DRR Dividend, page-5

Sandon Capital had this to say in their ASX Monthly Report at the end of November 2020:

"Following the demerger from Iluka Ltd (ILU), the DRR share price has performed strongly with the company now having a market capitalisation in excess of $2.5bn. When we first went public with our campaign arguing for ILU to demerge its Mining Area C (MAC) royalty in November 2016, we valued the asset at $1.6-1.8bn. This was predicated on expanded MAC production of 110Mtpa and an iron ore price of US$60/t. Whilst our valuation was more than double the consensus broker valuations for the MAC royalty at the time, it is now apparent we were too conservative. With an expanded MAC now expected to produce ~140Mtpa at full capacity and using a long-term iron ore price of $70/t (vs spot at >US$140/t), we believe the MAC royalty could be worth north of $3bn (equating to a DRR share price >$6). Suffice it to say, the decision by the ILU Board to demerge the MAC royalty has been well and truly vindicated. DRR remains a core holding for the portfolio".