Deterra Royalties Ltd
ASX:DRR
Net Margin
Deterra Royalties Ltd
Net Margin measures how much net income is generated as a percentage of revenues received. It helps investors assess if a company's management is generating enough profit from its sales and whether operating costs and overhead costs are being contained.
Net Margin Across Competitors
| Country | Company | Market Cap |
Net Margin |
||
|---|---|---|---|---|---|
| AU |
|
Deterra Royalties Ltd
ASX:DRR
|
2B AUD |
60%
|
|
| ZA |
K
|
Kumba Iron Ore Ltd
JSE:KIO
|
107.5B Zac |
21%
|
|
| BR |
|
Vale SA
BOVESPA:VALE3
|
244.8B BRL |
15%
|
|
| AU |
|
Fortescue Metals Group Ltd
ASX:FMG
|
50B AUD |
24%
|
|
| AU |
F
|
Fortescue Ltd
XMUN:FVJ
|
29B EUR |
24%
|
|
| IN |
|
JSW Steel Ltd
NSE:JSWSTEEL
|
2.6T INR |
2%
|
|
| US |
|
Nucor Corp
NYSE:NUE
|
30B USD |
7%
|
|
| LU |
|
ArcelorMittal SA
AEX:MT
|
23.7B EUR |
2%
|
|
| JP |
|
Nippon Steel Corp
TSE:5401
|
3.6T JPY |
5%
|
|
| IN |
|
Tata Steel Ltd
NSE:TATASTEEL
|
2T INR |
1%
|
|
| CN |
|
Baoshan Iron & Steel Co Ltd
SSE:600019
|
165.5B CNY |
3%
|
Deterra Royalties Ltd
Glance View
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.
See Also
Net Margin measures how much net income is generated as a percentage of revenues received. It helps investors assess if a company's management is generating enough profit from its sales and whether operating costs and overhead costs are being contained.
Based on Deterra Royalties Ltd's most recent financial statements, the company has Net Margin of 59.9%.
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