The Develop Global Ltd (ASX: DVP) share price is in focus after the company awarded a $275 million contract to GR Engineering Services to design and build the Yitirrti processing plant, keeping production on track for mid-2028. The contract marks a key step in advancing Develop Global's growing pipeline, with three operating projects across Australia and strong cashflow prospects.
Image source: Getty Images
What did Develop Global report?
- $275 million EPC contract for Yitirrti processing plant awarded to GR Engineering Services
- Processing plant to deliver 1.5Mt per annum nameplate capacity, producing copper-silver and zinc concentrates
- Total estimated capital cost for Yitirrti project stands at $450 million
- Yitirrti forecast to deliver 37% IRR and payback period of 23 months
- Project funding supported by $570 million debt facility from Trafigura, $123 million cash on hand, and operating cashflows
- First concentrate production scheduled for June quarter 2028
What else do investors need to know?
Construction is progressing on schedule, with access roads and earthworks well advanced, and underground development moving ahead of plan. The Yitirrti project strengthens Develop Global's portfolio and positions the company for substantial free cashflow growth. In addition to Yitirrti, existing operations at Woodlawn are running at steady-state, and first lithium sales from Pioneer Dome are on track for late 2026.
Offtake contracts with Trafigura are in place for copper and zinc concentrates from Yitirrti, providing further revenue certainty. Develop's broader mining services division continues to contribute steady cashflow.
What did Develop Global management say?
Develop Global's managing director, Bill Beament, said:
The award of this contract to GRES is another major milestone on our path to production and cashflow at Yitirrti by mid-2028. GRES is the leader in its field and has done an outstanding job at Woodlawn, where it refurbished and upgraded the processing plant. The plant has already achieved steady-state throughput rates and is performing extremely well, particularly given the short time it has been operating. Construction and underground development at Yitirrti is already well advanced and long-lead items have been secured.
The project is funded and offtake contracts are in place with Trafigura. We are implementing our strategy to drive rapid growth in cashflow, with production ramping up at Woodlawn and DSO lithium sales set to start at Pioneer Dome in the coming quarter.
What's next for Develop Global?
Develop Global is targeting first concentrate sales from Yitirrti in the June quarter of 2028, while ramping up production at Woodlawn and preparing for Pioneer Dome lithium sales later in 2026. The company's multi-asset strategy, underpinned by robust funding and offtake agreements, aims to deliver strong returns and generate significant free cashflow growth in coming years.
Management says it remains committed to operational delivery and disciplined capital management as construction progresses across its key projects.
Develop Global share price snapshot
Over the past year, the Develop Global share price has outperformed the S&P/ASX 200 index (ASX: XJO) with a 10% gain, reflecting broad sector trends as the company advances its growth pipeline.
