Highlights

  • Develop Global mined a record 202,334 tonnes at Woodlawn, although lower processed grades reduced concentrate output and contained copper.
  • The company mined first lithium ore at Pioneer Dome and targets its initial direct-shipping cargo for the December 2026 quarter.
  • Develop awarded a A$275 million processing plant contract at Yitirrti, with first concentrate targeted for the June 2028 quarter.
  • The group generated A$29.6 million of operating cash flow and invested A$58.6 million in growth projects during the quarter.

Record ore movement did not translate into higher copper output for Develop Global (ASX:DVP) at Woodlawn. Its September 2026 report shows lower grades reducing metal production while the group advanced two other growth projects. Pioneer Dome mined its first lithium ore, and Yitirrti moved further into construction, with group cash closing at an unaudited A$95.5 million.

Woodlawn Volume Rises as Grade Falls

Woodlawn mined 202,334 tonnes and processed 201,130 tonnes. Concentrate output declined to 16,435 tonnes from 23,132 in the June quarter, while contained copper fell from 1,579 to 977 tonnes.

Processed copper-equivalent grade was 1.47%, compared with 2.73% previously. Develop says it deliberately accessed lower-grade material outside the mine plan because it was inexpensive to reach and contained significant precious metals. Contained gold and silver increased.

Concentrate sales totalled 19,614 tonnes for A$57.4 million of revenue. At quarter-end, developed ore available amounted to 1.54 million tonnes at 2.8% copper equivalent.

Exploration drilling included 12.2 metres at 15.7% copper equivalent in the J Lens and 10.6 metres at 3.3% in the N Lens. Further assays remain pending. October feed grade was reported at 2.9% copper equivalent, in line with the reserve.

Lithium Start-Up and Yitirrti Build Advance

Pioneer Dome open-pit mining began at Cade, with first ore mined late in the quarter. Crushing was scheduled to start in October, and the initial direct-shipping shipment remains targeted for the December quarter.

An updated lithium Mineral Resource is expected in the same period. Mining and crushing are covered by a A$70 million contract with MLG.

At Yitirrti, formerly Sulphur Springs, GR Engineering received the A$275 million engineering, procurement and construction contract. Mobilisation has begun, while underground development reached a quarterly record of 991 metres.

The site access road is expected to finish in the December quarter. First concentrate is targeted for the June 2028 quarter, leaving the build and operating start-up ahead.

Growth Spending Draws on Funding Capacity

Develop Mining Services generated A$46.4 million of external revenue and A$30 million internally. The Bellevue contract ended on 31 July, while work at Waihi and for Core Lithium is under way.

Group customer receipts totalled A$146.9 million, supporting A$29.6 million in operating cash flow. Growth investment was A$58.6 million and debt repayments A$12.1 million.

Approximately A$112 million is drawn from the Trafigura facility, with US$271 million undrawn. The company puts total available funding at approximately A$600 million.

FY27 guidance is 775,000 to 875,000 tonnes processed at Woodlawn and 650,000 to 750,000 tonnes mined at Pioneer Dome. Group growth capital is forecast at A$411 million to A$458 million, with total capital expenditure of A$452 million to A$506 million, mainly for Yitirrti. These remain forecasts subject to project delivery and funding access.