Deterra Royalties

Deterra Royalties Limited (ASX: DRR) holds royalty interests over a portfolio of high-quality mineral assets predominantly located in Western Australia. The company's key asset is $229 million revenue over the BHP-operated Mining Area C (MAC) iron ore project, one of the largest and lowest-cost iron ore hubs globally. MAC is located in the Pilbara region of Western Australia, approximately 95 kilometres northwest of the town of Newman and has been operating since 2003 and produces a premium blend iron ore product. MAC operation has performed strongly with FY23 production capacity up 13 million dry mtpa.

The recent completion of the South Flank expansion project has seen annual production capacity increase substantially. South Flank expansion remains on schedule to reach 80 million wet mtpa (MAC total 145 million wet mtpa) by the end of FY24.

In addition to the MAC royalty, Deterra has a portfolio of royalty interests over five other projects across commodities including iron ore, vanadium, copper and gold. These projects are at various stages of studies and development.

Deterra generates strong operating cash flows from its royalty portfolio which is returned to shareholders through fully-franked dividends. The company also has the capacity to fund further investments in royalties and is actively assessing growth opportunities that meet its investment criteria.