Deterra Royalties Limited is a mineral royalty company that generates revenue by acquiring and managing mineral royalties from resource companies. In their latest financial report, they reported revenue of $10.1 million for the year ended December 31, 2020, compared to $5.9 million for the previous year. This represents a significant increase in revenue, which is a positive sign.
Their net income for the year ended December 31, 2020, was $4.1 million, compared to $2.2 million for the previous year. This increase in net income indicates that the company was able to manage its expenses effectively and generate higher profits.
Deterra Royalties Limited also had a strong balance sheet, with total assets of $77.9 million and total liabilities of $3.3 million as of December 31, 2020. This suggests that the company has a strong financial position and is capable of meeting its financial obligations.
Overall, based on the available financial statements, Deterra Royalties Limited appears to have a solid financial performance. However, it’s important to note that this is a general overview, and a more detailed financial analysis would require access to the latest financial data and analysis tools.
Revenue Growth: Deterra Royalties Limited has shown a consistent growth in revenue over the past few years. In 2020, the company reported a revenue of $10.1 million, which is a significant increase from the previous year’s revenue of $5.9 million. This growth in revenue can be attributed to the company’s strategy of acquiring and managing mineral royalties from resource companies. Furthermore, the company has a diversified portfolio of royalty interests in various resource projects across Canada, which helps to reduce its reliance on any particular commodity or project.
Profitability: Deterra Royalties Limited has also demonstrated strong profitability in recent years. In 2020, the company reported a net income of $4.1 million, which represents a significant increase from the previous year’s net income of $2.2 million. This increase in profitability can be attributed to the company’s focus on acquiring high-quality royalties, which can generate steady and predictable cash flows over a long period.
Liquidity: Deterra Royalties Limited has a strong liquidity position, which indicates that the company can meet its short-term financial obligations. As of December 31, 2020, the company had cash and cash equivalents of $2.8 million, which is a significant increase from the previous year’s cash and cash equivalents of $1.1 million. Furthermore, the company has no long-term debt obligations, which indicates that it is not burdened with high-interest payments.
Solvency: Deterra Royalties Limited has a strong solvency position, which indicates that the company is capable of meeting its long-term financial obligations. As of December 31, 2020, the company had total assets of $77.9 million and total liabilities of $3.3 million. The company’s debt-to-equity ratio was 0.04, which indicates that it has a conservative capital structure.
Efficiency Ratio: Deterra Royalties Limited has an efficient business model, which is reflected in its strong efficiency ratios. For example, the company’s return on equity (ROE) was 8.3% in 2020, which is a significant increase from the previous year’s ROE of 5.1%. This indicates that the company is generating a higher return on the investment made by shareholders.
Competitive Advantage: Deterra Royalties Limited has a competitive advantage in the mineral royalty industry due to its focus on acquiring high-quality royalties from resource companies. The company’s management team has extensive experience in the mining industry, which helps them identify and acquire royalties that have the potential to generate steady and predictable cash flows over the long term. Furthermore, the company has a diversified portfolio of royalty interests in various resource projects across Canada, which helps to reduce its reliance on any particular commodity or project.
Management Effectiveness: Deterra Royalties Limited has a management team with extensive experience in the mining industry. The company’s CEO, David Copeland, has over 30 years of experience in the mining industry, and he has held senior positions in several mining companies. The management team has demonstrated the ability to identify and acquire high-quality royalties, which have the potential to generate steady and predictable cash flows over the long term. Furthermore, the management team has a conservative approach to capital allocation, which helps to ensure that the company’s cash flows are used efficiently.
Growth in the Recent Past: Deterra Royalties Limited has demonstrated strong growth in the recent past. In 2020, the company’s revenue increased by 71% compared to the previous year, and its net income increased by 88%. Furthermore, the company has continued to acquire high-quality royalties in recent years, which has helped to diversify its portfolio.
As of today, since October 2023 the DRR stock price increased by more than 10%:
