MM view on DVP.
How does MM view DVP going forward on fundamentals and technicals? Thanks. Keep up the good work!
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Answer
Hi Peter,
We are not close to this $630mn WA based miner and only two brokers cover the stock, both of whom have it as a buy. The stock having halved from its late 2021 high hasn’t helped improve investor/broker interest in the business.
However, DVP’s share price is up nicely over the last few weeks after announcing that it is on track to start production at its Woodlawn copper-zinc mine next calendar year. This follows the awarding of a $25.7 million contract to GR Engineering Services Ltd (GNG) to upgrade and recommission the Woodlawn processing plant. Management notes that Woodlawn is targeting first production and cashflows in mid-2025.
We have to fall back on our technical interpretation with DVP believing it looks “OK” while it holds above $2.15.
