S&P/ASX 300 Index (ASX: XKO) copper stock Develop Global (ASX: DVP) is slipping today.
Develop Global shares closed down 10.8% yesterday trading for $3.70, following the release of the miner's September quarterly update. During the Wednesday lunch hour today, shares are swapping hands for $3.51 apiece, down 5.1%.
Despite the two-day retrace, shares in the ASX 300 copper stock remain up an impressive 70.2% since the recent closing lows on 9 April. The company has been catching tailwinds from both the surging copper price and its own operational successes.
And MPC Markets' Jonathan Tacadena sees a "bright outlook" for Develop Global in the year ahead (courtesy of The Bull).
Should you buy the dip on the ASX 300 copper stock?
"DVP is actively advancing its copper-zinc projects in the Pilbara region of Western Australia," Tacadena said last week, prior to Tuesday's quarterly update release.
Citing the first reason he has a buy recommendation on the ASX 300 copper stock, he said, "An updated definitive feasibility study (DFS) at the Sulphur Springs project demonstrated a strong growth outlook, delivering a substantial uplift in value."
Atop the strong growth outlook, Tacadena also pointed to Develop Global's enviable operating costs. He said:
The DFS results painted a bright outlook in response to low cash operating costs, robust margins and impressive returns based on an updated 1.5 million tonne per annum underground mine.
And the third reason you might want to snap up shares today is the retrace in the company's share price since the recent 9 October highs.
"The shares rose from $3.49 on September 11 to close at $4.57 on October 9. The shares have since retreated to trade at $4.095 on October 23, which we consider an appealing entry point," Tacadena said.
Shares are down 14% since 23 October.
What's the latest from Develop Global?
Develop Global's share price took a hit yesterday, despite the ASX 300 copper stock reporting that site commissioning at its Woodlawn Copper-Zinc Mine in New South Wales is proceeding to plan, with the ramp-up in line with the project schedule.
Management expects the mine to hit nameplate capacity of 850,000 tonnes per year in the March 2026 quarter.
As for the miner's Sulphur Springs Zinc-Copper Project in Western Australia, Develop Global said the updated DFS shows "Sulphur Springs is set to generate outstanding financial returns with an exceptionally strong IRR and $1.5 billion of free cashflow".
The ASX 300 copper stock noted, "Sulphur Springs is significantly leveraged to copper and zinc, widely regarded as two critical metals for the future."
Develop held $203.8 million in cash as at September 30.
