Peter O’Connor mentioned DRR as probably his favourite exposure to the iron ore sector during our recent “Key Commodities – Where to from here?” webinar – Click Here if you missed it.
DRR is simply a royalty stream from a Rio Tinto mine which means there is no operational risk inherent in the business. The royalty stream was actually part of Iluka Resources (ILU) until it was spun out back in 2020. As a consequence, Deterra pays out 100% of its earnings as dividends with a projected 3.5% fully franked yield, although clearly this will be heavily impacted by the price of Iron Ore.
MM likes DRR around $4
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