Develop Global Limited (ASX:DVP) Completes Loan Facility with Trafigura
Completion of Loan Facility
Develop Global Limited (ASX:DVP) announced the successful completion of documentation pertaining to a loan facility with Trafigura, valued at approximately A$100 million. The company and Trafigura have formalised a five-year offtake agreement for production from the Woodlawn Copper-Zinc Mine, which is an essential step for the project’s forward momentum.
Refurbishment Progress and Production Outlook
The refurbishment of the Woodlawn processing plant is currently 50% complete, with Develop on track to achieve first concentrate production and positive cashflow by the June quarter of next year. Ore production from underground is set to begin in the March quarter, with mining teams mobilising to site within this month. The Board has approved a Final Investment Decision to support the re-start plan for Woodlawn.
Executive Insights
Bill Beament, Managing Director of Develop Global, stated, “Our production re-start plan for Woodlawn is on time and on budget. With funding documentation now finalised, the mine recommissioning and the transition to cashflow-positive status is fully funded. Our re-start study shows Woodlawn will generate pre-tax cashflow of A$1.1 billion based on a 10-year mine plan.” Beament highlighted the potential for significant cash generation, pointing out that the first three years of production could yield approximately A$375 million in free cashflow.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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