Fund Manager Summary on Develop Global Ltd (ASX:DVP)
Develop Global Ltd (ASX:DVP) is identified by fund managers as a robust clean metals producer with significant growth potential, particularly amid increasing demand driven by the sustainable energy transition. Wilson Asset Management highlights a strong financial turnaround, with revenue rising to $113.0 million and a net profit of $0.94 million, alongside the transformational restart of the Woodlawn zinc-copper mine, expected to enhance earnings and potentially re-rate the shares. Endeavor Asset Management's more recent commentary posits an opportunistic investment post-production target misses, suggesting current market reaction is overdone. Their belief in DVP's mining services revenue of approximately $400 million from Bellevue Gold secures a stable income stream. Additionally, the recent acquisition of Essential Metals diversifies DVP's portfolio and strengthens its position in the critical minerals sector. However, risks include the operational execution of Woodlawn and market pressures impacting production timelines.
Commentary From The Managers
There are 2 insights from 2 fund managers regarding their investment in Develop Global Ltd (ASX:DVP) available on Thesis Tracker.
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Updates are made available to members within 12 hours of being released. The completeness, accuracy or current status of the investments referenced are not guaranteed.
Commentary From The Managers
The completeness, accuracy or current status of the investments referenced are not guaranteed.
Frequently Asked Questions
Who is investing in Develop Global Ltd (ASX:DVP)?
Fund managers including Wilson Asset Management and Endeavor Asset Management have invested in Develop Global Ltd (ASX:DVP).
Why do fund managers invest in Develop Global Ltd?
Fund managers invest in Develop Global Ltd due to its position as a clean metals producer with significant growth potential linked to the transition to sustainable energy. The company's recent earnings report showcased revenue growth and a return to profitability. The planned restart of the Woodlawn zinc-copper mine is anticipated to drive earnings growth and enhance share value. Additionally, ongoing contracts in mining services contribute stable revenue, supporting a favorable risk/reward profile amid increasing demand for critical minerals.
What happened to Develop Global Ltd (ASX:DVP)?
Fund managers are investing in Develop Global Ltd (DVP) due to its strong position as a zinc-copper producer in Australia. They initiated their investment following a temporary share price drop caused by minor production target misses, believing the sell-off was unjustified. DVP generates significant revenue from a four-year mining services contract with Bellevue Gold and is set to restart operations at its own Woodlawn production asset. Moreover, the acquisition of Essential Metals in 2023 has diversified DVP's portfolio, enhancing its exposure to critical minerals.
What is the short interest in Develop Global Ltd (ASX:DVP)?
The short interest in Develop Global Ltd (ASX:DVP) is 5.10% which makes it the 42nd most shorted stock on the ASX. Of the 330.0M shares that Develop Global Ltd has on issue, 16.8M have been sold short.
What does Develop Global Ltd (ASX:DVP) do?
Develop Global Ltd. engages in the exploration and production of mine base and precious metal resources. It owns the Sulphur Springs Project, Whim Creek Joint Venture Project, and Woodlawn Project. It operates through the following segments: Mining Services, Mining and Exploration, and Other. The company was founded on October 13, 2006 and is headquartered in Leederville, Australia.