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Deterra Royalties Limited — Interim / Quarterly Report 2021
Oct 31, 2021
14947_rns_2021-10-31_cb10a8d6-c239-4680-b0ea-1276e3d4725c.pdf
Interim / Quarterly Report
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Australian Securities Exchange Notice
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1 November 2021
ASX: DRR
QUARTERLY ROYALTY REVENUE UPDATE
Deterra Royalties Limited (ASX: DRR) ( Deterra or Company ) is pleased to confirm total royalty receipts for the September 2021 quarter of $59.7 million. Deterra had three producing royalties in the period, comprising:
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Mining Area C (MAC), which generated iron ore revenue royalties of $59.6 million; and
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Two Western Australian mineral sands operations which generated $0.1 million combined.
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MAC iron ore revenue royalties increased by 12.9% compared to the June 2021 quarter as increasing sales volumes from the ramp-up of the South Flank mine offset falls in iron ore prices.
Deterra royalty receipts
| Deterra royalty receipts | |
|---|---|
| AUD millionJun 2021 | Sep 2021QoQ (%)YTD |
| Mining Area CRoyalty revenue152.8Capacity payments2.0 | 59.612.9%59.6--- |
| Other Royalties0.1 | 0.1-0.1 |
| Total54.9 | 59.78.7%59.7 |
1 Iron ore sales typically reflect average iron ore index prices for the month of shipping, with adjustments for ore quality. Deterra’s royalty receipts are based on sales invoiced during the period which may reflect, in part, provisional pricing. Accordingly, quarterly revenues can be impacted by the timing of adjustments to align achieved pricing to provisional pricing from the prior quarter.
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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
The company receives an ongoing royalty of 1.232% of Australian dollar denominated quarterly FOB revenue from the MAC royalty area. Additional, one-off capacity payments of A$1 million per one million dry metric tonne (Mdmt) increase in annual mine production are determined for the period ending 30 June. The current demonstrated annual capacity level is currently set at 59Mdmt.
Mining Area C production and sales information
| Jun 2021 | Sep 2021 | QoQ (%) | YTD | |
|---|---|---|---|---|
| BHP Reported MAC production(million wet metric tonnes)2 | 18.7 | 22.3 | 19.0% | 22.3 |
| MAC sales (Mdmt)3 | 16.9 | 21.0 | 24.2% | 21.0 |
This document was approved and authorised for release by Deterra’s Managing Director.
Ian Gregory Company Secretary
Investor enquiries:
Matthew Schembri Investor Relations Manager Mobile: + 61 (0) 427 821 380 Email: [email protected]
2 Source: BHP Operational Review for the year ended 30 September 2021 and similar prior Operational Reviews.
3 MAC sales volumes are reported on a dry basis and will vary from BHP reported production due to product moisture factors and the timing of sales and inventory movements in any reporting period.
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