Deterra Royalties Limited

Good day and thank you for standing by. Welcome to the Terra Royalties full year 2026 results conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I'd now like to hand the conference over to Mr. Jason Neal, Interim Chief Executive Officer and Managing Director. Please go ahead.

Thank you. Good morning and welcome to the Terra Royalties full year 2026 results call. I'm Jason Neal, Interim MD and CEO. and I'm joined today by Jason Clifton, our Chief Financial Officer. As you are aware, I've been a long-standing non-executive director of Duterra and have stepped into the MD and CEO role on an interim basis as a bridge to the next leader of our company. I will add further comments on the CEO's search after the financials, but the summary is that we have an active search process underway and fiscal year 2026 is the business as usual and our team continues to advance various opportunities. Without further delay, I'm going to hand the call to Jason Clifton to take you through the highlights and important details. I will conclude the call before the Q&A session with some of my own reflections on the year and the strategic direction of the company.

Thanks, Jason, and good morning, everyone. If you move to page three, you'll see we have delivered a strong full-year impact of $164 million. This has been largely driven, firstly, by record production and sales volume from Matt, partially offset by softer AUD pricing. And secondly, by the first half profit from the sale of non-core precious metals assets that came as part of the Trident acquisition. We announced those sales in August and September last year and have used the Aussie $108 million proceeds received to date to pay down debt. Thacker Pass continues to de-risk. Construction is well underway and Jason Neill will add more on Thacker later. We have a very strong balance sheet with net debt at $132 million and are well within all of our banking covenants and target leverage range, and this positions us well to execute on investment opportunities as they arise over time. Moving to page four, you'll see revenue from continuing operations is up 6% driven by the MAP royalty. After costs, underlying EBITDA is also up 6%. We have a number of non-recurring items that I've called out here. Firstly the MAP capacity payment. In FY25 you'll recall we received a $20 million payment as Southlink had a significant production increase in that year as it ramped up to name plate capacity. That meant that FY26 is always going to be lower and going forward we don't expect material capacity payments to be received. The second non-recurring items are the revenue or profit from the sale of disposed assets. These were disclosed in the first half, so no change there. And finally, in FY25, we had the costs associated with the Trident acquisition. Importantly, our financing costs have reduced following net debt reduction from proceeds of asset sales and also from operating cash flows not being paid out as dividends. On the tax row we called out in the first half that we have a lower effective tax rate this year as we utilise offshore tax losses to offset the tax that would have been payable on the profit on total assets. And the dividend for the half is 10.8 cents per share which together with the first half dividend of 12.4 cents delivers a 23.2 cents per share fully franked full year dividend and that's consistent with our payout ratio target of 75%. Moving to page five, you can see the MAC Royalty is up 7% on FY25. Sales for the year were a record 140 million dry metric tonnes, which were up 9%. The US dollar realised price of $92 US was also up on FY25, but was offset by the FX rate. So the Aussie dollar realised price is down 2% on FY25. Moving to page six, our operating costs were 14.1 mil for the year. within that number includes one-off costs of $1 million associated with a CEO transition that I called out at the first half. Offsetting that has been a lower headcount in FY26 which reflects a restructuring of our teams both here in the Perth office and our London offices as well. There were some other small increases in other costs from our Denver office and a small increase in external business development activity costs. is the sale of non-core precious metals assets as presented at the first half. These generated 108 mil in cash proceeds, which was used to reduce debt. There is a further Aussie $13 million cash payment due coming to the Terra in August 2026, and that is the deferred component of the La Presqu'Oscar sale. That won't hit the P&L as we've booked the profit from that sale in this period. Page 8 shows the strength of our balance sheet. debt to $132 million at 32 and 26 and we have $357 million undrawn capacity. Across our facilities our average margin is 1.3% and all in post-tax cost of debt is 3.8%. That's a real distinct competitive advantage when you look across the royalty industry. Page 9 outlines our capital management framework. We have a very strong balance sheet, and this is providing us a range of options to finance any potential new value-adding investment. We maintain a 75% payout ratio, which is striking the right balance between shareholder returns, balance sheet strength and investment optionality. And finally, page 10 provides a reconciliation of non-cash items and underlying impact. I won't cover that here, but happy to take questions later. With that, Jason Neill, I'll pass back to you.