Deterra Royalties buys copper royalty for $105.7M
- Deterra Royalties acquired a 1.75% net smelter return royalty over Ivanhoe Electric's Santa Cruz Copper Project in Arizona for US$74.2 million.
- The transaction diversifies the company's existing revenue streams beyond its core Pilbara iron ore and Nevada lithium assets.
- The company plans to make Santa Cruz its third pillar asset ahead of expected initial copper cathode production in 2029.
Deterra Royalties (ASX:DRR) expanded its portfolio beyond Pilbara iron ore by acquiring a copper royalty stream in Arizona for US$74.2 million.
The transaction restructures a 50-year-old agreement into an updated royalty rate of 1.68 per cent for the first six years of commercial production before stepping down to 1.57 per cent.
"This is a coveted copper royalty, and we were the only interested company not bidding blind," said Deterra Royalties Interim CEO Jason Neal.
The updated agreement clarifies application terms for copper cathode production while securing standard inspection rights and dispute resolution mechanisms for the buyer ahead of targeted production in 2029.
Following the announcement, the Deterra Royalties share price was unchanged at $4.10.
The company was spun out of Iluka Resources (ASX:ILU) in 2020 to hold a 1.23% royalty over BHP (ASX:BHP) Mining Area C iron ore mine.
Deterra Royalties subsequently acquired London-listed Trident Royalties for $276 million in 2024 to secure a 4.8% royalty over the Thacker Pass Lithium Project in Nevada.
