Deterra Posts A$62M Iron Ore Royalties, Draws US$435M DOE Loan for Lithium
Deterra Royalties reported a robust December quarter with record iron ore royalty revenue from Mining Area C and significant progress on the Thacker Pass lithium project, backed by a US$435 million DOE loan draw.
- Record A$62 million iron ore royalties from Mining Area C, up 15%
- US$435 million first draw from US Department of Energy loan for Thacker Pass
- 80% engineering complete and Bechtel appointed EPCM contractor at Thacker Pass
- Interim CEO Jason Neal appointed during executive search
- Progress on Paradox Lithium Project with POSCO and LG Energy Solution partnerships
Strong Quarter for Iron Ore Royalties
Deterra Royalties Limited has delivered a standout performance in the December 2025 quarter, driven by record royalty revenues from its flagship Mining Area C (MAC) iron ore mine in Western Australia’s Pilbara region. The company reported A$62 million in royalties from MAC, a 15% increase on the prior quarter, underpinned by record sales volumes and a 6% rise in realised iron ore prices to A$143 per tonne. This reflects both robust demand and operational efficiency at MAC, which accounts for a significant share of global seaborne iron ore supply.
Thacker Pass Lithium Project Advances with Major US Support
On the lithium front, Deterra’s royalty interest in the Thacker Pass project in Nevada continues to gain momentum. Lithium Americas Corporation, the project operator, secured a US$435 million first draw from a US$2.23 billion loan provided by the US Department of Energy (DOE). This financing milestone not only accelerates construction but also includes the DOE taking a 5% equity stake in both Lithium Americas and the joint venture. With approximately 80% of detailed engineering complete and Bechtel appointed as the EPCM contractor, the project is on track for first lithium carbonate production by late 2027.
Leadership and Strategic Portfolio Moves
Amid these operational highlights, Deterra has appointed Jason Neal as interim Managing Director and CEO while conducting a search for a permanent executive. Neal emphasised the company’s strong cash flow foundation from MAC and the strategic importance of Thacker Pass, reinforced by US government backing. Beyond these core assets, Deterra also updated on its Paradox Lithium Project royalty in Utah, where Anson Resources is progressing development with POSCO Holdings and has secured an offtake agreement with LG Energy Solution, targeting production commencement in 2028.
Outlook and Market Position
Deterra’s diversified royalty portfolio, spanning bulk commodities like iron ore and critical battery metals such as lithium, positions it well to benefit from ongoing demand trends. The company’s disciplined approach to royalty investments and financing, combined with a strong balance sheet, supports its strategy of value accretion while managing risk exposure. Investors will be watching closely as Thacker Pass progresses towards production and as iron ore market dynamics evolve.
Bottom Line?
Deterra’s record royalties and lithium project progress set the stage for a pivotal year ahead.
Questions in the middle?
- Who will be appointed as Deterra’s permanent CEO and what strategic shifts might follow?
- How will the partial royalty buyback at Thacker Pass impact future cash flows?
- What are the risks to the Thacker Pass project timeline amid evolving regulatory and construction challenges?
