MAC sales volumes are expected to more than double by 2023 due to South Flank expansion

  • 145 million wmtpa (139 million dmtpa) iron ore production rate from 2023 expected to be sustained for more than thirty years, with BHP having a history of Reserves replacement at its Western Australian Iron Ore Operations

  • No operating or capital contribution required from Deterra Royalties - attractive free cash flow conversion characteristics
  • one-off $1 million per 1 million tonne increase in annual production
  • 1.232% of increased revenue from MAC Royalty Area
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Historical sales volumes

BHP’s current operations at North Flank and South Flank are expected to continue until ~2050

“First ore from South Flank is targeted in the 2021 calendar year, with the project expected to produce ore for more than 25 years.”

ASX Announcement, BHP approves South Flank project, 14 June 2018

“It is expected that the life of the Mining Area C mining operation, inclusive of Northern and Southern Flanks, will be approximately 30 years, commencing in approximately 2020.”

Mining Area C Southern Flank Public Environmental Review, May 2017

… with potential for future development to extend operations well beyond that date:

“The long-term strategy for Mining Area C is to continue operations to 2073.”

Mining Area C Mine Closure Plan AML7000281 Rev 3.1 October 2017

 

 

Deterra Royalties' growth parameters

Royalties

Focus on revenue or sales based royalties

Production or near production assets

Commodities

Broad commodity focus – bulk commodities, precious metals, base metals, battery materials and energy will be considered.

Will target transparent end markets and avoid commodities that are subject to potential regulatory restrictions or environmental pressures. 

Geography

Primary focus on Australian opportunities

Other geographies assessed on case-by-case basis

ESG

All projects and investments will be assessed across a range of ESG criteria (i.e. environmental, OH&S, community and indigenous relationships)

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