The Bill Beament-led company is doing the mining for Bellevue Gold at that company’s namesake mine in Western Australia, a contract that generated Develop $32.3 million in revenue last quarter.
And Develop recently won a second contract, this one with being the the $46 million underground development of the Mt Marion mine, also in WA.
A third contract, also an unspecified mine in WA, is reportedly on the cards.
Another positive for the cash balance is Develop’s progress at its Woodlawn copper-zinc asset in New South Wales, where “site cash expenditure … reduced significantly” by the end of the December quarter after capital development and associated infrastructure works were established the first 18 months of future ore production.
A mine plan for this operation is due to be released at the end of the March quarter.
Elsewhere, Develop will be scoping its Pioneer Dome lithium asset this quarter.
Shares in Develop were trading at $2.43 this week, capitalising the company at $588 million.
Capital markets firm Bell Potter is a fan of the company and sees no shortage of positive catalysts ahead.
“The forthcoming restart of Woodlawn operations (we expect by early CY25) coincides with growing revenue generation from the company’s underground mining services business, underpinning a ramp up in earnings and FCF generation over FY24-26,” Bell Potter said this week.
“This FCF growth outlook, a strong balance sheet and funds expected to be raised from deep-in-the-money options de-risks project financing for Sulphur Springs and Pioneer Dome.
“These developments represent medium term earnings growth drivers.”
