Deterra Royalties (DRR) +3.86%: delivered a strong first-half result, supported by higher royalty revenue and steady margins. The business continues to offer a simple, high-margin, Iron Ore royalty exposure with a consistent dividend framework.
- Net income $87.2mn, +36% YoY
- Royalty revenue $117.2mn, +12% YoY
- Underlying EBITDA$109.1mn, +11% YoY
- Interim dividend 12.4cps
- Target payout ratio 75% of NPAT
The result reflects steady royalty flows and disciplined cost control, maintaining DRR’s position as one of the cleaner income-style exposures within the resources complex.
With margins near best-in-class and dividends tied directly to royalty receipts, DRR remains a reliable beneficiary of iron ore volumes and pricing over the medium term.
MM is mildly bullish DRR for yield ~$4.30
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