Deterra Royalties operational review highlights

Deterra Royalties Limited (ASX: $DRR) has noted BHP's (ASX: $BHP) Operational Review for the half-year ended 31 December 2023. The report indicates that the Mining Area C (MAC) achieved a production increase of 1.0% in the December 2023 quarter, reaching 30.6 million wet metric tonnes (Mwmt) on a 100% basis. Additionally, South Flank's ramp up to full production capacity of 80 Mwmt per annum (100% basis) by the end of the 2024 financial year remains on track.

Executive commentary on operational performance

The company receives an ongoing royalty of 1.232% of Australian dollar denominated quarterly FOB revenue from the MAC royalty area. Furthermore, one-off capacity payments of A$1 million per one million dry metric tonne (Mdmt) increase in annual mine production are determined for the period ending 30 June. The current demonstrated annual capacity level is set at 118 Mdmt. Deterra expects to report its financial half-year report and directors' report on 16th February 2024.

Summary of operational review and outlook

Deterra Royalties has reported a 1.0% increase in production at the MAC royalty area for the December 2023 quarter, demonstrating continued operational progress. The company's expectation of South Flank reaching full production capacity by the end of the 2024 financial year indicates positive momentum in its mining operations. With ongoing royalty and additional one-off capacity payments, Deterra remains poised to benefit from the performance of the MAC royalty area. The upcoming financial half-year report and directors' report on 16th February 2024 will provide further insights into the company's performance and outlook.