Deterra Royalties shares climb on $91m divestment
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More news: Deterra Royalties shares rose in morning trade after the mining royalties group agreed to sell non-core gold offtakes and royalties to Nasdaq- and Toronto-listed Vox Royalty Corp for a combined $91 million.
Shares were up 2.4% to $4.20 at midday AEST, taking 12-month gains to 11.4%.
Deterra Royalties to sell gold offtakes and royalties for $91m
The news: Mining royalties group Deterra Royalties has agreed to sell its non-core gold offtake assets, alongside its St Ives and Dandoko gold royalties, to Nasdaq- and Toronto-listed Vox Royalty Corp for a combined $91 million.
The context: Deterra said the deal, together with the recent sale of its La Preciosa silver assets, marks the completion of the group's divestment of non-core assets acquired through its buyout of Trident Royalties last year.
The sales have generated an aggregate $124 million, the company said. After-tax proceeds will be used to reduce net debt.
The gold offtake contracts cover six operators and 10 mining operations. Deterra acquired the gold offtakes on 2 September 2024, with a fair value of USD58.9 million ($89.2 million). The group has generated a net return of USD13 million since then, reflecting a 25% pre-tax internal rate of return.
What they said: "Consistent with our strategic investment focus on base, bulk, battery and electrification commodities and our disciplined management of capital, we continuously review our portfolio for opportunities from non-core assets," said managing director and chief executive Julian Andrews.
"The proceeds from the sale of these non-core assets will be used to reduce Deterra's net debt, providing further balance sheet flexibility as we build a diversified mining royalty portfolio to deliver new revenue streams to complement our cornerstone Mining Area C (MAC) royalty."
The source: ASX
