Develop Global Issues First Full-Year Guidance Across Three-Asset Portfolio
Key Takeaways
- Develop Global has issued its first-ever annual guidance across production, operating costs, and capital expenditure — a maturity signal that the business has reached sufficient scale to provide full-year visibility across all three assets.
- Woodlawn is guided to process 775–875kt of ore at 2.7% CuEq in FY27, producing 21–23.5kt of contained CuEq metal, with smelters currently paying a premium to accept concentrate due to deeply negative TCRCs — a direct top-line revenue benefit.
- Pioneer Dome lithium DSO sales and first cashflow remain on track for the December 2026 quarter, with 650–750kt of ore to be mined at 1.2% Li₂O and metal recoveries of 70–85% expected from the DSO converter.
- Yitirrti dominates the capital budget at A$367–406M in FY27 growth capex, with first concentrate production targeted for the June 2028 quarter — making this the company's largest single-year construction commitment.
- Develop Mining Services is forecast to generate A$100–110M in FY27 revenue from contracts at Core Lithium's BP33 mine and OceanaGold's Waihi gold mine, providing a fourth revenue pillar independent of commodity production.
Develop Global issues its first full-year guidance as three-asset production platform takes shape
Develop Global has released its first-ever annual guidance, covering production, operating costs, and capital expenditure across its three-asset portfolio. The release marks a clear maturity signal for the business: Woodlawn is at steady-state, Pioneer Dome is set to begin lithium sales in the December quarter, and Yitirrti is deep into a major construction year targeting first concentrate in the June 2028 quarter.
Managing Director Bill Beament
“FY27 is the first year in which Develop provides annual guidance across production, operating costs and capital expenditure, reflecting the scale the business has now reached.”
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FY27 guidance at a glance
Group total growth capex is budgeted at A$411–458M, with sustaining capex of A$30–35M, bringing Group total capital expenditure to A$452–506M. The table below summarises the four key operational and financial pillars across the portfolio.
| Segment | Ore / Revenue | Grade | Contained Metal / Output | Growth Capex |
|---|---|---|---|---|
| Woodlawn (Base Metals) | 775–875kt ore processed | 2.7% CuEq | 21–23.5kt CuEq metal | A$15–20M |
| Pioneer Dome (Lithium) | 650–750kt ore mined | 1.2% Li₂O | 7.8–9kt contained lithium | A$29–32M |
| Yitirrti (Construction) | Construction phase only | N/A | No production guidance | A$367–406M |
| DM Services | A$100–110M revenue | N/A | N/A | N/A |
Asset by asset — what FY27 looks like on the ground
Woodlawn — steady-state base metals cashflow engine
Woodlawn is guided to process 775–875kt of ore in FY27 at an average grade of 2.7% CuEq, producing 21–23.5kt of contained CuEq metal. Of that tonnage, 45% falls in the first half and 55% in the second half.
Underlying operating cost is forecast at A$180–200M. Excluded from that figure are treatment and refining costs (TCRCs), which are currently deeply negative — meaning smelters, short of concentrate feed, are effectively paying a premium to accept Woodlawn’s output, adding directly to top-line revenue.
Also excluded from underlying opex is the remaining A$19.9M silver royalty payment, a residual from the Woodlawn acquisition in May 2022, which is expected to be paid in FY27. Growth capex is A$15–20M, with a separate A$6–7M exploration programme dedicated to Project DM15, a drilling campaign aimed at defining a 15-year mine plan.
Pioneer Dome — lithium cashflow begins December quarter
Pioneer Dome is guided to mine 650–750kt of ore at an average grade of 1.2% Li₂O, delivering 7.8–9kt of contained lithium metal. Metal recoveries from the Direct Shipping Ore (DSO) converter are expected to be 70–85%.
Underlying operating cost is forecast at A$88–97M, with growth capex of A$29–32M covering site setup, infrastructure supporting the open pit, and a potential underground decline. First lithium DSO sales and cashflow remain on track for the December 2026 quarter, the clearest near-term catalyst for investors watching this asset.
Managing Director Bill Beament
“The ramp-up of both mines’ cashflow, coupled with mining services, gives us a great financial platform at the year’s end.”
Yitirrti — A$367–406M construction year targeting first concentrate in the June 2028 quarter
No production or operating cost guidance is provided for Yitirrti in FY27, as the project remains entirely in its construction phase. Work during the year covers underground development, process plant construction, power station delivery, site infrastructure, and logistics.
Growth capex of A$367–406M makes Yitirrti the dominant portion of the Group’s A$411–458M total growth budget. Develop continues to target first concentrate production in the June 2028 quarter. An exploration programme of A$4–5M for Project DM15 will see the first drill rig mobilise to site since 2022.
What is copper-equivalent grade and why does it matter for multi-metal mines?
Copper-equivalent grade (CuEq) is a single metric that converts all metals a mine produces — copper, zinc, lead, gold, silver — into one comparable copper-equivalent value using prevailing commodity prices. For a multi-metal operation like Woodlawn, which generates revenue from several streams simultaneously, CuEq allows investors to track performance consistently across reporting periods and compare it against single-metal peers.
The commodity prices used in Develop’s CuEq calculation are:
- Copper (Cu): US$12,695/t
- Zinc (Zn): US$3,174/t
- Lead (Pb): US$1,984/t
- Gold (Au): US$4,772/oz
- Silver (Ag): US$76/oz
- Foreign exchange rate: 0.72
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A platform built for cashflow growth — the investment case
The FY27 guidance frames Develop’s three-asset structure as a sequenced cashflow build. Woodlawn is generating base metals cashflow now. Pioneer Dome is set to add lithium revenue from December. Yitirrti represents the large-scale growth lever, with production targeted from FY28. Mining services provides a fourth revenue pillar, with Develop Mining Services forecasting A$100–110M in FY27 revenue from existing contracts at Core Lithium’s BP33 mine in the Northern Territory and OceanaGold Corporation’s Waihi gold mine in New Zealand, plus the July payment from Bellevue Gold on completion of that contract. Revenue from the services division is expected to increase substantially towards the end of FY27 as both contracts ramp to steady-state.
The four pillars, in sequence:
- Woodlawn copper-zinc base metals cashflow
- Pioneer Dome lithium DSO sales (from the December 2026 quarter)
- Yitirrti copper-silver-zinc production (FY28 onwards)
- Develop Mining Services contract revenue
Managing Director Bill Beament
“The three assets together position Develop for strong and rapid growth in production and cashflow.”
These are forward-looking statements based on current expectations and are subject to risks and uncertainties. Actual results may differ materially from guidance.
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