Develop Global Limited (ASX:DVP)
Australia flag Australia · Delayed Price · Currency is AUD
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Sep 17, 2026, 4:10 PM AEST
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Earnings Call: Q4 2026

Jul 27, 2026

Summary

Record quarterly revenue and production driven by strong performance at Woodlawn and major project milestones. Secured substantial funding, advanced construction at Pioneer Dome and Yitirrti, and won significant mining services contracts.

Operator

I would now like to hand the conference over to Mr. Bill Beament, Managing Director. Please go ahead.

Bill Beament
Managing Director, Develop

Good morning, thanks for joining us. It's been an absolutely cracking quarter for Develop on every front. We now have a very well-established pipeline of production and cash flow growth, both in the immediate, medium and longer terms. Basically, we're now reaping the benefits of the investments we've made over the past two to three years and the hard work by all our teams. The production results at Woodlawn are excellent, with recoveries continuing to increase, underpinning record production and record revenue. The resource growth drilling at Woodlawn is delivering in spades. I'll talk a little bit more about that in a moment. At Pioneer Dome, we are in the countdown to first sales of direct ship ore lithium in the December quarter. Again, the drilling results are a standout, with the average grade of the infill drilling program exceeding the resource grade.

The potential impact on this, on the project's cash flow, is very substantial. The higher the grade, the more money we get per tonne. We're very close to a final investment decision on the underground development at Pioneer Dome. It has also been a highly successful quarter in our mining services division, with a major contract win and the starting of two major contracts. The Bellevue Gold contract finishes this month, and we have plenty of uses for the amazing and highly skilled people and equipment this will free up. I'll now run through each of the divisions in some more detail, and then I'm happy to take some questions. Just switching to very busy quarter. We made two final investment decisions. One on Yitirrti, which is a new name for Sulphur Springs project, our copper-silver-zinc project, and Pioneer Dome Lithium projects in Western Australia.

We also secured a $400 U.S. debt facility and warrant package, signed with Trafigura to fund both projects and to refinance the existing Woodlawn facility, all on highly favorable terms. We greatly thank the Trafigura team, because that's a huge package that now funds our projects in the coming years. I guess these agreements really do position Develop for substantial free cash flow generation on the back of three producing projects in Australia, plus the cash flow generated by our mining services. It shouldn't be understated that we're basically building three mines in three years. Onto Woodlawn. As I said, a record quarter across production, revenue and recoveries, with Woodlawn really delivering its strongest performance since commissioning. The team have done an amazing job there. Our copper equivalent production was 4,625.

Very close to an annualized basis of 20,000 tonne per annum. That was up 47% from the March quarter. Record revenue earned of AUD 84 million. We sold 4,500 CuEq tonnes, which is up 244% from the March quarter. One of the real things that I'm super excited about is the processing team and what they've been able to achieve. This is a three-stage concentrator. It is a complex set of chemistry, but massive improvements in the recoveries across the plant. From the March quarter, our copper total recovery is now sitting at 80%. That's up 15%. Zinc recovery is at 75%, that's up 6%. Lead sits at 80%, which is up 23% quarter-on-quarter. The real win that we're seeing is our precious metal content, both silver and gold.

Silver recovery's at 71% and gold's at 48%, and they're both up substantially quarter-on-quarter. Expect those trends well and truly to continue. We're seeing a lot better recoveries of the precious and definitely well into the month of July. Our feed grade, as we said, when you commission a processing plant, you don't want to put high grade material through that. We commissioned last year on lower grade, and we're steadily bringing more of the high grade out. Our feed grade for the quarter in June was 2.73% copper equivalent. That's up 27% from the March quarter. That's really starting now to get in line with the overall reserve grade of 2.8 copper equivalent at Woodlawn.

I think there's upside in our grade moving forward because we still are really yet to put the real big high-grade stuff of Cade's through the processing plant. The resource growth drilling at Woodlawn is really kicking off. We're extending all the known mineralization of the lenses. The second rig has just been commissioned. That is part of our DM15 project, which is we want to drill and define a mine plan of 15 years. That has gone extraordinarily well. Again, we'll put more information on that in the coming week or so on an update of the drilling results of that. Visually, we've had really, really good success at extending these lenses and it's really good to get the second rig in there, which was really the rig that we wanted to get in there for that DM15 project.

On the Pioneer Dome lithium mine. Again, we made a final investment decision on that. We have hit the ground really quickly on this. Open pit construction is underway. We signed a AUD 70 million mining and crushing contract awarded with a Kalgoorlie-based contractor, MLG. We are on track for first direct ship ore sales in the December quarter. We're very close to awarding the cartage contractor, and very close to signing up Esperance Port. We've secured quite a bit of capacity down in the port there. That is coming together extremely well. We're very excited about how that goes. If there's any investors there, we're doing a site visit Tuesday next week.

Pretty excited to take people down to the site and show them the project and how quick it is evolving. Part of the quarterly is we finished off the infill and exploration drilling program, about 20,000 m. To say it exceeded expectations is an understatement. We have put out a raft of results across that project. We are getting numerous results greater than the resource grade of 1.2%. I think the average intersection to date that we have published on the ASX is true width of close to 16 m at 1.45% lithium. I think there is an opportunity there to improve the grade of the resource. Also in particular, keep an eye on the underground drilling component is probably been well in excess of 1.5%. What does that mean? The higher the grade, two things.

The higher the grade, the more revenue we get per ton and also the higher recovery we get through the converter. We get a double positive jaws there. Expect the underground revenue per tonne to be much higher than the open pit revenue per tonne. What does that mean? With the drilling, we will update the resource and grade control model. That is only about three weeks away, it will be done in the September quarter. We are very well into the stage 2 underground getting evaluated. We have basically got a year's worth of DSO on the pit. Obviously, the company's goal will be to not have a production gap between the open pit and the underground, we are very close to it. Doing all the final work on the underground.

As we say here, we want to make a final investment decision and put it to the board in the September quarter of the underground. Onto our third asset, Yitirrti, copper, silver, zinc mine. Again, we made final investment decision on this. We have got the total capital expenditure to bring the mine into construction of AUD 450 million that we published last month. First concentrate is targeted for the June quarter 2028, and I should emphasize that is less than two years away. Our construction is progressing across all work streams. Access road, earthworks on site are well advanced. The site has basically cleared most of the pre-development works for the processing facility have all been completed. The connection of the haul road is well advanced. That will be completed in September.

Our underground development there, I think we are 24% ahead of schedule, but we did close to 900 m for the quarter in a single heading decline, which is no mean feat. Amazing job by the team up there, and we have done over 2,300 m to date. We are severely de-risking the mining part of a new project build, which is super important. Most people really stuff that part up and under-capitalize themselves. We are very happy with that. A lot of key roles have been recruited. We are obviously in the final throes of the processing contract with GR Engineering. That will be done in the next couple of weeks. Onto the mining services. Record external revenue of AUD 63 million for the quarter. Again, very busy. We were awarded the AUD 274 million contract with Core Lithium at their amazing lithium project up in the Northern Territory.

We've kicked that off. I'll be up there today, looking forward to seeing the night shift. That's really advancing quite well and I think we're ahead of schedule on that. We commenced mining at the AUD 200 million OceanaGold tunneling job in Waihi, which is going well as well. Onto Bellevue. As I said, we conclude that contract in the coming days and really excited about the highly experienced and engaged workforce we have there. We've got a very large mobile fleet. I think we've got an AUD 30 million or AUD 40 million fleet that we can deploy to our other business units, which is really, really great in this environment, which is probably one of the tightest labor markets I've seen in my 30-year career.

We get to redeploy that talent to our other mining services clients that are excited about that and also importantly, into our own assets, because we've got mobile underground mines we're building ourselves. Onto corporate. Record quarterly revenue earned, AUD 147 million for the quarter, up 108% from March. Cash balance sat pretty flat at AUD 123 million. Trafigura debt's drawn at AUD 112 million, which is where it was before because we just basically one in, one out refinancing Woodlawn at the new facility. We have AUD 380 million, AUD 88 million remaining undrawn facilities. We ended up with unsold concentrate stockpiles at Woodlawn of close to 10,000 tons, probably around about AUD 25 million sitting on the deck.

We spent AUD 27 million of growth capital and obviously part of our deal with Trafigura in June was, we also entered into a very important cooperation agreement with Trafigura, which basically puts us, both our companies aim to partner on potential future opportunities in outside our current asset base. We're already working on a couple of them as we speak. Again, to wrap that up before questions, huge quarter of activity. I think a couple of our staff members needed a week or two off in July and school holidays, but come back. We're now into the second quarter of this business and super excited about executing on the final investment decisions and the funding we got off Trafigura. I can't be more happy with how the business is performing. With that, moderator, I'll hand over for questions.

Operator

Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two. If you're on a speakerphone, please pick up the handset to ask your question. We'll now pause a short moment for any questions to register. Thank you. There are no questions at this time. I'll now hand back to Mr. Beament for closing remarks.

Bill Beament
Managing Director, Develop

Yes, thanks for that. Again, thanks for everyone coming on the call. Just to reemphasize, what we put together last month was really four years of heavy lifting. I want to thank all my teams, and all the great work to put two new projects to a board for final investment decision and get funding of that magnitude to build it is no mean feat. A massive job. Thanks for shareholders supporting us there. Pretty excited about entering chapter two with Woodlawn. Really it's starting to hit its straps now and making great cash flow. We're on the cusp of more cash flow from Pioneer Dome in December quarter, and we're less than two years away of Sulphur Springs.

It should not be lost that you wake up today and we are now sitting at the highest Aussie copper price and one of the highest zinc prices since we started this business four years ago. Super excited to build another couple of mines and capitalize on those high commodities. We're very well leveraged in this company. Thanks again, and I look forward to talking after the September quarter. Cheers.

Operator

That does conclude our conference for today. Thank you for participating. You may now disconnect.