This was the underlying message of Bill Beament’s presentation at this week’s Resources Rising Stars conference in Queensland as he touted his latest venture’s wares to investors and analysts.
Beament, now the managing director of Develop Global but best known for driving the astronomical growth of Northern Star Resources, highlighted the potential of Develop by relaying its three key copper, zinc and lithium mining opportunities into terms the market understands well: gold.
“Woodlawn — that’s our first mine — has an annual copper equivalent of around about 20,000 tonnes of copper per annum. In gold terms, it’s around about a 100,000-ounce gold mine,” Beament explained.
“Sulphur Springs will be about 30,000t of copper equivalent per annum, when we get that up and running — about 150,000oz per annum of gold per annum.”
He said Develop’s Pioneer Dome lithium project was at this stage equivalent to 20,000t per annum of copper and in turn equivalent to 100,000ozpa of gold, but at lithium prices of just 12 months ago, it was about a 350,00ozpa gold mine equivalent.
While an arguable way to compare the value of mining assets, Beament’s intent was clear: “Adding it all up, it’s about a 600,000ozpa gold producer. If I was [actually] doing that, we wouldn’t be a A$500 million market cap.”
Woodlawn is Develop’s most advanced asset, with the funding process for the New South Wales-based copper-zinc mine reportedly “nearing completion”.
“We had very strong participation through that process. It’s extraordinary. Even though it’s a small mine, we’ve got a lot of amazing proposals on finance and off take,” Beament said.
“Our final documentation is expected to be announced in this quarter.”
Beament said it was the company’s mining services division that underpinned much of its growth plans and its pathway to cashflow.
With three contracts secured — $400 million from Bellevue Gold, $50 million with Mt Marion Lithium and a gold mine capital development contract for Westgold’s newly acquired Beta Hunt gold mine — Beament said the mining services business was a key value driver.
“I only wanted two or three contracts, I’ve now got three,” he said.
“In three or four years time, we’ll probably be turning over close to $400-500 million per annum from our mining services division.”
With $41 million cash in the bank as of 30 June, revenue coming in from its mining services business, and a $100 million pre-payment/loan facility with Trafigura — as well as a five-year offtake agreement — to bring Woodlawn into production, Beament said Develop was well placed to get the mine up and running.
An April 2024 study suggested $49 million would be required to construct the mine, which has a net present value of $728 million. First production is slated for mid-2025, subject to a final investment decision.
“Sorry, bankers and brokers: we’re fully funded,” Beament said.
Woodlawn could lay the foundations for Develop’s first cashflow and unlock big growth opportunities in Sulphur Springs and Pioneer Dome thereafter.
Time and commodity prices will tell, it seems, if Beament’s bullish plans come to fruition.
Shares in Develop Global last traded at $2.12, capitalising the stock at circa $550 million. It has traded between $1.85 and $3.45 over the past 12 months.
