Skip to Content
scroll

(DRR) Deterra Royalties and (GNE) Genesis Energy

Advanced Search

Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.

Ask a question

    The Latest Q&A

    Question asked

    (DRR) Deterra Royalties and (GNE) Genesis Energy

    Hi James You are performing well through an unpredictable and tough market-Well Done DRR a market darling, has reduced the Dividend for FY 2025 by 50% due to it's Takeover Offer for Trident Royalties in UK . Also BHP Operations Ouput was reduced for the Quarter. All up result the Share Price has Crashed. Is it oversold? What are your thoughts? (GNE) Genesis Energy has had a difficult period with it's KS-9 well joint interest underperforming and Hydro energy production falling. Dividends are still around 7.0%, but is it a Yield Trap? Appreciate your view and outlook.

    Answer

    Hi Richard,

    Thanks for the encouraging feedback, we’re only as good as our last quarter so, there’s no rest for the wicked! Two interesting stocks here:

    Deterra Royalties (DRR) – We are not fans of DDR’s takeover offer for Trident Royalties in the UK, its now a very different investment proposition becoming an iron ore/lithium royalty business. Also, they didn’t get Trident on the cheap although lithium prices are clearly depressed. We think this will lead to a turnover of their share register and teh stock will remain in the naughty corner for a while yet. There will be a time to buy DRR again, however, we have no interest at this stage around $4.

    Genesis Energy (GNE) – As you say GNE has endured a tough few years with the stock almost halving from its 2021 high. A quick look at the financials’ of GNE on the MM site plus its interim 2024 report indicates the dividend is sustainable but at what cost as the shares keep slipping lower – its not for us. It could easily be called a “dividend trap”.

    chart
    image description
    Deterra Royalties Ltd (DRR)
    image description

    Relevant suggested news and content from the site

    image description
    Overview
    image description
    A discussion with Geoff Wilson – Wilson Asset Management & James Gerrish – Market Matters
    image description
    Thursday 17th April – ASX +24pts, CGF, BHP, STO
    image description
    Major Movers Today
    image description
    Ausbiz: Research Lead Shawn Hickman discussing Copper
    image description
    Thursday 17th April – Dow -699pts, SPI down -26pts
    image description
    Stocks This Week – Source Bloomberg
    image description
    Wednesday 16th April – ASX +20pts, BOQ, RIO, ZIP
    image description
    Sectors This Week – Source Bloomberg
    image description
    Wednesday 16th April – Dow -155pts, SPI down -3pts
    Members only

    UNLOCK MARKET MATTERS NOW

    Take a free trial.

    No payment details required.

    Already a member? Click here to login
    Back to top