Deterra Royalties takes HY profit hit as iron ore prices weigh
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The news: Mining royalties group Deterra Royalties reported a 19% slide in first-half net profit, as lower iron ore pricing weighed on revenue during the period.
The numbers: Deterra Royalties posted first-half net profit after tax of $63.9 billion, down 19% compared to the prior corresponding period.
Revenue fell 6% year on year to $112.3 million, as new revenue sources partially offset a 22% decrease in iron ore pricing during the period.
The company declared an interim dividend of 9 cents per share, down from 14.89 cents per share a year ago.
Deterra Royalties shares fell 2.4% to $4.15 at the start of trading on the ASX, extending losses of nearly 20% over the last 12 months.
The context: Deterra' Royalties' cornerstone asset Mining Area C (MAC) — a royalty over iron ore produced from specific tenements in the Pilbara region of Western Australia — saw record sales of 68.7 million wet metric tonnes, generating $103.7 million in revenue.
However, the company noted the risk of ongoing "iron ore pricing volatility", with its revenue leveraged to iron ore prices in the near-to-medium term.
The source: ASX announcement
