2223 GMT - Deterra Royalties is likely to spend less cash reducing its debt load, and more on investor returns, according to UBS analyst Lachlan Shaw. In a note, Shaw says UBS no longer expects Deterra will deleverage its balance sheet as fast as possible. That follows a higher 1H payout ratio, at nearly 75% of profit. Deterra also has a longer revolver maturity than previously assumed and its Trident gold royalty is better than expected, covering net interest costs comfortably, says Shaw. Consequently, UBS now expects a 75% payout near term, in line with the 1H dividend and above a prior payout ratio of 50%, he says. Yet a revised, higher cost of capital prompts a cut in UBS's target on Deterra to A$4.20/share, from A$4.90 previously. It retains a buy rating. Deterra ended Friday at A$3.59. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)
(END) Dow Jones Newswires
March 02, 2025 17:23 ET (22:23 GMT)
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