Woodlawn Plant Upgrade 70% Done; US$65M Funding Secured for Production Restart

Woodlawn Project Progress

Develop Global Limited (ASX: DVP) has delivered a robust December 2024 quarterly update, underscoring its steady march towards recommencing production at the Woodlawn copper-zinc mine in New South Wales. The company announced that the plant upgrade, managed by GR Engineering Services (GRES), is now 70% complete, with all major contracts awarded and internal work packages progressing on budget and schedule.

Underground development has accelerated, with full crews mobilised late in the quarter and ore production from underground workings on track to commence in the March 2025 quarter. This positions Develop well for its targeted first concentrate production and cash flow generation in the June quarter of 2025.

Financial Backing and Strategic Partnerships

Financially, Develop has secured a US$65 million (approximately A$104.8 million) prepayment and loan facility with global commodities trader Trafigura Pte Ltd. This facility was fully drawn down in December 2024 and is complemented by a five-year offtake agreement covering all concentrates produced at Woodlawn, including copper, zinc, lead, and precious metals.

Develop’s Managing Director, Bill Beament, highlighted the strong cash flow outlook, projecting approximately A$425 million in pre-tax cash flow over the first three years post ramp-up at current commodity prices. This cash flow is expected to substantially repay all debt while leveraging the company’s significant tax losses.

In parallel, Develop has initiated a strategic partnership process for Woodlawn, with strong interest from third parties and site visits underway. The company is considering a partial sale of up to 20% of the Woodlawn asset, aiming to accelerate value creation and unlock further opportunities.

Mining Services Division Momentum

Develop’s Mining Services division also reported a strong quarter, with revenue increasing 21% quarter-on-quarter to A$57.9 million. This growth was driven primarily by a 10% increase in development metres at the Bellevue gold mine, supported by the mobilisation of a sixth jumbo drill rig. The division successfully demobilised from Beta Hunt and Mount Marion mines, redeploying staff and equipment to meet rising demand at Bellevue and Woodlawn.

Operational and Environmental Standards

Safety and environmental stewardship remain priorities, with the group reporting a lost time injury frequency rate (LTIFR) of 0.0, well below the national metalliferous mining average of 2.4. No material environmental or heritage incidents were recorded during the quarter, and no stakeholder complaints were received.

Broader Project Portfolio

Beyond Woodlawn, Develop continues to advance its other projects, including the Pioneer Dome Lithium Project in Western Australia, which is now shovel-ready following receipt of key mining approvals. Reconnaissance geological mapping and sampling have been completed, with a strategic review underway for critical minerals such as caesium and beryllium.

The Sulphur Springs zinc-copper project in the Pilbara region is progressing with haul road design and planning, with construction scheduled post-wet season. Several optimisation studies are ongoing to refine mine plans and infrastructure.

Looking Ahead

Develop’s December quarter results reflect a company on the cusp of transformation, with Woodlawn’s restart poised to deliver significant cash flow and operational momentum. The combination of secured funding, strategic partnerships, and operational progress sets a solid foundation for the company’s growth trajectory in 2025 and beyond.