Deterra Royalties updates stakeholders on BHP production

Deterra Royalties (ASX:DRR) has shared details from BHP's operational review for the quarter ending September 2024. The focus was on Mining Area C (MAC) royalty, showing a slight production decrease to 33.9 million wet metric tonnes. Deterra earns a royalty from Australian dollar-denominated quarterly FOB revenue in the MAC area.

Key takeaways from Deterra's announcement

Deterra Royalties highlighted a slight decrease in production from BHP's Mining Area C, reporting 33.9 million wet metric tonnes for the September 2024 quarter. The company receives a royalty based on MAC's quarterly revenue and benefits from one-off capacity payments linked to production increases. With South Flank reaching full capacity, Deterra will shift from reporting production volumes to sales volumes in its updates. This change reflects the company's adaptation to operational developments while maintaining transparency in its communication with stakeholders.

Executive commentary on BHP's operational review

The South Flank project has now achieved full production capacity of 80 million wet metric tonnes per annum. Consequently, Deterra will no longer report MAC production volumes in alignment with BHP's operational review schedule. However, the company will continue to report MAC sales volumes in its Quarterly Royalty Update.