Solid result for DRR.
- Total royalties of $53.9m on 25.3 m DMT across H1 (this includes periods owned by Iluka)
- Underlying EBITDA approx $48m
- South Flank on track to produce from mid CY-21
This means...
- After adjusting for one-off costs/benefits and FX, an implied sales price of ore price of ~ A$125/dmt (FOB) could see the underlying business generating >$200m pa EBIT within 12 months (plus capacity payments).
- Mid-term upside from from Eneabba, Wonnerup and St Ives, plus finance facility to grow/diversify portfolio.
- Business also benefits somewhat from countercylical FX impacts, as large scale decline in ore prices are likely to weaken $AUD.
- In the absence of a replacement to iron ore, expect long term prices to provide a reasonable hedge against price inflation.
- Expect the recently announced 2.45 cps (ff) dividend to grow to increase more than 5-fold to >$0.25 pa (ff) within 12 months -- approx. 8.2% gross yield on current share price.
Solid result for DRR.- Total royalties of $53.9m on 25.3 m DMT...
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Last
$4.06 |
Change
-0.050(1.22%) |
Mkt cap ! $2.146B | |||
| Open | High | Low | Value | Volume |
| $4.10 | $4.11 | $4.00 | $16.85M | 4.158M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 8 | 173588 | $4.05 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $4.06 | 106197 | 6 |
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| Last trade - 16.10pm 21/06/2024 (20 minute delay) ? |
| DRR (ASX) Chart |