Develop Global Faces Cash Outflows but Holds 9-Quarter Funding Runway

Quarterly Cash Flow Overview

Develop Global Limited (ASX, DVP) has released its quarterly cash flow report for the period ending 30 June 2025, revealing a net cash outflow from operating activities of $11.4 million. This marks a reversal from the positive operating cash flow recorded year-to-date, reflecting ongoing expenditures primarily related to staff and corporate costs.

The company’s investing activities further drained $13.4 million in cash, largely driven by payments for property, plant, and equipment, as well as exploration and evaluation expenses. These outflows underscore Develop Global’s continued commitment to advancing its mining projects, including the Woodlawn Project, despite the challenging cash flow environment.

Financing and Liquidity Position

On the financing front, Develop Global reported a net cash outflow of $11.7 million for the quarter, influenced by repayments of borrowings and transaction costs. Notably, the company has fully drawn its $65 million USD loan facility from Trafigura Pte Ltd, which carries senior security over key assets and a competitive interest rate structure with an 18-month grace period.

Additionally, Develop Global maintains equipment financing facilities totaling $107.3 million AUD, with $57.5 million AUD still available. These facilities are secured against the financed equipment and carry a weighted average interest rate of 7.11%. At quarter end, the company held $57.7 million AUD in cash and cash equivalents, supplemented by $57.5 million AUD in unused financing facilities, resulting in total available funding of approximately $115.2 million AUD.

Operational Runway and Outlook

Based on current cash outflows and available funding, Develop Global estimates it has sufficient liquidity to sustain operations for nine quarters. This runway provides a buffer for the company to continue its exploration and development activities without immediate funding pressure.

However, the negative operating cash flow and ongoing capital expenditures highlight the importance of monitoring future cash flow trends and financing arrangements. While the company’s loan and equipment financing facilities offer substantial support, the evolving market conditions and project developments will be critical factors influencing future liquidity.