Iluka Resources spin-out Deterra Royalties has completed its first day of trading on the ASX with market capitalisation in excess of $2.4 billion.
Details of the company, which was established to manage a portfolio of royalties across several types of commodities, were revealed in September, with its core asset being a 1.2 per cent royalty from production at BHP’s Mining Area C site in the Pilbara.
That site includes BHP’s South Flank project.
Managing director and chief executive Julian Andrews said he was pleased the company had been able to list on the ASX so that investors could receive earnings and dividends from premier iron ore mines.
“Obviously, we are very pleased with the initial support today, however I’m focused on building a successful business and delivering the value that we believe it can generate for our shareholders,” Mr Andrews said.
Shares in the demerged entity began trading at $4.89 this morning before closing $0.29 down.