Deterra Royalties Limited — Earnings Release 2021

Aug 17, 2021

3 Australian Securities Exchange Notice

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18 August 2021 ASX: DRR

Financial Report for the period ended 30 June 2021

Deterra Royalties Limited (ASX: DRR) ( Deterra or Company ) is pleased to release its financial results for the period from 15 June 2020 to 30 June 2021.

Highlights:

• Successful execution of demerger and ASX listing of Deterra

• Lean business model delivering strong financial performance

  • Revenue of $145.2 million with NPAT of $94.3 million (including transaction costs)

  • Underlying EBITDA of $135.5 million at a Post-demerger margin of 96%

  • Declared Final Dividend of 11.52 cents per share (fully franked) distributing 100% of NPAT

    • Record date: 3 September 2021

    • Payment date: 22 September 2021

• MAC South Flank achieved first ore in May 2021 – growth of 80 million wet metric tonne per annum new capacity underway

• Committed to sustainable shareholder returns

  • Established ESG assessment criteria for new investments

  • Targeting net-zero operational Greenhouse Gas footprint by end FY22

Key Points of Note :

Key Points of Note:
$ million, unless otherwise stated	Total	Pre-demerger1	Post-demerger1
Revenue	145.2	29.3	115.9
Underlying EBITDA2	135.5	24.4	111.1
Underlying EBITDA2Margin	97%	100%	96%
Net Profit After Tax (NPAT)	94.3	20.4	73.9
Dividends paid and declared (cps)3	17.83	3.86	13.97
Dividend as % NPAT	100%	100%	100%
Franking		na	100%

1 The terms Pre-demerger and Post-demerger are used to denote the beneficial economic ownership of the assets and allocation of liabilities rather than calendar dates (due to overlapping time periods). Please see Deterra’s 2021 Annual Report for definition.

2 Non-IFRS measures are unaudited but derived from the audited accounts and reconciliations included in Deterra’s Annual Report 2021. See Deterra’s 2021 Annual Report for earnings adjustments, including a $4.8 million Pre-demerger Period Revenue adjustment.

3 Dividend per share is calculated on the Group’s number of shares at the time the dividend was declared. Pre-demerger dividends per share shown based on the share count for the period immediately following demerger and is included in total dividends on this same basis.

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Deterra Resources Limited • ACN 641 743 348 • Level 5 216 St Georges Terrace Perth WA 6000

T +61 (0)8 6277 8880 • www.deterraroyalties.com

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Deterra’s Managing Director, Julian Andrews, commented on the results:

“The successful demerger of Deterra Royalties has brought a lower-risk, higher-margin way to invest in the resources sector to the ASX. We offer investors strong visibility on earnings, cash flow and dividends, without the same exposure to operational and capital risk as traditional miners. Our simple business model has demonstrated its ability to deliver strong financial performance and I am pleased to note that the Directors have declared a final dividend of 11.52 cents per share, fully franked. This brings the total dividends declared for the period since demerger in November last year to 13.97 cents per share, fully franked. In line with Deterra’s dividend policy, this represents 100 per cent of net profit after tax for that period.

“In addition to the benefits of the royalty business model, our shareholders will receive direct benefit from the projected growth in production at Mining Area C, where the globally significant South Flank expansion produced its first iron ore in May.

“We continue to evaluate options to add additional royalty assets to the business, however the inherent growth in our portfolio allows us to be patient and disciplined in pursuing other opportunities for value-accretive growth.”

FY21 Financial Results Teleconference

Deterra’s Managing Director and Chief Executive Officer, Julian Andrews, and Chief Financial Officer, Brendan Ryan, will host a conference call for equity markets participants to discuss the FY21 financial results. The conference call will take place at 12:00pm (AEST) on Wednesday, 18 August 2021. The live audio webcast and on-demand replay of the results briefing will be available at www.deterraroyalties.com and via the following link:

- https://edge.media server.com/mmc/p/4pbzkzon

This document was approved and authorised for release by Deterra’s Managing Director.

Ian Gregory

Company Secretary

Investor and media enquiries:

Rob Ward Corporate Development and Investor Relations Mobile: + 61 (0) 431 596 831 Email: robert.ward@deterraroyalties.com

Brendan Ryan Chief Financial Officer Phone: +61 8 6277 8880 Email: investor.relations@deterraroyalties.com

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