Develop Global Limited (ASX: DVP)
Appreciate MM's view on this mining entity, looks like a lot going for them especially the future outlook. Thank you again for the continuous great work.
The Latest Q&A
Answer
Hi Michael,
As some background DVP is a $1.5bn miner which runs the Woodlawn copper-zinc mine in New South Wales as its core producing asset, while also developing lithium and copper-silver-zinc projects in WA, and providing underground mining contract services to third parties.
This has been a year of significant strategic transformation for DVP, transitioning from a single-asset miner to a multi-project critical minerals developer with a major global commodity trader (Trafigura) as its financing and offtake partner. The FIDs on Sulphur Springs and Pioneer Dome, combined with the Core Lithium contract win and ASX 200 inclusion, represent meaningful company milestones.
However, the sharp drop in Woodlawn copper-equivalent production in the June quarter rattled the market on Thursday, sending the stock down more than 20%, in the current market its likely to take time for investors to regain confidence in the miner.
- MM is neutral towards DVP around $4.50, and we’re not considering catching the falling knife at this stage.
