Develop Global (DVP) H2 2024 earnings summary

Executive summary

• Finalized a pivotal $100m funding and offtake agreement with Trafigura to fully fund the Woodlawn copper-zinc mine restart, positioning the company as a copper and zinc producer by mid-2025.

• Mining Services division exceeded forecasts, generating $147m revenue in FY24, with FY25 revenue budgeted to grow by ~50% to $200–$220m.

• Acquisition of Essential Metals and the Pioneer Dome lithium project expanded the asset base and strategic focus on energy transition metals.

• Cash reserves at 30 June 2024 were $41.5m, with no drawn corporate debt.

Financial highlights

• FY24 consolidated loss was $12.0m, improved from $17.9m loss in FY23, driven by project development expenditure offset by strong Mining Services revenue.

• Mining Services revenue rose to $147.2m (FY23: $67.8m), supporting cash flow for mine development.

• Cash and cash equivalents increased to $41.5m (FY23: $21.8m).

• Total assets grew to $471.2m (FY23: $245.8m) following the Essential Metals acquisition.

• Share capital increased to $429.0m (FY23: $228.3m) after capital raisings and acquisitions.

Outlook and guidance

• Woodlawn mine restart fully funded, with production expected by mid-2025 and forecast to generate ~$375m free cash flow in the first three years post-ramp up.

• Mining Services division revenue expected to grow to $200–$220m in FY25, driven by ramp-up at Bellevue, Beta Hunt, and Mt Marion contracts.

• Pioneer Dome lithium project advancing with updated scoping study and key approvals secured.

• Sulphur Springs project development to be considered after Woodlawn reaches steady state.