Deterra Royalties Ltd (DRR) AI Stock Analysis

• Market Cap: AU$2.17B
• Dividend Yield: 5.47%
• Average Volume (3M): 1.54M
• Price to Earnings (P/E): 14.0
• Beta (1Y): 1.10
• Revenue Growth: 6.54%
• EPS Growth: 0.48%
• Country: AU
• Employees: 11
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): 0.18
• Shares Outstanding: 529,131,600
• 10 Day Avg. Volume: 891,907
• 30 Day Avg. Volume: 1,536,395
• PEG Ratio: 0.00
• Price to Book (P/B): 15.95
• Price to Sales (P/S): 7.55
• P/FCF Ratio: 14.96
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$4.29
• Price Target Upside: 4.38% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: AU$4.50 ▲(9.49% Upside)

Deterra Royalties Ltd's strong financial performance and attractive dividend yield are the most significant factors contributing to its overall score. While the technical analysis indicates some short-term weakness, the company's robust earnings growth and strategic investments provide a solid foundation for future performance. The balanced sentiment from the earnings call, with both positive growth and notable challenges, also influences the overall score.

Positive Factors

Revenue Growth

The company's robust revenue growth, driven by record production and new asset contributions, indicates strong market demand and operational success, supporting long-term financial stability.

Strategic Investments

Successful integration of new investments enhances revenue streams and diversifies income sources, strengthening the company's competitive position and growth prospects.

Strong Balance Sheet

A strong balance sheet and consistent dividend policy reflect financial health and shareholder value, ensuring sustainable growth and investor confidence.

Negative Factors

Iron Ore Price Impact

Falling iron ore prices directly impact revenue from key assets, posing a risk to income stability and highlighting vulnerability to commodity price fluctuations.

High Leverage

High leverage increases financial risk and limits flexibility, potentially affecting the company's ability to invest in growth opportunities or weather economic downturns.

Operational Costs

Rising operational costs from expansion efforts may pressure margins and reduce profitability, challenging the company's cost management and operational efficiency.

Deterra Royalties Ltd Business Overview & Revenue Model

Company Description

Deterra Royalties Limited operates as a royalty investment company in Australia. It is also involved in the management and growth of a portfolio of royalty assets across bulk commodities, base, and battery metals. The company holds interest in a portfolio of six royalties over the Mining Area C, Yoongarillup/Yalyalup, Eneabba, Wonnerup, and St Ives. Deterra Royalties Limited was incorporated in 2020 and is headquartered in Perth, Australia.

How the Company Makes Money

Deterra Royalties Ltd generates revenue primarily through its mineral royalty agreements, whereby it receives a percentage of the revenue from mining companies operating on lands where it holds royalty rights. This model allows DRR to earn income without the direct costs and risks associated with operating mines. Key revenue streams include royalties from iron ore production, which is a significant commodity in Australia. The company has established partnerships with various mining companies, enhancing its revenue potential. Additionally, DRR may benefit from market fluctuations in commodity prices, as higher prices can lead to increased revenue from its royalty agreements.

Deterra Royalties Ltd Financial Statement Overview

Summary

Deterra Royalties Ltd shows strong financial health with impressive profitability and cash generation capabilities. The company has significant revenue growth and maintains high margins, although the slight decrease in net profit margin and high leverage are areas to monitor. The balance sheet reflects high leverage, which could be a potential risk, but the strong return on equity and cash flow metrics provide a solid foundation for future growth.

Income Statement

Deterra Royalties Ltd has demonstrated strong revenue growth with a 12.65% increase in the latest year, indicating robust demand for its offerings. The company maintains excellent profitability with a gross profit margin of 100% and a net profit margin of 59.1%, showcasing efficient cost management. EBIT and EBITDA margins are also high at 91.75% and 94.15%, respectively, reflecting strong operational efficiency. However, the net profit margin has slightly decreased from the previous year, which could be a point of concern if the trend continues.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 2.37, indicating significant leverage, which could pose a risk if not managed properly. However, the return on equity is strong at 124.90%, suggesting that the company is effectively using its equity base to generate profits. The equity ratio is not provided, but the high leverage warrants caution despite the strong ROE.

Cash Flow

Cash flow analysis reveals a slight decline in free cash flow growth, but the company maintains a healthy operating cash flow to net income ratio of 37.52, indicating strong cash generation relative to net income. The free cash flow to net income ratio is also robust at 98.57%, suggesting effective conversion of profits into cash. Despite the decline in free cash flow growth, the overall cash flow position remains solid.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	263.43M	263.43M	240.51M	229.26M	265.15M	145.21M
Gross Profit	253.88M	263.43M	231.43M	220.34M	257.12M	140.24M
EBITDA	249.13M	248.03M	225.56M	219.34M	256.78M	140.37M
Net Income	155.69M	155.69M	154.89M	152.46M	178.46M	94.26M
Balance Sheet
Total Assets	502.37M	502.37M	101.29M	115.19M	153.49M	89.09M
Cash, Cash Equivalents and Short-Term Investments	24.39M	24.39M	31.06M	29.49M	27.46M	24.21M
Total Debt	295.40M	295.40M	497.00K	186.00K	248.00K	311.00K
Total Liabilities	377.71M	377.71M	20.94M	23.05M	34.87M	27.37M
Stockholders Equity	124.66M	124.66M	80.35M	92.14M	118.63M	61.72M
Cash Flow
Free Cash Flow	135.35M	132.95M	170.09M	182.23M	127.81M	82.12M
Operating Cash Flow	135.36M	134.88M	170.18M	182.32M	127.81M	82.17M
Investing Cash Flow	-267.73M	-267.73M	-88.00K	-89.00K	-10.00K	-24.45M
Financing Cash Flow	125.82M	126.30M	-168.52M	-180.20M	-124.56M	-33.51M

Deterra Royalties Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.11
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:DRR, the sentiment is Positive. The current price of 4.11 is above the 20-day moving average (MA) of 4.07, above the 50-day MA of 4.04, and above the 200-day MA of 3.87, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 60.43 is Neutral, neither overbought nor oversold. The STOCH value of 43.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:DRR.

Deterra Royalties Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DRR	75 Outperform	AU$2.17B	13.96	151.89%	5.47%	6.54%	0.48%
ILU	68 Neutral	AU$2.30B	12.07	7.84%	1.12%	-4.84%	-30.61%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
IGO	56 Neutral	AU$5.78B	-6.02	-35.65%	―	-37.23%	-32433.33%
BOE	52 Neutral	AU$649.35M	-14.20	-6.67%	―	―	-164.37%
NIC	52 Neutral	AU$3.26B	-13.20	-7.26%	5.30%	-2.30%	-234.27%

Deterra Royalties Ltd Corporate Events

Deterra Royalties Appoints Jason Neal as Interim CEO

Deterra Royalties Ltd has announced the commencement of Jason Neal as the Interim Managing Director and CEO, following the departure of Julian Andrews. Neal’s appointment is temporary while the company conducts a search for a permanent replacement. This leadership transition is part of Deterra’s ongoing strategy to maintain its position in the resource royalty industry, ensuring continuity and stability in its operations.

Deterra Royalties Announces Director Departure

Deterra Royalties Ltd has announced the cessation of Julian Andrews as a director, effective November 28, 2025. This change in the board may impact the company’s strategic direction and stakeholder relations, as Andrews held significant interests in the company, including ordinary shares and performance rights.

Deterra Royalties Director Increases Shareholding

Deterra Royalties Limited announced a change in the director’s interest, with Leanne Heywood acquiring 3,000 additional shares through Mileberada Pty Ltd as trustee for the Heywood Family Trust. This acquisition increases her indirect holding to 11,000 shares, reflecting a strategic move that could enhance her influence within the company and potentially impact shareholder confidence.

Deterra Royalties Reports Strong Q3 Revenue and Strategic Asset Sales

Deterra Royalties Limited reported a 10% increase in portfolio revenue for the September 2025 quarter, driven by strong iron ore royalties and strategic divestments of non-core precious metal assets. The company sold its gold offtake portfolio and other precious metal assets for US$82 million, achieving a 28% pre-tax internal rate of return. Additionally, Deterra is involved in the Thacker Pass Lithium Project, which is progressing well with significant support from the U.S. Department of Energy. The company is also undergoing a leadership transition with the appointment of an interim CEO.

Deterra Royalties Ltd Announces Cessation of Share Rights

Deterra Royalties Ltd announced the cessation of 1,475 share rights due to unmet conditions, as detailed in their recent notification. This cessation may impact the company’s capital structure and could influence stakeholder perceptions regarding the company’s operational execution and strategic focus.

Deterra Royalties Ltd Approves AGM Resolutions Amid Leadership Transition

Deterra Royalties Ltd announced that all resolutions at its 2025 Annual General Meeting were approved, except for the grant of LTI Rights to the outgoing Managing Director and CEO, which was withdrawn. This decision reflects the company’s adaptability in leadership transitions, ensuring continued alignment with shareholder interests and operational stability.

Deterra Royalties Announces Leadership Transition Amidst Strong Growth

Deterra Royalties Ltd announced the upcoming departure of its Managing Director and CEO, Julian, who has been instrumental in establishing the company as a key player in the royalty industry. The board has initiated a search for a new leader, with Jason Neal stepping in as interim CEO. The company has experienced substantial revenue growth due to the expansion of BHP’s Mining Area C and strong iron ore prices. Deterra continues to focus on diversifying its portfolio to ensure sustainable returns, transitioning from a single-revenue-asset company to a globally diversified royalty business.

Deterra Royalties Announces CEO Succession Plan

Deterra Royalties Limited announced the resignation of Julian Andrews as Managing Director and CEO, with Jason Neal stepping in as interim CEO. Under Andrews’ leadership, the company expanded its royalty portfolio and strengthened its governance framework, positioning itself for sustainable shareholder value. The company is now searching for a new permanent CEO.

Deterra Royalties Benefits as Thacker Pass Secures Major DOE Funding

Deterra Royalties Limited announced that Lithium Americas Corporation, the operator of the Thacker Pass Lithium Project, has received a US$435 million draw from a US$2.23 billion loan by the U.S. Department of Energy. This funding supports the construction of Phase 1 processing facilities at Thacker Pass, a project of strategic importance due to its vast lithium reserves and low production costs. The development is expected to enhance Deterra’s revenue through its royalty interest, while reinforcing the project’s significance in the global lithium market.

Deterra Royalties Director Increases Shareholding

Deterra Royalties Limited announced a change in the director’s interest, with Alexander Morrison acquiring 10,000 additional ordinary shares through an on-market trade. This acquisition increases Morrison’s direct shareholding to 12,700 shares, reflecting confidence in the company’s future prospects and potentially impacting investor sentiment positively.

Deterra Royalties Updates on Thacker Pass Project’s DOE Loan Agreement

Deterra Royalties Ltd announced an update regarding the Thacker Pass Lithium Project, where it holds a 4.8% gross revenue royalty. The project, operated by Lithium Americas Corporation in partnership with General Motors, has reached a non-binding agreement with the U.S. Department of Energy for the first draw of a $2.26 billion loan. This agreement includes deferred debt service and equity stakes for the DOE, highlighting strong governmental and corporate support. The project is poised to become one of the largest and lowest-cost lithium producers, with significant progress in construction and engineering.

Deterra Royalties Completes US$60 Million Gold Assets Divestment

Deterra Royalties Limited has successfully completed the sale of its non-core gold offtake assets and gold royalties for a total of US$60 million to Vox Royalty Corp. This divestment, along with the recent sale of silver assets, marks the completion of Deterra’s strategy to offload non-core assets, generating US$82 million in total. The proceeds will be used to reduce net debt and position the company for future growth opportunities, reflecting a disciplined approach to portfolio management.

Deterra Royalties Director Increases Stake via Dividend Reinvestment

Deterra Royalties Limited announced a change in the director’s interest, with Jennifer Seabrook acquiring additional shares through the company’s Dividend Reinvestment Plan. This change reflects a modest increase in her direct and indirect holdings, indicating continued confidence in the company’s financial strategies and potential growth, which may reassure stakeholders about the company’s stability and future prospects.

Deterra Royalties Announces 2025 AGM Details

Deterra Royalties Limited has announced the details of its 2025 Annual General Meeting (AGM), scheduled for October 23, 2025, in Perth, Western Australia. The meeting will be held physically, with provisions for shareholders to view a webcast, although they will not be able to vote or ask questions online. Shareholders are encouraged to submit questions in advance and use proxy voting if unable to attend. This announcement underscores Deterra’s commitment to maintaining transparent communication with its stakeholders and adapting to modern communication methods.