Deterra Royalties : Half Year Financial Results Presentation

ersonal use only

The resource investment that pays

Half Year Financial Results and Outlook

for the period to 31 December 2021

Important notices and disclaimer

This presentation has been prepared by Deterra Royalties Limited ("Deterra", "the Company"). By accessing this presentation you acknowledge that you have read and understood the following statement.

The material in this presentation is general background information about Deterra and its activities current as at the date of the presentation on 22 February 2022. The information in this presentation is given in summary form and does not purport to be complete. Information in this presentation is provided to assist sophisticated investors with their own analysis of the Company but should not be relied upon as a predictor of future performance. The current outlook parameters supersede all previous key physical and financial parameters. The information in this presentation is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investors. Investors should consider these factors and consult with their financial, legal or other professional adviser.

onlyrepresentation or warranty, express or implied, as to the accuracy or completeness of such information. Specifically, Deterra has limited, if any, access to the mining assets in respect of which royalties are derived by the Deterra. Deterra generally relies on publicly available information regarding the mining assets and generally have no ability to independently verify such information.

This presentation should be read in conjunction with Deterra's other periodic and continuous disclosure announcements which are available at www.asx.com.au.

Reporting Period

Financial Year 2021, FY21 and Period ended 30 June 2021 all refer to the period 15 June 2020 to 30 June 2021.

Reserves, resources and other technical information

Except where otherwise stated, the information in this presentation relating to the mining assets to which Deterra's royalty interests are referrable is based solely on information publicly disclosed by the owners or operators of these mining assets and information and data available in the public domain as at the date of this presentation, and none of this information has been independently verified by Deterra. Accordingly, Deterra does not make any

Forward-looking Statements

useThis presentation contains certain statements which constitute "forward-looking statements". Often, but not always, forward-looking statements can generally be identified by the use of forward-looking words such as "may", "will", " xpect", "plan", "believes", "estimate", "anticipate", "outlook" and "guidance", or similar expressions, and may include, without limitation, statements regarding plans; strategies and objectives of management; anticipated

p rformance; estimates of future expenditure; expected costs; estimates of future royalty income, product supply, demand and consumption; statements regarding future product prices; and statements regarding the expectation of future Mineral Resources and Ore Reserves.

Where Deterra expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and on a reasonable basis. No representation or warranty, express or implied, is made by Deterra that the matters stated in this presentation will in fact be achieved or prove to be correct.

Forward-looking statements are only predictions and are subject to known and unknown risks, uncertainties, assumption and other important factors that could cause the actual results, performances or achievements of Deterra or the nderlying royalty assets to differ materially from future results, performances or achievements expressed, projected or implied by such forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date thereof. Such risks and factors include, but are not limited to: the risks and uncertainties associated with the ongoing impacts of COVID-19, the Australian and global economic environment and capital market conditions; changes in exchange rate assumptions; changes in product pricing assumptions; major changes in mine plans and/or resources; changes in equipment life or capability; emergence of previously underestimated technical challenges; increased costs and demand for production inputs; and environmental or social factors which may affect a licence to operate, including political risk.

ersonalTo the extent permitted by law, Deterra, its officers, employees and advisors expressly disclaim any responsibility for the accuracy or completeness of the material contained in this presentation and exclude all liability whatsoever

(including in negligence) for any loss or damage which may be suffered by a person as a consequence of any information in this presentation or any error or omission therefrom. Deterra does not undertake to release publicly any revisions to any forward-looking statement to reflect events or circumstances after the date of this presentation, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.

No independent third party has reviewed the reasonableness of the forward-looking statements or any underlying assumptions.

Past performance

Investors should note that past performance metrics and figures in this presentation are given for illustrative purposes only and cannot be relied upon as an indicator of (and provide no guidance as to) future Deterra performance, including future share price performance. Any such historical information is not represented as being, and is not, indicative of Deterra's views on its future financial condition and/or performance.

N n-IFRS Financial Information

This document may contain non-IFRS financial measures including EBITDA, Underlying EBITDA, EBIT, free cash flow, and net debt amongst others. Deterra management considers these to be key financial performance indicators of the business and they are defined in the Interim Report for the half-year ended 31 December 2021 (22 February 2022). Non-IFRS measures have not been subject to audit or review.

All figures are expressed in Australian dollars unless stated otherwise.

In accordance with ASX Listing Rule 15.5, Deterra confirms that this presentation has been authorised for release to ASX by Deterra's Managing Director.

2

Corporate overview

Share price1

$4.49

Managing Director, CEO

Julian Andrews

Shares on issue

528.5m

Independent Non-Executive Chair

Jenny Seabrook

only

Non-Executive Director

Graeme Devlin

Market capitalisation

$2.4bn

Cash (31 Dec 2021)

$29.4m

Non-Executive Director

Joanne Warner

1H'22 Dividend

11.68¢

Non-Executive Director2

Adele Stratton

Royalty agreements

6

Chief Financial Officer

Brendan Ryan

use

10.0

Register composition

Share price performance1

6.0

Volume (M)

Close (A$/sh)

14.0

Iluka

5.0

12.0

ersonal

(A$/sh)PriceShare

20-Oct20-Nov20-Dec21-Jan21-Feb

21-Mar

21-Apr

21-May

21-Jun

21-Jul

21-Aug21-Sep21-Oct

21-Nov

21-Dec22-Jan

(M)Volume

Institutional

4.0

8.0

Retail

3.0

6.0

Not Analysed

2.0

4.0

1.0

2.0

0.0

0.0

(1) As of 21 Feb 2022

3

(2) Iluka Resources nominee

Business Highlights

Underlying assets and business model provide a positive start to FY2022

only		• Strong operating performance at Mining Area C as production volumes
	Simple business model
	increase to 49.2 million wet metric tonnes, up 45% HoH
		performing well	• Ramp-up of South Flank Project remains on track to lift Mining Area C volumes
			to 145 million wet metric tonnes per annum (1)
use	Building growth	• Increased liquidity as credit facility refinanced and expanded to $350 million at
lower average margins and longer tenor
optionality
		• Continued investment in business development
			• Dividend policy continues to prioritise shareholder returns
	Prioritised shareholder
	• Fully franked interim dividend of 11.68 cents per share declared representing
		returns
		100% of NPAT
ersonal

(1) BHP Operational Review for the Half Year ended 31 December 2022 (19 January 2022)

4

What we offer investors

onlyuse

ersonal(1)

(2)

(3)

(4)

Quality		MAC royalty covers a world class iron ore hub,
	Operated by BHP the world's largest mining company1
Margins		96% EBITDA Margin2
Dividends		100% of NPAT, Fully Franked paid to date3
Growth	South Flank expected to grow MAC volumes to 145Mwmtpa 4
Patient and disciplined approach to value accretive M&A
ESG		Targeting net zero operational GHG footprint in FY22
	ESG integral to our investment process
BHP is the world's largest listed mining company by market capitalization as of 21 Feb 2022	5
1H'22 EBITDA margin

Deterra's approach to dividends and dividend policy will be determined by the Deterra Board at its discretion and may change over time

BHP delivers first production from South Flank (20 May 2021), available at www.BHP.com