Slides
Page 1
Deterra Royalties Diversified resource royalties March 2025 | ASX: DRRFor personal use only
Page 2
Disclaimers 2 This presentation has been prepared by Deterra Royalties Limited ACN 641 743 348 (“Deterra”, “the Company”). By accessing this presentation, you acknowledge that you have read and understood the following statement. Limitation on information in relation to royalty or offtake interests Except where otherwise stated, the information in this presentation relating to the mining assets to which the Company’s royalty or offtake interests are referrable is based solely on information publicly disclosed by the owners or operators of these mining assets and information and data available in the public domain as at the date of this presentation (or views based on such information), and none of this information has been independently verified by the Company. Accordingly, the Company does not make any representation or warranty, express or implied, as to the accuracy, completeness or reliability of such information. Specifically, the Company has limited, if any, access to the mining assets in respect of which royalties and offtakes are derived by the Company. The Company generally relies on publicly available information regarding the mining assets and generally has no ability to independently verify such information. Limitation on estimates of ore reserves and mineral resources All information in this presentation relating to estimates of ore reserves and mineral resources of each of the mining assets to which the Company’s royalty or offtake interests are referrable has been sourced from information publicly disclosed by the operators of the respective mining assets. References to estimates of ore reserves and mineral resources in this presentation are not ‘reporting’ of those estimates for the purposes of the ASX Listing Rules. Certain of these estimates have not been prepared by the operators of the respective mining assets in accordance with the standards outlined in 2012 edition of the Joint Ore Reserves Committee’s Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code), or the applicable disclosure regulations in the ASX Listing Rules. Deterra makes no representation or warranty, express or implied, as to the fairness, accuracy, correctness, reliability or adequacy of any information relating to estimates of ore reserves and mineral resources of each of these mining assets. Access to information regarding the operation of royalties and offtakes As a royalty and offtake holder, the Company generally has limited, if any, access to non-public data regarding the operations or to the actual mining assets relating to the Company’s royalties and offtakes. The extent of publicly available information regarding the operations may also be limited. This could affect the Company’s ability to assess the performance of a royalty or offtake. Some of the Company’s royalty and offtake arrangements may be subject to confidentiality arrangements which govern the disclosure of information with regard to royalties and offtakes and, as such, Deterra may not be in a position to publicly disclose non-public information with respect to its royalty’s or offtake’s performance. Similarly, the Company depends on the operators of the mining assets relating to the Company’s royalties and offtakes for the accurate calculation of royalty and offtake payments that it receives. The Company has limited ability to independently verify such information or achieve assurance that such third-party information is complete or accurate. Any audit rights under the contracts governing the relevant royalties and offtakes are limited to those set out in the relevant contracts and the audit may occur months after the Company’s recognition of the royalty or offtake revenue. Third parties control operations and development of mining assets The operation of the mining assets relating to the Company’s royalties and offtakes is dependent upon third party holders and operators of the mining assets. The Company has no input into the operation of these mining assets, and the operators’ failure to perform could affect the revenues generated by the Company. Similarly, the Company will have limited or no decision-making influence as to how these mining assets are exploited, including decisions to expand, continue or reduce production from, or exploration of, a mining asset. The interests of the Company and third-party holders and operators of mining assets may not always be aligned. If an operator does not bring parts or all of a mining asset into production and operate in accordance with feasibility studies, technical or reserve reports or other plans for any reason, including due to unexpected problems or delays, then the acquired royalty or offtake may not yield the expected financial return that was estimated. Development, expansion and operation of mining assets is very capital intensive and any inability of the operators of the mining assets relating to the Company’s royalties and offtakes to meet liquidity needs, obtain financing or operate profitably could have material adverse effects on the value of, and revenue from, the Company’s royalties and offtakes. The inability of the Company to control the operations or development of the mining assets relating to the Company’s royalties and offtakes may have a material adverse effect on the Company’s financial performance and ability to pay a dividend. Forward-looking statements This presentation may contain forward-looking statements such as, without limitation, statements regarding the future performance of the Company and its assets; the Company’s strategy to expand and diversify its royalty or offtake base; the Company’s intentions regarding its dividend policy; the Company’s expectations regarding the financial impact of the acquisition of Trident Royalties Plc; the production targets, forecasts and capacities of the operators of the respective mining assets over which the Company has a royalty or offtake; and contingent receipts. Where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and on a reasonable basis. No representation or warranty, express or implied, is made by the Company that the matters stated in this presentation will in fact be achieved or prove to be correct. Forward-looking statements are subject to known and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the Company’s control, that could cause the actual results, performances or achievements of the Company or the underlying royalty or offtake assets to differ materially from future results, performances or achievements expressed, projected or implied by such forward-looking statements. Such risks and factors include, but are not limited to: the risks and uncertainties associated with the economic environment and capital market conditions in the jurisdictions that the Deterra Group is expected to operate in; changes in exchange rate assumptions; changes in product pricing assumptions; major changes in mine plans, reserves or resources or production targets, forecasts and capacities of the mining assets; emergence of previously underestimated technical challenges; increased costs and demand for production inputs; and environmental or social factors which may affect a licence to operate, including political risk. Readers are cautioned not to put undue reliance on forward- looking statements. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this announcement. To the extent permitted by law, the Company, its officers, employees, agents and advisors expressly disclaim any responsibility for the accuracy or completeness of the material contained in this presentation and exclude all liability whatsoever (including in negligence) for any loss or damage which may be suffered by a person as a consequence of any information in this presentation or any error or omission therefrom or otherwise arising in connection with this announcement or its contents. The Company does not undertake to release publicly any revisions to any forward-looking statement to reflect events or circumstances after the date of this presentation, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws. Non-IFRS Financial Information This presentation may contain non-IFRS financial measures including EBITDA, Underlying EBITDA, EBIT, free cash flow, and net debt amongst others. Deterra management considers these to be key financial performance indicators of the business and they are defined in the Deterra’s 2024 Annual Report, available at www.deterraroyalties.com. Non-IFRS measures have not been subject to audit or review and should not be considered as an indication of or alternative to an IFRS measure of profitability, financial performance or liquidity. No offer of securities Nothing in this presentation should be read or understood as an offer, invitation or recommendation to subscribe for, buy or sell Deterra securities, or be treated or relied upon as a recommendation or advice by Deterra. All figures are expressed in Australian dollars unless stated otherwise. This presentation has been authorised for release to ASX by Deterra’s Managing Director. For personal use only
Page 3
Agenda 3 Time Session Presenters 9.00am Introduction Jason Clifton 9.05am Deterra Overview and Strategy Julian Andrews 9.30am Lithium America’s Thacker Pass Jonathan Evans, President and CEO, Lithium Americas Corp. 10:00am Key Assets and Catalysts Adam Davidson, Tyron Rees, Jason Clifton 10.20am Break 10.40am Capital Management Jason Clifton 10.55am Further Q&A Julian Andrews For personal use only
Page 4
20% 13% 18% 42% 7% Share Register3 CAPITAL STRUCTURE Share price1 $3.56 Shares on issue 528.8m Market capitalisation1 $1.9bn Cash (31 Dec 2024) $5.5m 1H25 Net Profit after Tax $63.9m Cornerstone MAC iron ore royalty Royalty over world-scale Thacker Pass lithium project Active and disciplined in pursuit of investment opportunities BOARD AND KEY MANAGEMENT Non-Executive Chair Jennifer Seabrook Managing Director and Chief Executive Officer Julian Andrews Non-Executive Director Graeme Devlin Non-Executive Director2 Adele Stratton Non-Executive Director Jason Neal Chief Financial Officer Jason Clifton Head of Americas Adam Davidson Chief Operating Officer Tyron Rees 4 Deterra Royalties Limited 4 1. As at 7 March 2025 2. Iluka Resources Limited nominee 3. As of 31 January 2025 A diversified resources royalty company For personal use only
Page 5
5 Overview and strategyFor personal use only
Page 6
Introduction 6 Lower risk exposure to resources sector through an established business model High quality portfolio generating cash flow to support shareholder returns and significant optionality Consistent strategy targeting non- precious commodities We offer investors a simple investment proposition : For personal use only
Page 7
Royalty/streaming model 7 A simple business model that offers: Exposure to natural resources with a lower risk profile than investing in mining businesses whilst retaining exposure to the upside through expansions and extensions It is an established business model in other jurisdictions with >30 listed royalty companies (primarily in North America) and a combined market of >US$80 billion1 Key value drivers: Quality: The ability to continue production through commodity cycles; and the ability to attract capital to fund extension and/or expansion Optionality: likelihood of extension and/or expansion • Mine-life: long life assets will experience multiple commodity cycles • Cost position: Q1 and Q2 assets are more robust in price downswings • Scale: large deposits typically have greater scope for brownfield expansion • Operator: well capitalised operators are better able to invest in sustaining and expansion capital • Location: lower sovereign risk and access to mining infrastructure better support operations and expansion Royalty revenue derived from asset’s revenue line, or with limited, defined deductions “Top line” cashflows Asset expansions and extensions drive royalty values Project optionality Direct exposure to underlying commodity price Commodity price leverage Income potential Limited cost exposure No direct exposure to cost inflation or increases on capital/sustaining and operating costs Deterra Mining Company Equity Physical Commodity/ETF ✓ ✓ ✓ ✓ ✓ × × × × ✓ ✓ ✓ ✓ ✓ ✓ Production uplifts supports shareholder returns 1. S&P Capital IQ. Market capitalisation for the peer group as at 28-Feb-25. Universe includes royalty companies with a market capitalisation over US$150m, refer to slide 12 for more information on royalty peer group For personal use only
Page 8
Mining Area C (MAC) royalty (producing since 2003) Operated by BHP, top line exposure to the world’s largest iron ore hub1 with 9% of global seaborne iron ore supply at full capacity2 Quality 8 The MAC Operation1 Large 145Mtpa hub Long Life 45+ year mine life Significant optionality ̴ 35% of BHP’s WA Iron Ore total Mineral Resource is located within 50km of MAC processing infrastructure Low Cost BHP FY25 cost guidance of US$18/t-US$19.5/t3 Ownership BHP (85%; operator), Itochu (8%), Mitsui (7%) Location Tier 1 mining jurisdiction – Pilbara, Western Australia Royalty term Life of mine The Thacker Pass Operation5 Large Phase 1 planned capacity of 40,000tpa LCE Long Life Project economics outlined for 85 -year life of mine Significant optionality Four phase development plan to 160kt LCE production Low Cost Years 1-25 C1 cost guidance US$6,238/t LCE Ownership Lithium Americas (62%; operator), General Motors (38%) Location Tier 1 mining jurisdiction – Nevada, USA Royalty term Life of mine Thacker Pass royalty (in development, first production targeted 2027) Operated by Lithium Americas Corp, provides top-line exposure to world scale4 domestic US lithium project 1. BHP – Western Australia Iron Ore South Flank – Site Tour Presentation (4 October 2022) and BHP Operational review for the half year ended 31 December 2024, ASX, 21 January 2025 2. AME iron ore industry analysis, 7 March 2025 3. BHP Operational review for the half year ended 31 December 2024, ASX, 21 January 2025 4. AME lithium industry analysis, 28 January 2025 5. Lithium Americas Corporation announcement and presentation dated 7 January 2025 World class cornerstone assetsFor personal use only
Page 9
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Production tonnage 62% Iron Ore (US$/t) MAC GRR revenue Optionality Pricing variation can drive short term returns, but expansion will drive sustainable value 9 South Flank ramp up BHP announces development of Mining Area C – North Flank April 2002: ▪ Capex: US$213 million ▪ Target capacity: 15mtpa by 2011 ▪ Actual production in 2016: 55mtpa Total royalty holder contribution: $0 BHP announces development of South Flank, June 2018: ▪ Capex: US$3.6 billion ▪ Target capacity: 80mtpa by 2021 (145mtpa combined) Total royalty holder contribution: $0 1. Deterra and Iluka Resources Limited Annual Reports, S&P Capital IQ For personal use only
Page 10
Country North America Australia Other Current portfolio 17 Assets in Tier 1 Jurisdictions Key assets Operator Interest Mining Area C BHP 1.232% of Iron Ore revenue + capacity payments Thacker Pass Lithium Americas 1.05% GRR royalty over Thacker Pass Project1 Revenue Bulks Base Battery Precious Bulks >85%, Battery 7%, Precious 4% Asset Valuations2 10 1. After expected exercise of partial buyback 2. Bulk comprises MAC asset value based off VA Consensus NAV January 2025. Other asset valuations reflect 1H25 Deterra Financial Report >90% 1H25 revenue from MAC For personal use only
Page 11
Consistent strategy to build value 11 Future investment Selective and disciplined additions to the portfolio: • Value accretive investments deliver value in their own right • Individual investment must meet appropriate return hurdles • No targeted rate of capital deployment or level commodity allocation • Patient investment decision making driven by value • Successful execution over time can provide portfolio level benefits: • Increased optionality – leverage to cycle • Scale – cost base leverage, ‘investability’, liquidity • Diversification – earnings smoothing, cost of capital Outcome of successful execution of investment strategy, not driver of activity Existing portfolio Short-term catalysts and long-term optionality: • Mining Area C: South Flank approaching nameplate capacity (reached on a run-rate basis in late FY20241) • Thacker Pass: full notice to proceed expected early 2025 with production targeted for 20272 • Four phase development plan to increase production from 40ktpa LCE Phase 1 to 160ktpa LCE production • La Preciosa: processing of material expected to start 2HCY253 • Mimbula: Phase 2 expansion to 56ktpa, expected to be completed early 20264 1. BHP Operational review for the year ended 30 June 2024 2. Lithium Americas Corporation announcement, 7 January 2025 3. 2025 Outlook and 2024 Achievements, Avino Silver & Gold Mines Ltd., 6 February 2025 4. Update from Moxico Resources website (accessed February 2025) 11 For personal use only
Page 12
61% Non-Precious 39% Precious 5% Non-Precious 95% Precious 37% Non-Precious 63% Precious Strategy focused on competitive differentiation 12 Royalty and streaming sector is heavily weighted to precious metals – Deterra targets bulks, base and battery and electrification commodities 37% of Existing Royalties are Non-Precious2 Opportunity Pool Total US$83bn market capitalisation with only 5% Non -Precious Focused Listed Royalty Companies1 Non-Precious Focused Listed Royalty Companies by Market Cap1 1. S&P Capital IQ. Market capitalisation for the peer group as at 28 -Feb-25. Universe includes royalty companies with a market c apitalisation over US$150m; TSX:FNV, NYSE:WPM, Nasdaq GS:RGLD, TSX:OR, TSX:TFPM, TSX:SSL, NYSEAM:GROY, TSXV:MTA, TSX:LIF, ASX:DRR, TSX:ALS, LSE:ECOR, TSXV:URC; TSX:LIRC; NYSE:MSB, TSXV:OGN, TSXV:ELE, TSXV:EMX, 2. Number of royal ties from Deterra analysis of S&P Capital IQ, 3. 2024 global debt and equity financing for metals and mining projects - S&P Capital IQ Deterra Royalties Limited Altius Minerals CorporationLabrador Iron Ore Royalty Corporation Mesabi Trust Uranium Royalty Corp. Other Non- Precious 61% of financings are Non-Precious3 For personal use only
Page 13
Other opportunities considered on merit on a case-by-case basis New instruments: provide funding for project development, balance sheet repair or project acquisition Targeting value accretive opportunities Existing instruments: acquire existing royalties or similar instruments from third parties Portfolio/M&A: opportunistic acquisition of portfolios/peers at value Size Commodity Geography Stage Broad mandate driven by ability to add value “Sweet spot” $100 to $300 million • Bulks • Base • Battery and electrification Developed mining jurisdictions, including: • Australia • N. America • S. America • Europe • Production • Near production 13 Consistent and disciplined approach to investment Prioritising opportunities where we have a competitive advantage For personal use only
Page 14
Investment approach and criteria 14 Review process is structured to screen opportunities efficiently and focus efforts on attractive and executable opportunities aligned with investment strategy ~50% ~1% ~10% Opportunities are screened for alignment (commodity, jurisdiction, scale, stage) and risk profile Pre-screened opportunities are assessed for risk/return, based on public information and/or counter-party data room In depth diligence including technical, legal, ESG and commercial review using data room information and external expert reports 4. Final terms/offer 1. Initial Screening 2. Desk top review 3. Detailed review Valuation • Price: consensus outlook • Discount rate: project-specific cost of capital, reflecting project risk factors including commodity, jurisdiction, development stage, quality, operator • Volumes: extensive production scenario testing, e.g. adjusted for start-up risk and ramp-up profile, derived from detailed technical diligence Metrics • Net asset value (NAV) • expect immediate NAV per share accretion • IRR in excess of project specific cost of capital • high single digits to low double-digit returns depending on project characteristics • Immediate EPS and cashflow accretion not appropriate for development options not in production • cashflow and EPS metrics offset by more robust NAV Diligence • Maintain internal technical, financial and commercial expertise, with graduated approach to diligence: • desk-top largely internal, based on public or vendor information • detailed diligence leverages external expertise and may include bespoke analysis, site visits etc. For personal use only
Page 15
Trident acquisition update 15 • On strategy – portfolio with quality flagship asset and immediate cash flow aligned with target commodities and “sweet spot” quantum • Countercyclical – Li price at near 5-year lows • Immediately NAV accretive to Deterra • Trident trading at 0.58x P/NAV at 31 May 20241 • implied 0.8x P/NAV paid2 • Thacker Pass represented substantial portion of Trident NAV • Trident share price not reflective of substantial derisking of Thacker Pass asset over time • Immediate cash flow from gold offtakes • Increased portfolio optionality for extensions and expansions Acquisition basis Thacker Pass has continued to de-risk • Phase 1 positioned to be fully funded3 • Significant increase in Reserve size since acquisition4 • Full notice to proceed anticipated in early 20254 Gold offtakes out-performing expectations • Record gold ounces delivered and revenue received in first half FY2025 • Optionality to divest if value is compelling 1. Streaming Royalty Sector Recap – Scotiabank May 2024, 2. Based on a 42% premium to Trident’s undisturbed closing price prior to Deterra’s first non-binding conditional proposal of 44p per share 3. Lithium Americas announcement 5 March 2025, 4. Lithium Americas announcement January 7, 2025, Performance since acquisition For personal use only
Page 16
Jonathan Evans CEO, Lithium Americas CorporationFor personal use only
Page 17
Key assets and catalystsFor personal use only
Page 18
Foundation Mining Area C iron ore royalty The MAC Royalty Agreement type Gross revenue royalty Royalty rate 1.232% of AUD denominated revenue from MAC Royalty Area Payment currency AUD Capacity payment One-off payments of $1 million per million dry tonne increase in the annual production level from the MAC Royalty Area during any 12 month period ending 30 June above the previous highest annual production level Pilbara WA, MAC royalty area4 Tandanya South Flank North Flank 65 Mtpa 80 Mtpa Mudlark The MAC Operation1 Large 145Mtpa hub Long Life 45+ year mine life Expandable ̴ 35% of WAIO total Mineral Resource is located within 50km of MAC processing infrastructure Low Cost BHP FY25 cost guidance of US$18-19.50/t3 Key milestones Production commenced at North Flank mine BHP announced construction commenced on US$3.6 billion expansion of to South Flank mine Production commenced at South Flank mine Mining Area C royalty written South Flank reaches nameplate capacity on a run -rate basis, brings total MAC capacity to 145mwtpa3 1994 2003 2018 2021 Q4 FY2024 Operated by BHP, >45 mine life1, world’s largest iron ore hub1 with 9% of global seaborne iron ore supply at full capacity2 1. BHP – Western Australia Iron Ore South Flank – Site Tour Presentation (4 October 2022), 2. AME iron ore industry analysis, 7 March 2025, 3. BHP Operational review for the half year ended 31 December 2024, ASX, 21 January 2025, 4. Location and mineralisation outline are for illustrative purposes only. Source: BHP public documents, Google Earth and Western Australian Department of Mines, Industry Regulation and Safety (DMIRS), with D eterra overlay of royalty area 18 For personal use only
Page 19
56 104 118 116 64 142 219 215 239 104 2 46 13 Historical MAC Sales and Revenue3 Sales Volume (Mdmt) Revenue (A$M) Capacity Payments (A$M) MAC - DRR Royalty Outlook 19 MAC Indicative Future Revenue: • Further capacity payments totalling A$17m4 if MAC operates continuously at nameplate capacity; plus • Royalty – 1.232% of A$ MAC revenue: Mining Area C (“MAC”) Highlights • Two Iron Ore Hub’s producing a total of 145mwmtpa comprised of: • North Flank, commenced in 2003, 65mwmtpa nameplate capacity • South Flank, commenced in 2021, 80mwmtpa2 nameplate capacity Illustrative Revenue Sensitivity (A$) assuming MAC production of 145mwmtpa BHP Realised Iron Ore Price5 (US$ DMT) 60 70 80 90 100 110 AUD:USD 0.70 $143m $167m $191m $215m $239m $252m 0.67 $150m $174m $199m $224m $249m $262m 0.64 $157m $183m $209m $235m $261m $274m 0.61 $164m $192m $219m $246m $274m $287m The above sensitivity table incorporates the following assumptions: ▪ Dry production calculated using MAC 145mwmtpa and using a 7% moisture content (FY25 Consensus) ▪ The current LT USD Exchange rate is 0.70 The world’s leading iron ore business 1 FY21 FY22 FY23 FY24 1H25 1. BHP 31 December 2024 results presentation, ASX 18 February 2025, 2. BHP operational review for year ended 30 June 2024, AS X 17 July 2024, 3. Deterra past annual and half year financial results, 4. Nameplate capacity 145Mwmt less assumed 7% moisture content less 30 June 2024 threshold of 118mdmt, AUD:USD 0.67, 5. BHP 1H25 Average realised price US$81.11/ wmt, 6. Visible Alpha as at 7 March 2025 The illustrative royalty revenue on this slide is not a forecast or a projection and investors should not treat this as revenue guidance. No assurance is given that any of the illustrative revenue amounts can or will be achieved. • MAC Consensus NAV – A$2.6b6 For personal use only
Page 20
Flagship Thacker Pass lithium royalty The Thacker Pass Royalty Agreement type Gross revenue royalty Buyback rights LAC right to reduce royalty to 1.75% for US$22m (100% basis); DRR’s 60% attributable basis is 1.05% for US$13.2m, prior to first production Payment currency USD Royalty rate (if Buyback not exercised) 8.0% GRR reducing to 4.0% after US$22m of royalty payments (100% basis); DRR’s 60% attributable basis is 4.8% reducing to 2.4% after US$13.2m royalty payments NV McDermitt McDermitt McDermitt Caldera Winnemucca Reno Denio Orovada San Francisco CA ID UT Thacker Pass Project Road Cities Port Thacker Pass USA Key milestones2 Bureau of Land Management Record of Decision issued under Trump administration Major Operating Permits Received General Motors US$320 million equity investment with long-term offtake Early-works construction commences, Bechtel EPCM i. GM US$625 million joint venture investment and 20-year offtake ii. The US DoE US$2.3 billion loan (24-year term at the risk-free rate) Jan-2021 Apr-2022 Jan-2023 Mar-2023 Oct-2024 Q1-2025 Updated NI-43-101 (Resource/Reserve & Production Plan) FID targeted early 2025 The Thacker Pass Operation2 Large Phase 1 planned capacity of 40,000tpa LCE Long Life Project economics outlined for 85 -year life of mine Significant optionality Four phase development plan to 160kt LCE production Non-JORC P&P Reserve3 Estimate of 14.3Mt LCE at an average grade of 2,540ppm Li Non-JORC M&I Resource3 Estimate of 44.5Mt LCE at an average grade of 2,230 ppm Li Low Cost Years 1-25 C1 cost guidance <$6500/t LCE Operated by Lithium Americas Corp, provides top line exposure to world’s largest lithium reserve 1 Nevada USA, Thacker Pass 1. AME lithium industry analysis, 28 January 2025, 2. Lithium Americas Corporation announcement and presentation dated 7 January 2025, 3. The Mineral Reserve and Mineral Resour ce estimates are not reported in accordance with the JORC Code. The Mineral Resource and Reserve estimates have been prepared using the National Instrument 43 -101 (Standards of Disclosure for Mineral Projects) of the Canadian Securities Administrators and the S -K 1300 regulations for the US Securities Act of 1933. Accordingly, the Mineral Resource and Reserve estimates are not, and do not purport to be, com pliant with the JORC Code. 20 For personal use only
Page 21
Thacker Pass - DRR Royalty Outlook 21 Doubled targeted production and mine life1 • Phase 1: 40ktpa LCE, first production expected in Q4 CY2027 • General Motors strategic partner - LACs largest shareholder (7%) and holds 38% of the Thacker Pass JV with a 20+ year offtake • Phases 2-4 targets expansion to quadruple production to 160ktpa LCE Construction underway1 • US$2.9b Phase 1 capex funded with: • GM US$945m investments • US$2.3b US DOE “closed” Loan - 24 year tenor at U.S. Treasury rate with 0% spread • Orion Resources Partners US$250 million funding3 • Bechtel appointed as EPCM for Phase 1, nearly 2,000 jobs during construction and c350 operational roles for Phase 1 1. Lithium Americas Corp announcement and presentation, 7 January 2025. Any references to production capacities (and other fo rward-looking information) in this presentation are not ‘reporting’ of those estimates for the purposes of the ASX Listing Rules, 2. LAC right to reduce royalty to 1.05% for US$13.2m (represents DRR 60% attributable basi s), prior to first production, 3. Lithium Americas Corp announcement 5 March 2025. Illustrative A$ Revenue Sensitivity assuming TP production of 40kt LCE (Phase 1 only) LAC Realised Lithium Carbonate Price (US$/t LCE) 10,000 13,500 16,250 20,500 24,000 AUD:USD 0.70 $6.0m $8.1m $9.8m $12.3m $14.4m 0.67 $6.3m $8.5m $10.2m $12.9m $15.0m 0.64 $6.6m $8.9m $10.7m $13.5m $15.8m 0.61 $6.9m $9.3m $11.2m $14.1m $16.5m ▪ LT Consensus for LCE is $16,250 per Consensus Economics February Forecast ▪ The current LT USD Exchange rate is 0.70 A “text book” royalty since Deterra acquisition Thacker Pass Indicative Future Revenue:2 • One time buy back of US$13.2m; plus • Royalty – 1.05% of US$ Thacker Pass revenue: The illustrative royalty revenue on this slide is not a forecast or a projection and investors should not treat this as revenue guidance. No assurance is given that any of the illustrative revenue amounts can or will be achieved. • Above table reflects Phase 1, Phases 2-4 targets expansion to quadruple production to 160ktpa LCE 1 For personal use only
Page 22
Gold offtakes: Royalty-like returns Offtake contracts provide “royalty-like” exposure: • Returns are driven by gold price, volatility and production profile • Acquire gold at the minimum gold price within the quotation period (6-8 days from notice of delivery) • DRR margin is difference between minimum purchase price and sale price • 1H25 generated $7.2m cash in four months on acquisition book value of $86.9m 8 offtake contracts, 6 project operators, 10 mines Strong 1H25 performance and capital management optionality 22 3.6 5.2 4.6 5.8 5.7 10.9 111 142 129 144 112 194 2H22 1H23 2H23 1H24 2H24 1H25 Revenue (A$M) Ounces '000 Margin US$ 23.1 24.7 24.1 26.2 33.6 37.2 Realised Price US$ 1,807 1,731 1,935 1,963 2,227 2,577 Realised Margin2 1.30% 1.45% 1.26% 1.35% 1.53% 1.46% Half Year Gold offtake half year receipts: volume and realised margin1,2 AUD million4, ounces delivered, US$/ounce Weighted average realised margin of 1.40% 1. Reflects operational periods including prior to Deterra acquisition during Trident ownership (Deterra consolidates Trident financial results from 2 September 2024, 2 . Net realised margin defined as sale price less cost of sales, divided by US$ gold purchase price 3. Guidance based on Operator production guidance received in February 2025 adjusted for individual offtake delivery terms, except for Bl yvoor and Los Filos, where no CY2025 operator provider guidance has been provided, in which case CY24 actuals are used ie Blyvoor 18koz and Los Filos 85koz (refer Equinox Gold Corp. 19 February 2025 TSX announcement) 4. US$ Amounts converting using the historical average exc hange rate for the period (Capital IQ) 306 293 0 50 100 150 200 250 300 350 400 CY24 Actual Delivered CY25 Forecast Attributable Gold Offtakes – Actuals and Guidance1,3 For personal use only
Page 23
Operator Asset Location Deterra Offtake Offtake Cap Total ounces delivered to Dec 24 Ounces delivered in 12 months to Dec 24 Catalysts Los Filos 50% of gold production 1.1moz 512koz 84koz • Recommencement of production subject to concluding the final community agreement1 • ~6 years of production remaining under cap at current rates Fazenda 35% of gold production 658koz 364koz 62koz • Multi asset offtake • ~5 years of production remaining under cap at current rates RDM Santa Luz Greenstone 100% of gold production 58.5koz p.a until Mar 2027 58.5koz 58.5koz • Produced more than 112koz ounces in 2024, its first partial year of operations3 i-80 100% of gold production 40koz p.a until Dec 2028 44koz 22koz • Additional capital sourced and new Preliminary Economic Assessment released4 Bonikro 50% of gold production2 No cap 177koz 46koz • Current mine plan extends to 2029, Allied Gold targeting mine life extension6 • 2025 guidance: 102 koz (100% basis)5 Blyvoor 100% of gold production2 2.7moz 64koz 18koz • Currently completing NYSE listing for expansion capital Eagle 25% of gold production 1.1moz 163koz 15koz • Operation suspended due to mine incident Sugar Zone 80% of gold dore production 961koz 93koz nil • Ongoing evaluation by Vault, with current ore reserves supporting production over 6.5 year mine life with average annual production of ~50kozpa and estimated preproduction restart capex of C$55m7 Gold offtake portfolio – ounces and catalysts 1. Equinox Gold Corp. 19 February 2025 TSX announcement - “the Company is not issuing 2025 cost and production guidance for Los Filos. Continuing operations at Los Filos in 2025 is subject to the successful completion of new long -term agreements with three local communities … Two communities have ratified and signed new long -term agreements; however, one commun ity remains outstanding. If the Company is unable to satisfactorily complete these agreements with all three communities in the very near term, the Company will suspend operations at Los Filos indefinitely.”, 2. After deduction for streamed oz, 3. Equinox TSX announcement 19 February 2025, 4. i80 TSX announcements 28 Feb and 5 March 2025, 5. Midpoint of Allied Gold’s guidance, announced 20 February 2025, 6. Allied Gold, Annual Information Form FY2023, 7. V ault Minerals ASX announcement 27 Feb 2025 23 Short to medium term Medium to long term Option value + Medium to long term 1.8moz remaining under caps 2.6moz remaining under cap 1.2moz maximum remaining under caps Uncapped Short term, subject to mine extension For personal use only
Page 24
Asset Royalty Milestone Details Mining Area C (Fe) 1.232% GRR • Nameplate capacity • Continuous operation at nameplate capacity of 145Mwmtpa Thacker Pass (Li) 1.05% GRR1 • First production expected in CY20272 • US$13.2m contingent receipt6 • LAC right to reduce royalty to 1.05% (DRR attributable) for a payment to DRR of US$13.2m, prior to first production La Preciosa (Ag, Au) 1.25% NSR • Commencement of underground silver production (expected 2HCY253) • Deterra entitled to US$8.75m6 from Avino (up to 50% may be satisfied with the issue of Avino shares) within 12 months of first underground silver production, following which Deterra is required to pay US$1m to Coeur Mining (royalty vendor) Antler (Cu, Zn) 0.9% NSR • DFS and permits • DFS expected by Dec 2025, all permits expected by March 20264 • Right to repurchase 0.3%NSR for A$9m6 within three months of project finance Mimbula (Cu) 0.3% GRR • Phase 2 Expansion • Phase 2 Expansion to 56ktpa, expected to be completed early 20265 Royalty portfolio – near term milestones and newsflow 24 1. After expected exercise of partial buy-back, 2. Lithium Americas Corp Thacker Pass Technical Report Presentation January 2025, 3. 2025 Outlook and 2024 Achievements, Avino Silver & Gold Mines Ltd., 6 February 2025, 4. New World Resources – Antler Copper Project Achieves Critical Federal Permitting Milestone (7 February 2025), 5. Update from Moxico Resources website (accessed February 2025), 6. Contingent receipts have limited NPAT impact as revenue is offset by depreciation For personal use only
Page 25
Capital managementFor personal use only
Page 26
Liquidity Leverage Cash flow allocation • Maintain flexibility to invest counter- cyclically • Cash flow and access to funding an important competitive advantage • Optimise use of debt funding for future acquisitions • Target leverage of 0 - 15% of enterprise value • Dividend approach balancing returns to shareholders with capacity to invest • Discipline to return capital when not required for investment or balance sheet management A minimum payout of 50% of NPAT, with the Board exercising discretion for higher dividend payout ratios based on factors which include: • managing current and projected net debt levels and debt service expense; and • preserving balance sheet liquidity to fund potential investment Retained earnings and any proceeds from asset sales, contingent receipts or capacity payments (one-off receipts) are expected to be used to reduce debt where debt remains outstanding, which also enhances liquidity to support ongoing investment FY2025 interim dividend • 9.0 cents per share, fully franked Capital management framework Capital management framework 26 Dividend policy Balancing future growth and shareholder returnsFor personal use only
Page 27
Strong cash flow generating capacity Flexibility to pay down net debt or deploy for investment from: • One off receipts eg milestone or capacity receipts, divestments etc1,2 • Retained earnings (per capital management framework) Leverage Immediately available funding to respond to new opportunities • c$200m available under existing facilities • Target range of 0 – 15% net debt to EV Access to capital markets Flexibility to leverage debt and equity financing to meet strategic objectives Disciplined value accretive investment Funding capacity increases with value-accretive portfolio growth and diversification Capital management levers Capital management options provide flexibility to align with investment strategy and outcomes Revolving Credit Facilities Net Debt at 31 Dec 2024 AUD millions Available liquidity • Access to the Revolving Credit Facilities providing flexibility to utilise for growth investments • The Revolving Credit Facilities provide long tenor liquidity to Deterra at a cost of BBSY + weighted average ~135 b.p. margin 66 62 111 72 85 85 49 H1 2022 H2 2022 H1 2023 H2 2023 H1 2024 H2 2024 H1 2025 Operating cash flow Deterra cash generation Operating Cash Flow (AUD million) CAPITAL MANAGEMENT LEVERS 308 500 1. Future asset sales, MAC capacity payments and contingent receipts are excluded from future dividends, 2. Contingent receipts have limited NPAT impact as revenue is offset by depreciation 27 For personal use only
Page 28
Credit metrics 31 Dec 24 30 Jun 24 Cash $5.5m $31.1m Net debt $308.5m ($31.1m) Net debt to Underlying EBITDA1,2 1.4x n/m Underlying EBITDA to interest expense1,2 33.9x n/m Net debt / Enterprise Value3 12.1% n/m 1. Calculated on past 12 months for EBITDA and interest expense 2. EBITDA calculated as Underlying EBITDA less one off Trident costs and used for banking covenants calculation 3. Enterprise Value = Market capitalisation as at 17 February 2025 plus net debt at 31 December 2024 • $500 million revolving credit lines across 5 bi-lateral facilities • c$200 million available liquidity for investment • Net debt to Underlying EBITDA covenant <4.0x • Underlying EBITDA to interest expense covenant >3.0x • Drawn debt interest expense BBSY + 1.35% • Target leverage of 0 - 15% of enterprise value, through the cycle Balance Sheet Remains strong and in line with capital management framework 2H25 1H26 2H26 1H27 2H27 1H28 2H28 1H29 Revolving Credit Facilities Maturity Profile AUD Million Bank 1 Bank 2 Bank 3 Bank 4 Bank 5 175 67 72 28 For personal use only
Page 29
Board and managementFor personal use only
Page 30
Top-tier team with deep applicable expertise – Directors and Management Julian Andrews – Managing Director & Chief Executive Officer, PhD, BCom (Hons), CFA, GAICD More than 20 years experience in broad project finance, capital raising and mergers and acquisitions across the mining, energy and chemicals industry landscape. Previously Head of Strategy, Planning and Business Development at Iluka Resources and held various roles at Wesfarmers Ltd including General Manager, Business Development and Chief Financial Officer in Wesfarmers Chemicals, Energy & Fertilisers Division. Jenny Seabrook – Non-Executive Chair BCom, FCA, FAICD More than 30 years of corporate experience across capital markets, mergers and acquisitions and accounting advisory roles and several Non-Executive directorships for listed, unlisted and federal and state government corporations. Currently a Non- Executive Director of BGC Australia Group of Companies and HBF Health Limited. Graeme Devlin – Non-Executive Director BAppSci, MBA, GAICD Extensive and varied experiences from his business development, operational, investment evaluation and structured finance roles within BHP Group, Rio Tinto and CRA Limited. Served as BHP’s head of acquisitions and divestments from 2009 to 2016, leading the transformation of BHP’s capital investment decision making rigour, capability and processes and was instrumental in the reshaping of BHP’s core asset portfolio. Adele Stratton – Non-Executive Director1 BA (Hons), FCA, GAICD Over 20 years’ experience working in both professional practice and public listed companies, including as Chief Financial Officer and Head of Development at Iluka Resources Limited. Previously worked with KPMG and Rio Tinto and is a qualified Chartered Accountant. Jason Neal – Non-Executive Director BBA More than 20 year investment banker career with BMO Capital Markets, where he served as Co-Head and Managing Director of the Global Metals and Mining Group. Previously as Executive Vice President at Kirkland Lake Gold and President & Chief Executive Officer of TMAC Resources Inc.. Founding Partner of Whetstone Resources, an active private acquisition company, and Lead Director of G Mining Ventures. Experts in global resource investment with deep experience in resources strategy, capital markets and project finance 1. Iluka Resources Limited nominee 30 Jason Clifton – Chief Financial Officer BCom, FCA, FFin Over 25 years’ experience in finance, strategy, capital management and business integration across the banking, energy and resources industries. Previous roles include Chief Financial Officer of Australian Strategic Materials, Senior Vice President Financial Services at Woodside Energy, Chief Financial Officer of Bankwest and Chief Financial Officer of Westpac New Zealand. Bronwyn Kerr – General Counsel and Company Secretary LLB (Hons), BA, FCIS, GAICD Experienced General Counsel and Company Secretary, joining Deterra from Pilbara iron ore producer Atlas Iron. Has advised companies on governance, mergers and acquisitions, capital raising, leveraged finance and project development, including procurement, land access and community engagement. Tyron Rees – Chief Operating Officer BEng (Hons), MFin, CFA, GAICD Tyron has extensive experience in the natural resources sector, most recently as Co-Founder & COO of Trident Royalties. Prior to Trident, Tyron worked for Resource Capital Funds, a leading mining-focused private equity firm. Before transitioning to finance, Tyron held roles with Sandfire Resources and Newmont Goldcorp in various technical roles as a Metallurgical Engineer with a focus on construction and commissioning. Adam Davidson – Head of Americas BBA, MBA, GAICD Adam has extensive experience in the natural resources sector, most recently as co-founder & CEO of Trident Royalties. Prior to Trident, Adam worked for Resource Capital Funds, a leading mining-focused private equity firm, and previously held positions with BMO Capital Markets and Orica Mining Services. He has extensive mining capital markets experience across a breadth of jurisdictions and commodities. Adam began his career with T. Rowe Price and also served in the U.S. Marine Corps. Board Board and Executive Executive Executive For personal use only
Page 31
Committed to sustainable shareholder returns Operating with integrity and growing responsibly Operating partners: • Cornerstone MAC royalty operated by BHP Limited, rated “A” by MSCI Inc for its approach to ESG issues. • Thacker Pass operator LAC takes mature approach to ESG matters including active community engagement • BHP and Lithium Americas Corporation oriented towards UN Sustainable Development Goals and reporting aligned with external sustainability reporting landscape Deterra: • Due diligence on environmental, social and governance aspects of assets and operators prior to investment. • Committed to maintaining net zero emissions (scope 1 and 2) within Deterra’s own operations • Participant in the UN Global Compact • Community partnership with Earbus Foundation of WA to deliver children’s ear health program in Newman and the Western Desert in Western Australia. Environment Compliance Energy Climate change: Scope 1, 2, 3 emissions, physical and transitional risks, and opportunities etc. Water Waste Emissions: noise, dust, air, vibrations Biodiversity Closure: planning, rehabilitation Social Health and safety People Human rights (inclusive of modern slavery) Communities: social impact management, stakeholder engagement, local content, etc. Indigenous people Shared value: contributions, programs, etc. Supply chain management Governance Structures, policies Anti-bribery and corruption: commitment, allegations, etc. Memberships: internationally recognised associations, organisations, and standards (e.g. International Council on Mining & Metals (“ICMM”)). Public disclosures: Sustainability and financial performance, tax, etc. Assessment criteria to facilitate consistent and thorough diligence of opportunities For personal use only
Page 32
Summary Asset Book Refer Deterra web site - Deterra Asset Book for further informationFor personal use only
Page 33
Deterra Asset Summary - Bulk Assets 33 Iron Ore and Heavy Minerals Asset Mining Area C Koolyanobbing Kwale Yoongarillup/ Yalyalup Yandanooka Wonnerup Location Western Australia Western Australia Kenya Western Australia Western Australia Western Australia Operator BHP Mineral Resources Base Resources Doral Mineral Sands Image Resources Tronox (Cable Sands (W.A) Pty Ltd) Commodity Iron Ore Iron Ore Mineral Sands Mineral Sands Mineral Sands Mineral Sands Mine Type Open Pit Open Pit, Direct Ship Ore Open Pit Open Pit Open Pit Open Pit Stage Production Suspended1 End of Life11 Production4 Development Production Royalty 1.232% of Iron Ore revenue + capacity payments 1.5% Free on Board 0.25% Free on Board 2% of revenue from sales of Minerals8, 9 1.5% of gross revenue from sales of Minerals9 $0.70 per tonne of Valuable Heavy Minerals10 Total Reserves n/a JORC 9.3Mt @ 59.9% Fe (Deception Pit)2 JORC 7.6Mt @ 1.8% Heavy Minerals3 n/a JORC 30Mt @ 3.9% Heavy Minerals5 Non-JORC7 11Mt @ 5.5% Heavy Minerals6 Total Resources n/a JORC 19.5Mt @ 59.9% Fe (Deception Pit)2 JORC 13.5Mt @ 1.6% Heavy Minerals3 n/a JORC 57Mt @ 3.1% Heavy Minerals5 n/a 1. Mineral Resources announced June 2024 the closure of the Yilgarn hub as of the end of December 2024 2. Mineral Resources 20 November 2019 Mineral Resource and Ore Reserve Statement. The royalty held is over a portion of the Deception Pit within the Yilgarn Hub 3. Base Resources 31 July 2024 Resource and Reserve Statement 4. Doral Company Website (Accessed August 2024) 5. Image Resources ASX Announcement – Strong Feasibility Results – Yandanooka Project (19 April 2024); Resources reported inclusive of reserves 6. Tronox Holding SEC Filing Schedule 14A Proxy Statement – Annual General Meeting of Shareholders of Tronox Holding (March 2024) 7. The information relating to the mineral reserve estimates for Wonnerup is not reported in accordance with the 2012 edition of the Joint Ore Reserves Committee’s Australasian Code for Reporting of Mineral Resources and Ore Reserves (JORC Code). The mineral reserves estimates have been prepared using the South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves (the SAMREC Code). The SAMREC Code sets out the minimum standards, recommendations and guidelines for Public Reporting of Exploration Results, Mineral Resources and Mineral Reserves in South Africa and is not, and does not purport to be, compliant with the JORC Code 8. Royalty payable by Doral Mineral Sands Pty Ltd arises under 2 separate royalty contracts with the same terms 9. Minerals refers to naturally occurring substances obtained or obtainable from the tenements by mining carried out on or under the surface of the land 10. Valuable Heavy Mineral refers to zircon, rutile, ilmenite, anatase and other titanium dioxides, leucoxene, monazite and cassiterite 11. Base Resources announced October 2023 that mining at Kwale was expected to end in December 2024, with processing activit ies concluding shortly thereafter For personal use only
Page 34
34 Deterra Asset Summary – Base and Battery Metal Assets Base and Battery Metals Asset Thacker Pass Sonora Paradox Antler Mimbula Pukaqaqa Big Kidd Location Nevada, USA Mexico Utah, USA Arizona, USA Zambia Peru BC, Canada Operator Lithium Americas Ganfeng Lithium Anson Resources New World Resources Moxico Resources Olympic Precious Metals Quetzal Copper Commodity Lithium Lithium Lithium Copper/Zinc Copper Copper, Molybdenum Copper Mine Type Open pit Open pit Direct Lithium Extraction Underground Open Pit Open pit n/a Stage Development Disputed9 Development Development Production Exploration Exploration Royalty 1.05% GRR royalty over Thacker Pass Project10 50% interest in option to acquire a 3.0% indirect gross revenue royalty (1.5% net) 2.5% NSR over all projects owned by Anson Resources in the Paradox Basin 0.9% NSR over current tenure + 0.45% NSR over subsequently acquired tenure11 0.3% Gross Revenue Royalty Vaaldiam: 1.0% NSR royalty + milestone payments Norte: 1.0% NSR royalty over open pit Sur: 0.5-1.0% NSR royalty on SE concession Option/Royalty Agreement consisting of 1) a series of fixed payments, 2) three milestone payments, and 3) a 2% NSR royalty Total Reserves Non-JORC8 1,056Mt @ 0.254% Li1 Non-JORC7 244Mt @ 0.35% Li2 n/a JORC 11Mt @ 1.6% Cu, 3.7% Zn, 0.6% Pb, 0.3g/t Au, 26g/t Ag4 n/a n/a n/a Total Resources Non-JORC8 5,767Mt @ 0.217% Li1 Non-JORC7 559Mt @ 0.30% Li2 JORC 2.5Mt @ 0.11% Li3 JORC 11.4Mt @ 2.1% Cu, 5.0% Zn, 0.9% Pb, 0.36g/t Au, 32.9g/t Ag4 JORC 76.3Mt @ 1.07% Cu5 Non-JORC7 349.1Mt @ 0.40% Cu6 n/a 1. Lithium Americas – NI 43-101 Technical Report for the Thacker Pass Project (31 December 2024); Resources reported inclusive of reserves 2. Bacanora Minerals – Feasibility Study – January 2018; Resources reported inclusive of reserves 3. Anson Resources ASX announcement dated 16 October 2023 4. Antler Copper Project – PFS – 17 July 2024; Resources reported inclusive of reserves 5. Moxico Website (Accessed February 2025) 9. In April 2022 and May 2023, the Mexican mining law was amended to prohibit lithium concessions. In August 2023, the General Directorate of Mines issued a formal notice indicating nine of the lithium concessions underpinning the Sonora project were cancelled. This matter remains under dispute 10. On an attributable basis (60%). Assumes buyback is exercised with a US$13.2m payment attributable to Deterra 11. Payor entitled to reduce royalty rates by making lump sum payments at the time of construction funding 6. Nexa Resources – Technical Report Pukaqaqa Project – 4 August 2017 7. The information relating to the mineral resource and reserve estimates for Sonora and Pukaqaqa is not reported in accordance with the 2012 edition of the Joint Ore Reserves Committee’s Australasian Code for Reporting of Mineral Resources and Ore Reserves (JOR C Code). The mineral resources and reserves estimates for these assets have been prepared using the National Instrument 43 -101 (Standards of Disclosure for Mineral Projects) of the Canadian Securities Administrators (the Canadian NI 43 -101 Standards). NI 43-101 is a national instrument for the Standards of Disclosure for Mineral Projects within Canada. Accordingly, the mineral resources and reserve s estimates are not, and do not purport to be, compliant with the JORC Code 8. The mineral reserve and mineral resource estimates are not reported in accordance with the JORC Code. The mineral resource an d reserve estimates have been prepared using the National Instrument 43 -101 (Standards of Disclosure for Mineral Projects) of the Canadian Securities Administrators and the S-K 1300 regulations for the US Securities Act of 1933. Accordingly, the mineral resource and reserve estimates are not, and do not purport to be, compliant with the JORC Code For personal use only
Page 35
35 Gold / Silver Royalty Gold Offtake Asset Lincoln Dandoko La Preciosa St Ives Los Filos Fazenda RDM Santa Luz Green stone Blyvoor Eagle Bonikro Ruby Hill/Cove/ Granite Creek Sugar Zone Location USA Mali Mexico Western Australia Mexico Brazil Brazil Brazil Canada South Africa Canada Cote D’Ivoire USA Canada Operator Seduli Holdings B2Gold Corporation Avino Silver and Gold Mines Goldfields Equinox Gold Equinox Gold Equinox Gold Equinox Gold Equinox Gold Aurous Resources Victoria Gold Allied Gold i-80 Vault Minerals Commodity Gold Gold Silver/Gold Gold Gold Gold Gold Gold Gold Gold Gold Gold Gold Gold Mine Type UG Open pit UG Open pit/UG Open pit/UG UG/Open pit Open pit Open pit Open pit UG Open pit Open pit UG/Open pit UG Stage Development Development Development Exploration Production Production Production Production Production Production Suspended15 Production Production Development Royalty 50% interest in a 1.5% NSR royalty 1% NSR Royalty (net) 1.25% NSR royalty and 2.00% GVR royalty 3% of gross revenue4 50% of gold production, cap at 1.1Moz 35% of gold production, combined cap at 658koz 100% of gold production, cap at 58.5kozpa till March 2027 100% of gold production (after deduction of streamed oz), cap at 2.7Moz 25% of gold production, cap at 1.1Moz 50% of gold production (after deduction of streamed oz), no cap 100% of production, cap of 40kozpa till 2028 80% of gold production, cap at 961koz Total Reserves n/a Non-JORC11 2.2Mt @ 3.2g/t Au2 n/a n/a Non-JORC11 193.2Mt @ 0.86g/t Au5 Non-JORC11 13.1Mt @ 1.8g/t Au5 Non-JORC11 17.5Mt @ 0.99g/t Au5 Non-JORC11 24.9Mt @ 1.34g/t Au5 Non-JORC11 144.6Mt @ 1.2g/t Au Non-JORC14 28.8Mt @ 5.54g/t Au6 Non-JORC11 117.7Mt @ 0.64g/t Au7 Non-JORC11 13.6Mt @ 1.30g/t Au8 n/a JORC 1.9Mt @ 5.2g/t Au10 Total Resources Non-JORC11 0.66Mt @ 0.28g/t Au1 Non-JORC11 9.3Mt @ 1.4g/t Au2, 12 Non-JORC11 21.8Mt @ 171g/t Ag, 0.32g/t Au3 n/a Non-JORC11 461.2Mt @ 0.75g/t Au5, 13 Non-JORC11 26.1Mt @ 2.13g/t Au5, 13 Non-JORC11 6.8Mt @ 1.63g/t Au5, 13 Non-JORC11 23.8Mt @ 1.81g/t Au5, 13 Non-JORC11 56.3Mt @ 2.8g/t Au5, 13 Non-JORC14 72.8Mt @ 4.42g/t Au6, 13 Non-JORC11 262.8Mt @ 0.57g/t Au7 Non-JORC11 52.4Mt @ 1.31g/t Au8, 12 Non-JORC11 432.9Mt @ 0.82g/t Au9 JORC 4.8Mt @ 8.2g/t Au10, 12 1. Sutter Gold Mining Inc – Lincoln Mine Project Technical Report, Amador, California – 2 July 2015 2. B2Gold Fekola Complex – Technical Report March 2024 (effective date 31 December 2023); resources and reserves relate to Dandoko area only 3. Avino NI 43-101 Technical Report 16 February 2023 (effective date 30 November 2022); resources relate to La Preciosa area only 4. Subject to royalties to previous holders of the tenements 5. Equinox Gold Website – Reserves and Resources (accessed February 2025) 6. Blyvoor Gold – Technical Report – 30 May 2024 (effective date 29 February 2024) 7. Victoria Gold – Technical Report – 10 April 2023 8. Allied Gold – Technical Report for the Bonikro Gold Project (effective date 5 July 2023) 9. i-80 Corporate Presentation – December 2024 10. Vault Minerals ASX announcement dated 22 October 2024 (resources and reserves as at 30 June 2024) 11. The mineral resource and reserve information is not reported in accordance with the 2012 edition of the Joint Ore Reserves Committee’s Australasian Code for Reporting of Mineral Resources and Ore Reserves (JORC Code). The mineral resources and reserves estimates for these assets have been prepared using the National Instrument 43 -101 (Standards of Disclosure for Mineral Projects) of the Canadian Securities Administrators (the Canadian NI 43 -101 Standards). NI 43-101 is a national instrument for the Standards of Disclosure for Mineral Projects within Canada. Accordingly, the mineral resources an d reserves estimates are not, and do not purport to be, compliant with the JORC Code 12. Resources reported inclusive of reserves 13. Resources reported exclusive of reserves 14. The mineral resource and reserve information is not reported in accordance with the JORC Code. The mineral resources and reserves estimates have been prepared using the S -K 1300 Regulations for the US Securities Act of 1933. Accordingly, the mineral resources and reserves estimates are not, and do not purport to be, compliant with the JORC Code 15. On 12 June 2024, Victoria Gold announced suspension of operations following a heap leach containment incident Deterra Asset Summary - Precious Metals Assets For personal use only
Page 36
For more information Investor enquiries Jason Clifton Chief Financial Officer Email: investor.relations@deterraroyalties.com Deterra Royalties Limited ACN 641 743 348 Level 16, 140 St Georges Terrace Perth WA 6000 Telephone: +61 (0)8 6277 8880 www.deterraroyalties.com Media enquiries Gerard McArtney Purple Mobile: +61 (0) 487 934 880 Email: gmcartney@purple.au For personal use only