Woodlawn Mine Starts Delivering A$450M Free Cashflow in First 3 Years

Production Milestone at Woodlawn

Develop Global (ASX – DVP) has officially commenced concentrate production and cashflow at its flagship Woodlawn copper/zinc mine, a pivotal step in its five-year business plan. The concentrator commissioning is well advanced, with the company already shipping saleable copper, zinc, and lead concentrates. Early shipments to Trafigura have generated immediate payments, underscoring the project's operational readiness.

The Woodlawn mine, acquired in 2022 for A$100 million, benefits from a substantial underground resource and reserve base, with a 10-year mine life and a forecast annual copper equivalent production of approximately 22,000 tonnes. Develop has invested around A$60 million to de-risk the restart, and the project is fully funded with a modest capital expenditure of A$56 million.

Hybrid Business Model and Underground Expertise

Develop Global operates a hybrid model that combines direct mine ownership with a growing underground mining services business. This dual approach not only maximizes the performance of its own assets but also opens opportunities for partnerships and third-party contracts, generating free cash flow and de-risking the balance sheet.

The company boasts a workforce of 600 personnel, with a network of over 10,000 underground mining professionals across Australia. Underground development at Woodlawn is progressing ahead of schedule, with monthly development rates surpassing targets and early stope production delivering excellent extraction results. Automation technologies are already in use, enhancing operational efficiency.

Expanding Portfolio of Clean Energy Metals

Beyond Woodlawn, Develop Global’s portfolio includes the Sulphur Springs zinc/copper project and the Pioneer Dome lithium project, both fully permitted and funded. Sulphur Springs targets around 30,000 tonnes of copper equivalent annually with an eight-year mine life, while Pioneer Dome aims to produce 200,000 tonnes per annum of lithium spodumene at 5.5% grade over seven years.

These projects position Develop as a key supplier of critical metals essential for the global energy transition, aligning with strong ESG credentials and a commitment to producing clean metals. The company’s strategy to build world-class underground mining capabilities supports this vision.

Financial Strength and Market Position

Develop Global maintains a solid financial foundation with A$94 million in cash and A$105 million in project debt, alongside undrawn equipment financing. The company’s market capitalization stands at approximately A$1.1 billion, supported by a robust asset base and operational momentum.

With first-quarter production and cashflow now underway, Develop is well positioned to deliver on its forecast free cashflows, which are estimated at around A$450 million over the first three years at Woodlawn alone. This financial strength underpins ongoing exploration and development activities, including updates to mine plans and potential expansions.