Base Resources Ganfeng Lithium Seduli Holdings Pty B2Gold Corporation Nexa Resources SA Operator (ASX: M
Slide 26: Trident transaction costs and funding
Trident transaction costs and funding Transaction Funding Funding requirement1 Available liquidity4 • The UK Takeover Code requires that at the GBPm AUDm point of the Rule 2.7 firm announcement, a bidder must have ‘certain funds’ (the funds for Cash consideration to Trident the transaction), in plac
Slide 27: For more information
For more information Investor and media enquiries Jason Clifton 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
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