The Deterra Royalties Ltd (ASX: DRR) share price is in focus today after the company reported quarterly royalty revenue of $64.1 million, up 12% from the prior quarter, with Mining Area C delivering record sales volumes and strong pricing.
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What did Deterra Royalties report?
- Quarterly royalty revenue: $64.1 million, up 12% on Q3 FY26
- MAC royalty revenue: $61.8 million, up 9% on previous quarter
- Record MAC iron ore production reached 39.7 million wet metric tonnes
- Received $2 million in capacity payments from MAC
- Thacker Pass project advanced with US$1.21 billion DOE loan drawn down
- Other royalties contributed $0.3 million in the quarter
What else do investors need to know?
The June quarter saw Mining Area C (MAC) hit record iron ore sales, up 7% from the previous quarter, with average pricing increasing by 2% to $134/tonne. Deterra's portfolio continues to benefit from its exposure to both bulk commodities like iron ore and strategic battery metals through projects such as Thacker Pass in the US.
At Thacker Pass, construction is progressing well, with more than 95% of detailed engineering and over 70% of procurement now complete. The project, backed by substantial US government support, remains on track for late 2027 first lithium carbonate production.
What did Deterra Royalties management say?
Interim Managing Director and CEO Jason Neal said:
The quarter showcased the continued strong, resilient cashflow from our foundation asset, MAC, underpinned by record production and sales in a stable A$ price environment.
Throughout the quarter, the Thacker Pass Lithium Project continued to advance toward first production and cashflow on our royalty. Project development is tracking well against the late CY27 target of first lithium carbonate production. The US$1.21 billion drawn on the DOE Loan, and the equity positions taken by the DOE in Lithium Americas and the JV, provide pathways for the JV operators to accelerate the production timeline and reinforces the US government's support of Thacker Pass as a project of strategic importance.
While we will continue to drive value from our core MAC and Thacker Pass royalties and earlier stage royalty assets, we are also very focused on opportunities for further royalty investments and financing to grow and diversify our portfolio.
What's next for Deterra Royalties?
Looking ahead, Deterra expects stable income from MAC and is monitoring the progress at Thacker Pass, which targets first production in late 2027. Management signalled ongoing interest in expanding the company's royalty portfolio to capture opportunities across bulk, base, and battery metals.
The executive search for a new permanent CEO is also under way, with Jason Neal acting as Interim Managing Director in the meantime.
Deterra Royalties share price snapshot
Over the past 12 months, Deterra Royalties shares have risen 4%, outperforming the S&P/ASX 200 Index (ASX: XJO), which has risen 2% over the same period.
