Skip to Content
scroll

Thoughts on ILU spin-off, Deterra (DRR)

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

    Thoughts on ILU spin-off, Deterra (DRR)

    Hi James and Team .

    Thanks for your ongoing commentary, website is working well and your new podcasts are great - I recently topped up on ALU following your review. I would appreciate your view on DRR, demerged from Iluka in November 2020. This mining royalties business looks really interesting with potential capital growth and dividends as the global growth continues and infrastructure investment increases. Any reduction in the iron ore price should be mitigated by these factors . General advice only.

    Thanks David P.

    Answer

    Hi David,

    ILU spin-off DRR has become a $2.4bn mining royalties business which will largely follow the Iron Ore price when dividends are included. That means it’s well positioned while the Iron Ore price remains high which is a big ask given where it’s trading.  We believe resources might come off the boil in the coming months hence our buy zone for DRR is closer to $4.20 i.e. 8% lower – we’re not a buyer here.

    chart
    image description
    Deterra Royalties (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