Questions re the Deterra Royalties demerger, page-15

I posted these thoughts on the quarterly announcement thread a few days ago.


My attention is on the demerger: are ILU + DRR worth more apart than together?

I see opportunity in both. DRR will be highly valued, particularly if Julian Andrews can trade into a few more royalty streams. He has abundant borrowing capacity against the superb MAC royalty and an attractive ASX equity to swap with.

Many grizzled old prospectors, more accurately their descendants, lack the skills to properly manage royalty streams and would welcome an exchange.

So JA & team have to manage time/quality/NPV carefully. One would expect early action as this area of activity is sorely under-developed in Australia.

Then, what is ILU worth alone? Hmmm. Less. How much less? Not as much less as the value transferred to DRR.

We will know when DRR lists 23 October.

Ash