Been A long time coming, but it is time to sell

Brad Holland

Brad has over 20 years experience in the Australian and US equities and options markets. Brad specialises in equities and options for capital growth, income generation and capital protection. He also specialises in finding opportunities in small to medium cap stocks. Brad holds RG146 - Securities & Managed Investments and Accredited Derivatives Adviser Level 2 qualifications.

September 7, 2023

DRR.AX | High Conviction Report

We have had a position in Deterra Royalties (DRR) since 30th August 2021, and after collecting five dividends, we have decided to exit today. After trading ex-dividend recently, the share price has rallied from a low of $4.23 on the 29th Aug to currently trading at $4.75.

The recovery in the DRR share price is due to the increasing iron ore price and the falling AUD/USD exchange rate. With so much uncertainty about how the Chinese economy will perform and the demand for iron ore in the future, now is a good time to exit.

Closed position result

Number of Shares Purchased: 2,000

Initial buy price: $4.34

Exit Price: $4.68

Dividends fully franked

  1. 2/9/2021 – $0.1152
  2. 11/03/2022 – $0.1168
  3. 25/08/2022 – $0.2208
  4. 24/02/2023 – $0.12
  5. 22/08/2023 – $0.1685

Capital Gain $680.00

Dividends $1482.60

Franking Credits $635.40

Total $2,938

The total percentage return on funds invested was 32.24%. The position was open for over two years, so the annualised return generated is 16.12%.

Even in the current environment of high inflation at 16.12% return each year is better than bank interest on fixed terms

This is general advice only. MF & Co Asset Management has not considered your personal financial needs, objectives or current situation. This information is not an offer, solicitation, or a recommendation for any financial product unless expressly stated. You should seek professional investment advice before making any investment decision.

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