Earnings release
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ASX Announcement 28 April 2025 MARCH 2025 QUARTERLY REPORT First copper concentrate produced as Woodlawn commissioning runs on budget and ahead of schedule Highly successful re-start puts Develop on track for strong cashflow growth in the June quarter Key Points Woodlawn Copper-Zinc Mine, NSW: • Site commissioning and upgrades are ahead of schedule and on budget • First saleable copper concentrate and production ore produced at Woodlawn mine • Copper concentrate has been dispatched to port with first shipment scheduled for May 2025 • Develop remains on track for production and cashflow in the June quarter 2025 • 30,000t of ore processed through the copper circuit late in the quarter, commissioning rate of ~750kt per annum. Name plate throughput is targeted at 850kt per annum • Subsequent to the quarter ’s end, practical completion of the processing facility occurred with the crushing, zinc and lead circuits being handed over by GR Engineering Services for commissioning; These items are all ahead of schedule and on budget • Ore mined in the quarter was 93,400t, both from development and stope sources; Ramp up to 850kt per annum of ore mined is on track • Underground stope production successfully commenced in mid-March • Underground jumbo development is well ahead of schedule with 1,357m achieved for the quarter (Jan 351m, Feb 478m and Mar 528m) with one jumbo • ~78,000t of high-grade ore on ROM pads awaiting processing Sulphur Springs Zinc-Copper Project, WA: • Early works underway. Civil works for the box cut establishment expected to commence in the June quarter Develop Mining Services: • Revenue for the quarter was A$50.5m. • Bellevue revenue was up 15% quarter on quarter, driven predominantly by a 27% increase in development metres and a 30% increase in total ore tonnes from the prior quarter Corporate: • Cash at bank of A$94.2m at March 31, 2025; Fully funded for the re-start at Woodlawn • Strategic partnership process ongoing at Woodlawn; Strong participation from interest ed groups with next stage site visits scheduled in the June quarter o Develop will consider a sale of up to 20% of the Woodlawn asset For personal use only
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Develop (ASX: DVP) is pleased to report on a highly successful March quarter which has culminated in production of the first copper concentrate at its Woodlawn copper-zinc mine in NSW. This major milestone, which was achieved ahead of schedule and on budget, followed the rapid progress made on the plant upgrade during the quarter and the start of ore production. As a result, Woodlawn is on track for cashflow for the June quarter 2025, with first shipments scheduled for May. Develop Managing Director Bill Beament said: “ It has been an outstanding performance on all fronts as we met or exceeded all our targets ranging from mine development and ore production through to the plant upgrades and copper concentrate production. “Our first copper concentrate has been sent to the port and we expect the first shipment to occur in May. This will mark the start of rapid growth in cashflow as we ramp up production to a steady-state rate of 850,000t per annum in the second half of 2025. “At current commodity prices, the first three years of post -ramp up production is set to yield ~A$425m of pre-tax cashflow, providing substantial cash generation while repaying all the debt and utilising the Company’s significant tax losses. “Our Mining Services division performed strongly, with revenue generated under the Bellevue Gold contract up 15% quarter on quarter, underpinned by a 27% increase in development metres and a 30% increase in total ore tonnes from the prior quarter”. Occupational Health, Safety, Environmental and Social Group lost time injury frequency rate “LTIFR” was 0.0 (injuries per million work hours). The National metalliferous mining LTIFR has risen with current data from Safe Work Australia to 5.6. There has been no material environmental or heritage incidents in the past quarter, and the Company received no stakeholder complaints or grievances. Woodlawn Copper-Zinc Mine (NSW) Develop’s Woodlawn Copper-Zinc Mine is in the world class Lachlan Fold belt in NSW. The project hosts a high- grade resource of 11.3Mt @ 1.8% Cu, 5.8% Zn, 2.1% Pb, 46gpt Ag & 0.5gpt Au and Reserves of 6.0Mt @ 1.5% Cu, 3.6% Zn, 1.3% Pb, 29gpt Ag & 0.4gpt Au. At Woodlawn first saleable copper concentrate and underground production ore has been produced . Site commissioning and upgrades are ahead of schedule and on budget . The mine remains on track for production and cashflow in the June quarter 2025. Major infrastructure, including the ball mill and copper flotation circuit were successfully commissioned ahead of schedule, late in the quarter. This enabled 30,000 tonnes of copper ore to be processed through the copper circuit at a commissioning rate of 750,000 tonnes per annum. All copper concentrate produced through commissioning has been in the saleable specification range (average of 21.2% Cu) for our offtake agreement with Trafigura. Subsequent to the quarters end, practical completion of the processing facility occurred with the crushing, zinc and lead circuits being handed over by GR Engineering Services for commissioning, both ahead of schedule and on budget. Processing ramp-up to name plate 850,000 tonnes per annum will be the focus in the coming quarters. Subsequent to the end of the quarter, initial parcels of copper concentrate were dispatched to port storage facilities in anticipation of the first commercial shipment in May. During the quarter mine development continued to progress well. The first Kate Lens ore stopes were successfully mined during the quarter, with additional stopes outside of the life of mine plan geologically identified and added. The decline is also being rapidly extended and has reached the next two production lenses being the I and D lens. The mine plan was accelerated with record lateral development of 478m and 528m for February and March respectively (total of 1357m for the quarter) . This laid the foundation for the early production result and allowed for additional flexibility and optionality in the mining schedule to deliver ore to the processing plant in the quantities and quality required for commissioning. For personal use only
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This coupled with a smooth start to underground stope production in mid-March has allowed for significant high- grade ore stocks to be built up on the ROM (77,200t at 1.3%Cu, 3.4% Zn, 23gpt Ag & 0.5gpt Au) , which in turn has provided for a consistent processing feed for commissioning. Ore mined for the quarter was 93,400 tonnes of development and stope material (44,200t of copper ore at ~1.4% Cu and 49,200t of polymetallic ore at 1.2% Cu, 5.9% Zn, 1.8% Pb, 39 gpt Ag & 0.7gpt Au) ; ramp up to 850,000 tonnes per annum of ore mined is on schedule. The site team focus is on completing commissioning activities and ramping- up the processing plant to 850,000 tonnes per annum, which is expected to be achieved in the December quarter of 2025. Figure 1 - Woodlawn Mine ROM pad ore stockpiles Figure 2 Woodlawn Kate Lens Ore Drive Face (2440K_OD2_F26) For personal use only
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Figure 3 Woodlawn copper concentrate stockpiles Figure 4 – Woodlawn 2390 P1 Stope Brow For personal use only
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Sulphur Springs Zinc-Copper Project (WA) The Sulphur Springs Project is located 144km south- east of Port Hedland in Western Australia’s Pilbara region. The project’s Mineral Resource stands at 17.4Mt at 5.8% Zn, 1.0% Cu, 0.3% Pb, 21gpt Ag & 0.2gpt Au. During the quarter a comprehensive earthworks and underground contract was awarded for the development of critical infrastructure to enable mine construction. Mine portal construction and lateral decline works, representing the next significant phase of the project's development is also scheduled to commences immediately after the earthworks is completed. Mobilisation activities associated with this have commenced by Develop Mining Services (DMS). No new on-ground exploration was completed during the quarter. Pioneer Dome Lithium Project (WA) The Pioneer Dome Project is located within Western Australia’s ‘lithium corridor’ in the Eastern Goldfields , approximately 130km South of Kalgoorlie. During the quarter reconnaissance and follow -up geological mapping and rock -chip sampling was completed within the Pioneer Dome Project and across several satellite projects , including Sinclair, Acra, Horse Rocks and Dingo Dam. Results from this work will be incorporated into geological models for potential future exploration programmes. A strategic review of non-lithium, critical minerals within the broader Pioneer Dome Project is ongoing. The review includes evaluating options for potential extension and additions to high-grade Caesium and Beryllium mineralisation identified outside of Sinclair Open Pit Mine. Develop Underground Mining Services Division Revenue for the quarter was A$50.5 million. For the quarter at Bellevue there was a 27% increase in development metres and a 30% increase in total ore tonnes compared to previous quarter, this resulted in a 15% increase in contract revenue. The significant ramp up in development paved the way for improved stoping tonnes for the quarter. Efficiencies across the entire fleet continue to exceed industry averages whilst maintaining the highest level of quality. The sixth jumbo was demobilised in April, but the remaining fleet and personal levels have stayed the same as ore tonnages are forecasted to be as per the March quarter. After the ramp up of ore production activities at Woodlawn in mid-CY25, Develop will consider taking on additional mining services contracts. Corporate The Group is continuing to work with HSBC on a potential strategic asset level sale for the Woodlawn asset. Develop will consider a sale of up to 20% of the Woodlawn asset. Several parties have been taken through to the next phase of the process. Further site visits, for senior executives are scheduled during the June quarter. Securities Information Develop’s issued capital at the date of this announcement is: Security Class Issued Capital DVP Fully Paid Ordinary Shares 272,644,876 Unlisted Performance Rights 12,095,242 Unlisted Options (various expiry dates and exercise prices) 15,585,000 For personal use only
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Financial Information Develop’s cash position on 31 March 2025 was A$94.2 million. Trafigura Pte Ltd loan for US$65.0M is fully drawn and matures 4.5 years from draw down (December 2024). Appendix 5B – Statement of Consolidated Cash Flows is provided in a separate report. Information as disclosed in the Cash Flow Report: • Exploration and Evaluation during the quarter was A$0.55 million. • A$19.6 million was spent in the quarter on Property Plant and Equipment with most of it being the work on the Woodlawn processing plant. • Payments to related parties of Develop and their associates during the quarter was A$ 191k. Develop advises that A$ 191k relates to executive directors’ salaries, non- executive directors’ fees and superannuation. This announcement is authorised for release by Bill Beament, Managing Director. Investor Enquiries Media Enquiries Bill Beament Paul Armstrong Develop Read Corporate T: +61 8 6389 7400 P: +61 8 9388 1474 E: hello@develop.com.au E: info@readcorporate.com.au About Develop Develop (ASX: DVP) has a twin-pronged strategy for creating value. The first of these centres on the exploration and production of future-facing metals. As part of this, the Company owns the Sulphur Springs copper-zinc-silver project in WA’s Pilbara region, the Woodlawn zinc-copper project in NSW and the Pioneer Dome Lithium Project in WA’s Eastern Goldfields. The second plank of Develop’s strategy centres on the provision of underground mining services. As part of this, Develop has an agreement with Bellevue Gold (ASX: BGL) to provide underground mining services at t heir Bellevue Project in Western Australia. For personal use only
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Interest in Mining Tenements PROJECT TENEMENT STATUS LOCATION GROUP INTEREST Sulphur Springs M45/494 Granted Western Australia 100% M45/587 Granted Western Australia 100% M45/653 Granted Western Australia 100% M45/1001 Granted Western Australia 100% E45/4811 Granted Western Australia 100% E45/4993 Granted Western Australia 100% E 45/6033 Granted Western Australia 100% E 45/6034 Granted Western Australia 100% L45/166 Granted Western Australia 100% L45/170 Granted Western Australia 100% L45/173 Granted Western Australia 100% L45/179 Granted Western Australia 100% L45/188 Granted Western Australia 100% L45/189 Granted Western Australia 100% L45/287 Granted Western Australia 100% M45/1254 Granted Western Australia 100% E45/6666 Granted Western Australia 100% Woodlawn S(C&PL)20 Granted New South Wales 100% EL7257 Granted New South Wales 100% EL8325 Granted New South Wales 100% EL7468 Granted New South Wales 100% EL7469 Granted New South Wales 100% EL8353 Granted New South Wales 100% EL8623 Granted New South Wales 100% EL8712 Granted New South Wales 100% EL8796 Granted New South Wales 100% EL8797 Granted New South Wales 100% EL8945 Granted New South Wales 100% EL9687 Granted New South Wales 100% EL9704 Granted New South Wales 100% Juglah Dome E25/585 Granted Western Australia 100% Pioneer Dome E15/1515 Granted Western Australia 100% E15/1725 Granted Western Australia 100% E63/1669 Granted Western Australia 100% E63/1782 Granted Western Australia 100% E63/1783 Granted Western Australia 100% E63/1785 Granted Western Australia 100% E63/1825 Granted Western Australia 100% E63/2118 Granted Western Australia 100% M15/1896 Granted Western Australia 100% M63/665 Granted Western Australia 100% L63/77 Granted Western Australia 100% Horse Rocks E15/1710 Granted Western Australia 100% Acra E27/278 Granted Western Australia 100% E27/438 Granted Western Australia 100% E27/520 Granted Western Australia 100% E27/548 Granted Western Australia 100% E27/579 Granted Western Australia 100% E28/2483 Granted Western Australia 100% Whim Creek JV1 M47/236 Granted Western Australia 20% E47/3495 Granted Western Australia 20% M47/237 Granted Western Australia 20% M47/238 Granted Western Australia 20% M47/443 Granted Western Australia 20% L47/36 Granted Western Australia 20% M47/323 Granted Western Australia 20% M47/324 Granted Western Australia 20% For personal use only
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PROJECT TENEMENT STATUS LOCATION GROUP INTEREST M47/1455 Granted Western Australia 20% Alchemy JV2 EL8318 Granted New South Wales 20% EL5878 Granted New South Wales 20% EL7941 Granted New South Wales 20% EL8267 Granted New South Wales 20% EL8356 Granted New South Wales 20% EL8192 Granted New South Wales 20% EL8631 Granted New South Wales 20% EL8711 Granted New South Wales 20% SKY Metals JV3 EL7954 Granted New South Wales 20% EL8400 Granted New South Wales 20% EL8573 Granted New South Wales 20% Golden Ridge JV4 E26/186 Granted Western Australia 25% E26/211 Granted Western Australia 25% E26/212 Granted Western Australia 25% M26/220 Granted Western Australia 25% M26/222 Granted Western Australia 25% M26/284 Granted Western Australia 25% M26/285 Granted Western Australia 25% L26/272 Granted Western Australia 25% Balagundi JV5 E27/558 Granted Western Australia 25% Kangan JV6,7 E45/4948 Granted Western Australia 30% E47/3318-I Granted Western Australia 30% E47/3321-I Granted Western Australia 30% E47/3945 Granted Western Australia 30% Maggie Hays Hill JV8 E63/1784 Granted Western Australia 20% Wattle Dam JV9 M15/1101 Granted Western Australia 20% M15/1263 Granted Western Australia 20% M15/1264 Granted Western Australia 20% M15/1323 Granted Western Australia 20% M15/1338 Granted Western Australia 20% M15/1769 Granted Western Australia 20% M15/1770 Granted Western Australia 20% M15/1771 Granted Western Australia 20% M15/1772 Granted Western Australia 20% M15/1773 Granted Western Australia 20% Larkinville JV10 M15/1449 Granted Western Australia 25% Notes 1 Whim Creek JV Agreement: Anax Metals 80%, Develop Global 20% free carried interest to decision to mine 2 Alchemy JV Agreement: Alchemy Metals 80%, Develop Global 20% 3 Sky Metals JV Agreement: Sky Metals 80%, Develop Global 20% 4 Nickel sulphides rights are subject to the Australian Nickel Company Ltd Farm in/Joint venture 5 Balagundi Farm in/JV Agreement: Black Cat Syndicate Limited is earning a 75% Project interest 6 Kangan Gold JV Agreement: Novo Resources Corp holds a 70% Project Interest in gold and precious metals mineral rights 7 Subject to a 1.5% net smelter royalty right held by FMG Pilbara Pty Ltd 8 Maggie Hays Lake JV Agreement: Poseidon Nickel Limited 80%, Develop Global Limited 20% & free carried interest to commencement of mining 9 Wattle Dam Nickel JV Agreement: Mineral Rights held by Maximus Resources Limited. Develop Global Limited 20% free carried interest in nickel sulphide minerals 10 Larkinville West JV Agreement: Maximus Resources Limited 75%, Develop Global Limited 25% free carried interest, except nickel rights which are subject to the Wattle Dam JV Mining Tenements and Beneficial Interests Acquired during the December 2024 Quarter: Nil Mining Tenements and Beneficial Interests Disposed during the December 2024 Quarter: Nil For personal use only
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Mineral Resources and Ore Reserves Statements Base Metals The Mineral Resources Estimates are reported in accordance with the guidelines of the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code). The estimates are reported at 30 June 2024. SULPHUR SPRINGS PROJECT SULPHUR SPRINGS Resource Category Tonnes (Mt) Cu % Pb % Zn % Ag gpt Au gpt Indicated 12.4 1.2 0.3 5.6 21.8 0.1 Inferred 1.4 0.2 0.5 6.4 38.4 0.2 TOTAL 13.8 1.1 0.3 5.7 23.5 0.2 KANGAROO CAVES Resource Category Tonnes (Mt) Cu % Pb % Zn % Ag gpt Au gpt Indicated 2.3 0.9 0.3 5.7 13.6 0.0 Inferred 1.3 0.5 0.4 6.5 18.0 0.0 Total 3.6 0.8 0.3 6.0 15.0 0.0 WOODLAWN WOODLAWN Resource Category Tonnes (Mt) Cu % Pb % Zn % Ag gpt Au gpt Measured 1.3 2.1 1.6 5.2 47.7 0.9 Indicated 6.8 1.8 1.7 4.7 34.6 0.4 Inferred 3.1 1.6 3.3 8.5 70.0 0.5 Total 11.3 1.8 2.1 5.8 46.0 0.5 Base Metals TOTAL Resource Category Tonnes (Mt) Cu % Pb % Zn % Ag gpt Au gpt Measured 1.3 2.1 1.9 4.3 100 1.4 Indicated 21.5 1.4 0.8 5.3 25.8 0.2 Inferred 5.8 0.8 1.6 7.2 48.3 0.3 Total 28.7 1.3 1.0 5.8 31.3 0.3 Lithium-Tantalum PIONEER DOME DOME NORTH Classification Tonnes (Mt) Li2O % Ta2O5 Contained Li2O (t) Fe2O3 Measured - - - - - Indicated 8.6 1.23 55 105,000 0.46 Inferred 2.6 0.92 62 24,000 0.55 Total 11.2 1.2 57 129,000 0.48 Notes: 1. Mineral Resource figures are reported using cut-off grades or NSR calculation best suited to each deposit. 2. Tonnages are dry metric tonnes. Minor discrepancies may occur due to rounding. For personal use only
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Ore Reserves – Base Metals The Group Ore Reserve Estimates take account of changes to the Mineral Resource base at individual deposits due to new drilling information, updated metal prices, changes to cut -off grades, mining depletion and changes to mine design. Ore Reserve Estimates are based on Mineral Resources classified as being either in the Measured or Indicated categories. The estimates are reported at 30 June 2024. SULPHUR SPRINGS SULPHUR SPRINGS Ore Reserve Estimate Ore (Mt) Cu % Pb % Zn % Ag gpt Au gpt UG Proved - - - - - - UG Probable 8.8 1.1 0.2 5.4 20.6 0.1 UG Total 8.8 1.1 0.2 5.4 20.6 0.1 WOODLAWN PROJECT WOODLAWN Ore Reserve Estimate Ore (Mt) Cu % Pb % Zn % Ag gpt Ag gpt UG Proved 1.2 1.7 1.4 4.5 37.1 0.7 UG Probable 4.8 1.4 1.3 3.4 27 0.4 UG Total 6.0 1.5 1.3 3.6 29 0.4 Notes: 1. Ore Reserve figures are reported using cut-off grades or NSR calculation best suited to each deposit. 2. Tonnages are dry metric tonnes. Minor discrepancies may occur due to rounding. Cut-off Grades Mineral Resources and Ore Reserves are reported using a block value filed (Net Smelter Return (NSR) $/t) after consideration of the contained metal, payability, concentrate transport cost, and state government, traditional owner and third-party royalties. Cut-off grades are calculated as a dollar per ore tonne, based on the forecast operating costs in the financial model. Economic analysis, including Stope Optimiser (SO) is carried out for each planned stope and only economically positive stopes are included in the Ore Reserve. The information contained in this report refers to the following ASX announcements: • ASX announcement ' Important Market Update' dated 27 Mar 2025 • ASX announcement ' Revised Company Presentation' dated 17 Mar 2025 • ASX announcement ‘Updated Pioneer Dome Scoping Study’ dated 7 May 2024 • ASX announcement ‘Woodlawn Production Restart Study’ dated 3 April 2024 • ASX announcement ‘Resource Upgrade Paves Way for Funding/Production Strategy’ dated 22 March 2024 • ASX announcement ‘Updated DFS - Sulphur Springs' dated 30 June 2023 • ASX announcement ‘Sulphur Springs Resource Update' dated 2 June 2023 • ASX announcement ' Develop Agrees to Acquire Woodlawn Zinc-Copper Project ' dated 17 Feb 2022 • ASX announcement ‘Sinclair Caesium Mine - Stage 2 evaluation underway’ dated 8 June 2020 (Essential Metals). • ASX announcement ‘Kangaroo Caves Resource Update’ dated 22 September 2015 (Venturex Resources) Competent Person Statement The information contained in this announcement relating to Exploration Results is based on information compiled or revied by Mr Luke Gibson who is an employee of the Company. Mr Gibson is a member of the Australian Institute of Geoscientists and has suffici ent experience with the style of mineralisation and the type of deposit under consideration to qualify as Competent Persons as defined in the JORC Code 2012 Edition. Mr Gibson consents to the inclusion in the report of the results reported here and the form and context in which it appears. For personal use only
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Cautionary Statement The information contained in this document (“Announcement”) has been prepared by DEVELOP Global Limited (“Company”). This Announcement is being used with summarised information. See DEVELOP’s other and periodic disclosure announcements lodged with the Australian Securities Exchange, which are available at www.asx.com.au or at www.develop.com.au for more information. The information in this Announcement regarding previous operations at the Woodlawn Project, including information relating to historic production, recoveries, mineral resources and financial information (including historical expenditure) has been sourced using publicly available information and internal data. While the information contained in this Announcement has been prepared in good faith, neither the Company nor any of its shareholders, directors, officers, agents, employees or advisers give any representations or warranties (express or implied) as to the accuracy, reliability or completeness of the information in this Announcement, or of any other written or oral information made or to be made available to any interested party or its advisers (all such information being referred to as “Information”) and liability therefore is expressly disclaimed. Accordingly, to the full extent permitted by law, neither the Company nor an y of its shareholders, directors, officers, agents, employees or advisers take any responsibility for, or will accept any liability whether direct or indirect, express or implied, contractual, tortious, statutory or otherwise, in respect of, the accuracy or completeness of t he Information or for any of the opinions contained in this Announcement or for any errors, omissions or misstatements or for any loss, howsoever arising, from the use of this Announcement. This Announcement may include certain statements that may be deemed “forward- looking statements”. All statements in this Announcement, other than statements of historical facts, that address future activities and events or developments that the C ompany expects, are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developme nts may differ materially from those in the forward-looking statements. The Company, its shareholders, directors, officers, agents, employees or advisers, do not represent, warrant or guarantee, expressly or impliedly, that the information in this Announce ment is complete or accurate. To the maximum extent permitted by law, the Company disclaims any responsibility to inform any recipient of this Announcement of any matter that subsequently comes to its notice which may affect any of the information containe d in this Announcement. Factors that could cause actual results to differ materially from those in forward- looking statements include market prices, continued availability of capital and financing, and general economic, market or business conditions. DEVE LOP assumes no obligation to update such information. Investors are cautioned that any forward -looking statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in forward looking statements. Please undertake your own evaluation o f the information in this Announcement and consult your professional advisers if you wish to buy or sell DEVELOP shares. This Announcement has been prepared in compliance with the JORC Code 2012 Edition. The ‘forward-looking information’ is based on the Company’s expectations, estimates and projections as of the date on which the statements were made. The Company disclaims any intent or obligations to update or revise any forward- looking statements whether as a result of new information, estimates or options, future events or results or otherwise, unless required to do so by law. For personal use only