Develop (ASX: $DVP) announces Woodlawn mine production restart study results

Develop (ASX: $DVP) has announced the outstanding results of a Production Restart Study on its Woodlawn copper-zinc mine in NSW. The study indicates that Woodlawn is set to generate exceptional financial returns and create substantial value for Develop shareholders, with significant increases in the Net Present Value (NPV), Reserves, free cashflow, and mine life compared with previous assessments.

Executive commentary on Woodlawn mine production restart study

Develop Managing Director Bill Beament stated, 'The restart plan confirms that Woodlawn is a great mine by any measure. The valuation, the inventory, the cashflow, and the returns are all extremely strong. At the same time, the start-up costs, the funding requirements, and the risks are all very low.' Beament also mentioned, 'In light of this enviable position, Develop has commenced exploring several funding options, including potentially selling a minority interest in Woodlawn to a strategic investor, traditional project finance, and offtake financing.'

Summary of Woodlawn mine production restart study

The Production Restart Study on Woodlawn copper-zinc mine in NSW has resulted in exceptional financial metrics, including a 37% jump in NPV to A$658m and a 60% increase in pre-tax free cashflow to A$1b over a 10-year mine plan. Develop intends to explore funding options, potentially including the sale of a minority interest in Woodlawn. The study also indicates a low-risk restart with the majority of the mine plan underpinned by Reserves and a restart capital cost of just A$42m. Develop's ambitions include implementing a similar strategy at its Sulphur Springs zinc-copper mine in WA, where the NPV is A$523m as at June 2023.