Ann: Interim Financial Report for the period to 31 December 2020, page-4

Hi Sinbin,

Yes, you are correct -- ~8% is the estimated gross yield and includes franking.

DRR is essentially a holding company for royalty entitlements. Their key income producing asset is ore produced from Mining Area C ("MAC"), with royalties calculated at the FOB sales price (with some adjustments). Once the MAC South Flank starts producing there will be a substantial increase in volumes and, FOB price permitting, a very large increase in royalty entitlements. In addition to the sales-based royalty component, DRR also receives one-off payments for increases in production volumes. Today's announcement gives further clarity to the timing of MAC South Flank coming on line.

The combination of these factors means H1 2022 should see a significant increase in revenues and dividends. Longer term MAC production volumes will probably level out, with revenue fluctuating in line with the Australian-dollar denominated ore price.

Hope that helps.