Top member reports
No meetings
Consensus community valuation
XXXXXX
Average Intrinsic Value
XXXXXX
Undervalued by
The consensus valuation is for members only and has been removed from this chart. Click for membership options.
Contributing Members
Content is delayed by one month. Upgrade your membership to unlock all content. Click for membership options.
#Financials
Added a month ago

Maybe another reason for the poor share price are the share options outstanding

d831156e5ad397021c5705e36a8e1f2290b611.jpeg

A few days ago Blackiston excised his 1.4m 75c options DVPAY

But there's still a heap left and DVPAA expired last week

Wonder if the weird trading is from all these options floating around?

[held]

Read More
#Progress
Last edited 2 months ago

Monday 13th May 2024: Having a look at Bill Beament's Develop Global (DVP) again today, which I do hold (both here and IRL) and they are making steady progress towards their objectives. Cornerstone shareholder MinRes (MIN) sold their 14% stake in DVP around this time last month, and Bill Beament has increased his own stake in DVP to 15.08% (held through his company Precision Opportunities Fund). Chris Ellison's MinRes was under pressure to reduce MIN's debt levels, so there have been some "non-core asset" sales, including having 49% of MIN's dedicated 150-kilometre private haul road corridor in the Pilbara up for sale - the road connects MinRes’ Onslow Iron project at Ken’s Bore mine to the Port of Ashburton on the northern WA coast.

But back to DVP: Here are their latest announcements and presentations:

08/05/2024 8:23 am: DVP-Investor-Presentation-Pathway-to-Positive-Cashflow-May-2024.PDF(11 pages, market sensitive)

07/05/2024 8:24 am: Updated-Pioneer-Dome-Scoping-Study-(DVP).PDF (38 pages, market sensitive)

24/04/2024 8:24 am: DVP-March-2024-Quarterly-Activities-Report.PDF (18 pages, market sensitive)

24/04/2024 8:23 am: DVP-Quarterly-Appendix-5B-Cash-Flow-Report-March-2024-Qtr.PDF (5 pages, market sensitive)

From the Investor Presentation:

01cf0537dd7ef746814867eb81d5668ddc8207.png

ac25e003b9d790baa9e09934dd5a738ccc0c2f.png

75b8341f5817e36eb335fab1ae17b7d00ebc91.png

88e773dac1fdbfce75d338be8dbadbd4d5a37b.png

73563ff23129d3cd5912ad835a357545763f7d.png

06d3a3b0c2ab4196f9b0aa0847f54cd46498c9.png

8a9c18e1a51142be7dcfbc39deb83c17d1023e.png

36238d30f6e0ab16fd247eac33151ff1c50485.png

If you're not into Mining Services, copper, zinc and to a lesser extent lithium, then this one won't be for you, but with Bill Beament running this company, there's every reason to expect the company to be highly successful in future years, and he's done a reasonable job so far, since he left NST to head up Venturex, renamed the company ("Develop Global") and built up this portfolio of mining services clients and base metals and lithium projects.

I rarely buy into early stage companies like this - i.e. at this point in their history - however I'm happy to make an exception when we've got Bill Beament running the show. He has a truly exceptional track record.

Further Reading:

MinRes sells Develop Global stake; Bell Potter on the ticket (afr.com) [08-April-2024]

First-round offers in for MinRes $1b pit-to-port haul road sale (afr.com) [06-March-2024]

(25) Bill Beament | LinkedIn

(25) DEVELOP: Overview | LinkedIn

About - Develop

Board & Management - Develop

New study encourages Bill Beament’s Develop Global to push on with Pioneer Dome lithium project | Kalgoorlie Miner (kalminer.com.au) [13-May-2024]

a5961d2714463173b0b2888f7dd1b8c791990e.png

Q+A: Aussie mining legend Bill Beament talks stonker copper hits and facing the future - Stockhead [17-May-2023]

a4c8b6ee552cb68c6ac6e12c122a9325cf2a9b.png

c25be8d20d34d993c79a8f7de6b980a5753bce.png

891e4de7931057a19b9e24ff06b0c1652af88d.png

a5af3c0535aac93ee881d6d0c3646536442c3c.png

aff37f80fa8d883c1fb6c56381142a3bdebd39.png

b3cdbd96f0f1e434f8e3fc0415d945cbf63ffd.png

22a329e261dbffbe5b44851ab96f4886cfc25a.png

Bellevue Gold Develops $400m contract - Australian Mining [14-April-2022]

09cf37a1c203a5561c4af0e99de9ce876f24f2.png

0e72416063e953d2d77310896053c0e86cd8d2.png

MinRes awards Mount Marion decline contract - InvestMETS [01-Dec-2023]

388c3196aa7f6b854b42743abd86c127460393.png

Develop achieves five-year business plan - Australian Mining [22-March-2024]

Mining Services set to generate c.$175m Revenue - Develop Global Limited (ASX:DVP) - Listcorp. [21-March-2024]

ab4043c5b023859a1eb5690bec3bba046db99f.png

Read More
#Metalurgist gives the tick
Added 3 months ago

I was watching this money of mine interview with metalurgist Nathan Stoitis. The did an under/over rated section at the end. They asked him about Woodlawn and he said he can't talk as he was involved with it and then changed his answer to underrated with a cheeky grin. at 1:18:16 mark.

Worth watching the interview as he is clearly very knowledgeable and it shed a lot of light on an aspect of resource investing that I had underappreciated.

He gave Chalice and over-rated label.


Read More
#MinRes sell DVP stake
Added 4 months ago

09-April-2024: MinRes sells Develop Global stake; Bell Potter on the ticket (afr.com)

3427d49e48fb7f671b3bad7fc6fa151639ec4a.jpeg


Disclosure: I hold MIN and DVP shares. I think that this does remove an overhang, and if zinc, copper and lithium prices rebound, DVP's share price will likely rise significantly from current levels. It may not happen overnight...

Read More
#Business Model/Strategy
Last edited 4 months ago

21-March-2024: Mining-Services-set-to-generate-c$175m-Revenue.PDF

22-March-2024: Resource-Upgrade-Paves-Way-for-Funding-Production-Strategy.PDF

The market is having a dummy spit today, despite new record highs in the USA overnight, and DVP has traded so far today in a range between $2.37 and $2.41 compared to yesterday's close of $2.40. They closed up just 1 cent (+0.42%) yesterday and they look to be in a shorter term uptrend within a longer term downtrend on this chart below, but they look worse on a 3 year chart (further down, below the MIN chart).

bcba24ce9d2213ec0b4d4fa03d957715e1dff3.png

They have recently been making higher lows and look to forming a "pennant" which I think they are more likely to break out of to the upside than the downside, but a lot of that will depend on sentiment. DVP are a bit of a hybrid type of company in that they are part mining services and part mining (mine owners and operators). Their MD, Bill Beament, has done both in previous roles, working for mining services companies before moving into mine ownership and management with NST (Northern Star Resources) which he took from nothing through to being a multi-billion-dollar company and Australia's second largest gold mining company at the time he left (July 2021).

DVP should be trading with a good management premium because of Bill, however mining services as a sector is not particularly sexy in the eyes of the market at this point, and the types of metals and minerals that dominate DVP's various mining projects (lithium and base metals mostly, like zinc) have also been "on the nose".

The market, and in particular funds and brokers, also tend to dislike uncertainty, so they do prefer to deal with companies that just do one thing and do it well, rather than a mining and mining services hybrid like DVP. For reference, that's exactly what Mineral Resources (MinRes, MIN.asx) is, and MIN's SP has tended to trend well both up and down as sentiment waxed and waned.

fd87cc31840ce180549231c6c77106a765ebb4.png

Typically, in a calendar year, you'll see between one and two uptrends and between one and two downtrends only, which was the case in both 2021 and 2022, however 2023 was different because MIN were in a downtrend for the entire calendar year, except for the first few days of January and the bulk of December '23 where their SP was rising, but arguably still within that wider downtrend as I've shown there. You could also argue that they're trading sideways right now within a $58 to $70 band, but I prefer to think they've re-entered another uptrend. Time will tell. Everyone has an opportunity to be an expert with the benefit of hindsight.

DVP has also trended nicely both up and down, but mostly down during the past 14 months:

ec729d4fb637dc740cd8895663a18392bd4b5f.png

And they've broken to the downside out of a channel that was already heading down, so sentiment is very bearish on DVP clearly.

I personally see this as an opportunity, based almost entirely on Bill Beament and his exemplary management skills and prior track record at NST. When he first took over NST and they had just the one mine (Paulsens), Bill showed incredible patience and foresight, waiting until the right time to embark on M&A to grow the company. He never overpaid for assets and he tended to focus on organic growth when the gold price was rising and sentiment was bullish, and on acquisitions when the gold price was falling and sentiment was bearish. In other words, he followed Buffett's advice in relation to being "Fearful when others are greedy, and be greedy when others are fearful.” - except in Bill's case it wasn't fearful when others are greedy, it was patient. He bought assets when the price was good and he knew that he - and his company - could add significant value to those assets. It was his mining services background that gave him a real edge in relation to knowing just how much more efficient the actual mining and processing could become in every scenario. He also surrounded himself with capable and well-incentivised people, something that he is clearly doing again at Develop.

I believe that accumulating DVP shares at current levels will prove to be a profitable move down the track, so I hold DVP both here and in my real money portfolios as well.

911290c556bf62b9392e61f0a591665fcc9fce.png

Read More
#DVP in ASX300 Index March 2024
Last edited 5 months ago

From March 18th, 2024, Develop Global (DVP) and the 13 other companies listed in the table below will all be added to the ASX300 Index - which is important for people such as myself who have their SMSF within an industry fund (CBUS, AustralianSuper, HostPlus, etc) or for any other SMSF where the rules only allow the additions of ASX300 Companies, so they prohibit the inclusion of any company that is not in the ASX300 or above (ASX200, ASX100, etc.). This restriction generally does NOT apply to fully self managed SMSFs where you arrange the auditing of the fund yourself, but does apply to those within industry super funds and a few other low-cost SMSF providers/facillitators that have the same restrictions.

0e91764439846f5752b1af6e7f2eef1a928b1c.png

Full announcement: SP-DJI-Announces-March-2024-Quarterly-Rebalance.PDF

I've been waiting for GNG, LYL and XRF to be added to the ASX300, but I'll have to wait longer clearly. The criteria isn't just based on the company's market capitalisation (m/cap), it's also based on the "free float", so the amount of shares that is nominally available to trade excluding shares held by insiders (Board and Management, Founders) and long-term institutional (insto) shareholders. This means that companies like GNG & LYL, where the Board, Management and Founders own 55% and 36% of the company respectively, and insto's own another 15% and 26% respectively (leaving a "free float" of just 30% of their SOI [shares on issue] for GNG and 38% of their SOI for LYL), will have to grow their market caps further than most other companies before being considered for inclusion in these indicies - due to their relatively small "free floats".

It will be good to be able to add DVP to my SMSF from March 18th anyway.

Read More
#Business Model/Strategy
Added 6 months ago

09-Feb-2024: Develop-Global-DVP-Investor-Presentation-09Feb2024.PDF

69d76573c6edee3f787f807a86b6a85063087b.png

[Above: Slide 4, Below: Slide 16]

b7177756b067e1fbf7d3ed6f534628b17c2fc2.png


Disclosure: I hold DVP shares both here and in my largest real money portfolio.

Read More
#Dec 2023 Quarterly Report
Last edited 6 months ago

29-Jan-2024: I was talking over the weekend about quarterly reports over in the gold forum - see here - and today we got DVP's FY24 Q2 Reports: DVP-December-Quarterly-Activities-Report-29Jan2024.PDF and DVP-Quarterly-Appendix-5B-Cash-Flow-Report-December2023-29Jan2024.PDF

Firstly - here's the first page of their activities report:

9dca3c753f27b29f92f0c8b801e9e830af828b.png

I like that Bill is calling out the opportunity that he sees in "the softness in some parts of this market" - Agreed - there's nothing like buying at or near the bottom, if indeed this is at or near the bottom. Let's hope it doesn't turn out to be "nothing like" the bottom.

After all, Bill did make a name for himself by buying decent gold projects with plenty of turnaround potential at low points in the market (at NST) and then turning those projects around - increasing their profitability by reducing their costs while increasing productivity. It was his background in mining services - before he got into gold mine management - that enabled him to be able to think like that and allowed NST to achieve the success that they enjoyed while he was at the helm.

Speaking of bottoms, it would be good if last Tuesday was the bottom for the DVP share price, but you know what they say about trying to pick bottoms...

3692a6e9d09b7ab7c8b34d5966c52a09ebbe74.png


Technically they're probably still in a downtrend despite that +11.4% bounce today after rising +10.3% on Thursday - the DVP share price is up by just over +23% since last Tuesday - in 3 trading days - but their chart (above) still looks nasty...

I also liked this:


f1744fdf7b9949afc8d6671e26cbf165b2b70a.png


Note they "only" have 22 quarters (5.5 years) of available funding ($32.5m cash/cash equivalents plus $41.7m in unused finance facilities = $74.2m) based on their December Quarter cash burn (of $3.35m).

Yeah, I can see why the market MAY have considered today that DVP appeared to be oversold and was due for a minor positive re-rate; but... will they go on with it, or fall back and resume that downtrend... ? That is the question...


224f54419f0aef83e1822da5f8fd22a64b28fc.png

From The Helm - With Bill Beament, Managing Director of Develop - YouTube [19-Dec-2023]


f9a2b94d1598a7075c0b901ea1151306dea612.png

Bill Beament, Managing Director of Develop - YouTube [24-May-2022]


4f78c8f2d405bff19951500ffa7e7e14b5b141.png

Bill Beament, Can He Do It Again? | DVP.asx | Mining News - YouTube [27-April-2023]

Yes, I believe he can!

Disclosure: Yes, of course I hold DVP shares! It's Bill Beament!

Read More
Valuation of $4.77
Added 6 months ago

29-Jan-2024: Initial 3-year PT: $4.77. [by January 2027]

Why? See Straws and forums posts.

'nuff said.

Read More
#Risks
stale
Added 6 months ago

Not directly related to DVP but still relevant since Savannah is an underground Nickel mine

https://www.abc.net.au/news/2023-12-14/savannah-nickel-mine-panoramic-resources-exports-to-china/103228950

I think Panoramic going into VA is more of a internal issue in relation to their troubles ramping up operations.

But news such as Panoramic going in VA as a result of low nickel prices is not good as this just reduces the market for mining services operators such as DVP.

Hard to say if this is the bottom yet.

[held]

Read More
#Business Model/Strategy
stale
Added 7 months ago

New addition on Develop website

Joint ventures list

05177d521b9bc0714a170770c4fb200759e06e.png

Also a big thank you to whoever moved the shares down to $2.78 at the open as my order finally got filled after sitting there for months (bot trading??).

e4cbbf60e027556481715a726f99226f84a033.png

Time will tell if that seller made the right decision as it looks like there is clearly lots happening at Develop

[held]

Read More
#New Contract Announcements
stale
Last edited 8 months ago

01-Dec-2023: Develop-Awarded-Mt-Marion-Lithium-Underground-Development-Contract.PDF

Develop Global Limited (DVP.asx) is pleased to announce that it has been awarded a A$46 million underground development contract to establish and develop an exploration decline at the Mt Marion lithium mine in WA.

Mt Marion, which is a joint venture between Mineral Resources Limited (MinRes, MIN.asx) and Ganfeng Lithium Co. Ltd, is located 40km south-west of Kalgoorlie. It is also 95km from Develop’s Pioneer Dome Lithium Project.

The contract has a term of 18 months and is expected to start in early 2024.

The key works to be completed by Develop under the contract include:

  • Surface facilities to support underground mining activities
  • Portal Establishment
  • Installation of underground mine infrastructure
  • Excavate underground capital development and exploration drill platforms
  • Develop through the orebody underground to obtain important geological and operational data for future mining activities
  • Set up the underground for an extensive diamond drilling campaign to grow the maiden underground resource of 9.5Mt at 1.52% Li2O (see MIN ASX release 22 September 2023)

Develop Managing Director Bill Beament said, “The award of this contract to Develop is a significant vote of confidence in our world-class underground mining team.

“We have built a world-class underground mining team with immense experience in developing and operating underground operations, especially in WA.

“The strength of this team is shown by the outstanding results we are generating at the Bellevue gold mine, where the project is running on time and on budget.

“The Mt Marion contract is consistent with our stated strategy of securing two to three contracts within our mining services division.

“Our team is eager to make a significant contribution to the Mt Marion project by applying its extensive skills and experience to the underground development”. 

--- ends ---

This contract award was widely expected - as the MoM (Money of Mine) podcast boys discussed earlier today - see below, so it didn't move the share price - in fact DVP closed -4.58% lower (14 cps down) at $2.92/share this arvo, and MinRes (MIN) closed down -0.93% (-57 cps) at $60.60/share as lithium names continued to slide - along with lithium prices.

d7456b5c290242cad7e6bec695a3250621483b.png

Source: MarcusToday.com.au [MT don't include DVP in that graphic, but MIN is there in the "Lithium" section as well as in the "Mining Services" section, but not under "Iron Ore" despite Iron Ore being MIN's second largest revenue earner, behind Mining Services (mostly iron ore crushing, loading & hauling); MIN do not currently earn any revenue from lithium as their lithium mines are not producing anything yet - Wodgina was, but it's been on C&M - Care & Maintenance - so hasn't produced any spod for a couple of years now due to low spodumene prices. MIN has substantial lithium assets, they're just not producing assets at this point. Their revenue right now comes from mining services, iron ore, and probably a little from energy/gas as well.]

In Today's "Money of Mine" Podcast...

44fcde06f87c3b78ec50e669085662538e472c.png

Who’s Failing AGM Season? + Don’t Believe the “Substantial” Hype | Daily Mining Show - YouTube

... the boys did discuss this contract award, at the end...

0:00:00 Preview

0:02:04 The key link in TG6 History

0:04:38 How is mesh made?

0:08:30 AGM strikes

0:11:32 Euro Manganese funding announcement

0:16:19 Ballarat Gold Mine swallowed up by Acheron Capital

0:18:19 Aus Super buying PLS

0:21:35 Orecorp deal update

0:24:45 Wild Magnus AGM scenes

0:27:29 Develop get Mt Marion contract

5641d9295b38e6ada6ece25434b77fbcacf455.png

Click on that image above of the lads discussing Develop and MinRes to go straight to that part of today's podcast.


And if you're into lithium, they have discussed lithium every day over the past week, except for Monday - which was all about West African Gold.


Friday 24th November 2023:

fb8bc1adf7b1a1cd20e59d9baef03d31725c4d.png

Inside the AVZ’s Shareholder Meeting | Daily Mining Show - YouTube

0:00:00 Introduction

0:01:58 Turning shit ground into good enough ground

0:06:58 AVZ shareholder's day in the sun

0:23:24 Which ASX companies don't like management's pay?

0:28:04 Does the Raw Materials Act impact ASX companies?

0:31:45 We share the Bald Hill acquisition details (as MinRes won't)

0:39:00 What's the latest from Cobre Panama?


Monday 27th November 2023:

3bb6b4f47e6509bb4af5324a5a106ae12e08ea.png

African Gold M&A is all GO! | Daily Mining Show - YouTube

0:00:00 Preview

0:00:30 Introduction

0:01:05 How Junior Miners can get more bang for their buck

0:05:17 Perseus go substantial on OreCorp, getting in SilverCorps way

0:11:02 IER deems Zhaojin's bid for Tietto not fair & not reasonable

0:18:31 Turaco do a deal with Endeavour

0:20:05 Aeris rattling the tin for 30 bucks


Tuesday 28th November 2023:

50b01e7f85ea004b79caac0a0e01692eb4de94.png

The Koala on why Lithium is Iron Ore 20 yrs ago & the Mining M&A evolution - YouTube

(No relation)

0:00:00 Preview

0:02:39 Gina needs help breaking Iron Ore

0:07:53 Why Trav and the Koala like Twitter

0:24:54 M&A at the big end of town

0:37:44 Why was Freeport sold?

0:43:05 Reconciling views on trough EBIDTA

0:46:29 WA Lithium


Wednesday 29th November 2023:

2a598ab30bbb6b36215cf5d4f744435fe40a15.png

Shareholder Activism, Incentive Misalignment & how Commodity Investing has changed with the Koala - YouTube

(no, not me, another Koala)

0:00:00 Preview

0:01:35 Underground Mining Trivia

0:04:34 How real is DLE?

0:09:58 Metal Price Bifurcation

0:18:03 Shareholder Activism

0:23:44 Whitehaven alignment

0:34:23 BHP growth

0:47:03 Is the Copper boom going to happen?

0:48:22 The Koala on the Banking hampster wheel

1:05:02 Over Rated - Under Rated


Thursday 30th November 2023:

ad7bc2bdb9de86eb5fe1fedd2535117ce153f5.png

All You Need to Know About Lithium Brines with Joe Lowry - YouTube

0:00:00 Introduction

0:00:08 Preview to Mr Lithium

0:01:18 Recap of the Delta Lithium AGM

0:03:48 Flying with Brooks to South America

0:06:02 Jobs on offer at JP Search

0:08:20 Joe Lowry back on Money of Mine!

0:12:20 The 101 on lithium brines

0:17:06 Is water going to be an issue for DLE?

0:26:45 What is the waste product for a brine project?

0:31:15 What are the most misunderstood aspects of brine projects?

0:34:08 is SQM slowing down or ramping up?

0:36:55 Why is the Atacama special for brines

0:43:58 Where is China going to source its product?

0:47:38 What makes a good brine development project

0:51:58 Summing up Direct Lithium Extraction (DLE)

0:56:00 Who are the DLE tech players

0:57:47 Prelude to part 2!


Plenty on lithium and lithium miners in that lot!

And Friday's (today's) podcast is discussed and linked to further up (above all the others).


Disclosure: I hold MIN and DVP shares and I topped up both today on the SP weakness and the confirmation of this contract award. BTW, MinRes recently increased their stake in DVP to a bee's whisker under 14% (13.97%) - see here: Change-in-substantial-holding-from-MIN.PDF so nobody is taking over Develop Global without Bill Beament and Chris Ellison being onboard - as both of them have their own blocking stakes. I believe that the two companies will merge (MIN will aquire DVP) at some point in the future, and that Bill B will end up running MinRes when Chris is ready to step back or retire from frontline management. No guarantees, but that's what I reckon might be on the cards.

b779d101251336fc99200d383629ddd7493ee4.png

Not sure about that chart. I'm no technical analyst, but you could make an argument about a shorter term rally within a longer term downtrend, or you could say it's starting to form a pennant and could breakout either up or down from within that pennant as it gets closer to the pointy end. Or you could look at what Bill achieved at NST and just back the man and his new company. His track record of shareholder value creation is enviable.

Read More
#Industry/competitors
stale
Added 9 months ago

Some unusual trading today with DVP shares which started down significantly at 3.15 before finishing up 3.36

3eff0e217d32c819bdfa68de24da83baeaf3db.png

Could be a bit of re-balancing going on for some funds.

[held]

Read More
#Bear Case
stale
Added 9 months ago

Nero Resources Fund cuts DVP - 27 Sept (3.20)

6aac4362ece70548c2cd57f0ed533be59393c2.png

Not sure what the thesis is behind the exit. It is not cap related as they hold Gensis Minderals which has a market cap of over $1bn so maybe simply thinks DVP is overvalued.

Bit of background:

Nero resources fund team - http://www.nerofund.com.au/team

Money of Mine podcast from the Nero Director Russell Delroy

3140c1daf2674229a804577b30e44a51ecd184.png

https://youtu.be/do8JPnDI9VA?si=SHARU-32WHgf__7r

[held]

Read More
#Financials
stale
Added 9 months ago

Develop has achieved its first quarter of operating free cashflow.

8f648f7f7cdfd06631509399af75af39f668e5.png

Which brings some much needed stability and trust in the business given there has been lots happening in DVP from the Woodlawn restart down to the merger with Essential.

But I'm also thinking costs may increase due to upcoming development work at Pioneer Dome and Woodlawn. So unless we see another contract, this performance could be a one-off.

I also feel there is still a great degree in skepticism about whether Beament can succeed in the same way he did with Northern Star which is totally understandable.

[held]

Read More
#ASX Announcements
stale
Added 10 months ago

As expected. Woodlawn resource increases to 10 year+

Bill showing us that it is important to have the right people and not just the right product to execute.

Still waiting on reserve estimate before we can dig into financials

For those into hard figures, I believe Sulphur Springs has a NPV reserve of around $200m although it looks like Woodlawn is where we will see first revenues.

So DVP Market cap of $640m is overvalued if you believe BDO and strip out the org and people.

01543d1fd89bfa0c9cb789610dd7c6cf6af8c6.png

Resource details

54afc3f0e9f1f32b00116b70a0e3ee005da881.png

8f06de23d5921c03540d4ca5ee1e1f7864b336.png

Size comparison.

[held]

Read More
#Risks
stale
Last edited 10 months ago

I'm sure lots of people would like to see a lower share price below $2 as mentioned by the BDO Independent Expert Report

dd1a81702db5520c56fc2fc7541ea2dc3324cc.png

Below is the reason why BDO still feels the merger is not fair due to their valuation of $1.73 published a few weeks ago.

89705afa021fe5bbe5aa5fca1fd93de5ecb957.png

Response from Bill Beament.

https://thewest.com.au/business/lithium/bill-beament-ridicules-independent-experts-lukewarm-endorsement-of-150m-develop-global-bid-for-essential--c-11915317

BDO’s recommendation, however, is based on a preferred post-deal value for Develop Global of just $1.73 a share, well under Friday’s closing price of $3.20.

Mr Beament, Develop Global’s managing director and an 18.3 per cent shareholder, unleashed on BDO, questioning the gap between its valuation and the market price.

“Please tell me where I can buy Develop shares at $1.73,” he said.

“I have spent more than $10 million buying Develop shares in recent months and I paid up to $3.20 a share. And I certainly believe that I got more than fair value. It was great value.”

Market was switf to respond to the latest repeat announcement today, sending shares up $3.46 ( 10%)!

Was good accumulation under $3 while it lasted. My post valuation merger still stands at 3.25.

[held]

Read More
#Tenements
stale
Added 10 months ago

381a14da3c0e65d6b2331e10285a34a53d7ee1.png

Recent application grants to Develop at Sulphur Springs marked in light blue (E 4506033, E 4506034)

Purple dots are Lithium occurences which happens to be Pilgangoora. Dark yellow is copper. Bright yellow is gold.

Don't know what the filled shapes represent but I know they are different types of bedrock.

[held]

Read More
#Zinc Batteries
stale
Added 11 months ago

Wondering if anyone had thoughts even though this is more related to Zinc than Develop.

https://www.ecu.edu.au/newsroom/articles/research/move-over-lithium-ion-zinc-air-batteries-a-cheaper-and-safer-alternative

If viable this could impact lithium even more

Also a new batch of results were announced from Woodlawn yesterday

Held

Read More
#Industry/competitors
stale
Added 11 months ago

The Kathleen Valley contract was awarded to Byrnecut for $1 billion dollars.

Seems like a huge opportunity missed by Develop but without studying the detail it is hard to say if the contract offered good value given Bill's assessment of the project.

Also beginning to think this was the work that was keeping afloat the share price above $3.

In addition there is probably lots of loose shares from the undersubscribed SPP (my guess is Cannacord has too much Develop shares on their books and is trying to offload),

Maybe good value here or given the macro picture, maybe not. Will need to wait further if Bill's comment on underground services demand is true and Kathleen Valley was worth a pass.

[held]

Read More
#Broker/Analyst Views
stale
Last edited 12 months ago

06-Aug-2023: Update on DVP from Euroz Hartleys here: dvp-040823.pdf It was published on July 28th and distributed by the ASX on Friday (4th August). I've reproduced the first page below:

9dcb1ac126861a3a484524be4fede5f464a895.png


Disclosure: I do not hold DVP shares at this point in time, but I probably should...

Read More
#Management
stale
Added 12 months ago

Wednesday 26th July 2023: INSIDER MAGAZINE: Bill Beament on life outside of mining and Develop Global | The West Australian

Plain Text Link: https://thewest.com.au/business/insider/insider-magazine-bill-beament-on-life-outside-of-mining-and-develop-global--c-10894035

7e2249a0a0c3f933b4ae2e166a5c8396cc9c6e.png

We put Develop Global’s managing director Bill Beament in the hot seat to ask ...

What’s the best financial advice you’ve ever been given?

My old man was very adamant on this one. If you’re paying tax then you’re making money, and you’re making a contribution to everything else in society too. I’m paying a fair bit of that (tax) right now.

How do you manage a work-life balance?

I really do believe this is a hard one. I don’t think I’ve come across anyone in similar type roles in the past 15 years that gets the balance right.

A very wise, old and extremely successful entrepreneur told me last year at lunch: in your career you have spurts and steady periods, and in those steady periods, get that time with your loved ones.

What’s something that others have underestimated about you?

I think my energy, it catches people out. Those that have worked with me get it ... I’m like the Energiser bunny, I never say die. I’ve got a pretty big battery, that’s what my fiance says to me — she can’t keep up.

What drives you to succeed?

I just love the mining industry and I love the people in it, and I love seeing them develop and also succeed in all areas of life that goes with it. That’s been a big driver in the last seven or eight years of my career — watching the next generation of CEOs and entrepreneurs come through. For me, it’s never been about money.

I also love challenging the status quo and making a difference in the industry ... I love it when someone says I can’t do something, it’s like, I’ll find a way.

e0a472546372a564437160938d3f6819c14332.png

Beament with his Dad’s personal number plates. Credit: Ross Swanborough/The West Australian


Favourite holiday destination?

Being with my family and my loved ones is first and foremost and then it has to be the Duke of Orleans caravan park east of Esperance, where I grew up. I love that place.

I took my kids seven years ago on a big fancy holiday around America and Europe — it was an expensive bloody holiday, and a year later I said, ‘What’s your favourite holiday?’ and they said, ‘Out the Duke, Dad’.

Chocolate or cheese?

Both, and with a nice Italian red.

What are you binge-watching right now?

I’m watching Below Deck and I reckon it’s the best trash TV I’ve seen in a while. You can miss an episode and pick up where you left off, it’s fantastic.

Read any good books lately?

I failed English in high school so I actually hate books and don’t read them.

If you were to invite three dinner guests, dead or alive, who would they be?

Richard Branson first, I’ve always followed him — I just think he’s an amazing entrepreneur. I’d throw Kerry Packer in there and Margaret Thatcher.

What was the last band you paid to see?

Eskimo Joe.

Childhood hero?

My Dad and my Mum. Dad was a mechanic by trade and Mum was a house mum and housewife, but Dad ended up being a bit of an entrepreneur with his mechanical side and the rest is history.

Dad took great care to buy the best ute available at the time for his purposes, which I took out of the estate. It has personal number plates from the small region where I grew up (Condingup), just east of Esperance.

Who would play you in the movie of your life story?

Probably Tom Hanks; I grew up watching him. He can do any role and looks to be a genuine, nice guy.


--- end of excerpt ---

Here's a link to Google Maps showing Condingup (where Bill grew up) and his favourite holiday destination - the Duke of Orleans Caravan Park.

Condingup - Google Maps

Duke of Orleans Bay Caravan Park - Google Maps

Nice part of the world!

386952244d135075a237aa4c70a66577ea58f4.png


f02e1814d0bb3bae0f21510089ccfad0abb3f9.png


1f14baa5731650beb0a3356e3948763ecd5821.png


f2ab015929bbd4e6870a5952bf7e915fd0197c.png

Could be a bit chilly on the South Coast at this time of year, but a fair destination for a summer holiday for sure!

Interesting insight into the man who built up Northern Star Resources from scratch to become Australia's second largest gold mining company and is now back in Mining Services (where he started before NST) - building up Develop Global (DVP).

Read More
#ASX Announcements
stale
Added 12 months ago

DVP released their quarterly and have decided to withdraw from the Liontown tender.

Looks like DVP could not provide enough boots on the ground for the project or needed men for other work including the Pioneer Dome asset that will be acquired after the ESS takeover.

b8a4cbb251ea18defa903e9711c86b6bdca98c.png

[held]

Read More
#EU Zinc Mine Closure
stale
Added one year ago

Closure of Tara Mine in Ireland which is one of the largest in the EU due to low Zinc prices and high gas prices.

https://www.rte.ie/news/leinster/2023/0628/1391541-tara-mines/

Perhaps explains why the move to Lithium by Develop.

[held]

Read More
#ASX Announcements
stale
Last edited one year ago

Left field acquisition. ESS. DVP in trading halt


cecaa7c7d546332ce0eecbbd81e95ab190ca7c.png

Held

Read More
#ASX Announcements
stale
Last edited one year ago

DFS update.

Was hoping a better update but not as strong as hoped. Sold off first thing in the morning before staging a remarkable turnaround!

Someone selling at the lows (tax loss selling?) had a bad day. But as I say one day up doesn't make a trend if you take Nufarm as an example.

NPV5 is also used which I think is too low. Or Bill is sending a signal that he is really confident of getting the funds without tapping shareholders.

It will take time to go through the DFS so below is a summary and the original figures in 2019 for comparison. Overall it is not much different if you apply NPV8, it will probably work out to be equal the 2019 study. FCF is down from 818m to 745m so I think those that sold had the right idea but probably did not expect that price to run back up to positive territory.

Looks like inflation has impacted the figures. But bear in mind the original DFS was for OP (Open Pit) first while this update is for underground first (similar to Cannington) so it is more like comparing an apple to a pear.

b806e2f3efc93c55bd39a9a541d20f7531ed6d.png


6db85221c0f68dd6e82a9f436ae8cbecf3e832.png

VXR DFS as reference for comparison (5aug2019):fbd1004d0458a7ca0b95e2849ff218e8fca49f.png

----------------------------- --- ---- --------------------------------------------------------------------------------------------------------------------

d4a00f720ffc27472ea14133cc3ae34984b9b9.png

[held]

Read More
#ASX Announcements
stale
Added one year ago

Spot the difference which copped a "Please explain" from the ASX

8aa2517b06532f44eac7015e2289706954d44f.png

After the trading halt

073f3da51a86dfe06a0632e0c5ab8c5c1ceff6.png

A minor transgression I guess. Nevertheless another good drill result at the bottom. Anything at around 20m is good in my book Also remember CHN discovery hole was 20m worth of PGE.

[held]

Read More
#ASX Announcements
stale
Added one year ago

Woodlawn drilling results.

9.9% at 5.6m looks quite good on face value. I haven't interpreted the true width yet. Maybe some geo/mining engineer can comment as I don't want to get too excited on the result.

In the meantime I better go back and check my high school trigonometry

0855797d885734569921915ad0ca9cbbdcbdb9.png

6214a350ffdca8548aa175679b9d4547b90e5d.png

b830f8c6c8bf876f2342dec93dceb81c2de4a8.png

f2a374a9f37fa7257d9fae68f79b982ed053e1.png

c762a78c0f6a3026f17dc4917ea476341f6205.png

40a11dd7e580c07cf6ed3a5ea7ca48a5780bef.png

[held]


Read More
Valuation of $3.25
stale
Added 2 years ago

Using the capital raising price for the acquisition of Woodlawn back in may 22

Price and date at time of update: $4.00 on 27 January 23 (up 12% and can't believe I'm downramping my own holding!)

Read More
#Management
stale
Added 2 years ago

Adding further to my theory of labour shortages in my South32 straw on Cannington Underground Mine.

Develop made a couple of key appointments who were former employees of Northern Star and Barminco back in November 2021.

22f07744f0f7790850e1c858f8155e76ff203a.png

Also it is already probable Northern Star experienced labour shortages as a result of the above key appointments of former NST employees.

While there's no proof key staff at Cannington or Golden Grove (29Metals) got headhunted by Develop, it is hard not to ignore the correlation of Develop having hardly any report of labour shortage and other underground mines being short staffed.

[held]

Read More
#Bull Case
stale
Added 2 years ago

Selling has dried up from Endurance RP

This may explain why the shares have been trending upwards and bucking the wider market.

Their ETF-like sells seem to have not been properly timed which means there is probably something fundamentally wrong with this Venture Capital firm.

https://www.endurancerp.com/ICMServlet/download/13-2629-4273/eAnn_Disposal%20of%20DVP%20Shares.pdf

There are still some more shares to sell after they excised some options, so it is possible the downtrend could happen again soon.

b967dd4c3b7b99d5dd4fafd8c3bbeefae542d4.png

[Held]

Read More
#Bull Case
stale
Added 2 years ago

Not sure why the YOLO happened on the DVP share price while the broader market went down.

Back near the Capital Raising price of $3.25 for the acquisition of Woodlawn.

And I thought I was silly topping up at $2.90 in the Strawman paper portfolio.

If there is positive news on Woodlawn it will be a double-edged sword since any increase to the existing resource will be liable for contingency payments.

[held]


Read More
#Bull Case
stale
Added 2 years ago

Michelle Woolhouse buys more shares.

f66dd464dbe470383c8a46a2c471049aa4b42c.png

But the big twist is she resigned her directorship in October

489ea5096ffb3cd394c7145b04f11453c4aa72.png

If this isn't confidence then I don't know what is...

[held]

Read More
#History
stale
Last edited 2 years ago

Map of the Woodlawn site from NSW Planning Portal submitted by Heron Resources.

eee84b16358d189fd0d5acbe933a234997729b.png

Now the suspicions from Keith et al. that were spread during the Diggers conference seem justified that parts of the underground workings crosses the void and hence might not be good mining conditions.

From the presentation can see the mine void and lenses although quite small:

258cbb95c39ab7d3fca1557f82a8c4c4aaac4b.png

Close up (bit hard to see where the void is where Veolia is tipping the waste)

ab5160360b3b7fa93d1c58af79f481cc3b938f.png

New drill drive (perhaps to get around the void)

78be0028388e276dad2476ec4e18f2eb664b2f.png

So from the above slides, I believe Bill is aware of the problems faced (in my opinion). DVP will conduct a tour of the site with major investors and hopefully have a more detailed plan on addressing the "rumours"

Also note the project was acquired for 34m but a total of 340m was spent by previous owners.

As usual I could be wrong and Keith, TTC and Datt could be correct. In which case myself and Beament take the loss and eat humble pie.

DYOR.

[held]

Read More
#Acquisition
stale
Added 2 years ago

dc34a55ec39b7440c3010d144eb516cce9652a.png

On face value, the Woodlawn mine acquisition appears to be a bargain for Develop which includes significant pieces of infrastructure including 1Mtpa plant and a state of the art ISAMill developed by Glencore for extracting ore from tailings (mentioned many times during the Heron conferences). Initial payment of $30m to be made through cash and equity raising.

For some that do not know, Heron Resources went into administration after trying to ramp up production operations at the Woodline zinc-copper mine. Heron's haphazard approach to extract Zinc/Copper from both development ore and tailings as they worked towards the high grade lens to generate cashflow combined with mismanagement within the company and with their subcontractor Sedgman/CIMIC was all part of Heron's undoing. Heron spent $300m in total developing the project

Bill is coming into this project with a totally new approach. This includes more drilling in depth to find the extent of the orebody which was not done properly by Heron. More importantly, he is continuing to put the mine in care and maintenance and has not set a date to restart production to try and preserve capital until he can expand the deposit further.

If Bill is right and the deposit expands, Develop needs to make upfront payments of 12.5m for 550Kt of ZnEq and 5.5m for 750Kt of ZnEq contained resources. Then further payments will be made for final investment decision (20m) and continuous production for 18 months (30m).

Overall it looks like the deal is fair as Bill is making payments only if milestones are achieved. And if things don't turn out as planned, then the upfront payment payment is written off at the minimum.

Webcast link - https://webcast1.boardroom.media/watch_broadcast.php?id=620c9a0e1c785

Disc: Held (on the fence with taking my entitlement)

FYI: thanks for putting me back as premium member, will try and type a bit more now :)

a76460641e2fb00708f21970b65a55ec80e310.png

cc30773e64450367b612d683648cae6045aebc.png40ea1ca6599084da669d19df191e4209992b8f.png


Read More
#Business Model/Strategy
stale
Last edited 3 years ago

@firedup

I'm surprised no one has given an answer to your straw regarding options.

Anyway I can't post to the forums or see any updates since maybe I'm no longer a premium member so I'll need to post here.

Although I must admit, I'm quite reluctant to post now as I'm not sure if my thoughts add much to strawman as I'm not a premium member and don't know how to become one.

My recommendation is if the price is lower than the market price and there is a positive upside, I would excise the options.

More importantly, excising the options now starts the CGT clock ticking so should you sell after 1 year, you will be eligible for a CGT tax discount.

If you excise the options much later and then sell at that time when the share price is much higher, you will not get the CGT tax discount.

Having Bill Beament and Mineral Resources on board in my view is a gamechanger. We have already seen what Bill has done since being on board which includes plans for an exploration drive under Sulphide Springs which will form a critical piece of infrastructure for underground mining before open pit operations start.

I also understand the code is different after the name change. You may need to check with the registry to double check the process.

As usual, your circumstances or thoughts on this may be different to mine (for instance you may be less positive on Bill or believe the work being done on Sulphide Springs is too much time) and you may choose not to excise. That is entirely up to you.

Disc: I excised all my options as soon as they were issued.

Read More
#Bull Case
stale
Added 3 years ago

Highlights so far

Thought I'd come back in and put an update on DVP as my account is now restricted - apologies for not taking the premium membership in time.

  1. 5 for 1 Share consolidation completed in December 2021. Inadvertently this caused the market cap to appreciate by around 20% (share price now sitting at 75c pre-consolidation)
  2. Strong infill drilling results at Sulphur Springs with 25% of assays completed
  3. Planned construction of Exploration Decline
  4. Planned works to commence underground mining ahead of open pit.

I think out of all the other companies I follow that have projects in difficult terrain (CYL, EM2, ALK, DVP) it appears DVP and ALK are the most proactive in seeking ways to expand resources by doing exploration drives underground. Probably also explains why CYL and EM2 has been stuck where they are.

Read More
#Ophir interviews Bill Beament
stale
Added 3 years ago

April 2021:  During their webcast this month titled "March Quarter Investor Webcast", Andrew Mitchell, Director and Senior Portfolio Manager at Ophir Asset Management, interviews Bill Beament, the legend that built up Northern Star Resources (NST) to be Australia's second largest gold mining company, and took the NST share price from 10c/share when he took over the top job in 2007 to a high point of $16.56/share in November 2020:

https://www.ophiram.com.au/march-quarter-investor-webcast/

The interview starts at the 19 minute mark. 

Earlier, Andrew also talks up Uniti Group (UWL), another company I hold (and so does Ophir), which is NOT a resources company.  They are a competitor of Australia's NBN, selling fibre into new residential housing developments mainly, with a 30% market share that Ophir believes will soon reach around 50% market share - in new residential developments.  But back to Bill B...

In the interview, Bill talks about his plans for Venturex, which is I why I'm posting this under VXR (Venturex).  He has very big plans indeed.  Since they announced on 24-Feb-2021 that Bill was leaving NST to run VXR, VXR's SP has 4-bagged, from 10 cps to 50 cps (currently 48 cps) while NST's SP has fallen from $10.85 to $9.07, although it was already falling before the announcement, and it has since rebounded from that $9.07 close on 17-Mar-2021 to $11.38 today (23-Apr-2021), being higher than before they announced Bill was moving on. 

Interestingly, Bill does correct the Ophir boys on their description of him as being one of the best CEOs, if not THE best CEO that Australia has had over the past decade or two, because Bill has actually been NST's executive Chairman and their CEO has been Stuart Tonkin, who is staying on at NST along with all of the management team that came across with Saracen when they recently merged with NST.  Bill describes himself as the visionary leader and Stuart as the leader who executes that vision, and he thinks the best businesses should have both - a visionary and an executor. 

He says that one of the biggest mistakes that retail investors make when looking at resources companies, and that even goes for brokers and other analysts, is they concentrate too much on QonQ (quarter on quarter) results.  He said when you're building a resources company, you are going to get some volatility in your costs and your selling prices, and therefore in your results, and you need to look through that at what management are trying to achieve.  And I would add - and what they have previously achieved, i.e. their track record, should inform you of how likely they are to succeed in their current endeavours.  This is particularly true in the gold industry where everybody looks at two key metrics, being costs (AISC) and production (koz produced p.a. of Au).  Sometimes costs go up and it's temporary.  An example I would give, and this is more YonY than QonQ, but the same thing applies (temporary, not structural) is St Barbara (SBM) over the past 18 months while they spent $100 million upgrading Gwalia's ventilation and cooling, as well as installing a PAF (paste aggregate fill) plant to mix crushed rock with cement and backfill mined-out stopes rather than truck waste to surface.  Gwalia is approaching 2km vertical depth now, and it gets pretty warm 2km below the surface of the Earth.  It currently takes truck drivers about two hours to make their way to the surface to dump their load and head back down the mine.  Mining at Gwalia is planned to reach a depth of 2,300 metres below the surface by 2031.  Gwalia is already the deepest trucking mine in the world and has been for years.

Further Reading:  https://www.abc.net.au/news/2020-07-30/expansion-of-gwalia-gold-mine-nearly-complete/12503984

So SBM's costs (their All-In Sustaining Cost or AISC) rose because of the extra money being spent and the disruptions and delays associated with that work being done.  And their share price got smashed because it looked like Gwalia had gone from being in the second lowest quartile of the global cost curve for gold mines to being in the highest quartile.  As a long-time SBM shareholder, I was not particularly concerned.  The cost increase was temporary.  The work needed to be done.  It ensured the next 10 years of mine life for Gwalia, and probably more.  In that ABC News article (link above) in July last year, St Barbara's new (at the time) CEO & MD Craig Jetson said the investment in Gwalia's future would more than pay for itself over the next decade.

"We will certainly look to have very, very strong margins for a long period of time and a stable operation," Mr Jetson told analysts and media while unveiling the miner's quarterly results.

Gwalia produced 171,156 ounces of gold in the 2019-20 financial year, which is expected to increase to between 190,000 and 200,000 ounces a year for the two years to June 2023.

"I'm really excited about the future at Gwalia, even though it's getting deeper and we won't see the grade of yesteryear, but it will be achieving its best margins for a long time in the coming years and it will certainly be stable," Mr Jetson said.

And that's only one of their mines.  They also have Simberi in PNG where they are currently modifying the plant to be able to efficiently process the sulphide ore that lies below the oxide ore pits that they are currently mining there on the neighbouring island to the one that contains Newcrest's Lihir gold mine.  And they also have the Moose River Assets (a.k.a. Atlantic Gold assets) in Nova Scotia, Canada, with one mine already producing gold at a very low cost, and 3 more gold mines at various stages of development that should also have very low costs.

Needless to say (but I'll say it anyway), I do hold SBM shares, and RRL shares, and NST shares, and some other gold miners as well as a couple of gold project developers as well.  I do NOT however own any Venturex Resources (VRX) shares. 

Yet. 

But this interview with Bill Beament makes me wish that I did. 

A lot.

Read More