In a low interest rate environment DRR presents very attractive returns with lower sensitivity to iron-ore prices than its mining peers due to the company’s exposureoccurring at the revenue line without carrying additional operating leverage.
Key points from Macquarie Research early November who have placed outperform rating and set a $5.00 price target:
- DRR offers low volatile exposure to iron-ore with a 10% move in iron-ore translating to a 10-12% move in earnings and valuation.
- A forecast 2.5x increase in production from Mining Area C should offset our forecast decline in iron-ore prices, sustaining dividends ~5-6%pa.
- Continued strength in iron-ore prices underpins material upside with a spot price scenario delivering ~10% dividend yields from CY23.
In a low interest rate environment DRR presents very attractive...
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Last
$3.92 |
Change
-0.020(0.51%) |
Mkt cap ! $2.072B | |||
| Open | High | Low | Value | Volume |
| $3.91 | $3.94 | $3.85 | $2.201M | 563.5K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 6 | 40418 | $3.90 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $3.93 | 12066 | 3 |
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| Last trade - 16.10pm 04/10/2024 (20 minute delay) ? |
| DRR (ASX) Chart |