ASX materials stock Develop Global Ltd (ASX: DVP) has been charging higher in 2026.
Develop Global is a mineral exploration and development company.
Year to date, its share price has risen more than 36%.
The company is in focus today after it announced it was not successful in renewing its Bellevue Gold Mine (BGM) contract through a competitive tender process.
Image source: Getty Images
What happened?
In simple terms, Develop Global lost a big mining contract at the Bellevue Gold Mine because another company won the tender.
That contract would have been worth about $850 million over 4 years (around $213 million revenue each year).
The work there ends in July 2026.
However at the same time, it won a new contract at the Finniss Lithium project with Core Lithium.
That deal is worth at least $274 million over 3 years, with possible extensions. Once fully running, it should bring in about $120 million revenue per year. Work starts mid-2026, but it will likely take 6-9 months to fully ramp up.
This news prompted the team at Bell Potter to bump up its price target on this ASX materials stock.
Here's what the broker had to say.
Bellevue lost – Finniss gained
Bell Potter noted that it had assumed Develop Global would remain on-site for the next 4 years:
DVP announced a $274m minimum 3-year contract (with a 2-year extension option) with Core Lithium (CXO; not rated) for capital development and production activities at its Finniss Lithium project in the Northern Territory.
We do not see the unsuccessful BGM contract renewal as a major set-back. The unsuccessful renewal highlights DVP's disciplined approach to competitive contract tendering, ensuring achievement of internal return hurdles. DVP can re-deploy underground mining teams to Sulphur Springs to expedite capital decline works and to the upcoming Pioneer Dome development. We estimate DVP is positioning for $1.4b of tender opportunities to replace lost BGM contract revenue.
Target price increases for this ASX materials stock
Based on this guidance, the team at Bell Potter increased its target price on this ASX materials stock to $7.10 (previously $6.60).
It has maintained its buy recommendation.
From yesterday's closing price of $6.21, this indicates an upside potential of just over 14%.
We are confident DVP can replace BGM contract revenue through conversion of an outstanding ~$1.4b tender pipeline. In the meantime, DVP are targeting to deliver several Pioner Dome and Sulphur Springs related catalysts this quarter that could support its share price.
