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Highlights

  • Quarterly portfolio revenue of DRR rose 4% QoQ to AUD 61.9 million, mainly driven by MAC iron ore royalties (AUD 55.6 million), aided by higher iron ore prices.
  • Net realised margin from gold offtake agreements increased 7% to AUD 5.6 million, on record deliveries of 69.3k ounces.
  • At Thacker Pass Lithium Project, final investment decision has been achieved for Phase 1, construction is underway with production targeted in 2027.
  • In H1FY25, the company recorded revenue of AUD 112.3 million, down 5.5% YoY.
  • The company completed Trident Royalties integration with cost synergies of AUD 4–5M/year.

ASX-listed Deterra Royalties Ltd (ASX:DRR) is a diversified resource royalty company. In the March 2025 quarter, Deterra reported a 4% QoQ increase in portfolio revenue to AUD 61.9 million, largely driven by its cornerstone Mining Area C (MAC) iron ore royalty. MAC alone contributed AUD 55.6 million, reflecting higher realised iron ore prices, which helped offset a dip in sales volumes.

Gold offtake agreements delivered a net realised margin of AUD 5.6 million, up 7% on record deliveries of 69.3 thousand ounces.

Thacker Pass Update

A major milestone was achieved in the quarter with the Final Investment Decision for Phase 1 of the Thacker Pass Lithium Project, a joint venture between Lithium Americas Corporation (LAC) and General Motors (GM). Backed by USD 2.9 billion in funding—comprising a USD 2.26 billion DOE loan and USD 542 million in equity contributions from LAC, GM, and Orion Resource Partners—this project holds the world’s largest measured lithium reserve.

Construction is underway at the project, and first production is expected by 2027. The five-phase expansion plan aims to deliver 160,000 tonnes per year of battery-grade lithium carbonate.

Financial Results

In the first half of the financial year 2025 (H1FY25), Deterra posted:

  • Revenue of AUD 112.3 million (down 5.5% year-on-year),
  • Underlying EBITDA of AUD 105.9 million (down 6.5% YoY), and
  • Net profit after tax reached AUD 63.9 million.

During the reported period, the company witnessed record production volumes at MAC.

Outlook

Looking ahead, Deterra is expected to benefit from:

  • Ongoing ramp-up at South Flank (MAC),
  • Progress at Thacker Pass (lithium),
  • The start of underground processing at La Preciosa (silver/gold) in H2 2025, and
  • Increased earnings from recently acquired gold offtake agreements.

Deterra completed the integration of its Trident Royalties acquisition, delivering operating cost synergies at the upper end of the AUD 4–5 million per annum range.

Share performance of DRR

DRR shares closed 1.39% higher at AUD 3.64 per share on 7 May 2025. Over the past one-year DRR’s share price has dropped by almost 27.05%, while in a month, the share price has increased by nearly 6.12%.

52-week high of DRR is AUD 5.05, recorded on 10 May 2024 and 52-week low is AUD 3.19, recorded on 9 April 2025.

Support and Resistance Summary

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 07 May 2025. The reference data in this report has been partly sourced from EODHD/Others.

 

Technical Indicators Defined:

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.