Does MM like Develop Global (DVP)?
Hello James and Team, What are your thoughts on Develop Global now that it is in the process of taking over Essential Metals. Thanks, Lee
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Answer
Hi Lee,
Develop Global (DVP) has entered into a Scheme of Arrangement to buy Essential Metals (ESS) in a 1 for 6.18 deal, worth ~56cps to ESS shareholders. DVP are also raising $50m to fund their own development and growth projects.
Develop has it’s hands in a number of pots – zinc, nickel, copper, gold among others. The Essential Metals acquisition provides more lithium exposure, however it continues to confuse the company’s outlook. While having a number of projects reduces the company’s risk, to also dilutes the expertise of management. We prefer to keep it more simple with regards to our commodity exposure.
