Deterra Royalties Ltd
ASX:DRR

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Deterra Royalties Ltd
ASX:DRR
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Price: 3.83 AUD 0.79% Market Closed
Market Cap: 2B AUD
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Gross Margin
Deterra Royalties Ltd

98.5%
Current
99%
Average
17.7%
Industry

Gross Margin is the amount of money a company retains after incurring the direct costs associated with producing the goods it sells and the services it provides. The higher the gross margin, the more capital a company retains, which it can then use to pay other costs or satisfy debt obligations.

Gross Margin
98.5%
=
Gross Profit
237m
/
Revenue
240.5m

Gross Margin Across Competitors

Country AU
Market Cap 2B AUD
Gross Margin
99%
Country ZA
Market Cap 105.8B Zac
Gross Margin
90%
Country BR
Market Cap 234.2B BRL
Gross Margin
39%
Country AU
Market Cap 56.6B AUD
Gross Margin
52%
Country AU
Market Cap 33.8B EUR
Gross Margin
52%
Country US
Market Cap 27.6B USD
Gross Margin
16%
Country IN
Market Cap 2.2T INR
Gross Margin
33%
Country CN
Market Cap 155.7B CNY
Gross Margin
5%
Country IN
Market Cap 1.8T INR
Gross Margin
57%
Country JP
Market Cap 3.1T JPY
Gross Margin
16%
Country LU
Market Cap 18.2B EUR
Gross Margin
0%
No Stocks Found

Deterra Royalties Ltd
Glance View

Market Cap
2B AUD
Industry
Metals & Mining

Deterra Royalties Ltd, a name that might not immediately ring a bell for many, operates with a business model distinct from digging, drilling, or directly extracting resources from the earth. Instead, it stands as a gatekeeper of sorts, leveraging its strategic asset portfolio to generate consistent income through its royalty agreements. Predominantly tied to the mining sector, Deterra's crown jewel is its royalty interest in the flourishing Mining Area C (MAC) iron ore project in Western Australia, managed by BHP, one of the largest mining companies in the world. This royalty agreement grants Deterra a slice of the earnings derived from iron ore sales, with income linked proportionally to the production output, irrespective of fluctuating market prices. This model enables Deterra to capitalize on increased production without bearing the associated operational risks, cost fluctuations, or capital expenditure burdens customarily shouldered by mining operators. Deterra's strategy hinges on diversifying its portfolio of royalty streams, and its performance is inherently tied to the success of these underlying mining operations. The beauty of Deterra's royalty business is its scalability and focus on long-term contracts that ensure steady cash flow and profitability over fluctuating commodity prices. As the world continues to industrialize and urbanize, the demand for iron, among other minerals, is expected to persist, positioning Deterra advantageously in the market. By carefully selecting royalty opportunities that offer expansive dollops of security alongside growth potential, Deterra can optimize earnings and deliver value to its shareholders, all while operating a streamlined business model that circumvents the direct environmental and financial responsibilities of traditional mining companies.

DRR Intrinsic Value
3.58 AUD
Overvaluation 6%
Intrinsic Value
Price

See Also

Discover More
What is Gross Margin?

Gross Margin is the amount of money a company retains after incurring the direct costs associated with producing the goods it sells and the services it provides. The higher the gross margin, the more capital a company retains, which it can then use to pay other costs or satisfy debt obligations.

Gross Margin
98.5%
=
Gross Profit
237m
/
Revenue
240.5m
What is the Gross Margin of Deterra Royalties Ltd?

Based on Deterra Royalties Ltd's most recent financial statements, the company has Gross Margin of 98.5%.