Deterra Royalties Ltd: Thacker Pass Lithium Project Update

Deterra Royalties Limited (ASX: DRR), an Australian company specializing in a royalty business model across various commodities, has provided an update on the Thacker Pass Lithium Project. The company holds a 4.8% gross revenue royalty on the project, which is expected to reduce to 1.05% following a partial royalty buyback, resulting in a US$13.2 million payment to Deterra.

Project Progress

The Thacker Pass Lithium Project, operated by Lithium Americas Corporation (LAC) in Nevada, USA, has seen significant advancements. Major construction activities have commenced, with earthworks nearly complete and permanent concrete placement in the processing plant area initiated in early May 2025. The project anticipates the first steel installation to begin in September 2025.

Financial Commitments

During the first quarter of 2025, LAC capitalized US$78.2 million in construction capital costs and other project-related expenses. The joint venture partners, LAC and General Motors Holdings LLC, have contributed a total of US$291.6 million in cash following the Final Investment Decision (FID) on April 1, 2025.

Company Overview

Deterra Royalties Limited operates within the Materials sector and is listed on the ASX All Markets. As of May 14, 2025, the company’s close price was AUD 3.68, with a market capitalization of AUD 1.96 billion. The company’s price-to-earnings ratio stands at 13.99. Deterra’s business model involves managing and acquiring royalties across bulk commodities, metals, battery minerals, and energy resources.

Substantial Holder Announcement

On May 13, 2025, Cooper Investors Pty Limited became a substantial holder of Deterra Royalties Limited, acquiring a 5.0028% voting power. This development is in accordance with the Corporations Act 2001, Section 671B, and has been formally notified to the company.

Market Context

In the broader market context, the ASX 200 experienced various broker rating changes on May 15, 2025. Notably, Aristocrat Leisure’s price targets were adjusted, while Catapult Group was downgraded to Hold. Iluka Resources saw an upgrade to Buy/High Risk, and Judo Capital was adjusted to Neutral from Sell. These changes reflect ongoing market dynamics and investor sentiment.

Deterra Royalties Limited continues to focus on its strategic portfolio of royalties, with the Thacker Pass Lithium Project being a key component of its growth strategy.