Develop Global Limited reported a positive operating cash flow of AUD 18.8 million for the December 2025 quarter, maintaining robust liquidity despite significant investing and financing cash outflows.
- Positive net cash from operating activities of AUD 18.755 million
- Investing activities consumed AUD 29.514 million, mainly on property and equipment
- Financing activities used AUD 13.152 million, including loan repayments
- Cash and cash equivalents remain strong at AUD 179.878 million
- Significant loan and equipment financing facilities totaling AUD 215.9 million with AUD 60.4 million unused
Quarterly Cash Flow Overview
Develop Global Limited (ASX – DVP) has released its quarterly cash flow report for the period ending 31 December 2025, revealing a solid operating cash inflow of AUD 18.755 million. This positive cash flow from core operations underscores the company’s ability to generate liquidity from its ongoing activities, a reassuring sign for investors amid a capital-intensive phase.
Despite this operational strength, the company’s investing activities resulted in a net cash outflow of AUD 29.514 million during the quarter. The bulk of this expenditure was directed towards property, plant, and equipment acquisitions, reflecting ongoing development and expansion efforts. Such capital outlays are typical for a mining exploration entity positioning itself for future production growth.
Financing and Liquidity Position
On the financing front, Develop Global used AUD 13.152 million in net cash, primarily due to repayments on borrowings and transaction costs. The company holds a substantial loan facility of AUD 108.5 million with Trafigura Pte Ltd, fully drawn down as of December 2024, carrying senior security and an interest rate linked to the Bank Bill Swap Rate plus a 2% margin. Additionally, equipment financing facilities totaling AUD 107.4 million remain in place, with AUD 60.4 million still available, providing flexibility for future capital needs.
At quarter-end, cash and cash equivalents stood at a healthy AUD 179.878 million, down slightly from the previous quarter but still indicative of strong liquidity. This cash position, combined with unused financing facilities, gives Develop Global a total available funding pool of approximately AUD 240 million, supporting its operational and development activities.
Governance and Related Party Payments
The report also disclosed payments to related parties amounting to AUD 321,000, a routine disclosure that aligns with governance transparency. The Managing Director authorised the release, affirming compliance with accounting standards and the accuracy of the financial disclosures.
While the company did not provide explicit guidance on future cash flow expectations or capital raising plans, the current liquidity and financing arrangements suggest Develop Global is well-positioned to continue its operations and meet its business objectives in the near term.
Bottom Line?
Develop Global’s strong operating cash flow and substantial liquidity buffer set the stage for continued investment in growth, but monitoring future capital expenditure and financing moves will be key.
Questions in the middle?
- How will ongoing investing outflows impact Develop Global’s cash runway beyond the next quarter?
- Are there plans to draw further on the unused equipment financing facilities soon?
- What are the company’s strategic priorities for capital allocation in 2026?