Deterra Royalties (DRR) investor relations material

Executive summary

• Achieved record first half NPAT of $87.2 million, up 36% year-over-year, driven by strong Mining Area C (MAC) royalty performance, robust pricing, and profitable non-core asset sales.

• Interim dividend of 12.4 cents per share (fully franked) declared, representing 75% of NPAT.

• Leadership transition with Jason Neal appointed Interim CEO in November 2025; business-as-usual approach maintained during the transition.

• Thacker Pass lithium project advanced, targeting first production in late 2027, supported by US government funding and strategic partners.

• Divestment of non-core precious metals assets generated a pre-tax IRR of 28% and streamlined the portfolio.

Financial highlights

• Revenue increased up to 12% year-over-year to $121.4 million, primarily from MAC royalty; record sales of 68 million dry tons at $139/ton.

• Underlying EBITDA rose 11% to $109.1 million (93% margin); basic EPS grew to 16.48c.

• Operating costs were $8.1 million, including one-off CEO transition and due diligence costs.

• Net debt reduced to $148.8 million as of December 31, 2025, with $344 million undrawn debt capacity.

• Sale of non-core assets generated $108 million in cash proceeds and an $8.4 million gain.

Outlook and guidance

• Thacker Pass project remains on track for first production in late 2027, with multi-phase expansion plans and strong US government support.

• 75% payout ratio for dividends maintained, balancing shareholder returns and investment flexibility.

• Strong balance sheet and undrawn debt capacity of $344 million position the company for future acquisitions.

• Management expects to pursue further acquisitions within the next 12-18 months.

• Dividend Reinvestment Plan remains active for the 2026 interim dividend, with no discount applied.