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Develop Global Limited (AU:DVP)
:DVP

Develop Global Limited (DVP) AI Stock Analysis

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AU

Develop Global Limited

(OTC:DVP)

Rating:60Neutral
Price Target:
AU$4.50
▲(10.57%Upside)
The stock's score is significantly influenced by its strong technical performance, suggesting a bullish trend despite being overbought. However, financial performance and valuation are concerning due to profitability issues and negative cash flow, which weigh down the overall score.

Develop Global Limited (DVP) vs. iShares MSCI Australia ETF (EWA)

Develop Global Limited Business Overview & Revenue Model

Company DescriptionDevelop Global Limited, together with its subsidiaries, engages in the exploration and development of mineral resource properties in Australia. It primarily explores for copper, zinc, lead, silver, and gold deposits. The company's flagship project is the Sulphur Springs project that includes Sulphur Springs and Kangaroo Caves deposits and tenements located to the south east of Port Hedland. The company was formerly known as Venturex Resources Limited and changed its name to Develop Global Limited in October 2021. Develop Global Limited was incorporated in 2006 and is based in West Leederville, Australia.
How the Company Makes MoneyDevelop Global Limited makes money through the exploration, development, and eventual extraction of mineral resources. The company's primary revenue stream comes from the sale of extracted minerals and metals, such as gold, silver, and other valuable commodities, to global markets. DVP may also engage in joint ventures and partnerships with other mining companies, sharing resources and expertise to maximize operational efficiency and profitability. Additionally, the company could generate income through royalties, licensing agreements, and by leveraging its technological innovations to improve mining processes. These activities are supported by strategic investments and collaborations that enhance DVP's market presence and operational capabilities.

Develop Global Limited Financial Statement Overview

Summary
Develop Global Limited shows promising revenue growth but faces challenges in achieving profitability. The balance sheet is strong with low leverage and high equity, providing financial stability. However, cash flow management remains a concern with negative free cash flow. The company needs to focus on improving operational efficiency and cash generation to support long-term growth.
Income Statement
45
Neutral
The company shows a significant revenue growth of 117.3% from the previous year, indicating a strong upward trend in sales. However, profitability remains a concern, as evidenced by negative EBIT and net income margins. Gross profit is positive, but the company needs to improve operational efficiency to turn sales growth into profitability.
Balance Sheet
60
Neutral
The balance sheet reflects a strong equity position with an equity ratio of 74.1%, suggesting financial stability. The debt-to-equity ratio is low at 0.12, indicating low leverage and a conservative approach to debt. However, the return on equity is negative due to the net loss, highlighting the need for improved profitability.
Cash Flow
50
Neutral
The company has a negative free cash flow and a declining operating cash flow, which raises concerns about cash generation ability. However, the operating cash flow to net income ratio is positive, suggesting some efficiency in converting income into cash. The free cash flow to net income ratio is negative, highlighting cash flow challenges.
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
194.89M147.23M67.78M4.51M0.0016.54K
Gross Profit
136.71M100.07M-11.13M873.35K-415.39K-1.27M
EBIT
34.21M-9.47M-14.09M-9.10M-89.26M-3.84M
EBITDA
25.48M14.13M-1.33M-8.63M-89.37M-2.52M
Net Income Common Stockholders
-7.39M-12.13M-17.89M-9.22M-89.88M-3.90M
Balance SheetCash, Cash Equivalents and Short-Term Investments
112.90M41.50M21.77M43.21M16.83M2.26M
Total Assets
593.39M471.23M245.80M204.88M57.32M41.87M
Total Debt
158.39M40.81M27.91M3.52M103.78K2.13M
Net Debt
45.50M-687.81K6.14M-39.69M-16.73M-127.80K
Total Liabilities
237.44M121.79M96.14M60.33M21.72M17.99M
Stockholders Equity
355.55M349.27M149.66M144.55M35.60M23.88M
Cash FlowFree Cash Flow
-506.86K-22.75M-27.76M-15.61M-5.01M-6.40M
Operating Cash Flow
37.02M11.00M12.24M-6.62M-2.43M-2.55M
Investing Cash Flow
-55.06M-32.15M-38.62M-25.47M-2.43M-3.85M
Financing Cash Flow
98.29M40.88M4.92M58.49M19.43M3.74M

Develop Global Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4.07
Price Trends
50DMA
3.14
Positive
100DMA
2.91
Positive
200DMA
2.57
Positive
Market Momentum
MACD
0.22
Positive
RSI
71.61
Negative
STOCH
76.10
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:DVP, the sentiment is Positive. The current price of 4.07 is above the 20-day moving average (MA) of 3.72, above the 50-day MA of 3.14, and above the 200-day MA of 2.57, indicating a bullish trend. The MACD of 0.22 indicates Positive momentum. The RSI at 71.61 is Negative, neither overbought nor oversold. The STOCH value of 76.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:DVP.

Develop Global Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
62
Neutral
$11.70B10.39-7.10%2.92%7.45%-8.42%
AUDVP
60
Neutral
AU$1.06B-2.13%77.18%64.13%
$19.72B25.6911.01%2.35%
$12.26B26.7916.97%1.29%
$1.86B1,408.33-36.53%6.27%
$2.47B43.31-33.95%4.54%
$3.42B39.345.11%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:DVP
Develop Global Limited
4.07
1.90
87.56%
NESRF
Northern Star Resources Ltd
13.55
3.94
41.00%
CAHPF
Evolution Mining
6.08
3.60
145.16%
IPGDF
IGO
2.60
-2.09
-44.56%
MALRF
Mineral Resources Limited
15.50
-30.72
-66.46%
SFRRF
Sandfire Resources Limited
7.50
1.44
23.76%

Develop Global Limited Corporate Events

Develop Global Advances Sulphur Springs Project with Key Developments
May 28, 2025

Develop Global Limited has commenced substantial earthworks at its Sulphur Springs zinc-copper project in Western Australia, marking a significant milestone in the project’s development. The company is focusing on constructing the underground decline and preparing surface infrastructure, which is expected to de-risk the project and enhance productivity. The updated definitive feasibility study (DFS) is scheduled for completion in the December 2025 quarter, potentially increasing the project’s financial returns and providing more funding options. This strategic approach mirrors the successful methods used at the Woodlawn mine, aiming to improve mining efficiency and reduce costs.

The most recent analyst rating on (AU:DVP) stock is a Buy with a A$3.50 price target. To see the full list of analyst forecasts on Develop Global Limited stock, see the AU:DVP Stock Forecast page.

Develop Global Limited Announces Cessation of Securities
May 16, 2025

Develop Global Limited has announced the cessation of certain securities, specifically options expiring on various dates and prices, totaling 84,974 units. This cessation, effective as of May 14, 2025, may impact the company’s capital structure and could have implications for stakeholders, particularly in terms of the company’s financial strategy and market operations.

The most recent analyst rating on (AU:DVP) stock is a Buy with a A$3.50 price target. To see the full list of analyst forecasts on Develop Global Limited stock, see the AU:DVP Stock Forecast page.

Develop Global Limited Announces Quotation of New Securities
May 16, 2025

Develop Global Limited has announced the application for the quotation of 28,735 ordinary fully paid securities on the ASX, with the issue date set for May 14, 2025. This move is part of the company’s strategy to enhance its market presence and liquidity, potentially impacting its operations by increasing investor interest and stakeholder engagement.

The most recent analyst rating on (AU:DVP) stock is a Buy with a A$3.50 price target. To see the full list of analyst forecasts on Develop Global Limited stock, see the AU:DVP Stock Forecast page.

Develop Global Limited Issues New Shares for Woodlawn Mine Milestone
May 6, 2025

Develop Global Limited announced the issuance of 1,712,329 fully paid ordinary shares to OMF Fund II (H) Ltd as part payment for a milestone under a Co-operation Deed related to the Woodlawn Mine. This issuance allows the shares to be traded immediately under the exemption in section 708A(5) of the Corporations Act 2001, indicating compliance with relevant legal provisions and enhancing liquidity for stakeholders.

Develop Global Limited Announces Proposed Securities Issue
May 5, 2025

Develop Global Limited has announced a proposed issue of 1,712,329 ordinary fully paid securities, with the issue date set for May 5, 2025. This move is part of a placement or other type of issue, aimed at enhancing the company’s financial operations and market presence. The announcement signifies a strategic step in aligning with ASX Listing Rules, potentially impacting stakeholders by increasing the liquidity and marketability of the company’s securities.

Develop Global Limited Reports Quarterly Cash Flow Results
Apr 28, 2025

Develop Global Limited reported a net cash inflow from operating activities of $8.6 million for the quarter ending March 31, 2025, driven by significant receipts from customers. However, the company experienced a net cash outflow in investing activities amounting to $20.1 million, primarily due to substantial payments for property, plant, and equipment. The financing activities resulted in a net cash outflow of $6.5 million, influenced by repayments of borrowings. This financial update reflects the company’s ongoing capital investments and financial strategies to support its operational growth and market positioning.

Develop Global Achieves Milestone with First Copper Concentrate at Woodlawn
Apr 28, 2025

Develop Global Limited has successfully produced its first copper concentrate at the Woodlawn Copper-Zinc Mine, achieving this milestone ahead of schedule and on budget. This development positions the company for significant cash flow growth in the upcoming June quarter, with the first shipment of copper concentrate scheduled for May 2025. The company has also made substantial progress in its mining operations, including the commissioning of major infrastructure and the commencement of underground stope production. The positive advancements at Woodlawn are expected to enhance Develop’s market position and financial performance, benefiting stakeholders through increased production capacity and cash generation.

Develop Global Limited Issues Performance Rights to Employees
Apr 15, 2025

Develop Global Limited has announced the issuance of 6,475,233 performance rights under an employee incentive scheme. These securities are unquoted and subject to transfer restrictions, indicating a focus on employee retention and motivation. This move may impact the company’s operational dynamics by aligning employee interests with company performance, potentially enhancing productivity and stakeholder value.

Develop Global Limited Announces Quotation of New Securities
Apr 3, 2025

Develop Global Limited has announced the application for quotation of 1,017,500 ordinary fully paid securities on the Australian Securities Exchange (ASX). These securities are issued under an employee incentive scheme and are not subject to transfer restrictions, highlighting the company’s efforts to incentivize its workforce. This move could potentially enhance the company’s market presence and operational flexibility by aligning employee interests with shareholder value.

Develop Global Confirms Contract Stability and Progress at Woodlawn Mine
Mar 27, 2025

Develop Global Limited has addressed unfounded rumors by confirming its ongoing contract with Bellevue Gold, which is set to last until the end of 2025, with the possibility of extension. The company highlights a strong operational relationship with Bellevue, achieving significant improvements in mining outputs. Additionally, Develop Global reports that the recommissioning of the Woodlawn mine is proceeding on schedule and within budget, with production and cash flow expected in the upcoming June quarter.

Develop Global Limited Announces Cessation of Performance Rights
Mar 13, 2025

Develop Global Limited has announced the cessation of 18,249 performance rights due to the conditions for these securities not being met or becoming incapable of being satisfied. This announcement may impact the company’s issued capital and could have implications for stakeholders, as it reflects a change in the company’s performance rights management.

Develop Global Limited Announces Imminent Cash Flow and Concentrate Developments
Mar 13, 2025

Develop Global Limited has released a revised company presentation highlighting imminent concentrate and cash flow developments. The presentation underscores the company’s strategic focus on energy transition metals and underground mining services, with updates on various projects such as Sulphur Springs and Woodlawn. These developments are expected to enhance the company’s operational capabilities and strengthen its position in the mining industry, potentially impacting stakeholders positively by improving financial forecasts and production targets.

Develop Global Limited Announces Imminent Production and Cash Flow
Mar 11, 2025

Develop Global Limited has released a presentation highlighting imminent concentrate production and cash flow, signaling a significant step forward in their operations. This announcement underscores the company’s strategic positioning in the energy transition metals sector, with potential implications for stakeholders as it progresses with its resource development projects.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.