Deterra royalties reports strong FY25 results, record production

Deterra Royalties Limited announced strong FY25 results, with underlying EBITDA increasing 10% to A$250 million, achieving a 95% margin. This performance was bolstered by record production from Mining Area C (MAC), which generated a $20 million capacity payment, and gold offtakes yielding a $21.5 million net revenue margin amidst record gold prices. The company also realized $5 million in post-Trident synergies from acquisition SG&A.

Shareholders benefited from A$116 million in fully franked dividends, including a final dividend of 13.0 cents per share, representing a 75% payout ratio of 2H25 NPAT. Total dividends paid since 2020 now stand at A$676 million. The balance sheet remains resilient with net debt at A$271 million and gearing at 10%, well within the 0-15% target leverage ratio. The company holds A$500 million in credit facilities, with $205 million undrawn.

Disciplined portfolio management saw $82 million from disposals of non-core assets, including La Preciosa silver assets sold for $22 million and gold offtake assets for $56 million cash, delivering pre-tax IRRs of 31% and 25% respectively. Construction at the Thacker Pass lithium project is underway, with first production targeted for late 2027, significantly de-risked by $2.9 billion in phase 1 funding.