Develop Global (ASX:DVP) shares jumped just over 4% in lunchtime trades on Friday as the company picked GR Engineering to get its Woodlawn copper-zinc processing plant online.
All cards in order, that means Woodlawn is set to start operating in mid-2025. Underground works at the associated mine have commenced to allow for ore production in early CY2025.
Commodities giant Trafigura’s interest is well-known – it’s bankrolling parrt of the project.
The GR contract – itself worth $25.7M – contains final investment decision obligations. Effectively, this contract basically confirms that the project is set to go ahead should copper prices remain robust, something most analysts agree on as being pretty hard to bet against.
Then again, the big names already behind the project suggest a significant de-risked project as is. (Though, just consider the last four years.)
Despite coming off a recent rally, copper prices are higher than where they were pre-COVID as what is widely perceived as an electrification “megatrend” tailwind for the commodity continues to inform behaviour.
This is even after the sensational early 2024 rally died off as the world realised China is, in fact, not in a good way economically.
DVP last traded at $2.06.