Thacker Pass Funding Secured but Equinox Gold Mine Suspension Clouds Deterra’s Gold Outlook
Deterra Royalties Limited reported a 4% increase in portfolio revenue to AUD 61.9 million for the March 2025 quarter, driven by robust iron ore royalties and record gold margins. The company also marked a major milestone with the Final Investment Decision and full funding secured for Phase 1 of the Thacker Pass Lithium Project, targeting production in 2027.
- Portfolio revenue rose 4% to AUD 61.9 million in Q1 2025
- Mining Area C iron ore royalties increased 5% despite lower sales volume
- Gold offtakes achieved record net realised margins on 69.3koz delivered
- Thacker Pass Lithium Project Phase 1 fully funded with US$2.9 billion capital
- Development progress at La Preciosa Silver, Antler Copper, and Paradox Lithium projects
Strong Quarterly Revenue Performance
Deterra Royalties Limited has delivered a solid start to 2025 with portfolio revenue reaching AUD 61.9 million for the March quarter, marking a 4% increase from the previous quarter. This growth was primarily driven by the Mining Area C (MAC) iron ore royalties, which rose 5% to AUD 55.6 million despite a 7% decline in sales volume. The higher realised iron ore prices, which increased by 13%, more than offset the volume drop, underscoring the company’s exposure to commodity price strength.
Gold offtakes also contributed strongly, delivering a net realised margin of AUD 5.6 million, up 7% quarter-on-quarter. This was achieved on 69.3 thousand ounces of gold delivered, with record margins per ounce reflecting elevated gold prices and market volatility. However, delivered gold ounces were down 37% from the prior quarter, partly due to operational suspensions at Equinox Gold’s Los Filos mine.
Thacker Pass Lithium Project Reaches Critical Milestone
A highlight of the quarter was the Final Investment Decision (FID) for Phase 1 of the Thacker Pass Lithium Project in Nevada, USA. The project, owned by Lithium Americas Corporation (LAC) and General Motors Holdings LLC (GM), is now fully funded with a US$2.9 billion capital expenditure budget. GM’s strategic investment of US$945 million, a US$2.3 billion loan from the U.S. Department of Energy, and a US$250 million investment from Orion have de-risked the project’s execution.
Construction is well underway, with Bechtel appointed as EPCM contractor and key milestones such as 90% completion of process plant excavation already achieved. First production is targeted for 2027, positioning Thacker Pass to capitalise on strong global lithium demand forecasts. Deterra holds a 4.8% gross revenue royalty on Thacker Pass, which will reduce to 1.05% after a partial royalty buyback expected around first production.
Development Portfolio Progress
Beyond its flagship assets, Deterra’s diversified royalty portfolio showed encouraging developments. At La Preciosa in Mexico, Avino Silver & Gold Mines commenced underground development following permit approvals, with Deterra entitled to a milestone payment upon first silver production. The Antler Copper Project in Arizona is on track for full permitting by early 2026, with production targeted for 2027. Meanwhile, Anson Resources’ Paradox Lithium Project in Utah successfully completed a pilot program demonstrating high lithium recovery rates using direct lithium extraction technology.
Strategic Outlook
Managing Director Julian Andrews emphasised the company’s commitment to building a diversified royalty portfolio that complements its cornerstone MAC royalty. The company continues to pursue disciplined royalty investments and financing opportunities, balancing steady cash flow from established assets with growth potential from emerging projects. The recent milestones at Thacker Pass and progress across other development assets underscore Deterra’s strategy to deliver long-term value to shareholders.
Bottom Line?
With Thacker Pass fully funded and construction advancing, Deterra is poised to leverage its diversified royalties amid evolving commodity markets.
Questions in the middle?
- How will the indefinite suspension at Equinox Gold’s Los Filos mine impact Deterra’s gold royalty revenue in the medium term?
- What are the implications of the partial royalty buyback at Thacker Pass on Deterra’s future cash flows?
- How might accelerating permitting at the Antler Copper Project influence Deterra’s exposure to copper markets?
