Develop Global’s Woodlawn Output Surges 47% as Trafigura Funds Major Project Push
Develop Global (ASX:DVP) posted a record June quarter with Woodlawn copper-zinc production up 47%, supported by a US$400 million Trafigura financing deal that underpins its Sulphur Springs and Pioneer Dome projects.
- Woodlawn copper-equivalent production jumps 47% to 4,625 tonnes
- Record quarterly revenue of A$84 million driven by improved metal recoveries
- US$400 million Trafigura facility secures funding for Sulphur Springs and Pioneer Dome
- Pioneer Dome lithium DSO sales targeted for December quarter
- Mining services division achieves A$63 million external revenue with new contracts
Woodlawn Mine Powers Record Revenue and Production
Develop Global Limited’s Woodlawn copper-zinc mine in New South Wales delivered a standout quarter, with copper-equivalent production soaring 47% to 4,625 tonnes. This surge propelled record revenue of A$84 million, a 244% increase from the previous quarter, driven by significant improvements in metal recoveries across copper, zinc, lead, silver, and gold.
Recoveries climbed notably: copper rose 15% to 80%, zinc 6% to 75%, lead 23% to 80%, silver 27% to 71%, and gold 73% to 48%. The average feed grade also improved by 27% to 2.73% CuEq, aligning closely with the Ore Reserve grade of 2.80% CuEq. These gains reflect ongoing flotation circuit upgrades and reagent optimisation, with further recovery enhancements anticipated as processing initiatives advance.
Development at Woodlawn continues apace, with 1,687 metres excavated in the quarter and new declines providing access to high-grade lenses. Resource growth drilling, part of the Project DM15 strategy, extended known mineralisation, supported by the addition of a second underground drill rig. Early exploration at the nearby Currawang Project shows promising mineralisation, adding to Develop’s growth pipeline.
Pioneer Dome Lithium Project Accelerates Towards Production
In Western Australia, Develop made a Final Investment Decision on the Pioneer Dome lithium project, committing A$40 million to a direct shipping ore (DSO) operation. Construction is underway, with a A$70 million open-pit mining and crushing contract awarded to MLG Oz and mobilisation commenced post-quarter. First lithium DSO sales are on track for the December 2026 quarter.
Infill drilling results exceeded expectations, with an average intersection of 15.8 metres at 1.45% Li2O, surpassing the existing resource grade of 1.2% Li2O. An updated resource and grade control model is expected in the September quarter. Meanwhile, evaluation of a stage two underground expansion is progressing, with geotechnical drilling and mine design underway ahead of a potential investment decision later this year.
Sulphur Springs Project Advances Ahead of Schedule
Develop also declared a Final Investment Decision on the Yitirrti (formerly Sulphur Springs) copper-silver-zinc project, committing A$450 million to construction. Underground development exceeded expectations, with 890 metres completed in the quarter, 24% ahead of schedule. Surface works, including site access roads and process plant bulk earthworks, are progressing well.
Key infrastructure procurement is complete, including gas-fired generators, and negotiations for LNG supply are advanced. The project targets first concentrate production by mid-2028, promising a significant step-up in Develop’s future cash flow.
Mining Services Division Hits New Highs with Major Contracts
Develop’s Mining Services segment recorded a record A$63 million in external revenue, boosted by new contracts at Core Lithium’s BP33 lithium mine (A$274 million) and OceanaGold’s Waihi gold project in New Zealand (A$200 million). Mobilisation and development activities are underway at both sites, with workforce numbers growing steadily.
The conclusion of the Bellevue Gold contract at the end of July will see the redeployment of a skilled workforce and mobile fleet to other business units, maintaining operational momentum.
Strong Financial Position Supports Growth Strategy
Develop ended the quarter with a robust cash balance of A$123 million and a US$400 million (~A$570 million) debt facility from Trafigura, of which A$112 million was drawn. This facility refinanced the existing Woodlawn loan and provides substantial undrawn capacity (~A$388 million) to fund ongoing project development.
The group generated A$31 million in operating free cash flow, supported by record customer receipts of A$134 million. Concentrate sales of 29,109 tonnes yielded A$84 million in revenue, with copper contributing half the revenue, followed by zinc, silver, gold, and lead.
Develop continues to pursue growth opportunities, leveraging its strategic partnership with Trafigura. The company also announced a CFO transition, with Ben MacKinnon resigning and Felicity Hughes appointed interim CFO.
Bottom Line?
Develop Global’s combination of operational momentum at Woodlawn and secured funding for major projects positions it for significant free cash flow growth, though execution on lithium expansion and Sulphur Springs construction will be critical to watch.
Questions in the middle?
- Will Pioneer Dome’s underground expansion proceed as planned amid lithium market fluctuations?
- How will Develop balance capital allocation between ongoing Woodlawn optimisation and large-scale project construction?
- What impact will the CFO transition have on financial strategy during this critical growth phase?
