Deterra Royalties Earnings: Dividends Likely to Fall Due to Acquisition of Trident Royalties

Deterra Royalties’ fiscal 2024 result was lower than we expected. The net profit after tax was about AUD 155 million or AUD 0.29 per share, which is similar to last year. EBITDA of around AUD 228 million increased 4% on fiscal 2023, with higher iron ore prices more than offsetting modestly lower sales volumes from Mining Area C, the lack of MAC capacity payments from no-moat BHP, and higher corporate and finance costs. Deterra will pay a fully franked final dividend of AUD 14.4 cents per share in September, bringing total fiscal 2024 dividends to AUD 29.29 cents fully franked, a 100% payout ratio and similar to last year.