Deterra FY26 slides: record MAC volumes drive 5% profit gain

Deterra Royalties (ASX:DRR) reported a 5% increase in net profit after tax to A$164 million for FY26, driven by record production volumes at its flagship Mining Area C (MAC) royalty asset. The Australian royalty company's shares rose 0.95% to A$4.26, trading near the middle of its 52-week range. Management reduced net debt by over half by using A$108 million from strategic asset sales, while maintaining a 75% dividend payout ratio.

The FY26 dividend per share amounted to 23.20 cents, marking a 10.8 cent increase. MAC royalty revenue climbed 7% to A$234.4 million, with record sales volumes of 140.1 million dry metric tonnes. However, a 2% decline in the average AUD realized price to A$136 per tonne, due to the weaker Australian dollar, partially offset this growth.

In FY26, MAC delivered record sales volumes, reflecting 9% growth from the prior year's 128 million tonnes. Strategic asset disposals, including precious metals assets acquired through the Trident transaction, generated approximately 45% of the original consideration paid, resulting in a 28% pre-tax internal rate of return. The company's strong liquidity position and disciplined capital management were highlighted, with net debt reduced to A$132 million and a leverage ratio of 5%.