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Deterra Royalties Ltd
(Sydney:DRR)
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Rating:71Outperform
Price Target:
AU$4.00
â–¼(-3.15% Downside)
Action:Reiterated
Date:08/19/26
The score is driven primarily by strong financial performance (high profitability and cash flow strength), supported by reasonable valuation and a high dividend yield. These positives are tempered by elevated leverage versus prior years and a mixed technical picture with neutral-to-weak momentum, while the latest earnings call was broadly constructive but included execution and leadership-timing risks.
Positive Factors
Asset-light royalty model
The royalty structure gives DRR exposure to mine-generated production and sales without bearing the underlying operator’s full mining cost base. This supports structurally high margins and cash conversion, while allowing earnings to benefit from volume and commodity-price growth.
Negative Factors
Uneven revenue momentum
The irregular revenue pattern shows that DRR’s earnings remain sensitive to underlying production, realized prices and non-recurring items. Choppy top-line performance can make dividend coverage and investment planning less predictable despite the company’s strong profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Asset-light royalty model
The royalty structure gives DRR exposure to mine-generated production and sales without bearing the underlying operator’s full mining cost base. This supports structurally high margins and cash conversion, while allowing earnings to benefit from volume and commodity-price growth.
Read all positive factors
Deterra Royalties Ltd (DRR) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$2.09B
Dividend Yield5.9%
Average Volume (3M)1.93M
Price to Earnings (P/E)12.9
Beta (1Y)1.16
Revenue Growth-5.40%
EPS Growth5.40%
CountryAU
Employees11
SectorBasic Materials
Sector Strength58
IndustryIndustrial Materials
Share Statistics
EPS (TTM)0.31
Shares Outstanding531,860,300
10 Day Avg. Volume1,639,627
30 Day Avg. Volume1,927,177
Financial Highlights & Ratios
PEG Ratio2.20
Price to Book (P/B)17.44
Price to Sales (P/S)10.26
P/FCF Ratio14.67
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$4.80Price Target Upside16.22% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)0.25
Revenue Forecast (FY)AU$209.05M
Deterra Royalties Ltd Business Overview & Revenue Model
Company Description
Deterra Royalties Limited functions as an Australian royalty investment firm, specializing in the oversight and expansion of a diverse portfolio of royalty assets. These holdings cover a range of resources, including bulk commodities, base metals,...
How the Company Makes Money
DRR makes money by receiving royalty payments from operators of mining projects over which it holds royalty interests. The company’s primary revenue stream is royalty income tied to iron ore production/sales from the Mining Area C iron ore operati...
Deterra Royalties Ltd Earnings Call Summary
Earnings Call Date:Aug 17, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Feb 22, 2027
Earnings Call Sentiment Positive
The call conveyed a generally positive operating and financial performance: solid NPAT (AUD 164m), revenue and EBITDA growth (+6%), record MAC volumes (+9%) and strong balance sheet metrics (net debt AUD 132m, AUD 357m undrawn). Material progress on Thacker Pass and a low all-in cost of debt (3.8%) support future optionality. Downsides discussed include FX headwinds (A$ realized price down 2%), reduced one-off MAC capacity payments, an extended CEO search, and slower-than-expected M&A execution despite an active pipeline. On balance, the positive financial results, balance-sheet strength and project progress outweigh the operational and timing challenges highlighted.Positive Updates
Strong Full-Year NPAT
Reported NPAT of AUD 164 million for FY2026, driven by record MAC production/sales and profit from sale of non-core assets from the Trident acquisition.
Negative Updates
FX Headwind and Aussie Realized Price Decline
While U.S. dollar realized prices improved (USD 92 referenced), the stronger AUD offset gains and the Australian-dollar realized price was down 2% on FY25.
Read all updates
Q4-2026 Updates
Positive
Negative
Strong Full-Year NPAT
Reported NPAT of AUD 164 million for FY2026, driven by record MAC production/sales and profit from sale of non-core assets from the Trident acquisition.
Read all positive updates
Company Guidance
Management reiterated it will maintain a 75% payout ratio, paying a fully franked FY26 dividend of AUD 0.232 per share (H1 AUD 0.124 + H2 AUD 0.108) with an amended DRP that includes a discount, and said it would not revert to a 100% payout even if net debt approached zero; no timing was promised for the CEO appointment. They highlighted financial strength and deployment optionality: FY26 NPAT AUD 164m, revenue and underlying EBITDA both up 6%, macro royalties +7%, record sales 140 Mt dmt (+9%), AUD realized price down 2%, operating cost AUD 14.1m (including AUD 1m one‑off CEO cost), net debt AUD 132m (drawn AUD 143m) with AUD 357m undrawn capacity, average facility margin 1.3% and all‑in post‑tax cost of debt 3.8%; AUD 108m of asset‑sale proceeds were used to reduce debt (AUD 13m deferred due Aug‑2026) and the USD 82m disposals generated AUD 8.4m profit. On Thacker Pass (from Trident) they noted a net acquisition cost of ~USD 106m, Lithium Americas has drawn USD 1.2bn of a USD 2.2bn DOE loan (DOE taking 5% equity), GM contributed USD 945m, detailed engineering >95% complete, procurement >70% complete, updated mine life 85 years and expansion to 160,000 tpa, with first production targeted end‑calendar 2027.Deterra Royalties Ltd Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
58
Neutral
Cash Flow
88
Very Positive
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 242.40M | 263.43M | 240.51M | 229.26M | 265.15M |
| Gross Profit | 241.00M | 263.43M | 231.43M | 220.34M | 257.12M |
| EBITDA | 228.32M | 248.03M | 225.56M | 219.34M | 256.78M |
| Net Income | 164.21M | 155.69M | 154.89M | 152.46M | 178.46M |
Balance Sheet | |||||
| Total Assets | 363.75M | 502.37M | 101.29M | 115.19M | 153.49M |
| Cash, Cash Equivalents and Short-Term Investments | 10.51M | 24.39M | 31.06M | 29.49M | 27.46M |
| Total Debt | 143.29M | 295.40M | 497.00K | 186.00K | 248.00K |
| Total Liabilities | 221.10M | 377.71M | 20.94M | 23.05M | 34.87M |
| Stockholders Equity | 142.64M | 124.66M | 80.35M | 92.14M | 118.63M |
Cash Flow | |||||
| Free Cash Flow | 169.53M | 132.95M | 170.09M | 182.23M | 127.81M |
| Operating Cash Flow | 169.54M | 134.88M | 170.18M | 182.32M | 127.81M |
| Investing Cash Flow | 104.74M | -267.73M | -88.00K | -89.00K | -10.00K |
| Financing Cash Flow | -286.03M | 126.30M | -168.52M | -180.20M | -124.56M |
Deterra Royalties Ltd Technical Analysis
Negative
4.13
Price Trends
4.08
Negative
4.19
Negative
4.15
Negative
Market Momentum
-0.06
Negative
45.52
Neutral
34.76
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:DRR, the sentiment is Negative. The current price of 4.13 is above the 20-day moving average (MA) of 3.94, above the 50-day MA of 4.08, and below the 200-day MA of 4.15, indicating a bearish trend. The MACD of -0.06 indicates Negative momentum. The RSI at 45.52 is Neutral, neither overbought nor oversold. The STOCH value of 34.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:DRR.
Deterra Royalties Ltd Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | AU$1.41B | 9.30 | 26.61% | 1.21% | 26.09% | 12.00% | |
71 Outperform | AU$2.09B | 12.85 | 116.70% | 5.90% | -5.40% | 5.40% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
55 Neutral | AU$2.71B | -109.15 | -0.86% | 5.44% | -3.18% | 88.11% | |
54 Neutral | AU$2.27B | -5.97 | -19.70% | 1.14% | -20.11% | -312.34% | |
50 Neutral | AU$1.51B | 78.79 | 2.27% | 12.57% | ― | ― | |
44 Neutral | AU$136.99M | -0.44 | -46.99% | ― | 234.01% | 8.57% |
* Basic Materials Sector Average
AU:DRR
Deterra Royalties Ltd
4.00
0.12
3.20%
AU:SYR
Syrah Resources
0.06
-0.24
-80.20%
AU:BCI
BCI Minerals Ltd
0.51
0.13
34.21%
AU:ILU
Iluka Resources Limited
5.69
-1.04
-15.44%
AU:MLX
Metals X Limited
1.68
0.85
101.20%
AU:NIC
Nickel Mines Ltd.
0.64
-0.09
-13.01%
Deterra Royalties Ltd Corporate Events
State Street Group Ceases to Be Substantial Holder in Deterra Royalties
Oct 26, 2026
State Street Corporation, through a group of global asset management and trustee subsidiaries, has lodged a notice stating it has ceased to be a substantial shareholder in Deterra Royalties Limited as of 22 October 2026. The filing, made under sec...
Deterra Royalties Seeks ASX Quotation for New Employee Incentive Shares
Oct 23, 2026
Deterra Royalties Limited has applied for quotation on the ASX of 91,851 new ordinary fully paid shares issued on 22 October 2026. The securities were issued under an employee incentive scheme and will be quoted, indicating ongoing use of equity-b...
Deterra Royalties Discloses Final Director Interest as Morrison Leaves Board
Oct 20, 2026
Deterra Royalties Limited has announced that director Alexander Morrison ceased to be a member of the board on 19 October 2026, triggering a final disclosure of his interests under ASX listing rules and the Corporations Act. The filing shows Morri...
Deterra outlines risk framework and data limits in new corporate presentation
Oct 19, 2026
Deterra has released an October 2026 corporate presentation outlining its business and financial metrics, noting that key performance indicators such as EBITDA and free cash flow may be presented on a non‑IFRS basis. The presentation emphasi...
Deterra Royalties Director Alex Morrison Resigns but Stays On as Advisor
Oct 19, 2026
Deterra Royalties Limited has announced the resignation of non-executive director Alex Morrison from its board for personal reasons, though he will remain involved with the company as an advisor. Morrison, who joined the board in April 2025 and ch...
State Street Group Drops Below Substantial Holding in Deterra Royalties
Oct 5, 2026
State Street Corporation, through subsidiaries including State Street Bank and Trust Company and State Street Global Advisors entities, has lodged a notice that it has ceased to be a substantial holder in Deterra Royalties Ltd as of 1 October 2026...
Deterra Expands U.S. Copper Exposure With Santa Cruz Royalty Deal
Sep 28, 2026
Deterra Royalties Ltd has outlined details of its acquisition of a third-party copper royalty linked to Ivanhoe Electric’s Santa Cruz Project in Arizona, U.S.A., as part of an ASX announcement released on 29 September 2026. The company empha...
Deterra Buys Major Santa Cruz Copper Royalty to Bolster Growth Portfolio
Sep 28, 2026
Deterra Royalties has acquired a 1.75% net smelter return royalty, amended to 1.68% initially and 1.57% thereafter, over a substantial portion of Ivanhoe Electric’s Santa Cruz copper project in Arizona for US$74.15 million, positioning the a...
Deterra Royalties Reschedules 2026 Annual General Meeting to Late November
Sep 25, 2026
Deterra Royalties Limited has postponed its 2026 Annual General Meeting to 30 November 2026, citing director availability as the reason for the change. The company has outlined revised key dates for the extended close of director nominations and t...
Deterra Director Increases Stake Through Dividend Reinvestment Plan
Sep 23, 2026
Deterra Royalties Limited reported a change in the shareholdings of director Jennifer Seabrook following her participation in the company’s Dividend Reinvestment Plan. Her direct and indirect holdings increased through the issue of additiona...
Deterra Royalties Seeks ASX Quotation for Over 2.2 Million New Shares
Sep 23, 2026
Deterra Royalties Limited has applied to the ASX for quotation of 2,262,384 new ordinary fully paid shares, issued on 22 September 2026 under a dividend or distribution plan. The additional quoted securities will modestly increase the company̵...
Deterra Royalties Refines DRP Pricing in Dividend Update
Sep 4, 2026
Deterra Royalties Limited has updated its dividend notification for holders of its ordinary fully paid shares, clarifying the calculation of the Dividend Reinvestment Plan (DRP) price. The update relates to a six-month period ending June 30, 2026,...
Deterra Royalties Issues New Unquoted Share Rights Under Employee Incentive Plan
Aug 21, 2026
Deterra Royalties Limited has notified the market of the issue of 55,214 unquoted share rights under its employee incentive scheme, effective 20 August 2026. The new securities, listed under code DRRAB, are subject to transfer restrictions and wil...
Deterra Royalties Seeks ASX Quotation for New Employee-Incentive Shares
Aug 21, 2026
Deterra Royalties Limited operates in the resources and mining royalties sector, deriving revenue from royalty interests rather than direct mineral production. The company focuses on managing and expanding its portfolio of royalty-based securities...
Deterra Royalties Performance Rights Lapse Reduces Potential Dilution
Aug 21, 2026
Deterra Royalties Ltd has announced the lapse of 238,463 performance rights, coded DRRAA on the ASX, after the conditions attached to these rights were not met or became incapable of being satisfied as of 20 August 2026. The cessation of these con...
Aware Super exits substantial holder position in Deterra Royalties
Aug 18, 2026
Aware Super Pty Ltd, acting as trustee of Aware Super, has lodged a Form 605 notice indicating it has ceased to be a substantial holder in Deterra Royalties Ltd as of 13 August 2026. The filing notes no changes in association arrangements, implyin...
Deterra Royalties Declares Interim Dividend of AUD 0.108 per Share
Aug 17, 2026
Deterra Royalties Limited has declared a fully franked interim dividend of AUD 0.108 per ordinary share for the six‑month period ended 30 June 2026, with an ex‑dividend date of 25 August, a record date of 26 August and payment schedule...
Deterra Royalties Updates ASX-Aligned Corporate Governance Framework
Aug 17, 2026
Deterra Royalties Limited, an ASX-listed resources royalties company, manages a portfolio of royalty interests and relies on a robust governance structure to support its strategy and deliver returns to shareholders. The board oversees corporate go...
Deterra Royalties Highlights Data Limits and Market Risks in FY26 Results Release
Aug 17, 2026
Deterra Royalties Limited is an ASX-listed diversified resource royalty company that earns income from mining operations run by other parties, relying primarily on publicly disclosed information rather than direct asset access. It uses non-IFRS fi...
Deterra Royalties lifts profit, trims debt as core iron ore and lithium assets drive growth
Aug 17, 2026
Deterra Royalties reported a 6% rise in FY26 revenue to A$236.2 million and a 5% increase in NPAT to A$164.2 million, driven by record production and sales from its Mining Area C iron ore royalty despite slightly softer realised prices. Underlying...
Deterra Royalties Lifts Profit, Trims Dividend as Revenue Softens
Aug 17, 2026
Deterra Royalties reported FY26 revenue of $242.4 million, down 8 percent from the prior year, while net profit after tax rose 5 percent to $164.2 million, highlighting resilient profitability despite softer top-line performance.The board declared...
Deterra Royalties Sets Out 2026 Governance Timetable
Aug 14, 2026
Deterra Royalties Limited is an Australian-listed company that operates in the resources royalties sector, providing investors exposure to commodity-linked royalty streams rather than direct mining operations. The company focuses on managing and g...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.