Develop Global Lines Up Three-Asset Growth After Woodlawn Turns Profitable

A Heavy Investment Year Takes Shape

Develop Global Limited (ASX:DVP) is entering FY27 with something more useful than another growth slogan: its first annual production, cost and capital guidance. The plan calls for A$411 million to A$458 million of growth capital, mainly to build the Yitirrti copper-silver-zinc project and bring the Pioneer Dome lithium operation into production.

The spending arrives alongside a business that has moved into profit. Develop reported FY26 revenue of A$388.5 million, pre-tax profit of A$13.5 million and net profit of A$9.1 million, compared with a pre-tax loss of A$4.8 million in the previous year. Operating cash flow rose to A$50.0 million, while cash at year-end reached A$114.8 million and net debt was negative A$26.1 million, including lease liabilities.

Woodlawn Provides the Operating Base

Woodlawn is the only asset with a full year of production in the guidance. Develop expects the NSW copper-zinc mine to process 775,000 to 875,000 tonnes of ore at an average grade of 2.7% copper equivalent, containing 21,000 to 23,500 tonnes of copper-equivalent metal.

The mine reached steady-state production in the March 2026 quarter and delivered record June-quarter production of 4,625 tonnes of copper equivalent. FY27 underlying operating costs are forecast at A$180 million to A$200 million, with another A$30 million to A$35 million earmarked for sustaining capital and A$6 million to A$7 million for Project DM15 drilling aimed at defining a potential 15-year mine plan.

Pioneer Dome Moves Towards First Lithium Sales

Pioneer Dome is scheduled to add a second commodity stream in the December 2026 quarter. Develop guides for 650,000 to 750,000 tonnes of ore mined at an average grade of 1.2% Li₂O, containing 7,800 to 9,000 tonnes of lithium metal. Expected recovery from the direct-shipping ore converter is 70% to 85%.

Underlying operating costs are forecast at A$88 million to A$97 million, with A$29 million to A$32 million of growth capital allocated to site establishment, infrastructure and support for the open-pit operation and a potential underground decline. The guidance does not turn Pioneer Dome into a fully tested producer overnight: it remains an early-stage ramp-up with sales timing, recoveries and operating costs still to be demonstrated.

Yitirrti Consumes the Largest Share of Capital

Yitirrti will remain under construction throughout FY27, so Develop has provided no production or operating-cost guidance for the project. Instead, A$367 million to A$406 million of growth capital is budgeted for underground development, the processing plant, power and other site infrastructure.

Underground development had reached 2,323 metres by 30 June, while the company has since awarded a A$275 million processing-plant EPC contract to GR Engineering Services. Develop continues to target first concentrate production in the June 2028 quarter. The project is supported by a US$400 million Trafigura financing facility and offtake arrangements, although the annual report records only US$78.3 million drawn at year-end, with approximately US$271 million undrawn.

Mining Services Guidance Falls Below FY26 Revenue

The less obvious wrinkle sits in Develop Mining Services. The division generated A$226.9 million of external contract revenue in FY26, but FY27 guidance is A$100 million to A$110 million. Develop says the forecast is driven by BP33, Waihi and the final Bellevue payment, with revenue expected to rise substantially towards the end of the financial year as the newer contracts approach steady-state mining volumes.

That profile makes the timing of cash generation important. The group is asking investors to look beyond the headline capital spend towards the combination of Woodlawn cash flow, Pioneer Dome sales and a later contribution from Yitirrti. Its own guidance also makes clear that underlying operating costs exclude royalties, shipping, treatment and refining charges; at Woodlawn, the remaining A$19.9 million silver royalty payment is expected in FY27 and is outside the stated operating-cost range.