How Develop Global’s Sulphur Springs DFS Doubled Cashflow and Woodlawn Ramps Up
Develop Global reports strong September quarter progress with Woodlawn mine ramping up on schedule and Sulphur Springs DFS doubling projected cashflow to A$1.5 billion. A major mining services contract extension further bolsters the company’s growth outlook.
- Woodlawn Copper-Zinc Mine ramp-up on track for steady-state production by March 2026
- September quarter revenue of A$19.7 million from Woodlawn concentrate shipments
- Sulphur Springs DFS update shows 76% increase in pre-tax NPV to A$921 million
- Sulphur Springs projected to generate A$1.5 billion free cashflow pre-tax
- Mining Services Division secures A$130 million contract extension with Bellevue Gold
Woodlawn Mine Accelerates Towards Steady Production
Develop Global Limited has delivered a highly productive September quarter, with its Woodlawn Copper-Zinc Mine in New South Wales advancing smoothly through commissioning and ramp-up phases. The mine is on schedule to reach its nameplate capacity of 850,000 tonnes per annum in the March 2026 quarter, supported by a 22% increase in ore mined compared to the previous quarter and ongoing improvements in metal recoveries.
Revenue from Woodlawn concentrate sales reached A$19.7 million during the quarter, reflecting increased shipments of copper, zinc, and lead concentrates to off-taker Trafigura. Notably, underground development progressed ahead of schedule, with 1,540 metres completed using a single jumbo drill, and new high-grade mineralisation was identified, including a promising discovery within the N Lens.
Sulphur Springs DFS Update Doubles Projected Cashflow
In Western Australia’s Pilbara region, the updated Definitive Feasibility Study (DFS) for the Sulphur Springs Zinc-Copper Project has significantly enhanced the project’s financial outlook. The pre-tax Net Present Value (NPV) at an 8% discount rate surged by 76% to A$921 million, while the forecast pre-tax free cashflow doubled to approximately A$1.5 billion over an estimated eight-year mine life.
The DFS revision incorporates a right-sized processing plant capacity increase to 1.5 million tonnes per annum and benefits from improved mine planning, lower treatment costs, and favourable commodity prices. With all major project approvals secured and initial excavation works completed, Develop is poised to advance off-take negotiations, project financing, and pre-development activities in the coming quarter, setting the stage for a Final Investment Decision.
Mining Services Division Secures Major Contract Extension
Develop’s Mining Services Division also reported strong momentum, generating A$54 million in external revenue during the quarter. The division’s contract with Bellevue Gold Limited was extended by seven months, valued at approximately A$130 million, underscoring the division’s operational strength and market demand amid robust commodity prices.
The fleet of five jumbo drills at Bellevue maintained exceptional productivity, averaging 322 metres advance per jumbo per month, well above schedule. Additionally, tendering activity for underground mining services is accelerating, reflecting Develop’s growing footprint in this segment.
Exploration and Corporate Outlook
Exploration efforts at Woodlawn continue to yield encouraging results, with ongoing grade control and resource definition drilling uncovering thick, high-grade mineralisation zones. Meanwhile, Develop maintains a strong cash position of A$203.8 million, providing financial flexibility to support its twin-pronged growth strategy focused on base metals production and underground mining services.
Managing Director Bill Beament highlighted the company’s ability to exceed targets and capitalize on favourable market conditions, signaling confidence in the rapid advancement of both Woodlawn and Sulphur Springs projects as well as the expansion of mining services contracts.
Bottom Line?
With Woodlawn nearing full production and Sulphur Springs poised for a Final Investment Decision, Develop Global is set for a transformative growth phase that could reshape its market standing.
Questions in the middle?
- How will Develop finalize off-take and financing arrangements for Sulphur Springs ahead of the Final Investment Decision?
- Can Woodlawn’s flexible mine plan sustain production rates above steady-state levels as suggested?
- What impact will the extended Bellevue contract have on Develop’s mining services revenue trajectory?