yep, they pay out 100% NPAT,
Borrowing against the currently unused $350 mill credit facility to buy further, likely lesser quality, royalties would be the worst result.
Re decline in iron ore price, this risk is lessened by the forecast 30% increase in production in BHP MAC b/w now and mid-2024. So effectively hedged risk, with plenty of upside. BHPs development of additional royalty areas should take the production growth even beyond the forecast 145wmtpa, so greater than 30% growth if so
This is why I am here ... if iron ore price were static we get a 30% increase in revenue, which should equal profit if our simple model stays as is, in the next 12 months. Then we get to lock an 8% yield in until CY2045-50
yep, they pay out 100% NPAT, Borrowing against the currently...
Add DRR (ASX) to my watchlist
 (20min delay)
|
|||||
|
Last
$4.79 |
Change
0.010(0.21%) |
Mkt cap ! $2.532B | |||
| Open | High | Low | Value | Volume |
| $4.75 | $4.81 | $4.71 | $4.521M | 945.8K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 3 | 22584 | $4.78 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $4.80 | 14020 | 3 |
View Market Depth
| Last trade - 16.10pm 24/05/2024 (20 minute delay) ? |
|
|||||
|
Last
$4.80 |
Change
0.010 ( 0.25 %) |
||||
| Open | High | Low | Volume | ||
| $4.75 | $4.81 | $4.72 | 367782 | ||
| Last updated 15.59pm 24/05/2024 ? | |||||
| DRR (ASX) Chart |