Develop Global Limited · ASX:DVP
Develop Global — Corporate Update (September 2023)
69 slides from Develop Global's corporate update, Sep 12, 2023
Slide 1: Investor Site Visit & Company Update
ASX: DVP INVESTOR SITE VISIT & COMPANY UPDATE 12 SEPTEMBER 2023
Slide 2: Introduction to Site Team
A QUALITY PROJECT FOR THE ENERGY REVOLUTION INTRODUCTION TO SITE TEAM Woodlawn: • Chris Taylor – Underground Manager • Craig Gellatly – Alt Project Manager • Darren Mills – Safety Coordinator • Aaron Freeme – Processing and Infrastructure Superintendent Corporate / Senior Leadership: • Bill Beament
Slide 3: Agenda
OUR PEOPLE ARE OUR FLAGSHIP ASSET AGENDA • 09:00 – 9:30 – Arrive to site, coffee and snacks available • 09:30 - 10:15 – Site introduction to Develop team, overview and agenda for the day. Bill to provide corporate overview • 10:15 – 11:35 – Tours commence. Group 1: Underground (Decline/K Lens/Drill
Slide 4: Corporate Overview
2 OBST th as ae 5 ss ¥ ‘CORPORATE OVERVIE
Slide 5: Leveraged Opportunity to the World's Energy Transition
LEVERAGED OPPORTUNITY TO THE WORLD’S ENERGY TRANSITION • ENERGY TRANSITION METALS OWNERSHIP • SPECIALIST UNDERGROUND SKILLS
Slide 6: Develop Will Utilise the Power of People to Produce Clean Metals
DEVELOP WILL UTILISE THE POWER OF PEOPLE TO PRODUCE CLEAN METALS AND HELP DECARBONISE THE WORLD.
Slide 7: Develop 5-Year Business Plan
BUSINESS PLAN DEVELOP 5-YEAR BUSINESS PLAN HYBRID BUSINESS MODEL: MINE OWNERSHIP – MINING SERVICES STRATEGY Build world-class Be one of the most Produce some of Aim for annual Mining Services underground socially responsible the world’s metal output of in capability to capability and ESG friendly cl
Slide 8: Our Flagship Asset Is Our People
OUR FLAGSHIP ASSET: IS OUR PEOPLE • The mines of the future will be underground • Demand for underground skills is soaring • Develop’s Executives have one of the largest networks of underground personnel in the Australian industry • Develop has built its world class underground capability • We have
Slide 9: Develop Organisation Structure
WORLD-CLASS CAPABILITY DEVELOP ORGANISATION STRUCTURE BOARD MANAGING DIRECTOR Bill Beament EA Clare Zekas GENERAL MANAGER CHIEF EXTERNAL CHIEF FINANCIAL COMPANY SECRETARY OPERATIONS AFFAIRS OFFICER OFFICER GENERAL COUNSEL Shannon Bunn Guy Singleton Ben MacKinnon Elle Farris UNDERGROUND GROUP COMMERC
Slide 10: Company Core Values
COMPANY CORE VALUES DEVELOP ENVIRONMENT VALUE We aspire to be the best Everything we do aims to We create exceptional at developing our make the world a better value for our people, people, our assets and place from an environmental shareholders, clients our client’s projects. and community perspect
Slide 11: Safety Can Come with Sector Leading Productivities
SAFETY CAN COME WITH SECTOR LEADING PRODUCTIVITIES RAPID GROWTH SYSTEMS OUTCOME Complete new systems Fused the best practices and Sector leading results and workforces procedures across industry and productivities 2 new mine start ups; & Backed up by an extremely Only fatality free mining LTIFR IS 0
Slide 12: A Progressive Sustainability Philosophy
OUR SUSTAINABILITY STRATEGY CONCEPT A PROGRESSIVE SUSTAINABILITY PHILOSOPHY DEVELOP is committed to revolutionising underground mining by providing services and solutions that are safe, efficient and sustainable. Our commitment to sustainability is deeply ingrained in our company values. As a new co
Slide 13: Focusing on Action
OUR SUSTAINABILITY STRATEGY FOCUSING ON ACTION • Starting from lowest possible impact across all sustainability measures • Taking a systems approach to sustainability and regenerative business with focus on driving opportunities and closing loops across our operations, our regions and our value chai
Slide 14: Designing for Sustainability from the Outset
OUR SUSTAINABILITY STRATEGY CONCEPT DESIGNING FOR SUSTAINABILITY FROM THE OUTSET POINT OF NEUTRALITY / SUSTAINABILITY? RESIDUAL IMPACT CONTRIBUTE NET GAIN IMPACT IMPACT IMPACT IMPACT OFFSET RESTORE RESTORE NO NET LOSS MINIMISE MINIMISE MINIMISE - AVOID AVOID AVOID AVOID ONE TWO THREE FOUR
Slide 15: Our Progress to Date
OUR SUSTAINABILITY STRATEGY OUR PROGRESS TO DATE 2023 2024 2026 BEYOND ▪ TCFD Climate risk ▪ Complete and launch ▪ Investment into ▪ Continue to evolve screening complete sustainability strategy sustainability-related contracting and R+D ambitions for mining services to ▪ Conceptualise ▪ Develop env
Slide 16: Strategy
OUR SUSTAINABILITY STRATEGY STRATEGY Developing our Sustainability Strategy DEVELOP is currently working with a leading sustainability consultancy to define our approach to sustainable development. By design, this will be atypical of what we’d see in the market today, and we will continue to engage
Slide 17: Tjiwarl-Develop JV
OUR SUSTAINABILITY STRATEGY TJIWARL-DEVELOP JV SOCIAL CONTRIBUTION • DEVELOP and TJIWARL Traditional Owners (TCS) partner in a landmark 50/50 contracting joint venture • DEVELOP to act as capacity partner, whilst upskilling TCS to take on sole ownership and management of the enterprises post 36 mont
Slide 18: Develop 5-Year Business Plan
DEVELOP 5-YEAR BUSINESS PLAN HYBRID BUSINESS MODEL: MINE OWNERSHIP – MINING SERVICES STRATEGY Build world-class Be one of the most Produce some of Aim for annual Mining Services underground socially responsible the world’s metal output of in capability to capability and ESG friendly cleanest energy
Slide 19: Summary – Execution/Value Creation – Last 12 Months
A QUALITY PROJECT FOR THE ENERGY REVOLUTION SUMMARY – EXECUTION/VALUE CREATION - LAST 12 MONTHS Woodlawn Mining Services • Confirmation of large high-grade resource at Woodlawn • Bellevue contract contributed ~A$65m in revenue during FY23 • Develop ASX announcement 2 August 2022 ‘Woodlawn Mineral Re
Slide 20: Woodlawn Update
ASX: DVP WOODLAWN UPDATE 20 20
Slide 21: Woodlawn Copper/Zinc Mine
A QUALITY PROJECT FOR THE ENERGY REVOLUTION WOODLAWN COPPER/ZINC MINE • Acquired the mine in NSW, Australia; it had a profitable 20-years, producing 13.8Mt at 6.0% CuEq • Prior owners invested ~A$340m in the operation Woodlawn mine has: 1. An established operational team 2. Substantial UG Resource o
Slide 22: Woodlawn – Updated Mine Plan Key Outcomes
WORLD-CLASS UNDERGROUND CAPABILITY WOODLAWN – UPDATED MINE PLAN KEY OUTCOMES Project Revenue A$1,809 million Free Cash-Flow (pre-tax real) A$626 million Pre-Production Capital A$32 million Pre-Tax NPV7% A$481 million Internal Rate of Return (pre-tax) 367% Average Annual Pre-tax Cash flow ~A$90M • Mi
Slide 23: Woodlawn Strategy
A QUALITY PROJECT FOR THE ENERGY REVOLUTION WOODLAWN STRATEGY • Underground capital development ongoing to enhance an accelerated restart scenario • First 18 months of ore production has been developed • Aiming to grow the underground mineral inventory and mine life to underpin a restart strategy fu
Slide 24: Woodlawn Copper Mine
WORLD-CLASS UNDERGROUND CAPABILITY WOODLAWN COPPER MINE Overview • Significant capital jumbo development completed (+3.2km) • Underground and surface infrastructure upgrades (pumping, power and ventilation). • De-risk of site environmental factors (water, permitting, site rehabilitation). Next steps
Slide 25: Woodlawn – Safety and Admin
WORLD-CLASS UNDERGROUND CAPABILITY WOODLAWN – SAFETY AND ADMIN • Complete rebuild of site Safety Management System (SMS) completed over last 12 months. • Focus on compliance for regulator interactions as well as proactively implementing best-practice behaviours and policies in the NSW Metalliferous
Slide 26: Woodlawn - LOM
WORLD-CLASS UNDERGROUND CAPABILITY WOODLAWN - LOM • The Updated mine plan reflects the fundamentally different development and operational strategy adopted by Develop compared with that which has seen the project fail previously • Ore profile significantly improved from previous plans given huge amo
Slide 27: Woodlawn – Development Progress
WORLD-CLASS UNDERGROUND CAPABILITY WOODLAWN – DEVELOPMENT PROGRESS • Completion of the 2490 Drill Drive (approx. 950m of development) • Extension at depth of active decline face down to 410m below surface, fully accessing the entire Kate Lens ore body (+1M tonnes ore) • High Voltage power extended t
Slide 28: Woodlawn – Kate Lens
WORLD-CLASS UNDERGROUND CAPABILITY WOODLAWN – KATE LENS • Decline access of entire Kate Lens complete • Escapeways, ventilation and electrical reticulation complete • Kate lens (+1M tonnes high-grade Cu ore) now ready for production • Kate lens ore now exposed in all 5 production levels • Developmen
Slide 29: Woodlawn – Sustainability
WORLD-CLASS UNDERGROUND CAPABILITY WOODLAWN – SUSTAINABILITY • Industry leading approach to sustainable and progressive mine site rehabilitation. • 48kt of organic material diverted from nearby Veolia landfill for use in rehabilitation of legacy tailings dams. • 2.5Ha of tails area covered with a fu
Slide 30: Woodlawn Process Operations
ASX: DVP WOODLAWN PROCESS OPERATIONS 30 30
Slide 31: Concentrator Status
WOODLAWN PROCESSING CONCENTRATOR STATUS • Brand New Plant built by Sedgman in 2019 within A$340M site update • “Great Bones” – Quality equipment selected by Heron. Est cost ~ A$300M for a similar build in 2023 • 4-stage flotation. The aim is to maximise the selectivity of target minerals at each sta
Slide 32: Operational Improvements
WOODLAWN PROCESSING OPERATIONAL IMPROVEMENTS 32
Slide 33: Copper Recovery
WOODLAWN PROCESSING COPPER RECOVERY Copper “Cu” recovery budget uplift from 60% to an average of 75% is expected; due to: 1. Reagent dosing regime alterations - Additional depressants (lab testing ongoing) - Automation of dosing to follow metal in feed changes - Water quality improvement by pre-trea
Slide 34: Woodlawn Geology
WORLD CLASS BASE METAL PROJECT WOODLAWN GEOLOGY 29 30 82 47 79 Cu Zn Pb Ag Au Copper Zinc Lead Silver Gold 1. Woodlawn Drilling 2. Exploration & Growth 3. Regional Opportunity 34
Slide 35: Growth Potential – VMS Systems
WOODLAWN - GEOLOGY GROWTH POTENTIAL – VMS SYSTEMS POTENTIAL TO BECOME VERY LARGE, HIGH-GRADE MINES • Very well understood and studied deposit type • >900 deposits identified worldwide • Volcanogenic Massive Sulphide (VMS) deposits predominantly occur in clusters forming defined ‘Camps/Districts’ • M
Slide 36: Growth Potential – VMS Systems
GLOBAL VMS DEPOSITS - COMPARIVE LONG-SECTIONS GROWTH POTENTIAL – VMS SYSTEMS Note. Schematic scale and long section RL’s equal across all resources Sources: Roseberry: MMG Stock Exchange of Hong Kong announcement 13 July 2023 ‘Report of exploration results from Las Bambas and Rosebery’. Kidd Creek:
Slide 37: Woodlawn Growth Potential
WOODLAWN – SIGNIFICANT EXPLORATION AND GROWTH POTENTIAL WITH VARIOUS LEN ES AND UNTESTED EM TARGETS WOODLAWN GROWTH POTENTIAL DEVELOP AQUISTION MAY-22 • Minimal drilling outside of current Resource • High potential for extension to known lenses and for discovery of additional lenses • Very limited s
Slide 38: Woodlawn Growth - Underway
WOODLAWN – SIGNIFICANT EXPLORATION AND GROWTH POTENTIAL WITH VARIOUS LEN ES AND UNTESTED EM TARGETS WOODLAWN GROWTH - UNDERWAY DVP Drilling Programme 70 holes (~34,000m) completed • 70% of assays received 3D cross-section view (north viewing) of Woodlawn – Drilling and Resources (September 2023) 38
Slide 39: Woodlawn Growth Potential
WOODLAWN – SIGNIFICANT EXPLORATION AND GROWTH POTENTIAL WITH VARIOUS LEN ES AND UNTESTED EM TARGETS WOODLAWN GROWTH POTENTIAL 3D oblique view (northeast viewing) of Woodlawn – Drilling and Resources (September 2023) 39
Slide 40: Regional Tenement Package
WOODLAWN – SIGNIFICANT EXPLORATION AND GROWTH POTENTIAL REGIONAL TENEMENT PACKAGE • Large tenement position (1,156km2) within highly prospective Lachlan Fold Belt • Centralised tenement package proximal to Woodlawn, including two historic base metal mines: Cowley Hills • Precious metal-rich VMS, und
Slide 41: Essential Metals Update
ESSENTIAL METALS UPDATE —s_—iw
Slide 42: Essential Metals Limited
WORLD-CLASS UNDERGROUND CAPABILITY ESSENTIAL METALS LIMITED Tier-1 Location within WA’s 'Lithium Corridor' • Pioneer Dome Project located in the Eastern Goldfields, 150km south of Kalgoorlie and 270km north of the Esperance port • Mt Marion, Bald Hill and Buldania projects are all located <100km by
Slide 43: Essential Metals Limited – Resource to Inventory Conversion
WORLD-CLASS UNDERGROUND CAPABILITY ESSENTIAL METALS LIMITED Strong Foundation Laid • Scoping Study completed in Feb-23 deliver a post tax NPV10 of A$367M • Annual production ~200,000t of 5.7% spodumene concentrate Resource to Inventory Conversion • Mine life ~7.3 years • Capital cost of A$293M • Ope
Slide 44: Essential Metals Limited – Comprehensive Asset Review
WORLD-CLASS UNDERGROUND CAPABILITY ESSENTIAL METALS LIMITED Comprehensive Asset Review Develop aims to conduct a thorough examination of Essential's assets, operations, and employee requirements. • This step involves a meticulous analysis of all aspects, ensuring that all material facts and circumst
Slide 45: Essential Metals Limited – Next Steps
WORLD-CLASS UNDERGROUND CAPABILITY ESSENTIAL METALS LIMITED Next Steps Fast track early works to inform detailed study works Opportunities • Metallurgical testwork: A diamond programme has commenced to • Cade pit is 82% of ore provide drill samples for metallurgical optimisation testwork and project
Slide 46: Acquisition Details
WORLD-CLASS UNDERGROUND CAPABILITY ACQUISITION DETAILS • Develop Global Limited (ASX:DVP) (“Develop” or the “Company”) to acquire 100% of the fully paid ordinary shares in Transaction Structure Essential Metals Limited (ASX:ESS) (“Essential”) by way of a Board recommended Scheme of Arrangement (“Sch
Slide 47: Acquisition Details (Cont.)
WORLD-CLASS UNDERGROUND CAPABILITY ACQUISITION DETAILS (CONT.) • Key customary conditions to the implementation of the Scheme include, amongst others: • Approval being received from the Essential shareholders at a duly convened shareholder Scheme meeting; • Regulatory approvals; • Court approvals; C
Slide 48: Scheme Timing
WORLD-CLASS UNDERGROUND CAPABILITY SCHEME TIMING Event Estimated Date First Court Hearing 13 September 2023 Dispatch of Scheme Booklet to Essential Shareholders 18 September 2023 Scheme Meeting of Essential shareholders 18 October 2023 Second Court Hearing 24 October 2023 Effective Date 26 October 2
Slide 49: Sulphur Springs Update
SULPHUR SPRINGS UPDATE |
Slide 50: Sulphur Springs Zinc-Copper Project
A QUALITY PROJECT FOR THE ENERGY REVOLUTION SULPHUR SPRINGS ZINC-COPPER PROJECT • The project is a high-grade zinc and copper deposit located in the Tier 1 world-class Pilbara district of Western Australia • Prior to 2023 the project development was burdened by inadequate reserves, approvals, strate
Slide 51: Sulphur Springs Zinc-Copper DFS Key Outcomes
A QUALITY PROJECT FOR THE ENERGY REVOLUTION SULPHUR SPRINGS ZINC-COPPER DFS KEY OUTCOMES Project Revenue A$2,898 million Free Cash-Flow (pre-tax real) A$745 million Pre-Production Processing Plant and Infrastructure Capital A$296 million Pre-Tax NPV5% A$523 million Internal Rate of Return (pre-tax)
Slide 52: Sulphur Springs Mining
WORLD-CLASS UNDERGROUND CAPABILITY SULPHUR SPRINGS MINING SIGNIFICANT CHANGES TO MINE PLAN: • Designed as a pure Underground Mine with potential for small pit at end of life • Reduces surface disturbance by eliminating large Open Pit footprint • Reduce surface disturbance by significantly reducing w
Slide 53: Sulphur Springs – Resources & Growth
SIGNIFICANT RESOURCE UPDATE – IMPROVED GRADE, CONTAINED METAL & CLASSIFICATION SULPHUR SPRINGS – RESOURCES & GROWTH Sulphur Springs (2023 Resource Estimate) 13.8Mt @ 1.1% Cu, 5.7% Zn and 22.5gpt Ag • A$10M drilling and geometallurgical programme completed in 2021-22 to de-risk project • Conversion o
Slide 54: Kangaroo Caves – Resources & Growth
UNDEREXPLORED RESOURCE E – OPEN IN ALL DIRECTIONS KANGAROO CAVES – RESOURCES & GROWTH Kangaroo Caves (2015 Resource Estimate) 3.55Mt @ 0.8% Cu, 6.0% Zn and 15.0gpt Ag • Mineralisation remains open on margins and down plunge • Several untested EM and geological targets, including extensions to minera
Slide 55: Sulphur Springs – Exploration
HIGHLY PROSPECTIVE CAMP-SCALE PANORAMA TREND – SIGNIFICANTLY UNDEREXPLORED SULPHUR SPRINGS – EXPLORATION • Dominant position (+27km) over VMS prospective ‘Marker Chert’ in the emerging Panorama Trend • Proven Cu-Zn-Ag prospectivity, limited modern exploration completed outside known resources • Doze
Slide 56: Major Improvements
SULPHUR SPRINGS - PROCESSING MAJOR IMPROVEMENTS • Reclassification of 1.75Mt of transitional Zn ore as favourably performing fresh ore based on metallurgy • Re-testing of historical poor-performing Zn transitional samples able to produce high-grade Zn concentrate by modifying the reagent scheme • Fl
Slide 57: Flowsheet Modifications
SULPHUR SPRINGS - PROCESSING FLOWSHEET MODIFICATIONS • Upsized for higher feed grades – flotation & dewatering capacity ~25% larger • 3 stage crushing + Ball mill for stability • Simplified internal flows • Added Pb removal circuit (future additional product if Pb feed ↑) • Cu only, Zn only, Pb/Zn a
Slide 58: Mining Services Update
Oat t is > So i SERVICES UPDA is ‘ |
Slide 59: World-Class Underground Capability
OUR PEOPLE ARE OUR FLAGSHIP ASSET WORLD-CLASS UNDERGROUND CAPABILITY MINING SERVICES IS KEY TO ACHIEVING BUSINESS PLAN Building underground capability enables Develop to build its business organically; Mining Services accelerates this CULTURE CAPABILITY CASHFLOW 01 02 03 Created Mining Awarded ~A$40
Slide 60: Mine Services Value Add
WORLD-CLASS UNDERGROUND CAPABILITY MINE SERVICES VALUE ADD MINE SERVICES PROVIDES SIGNIFICANT VALUE TO THE GROUP THROUGH THE FOLLOWING KEY METRICS: • Culture • Superior access to highly skilled workforce • Ability to offer the unique opportunity of roles within mine ownership and mine services • Vas
Slide 61: Mine Services Pricing Structure
MINE SERVICES WORLD-CLASS UNDERGROUND CAPABILITY PRICING STRUCTURE CONTRACT PRICING STRUCTURED TO DE-RISK • Variable Cost Rates WORKS: • Payment linked to completing mining physicals • Costs outlaid are directly linked to the work • Mobilisation and Site Establishment undertaken and subsequent reven
Slide 62: Mine Services Bellevue Gold
MINE SERVICES WORLD-CLASS UNDERGROUND CAPABILITY BELLEVUE GOLD CONTRACT TO DATE PERFORMANCE: COMPARISON AGAINST OUR PEERS: • Revenue/Costs • Revenue ahead of tender and contract • Development advance continued to climb since contract inception for Develop • Increased performance and works • Average
Slide 63: Develop's Team – World Records
WORLD-CLASS UNDERGROUND CAPABILITY DEVELOP’S TEAM – WORLD RECORDS
Slide 64: Industry Overview
WORLD-CLASS UNDERGROUND CAPABILITY INDUSTRY OVERVIEW • It is well documented there is a massive surge in underground activity across several commodities • Upcoming and underway underground activity to severely affect the industry – Positive for mining contractors • Northern Star KCGM Fimiston underg
Slide 65: Financial Update
FINANCIAL UPDATE
Slide 66: Funding and Balance Sheet
WORLD-CLASS UNDERGROUND CAPABILITY FUNDING AND BALANCE SHEET DVP 30 June 2023 Balance Sheet • Strong cash position at 31 August of A$60.5m (Unaudited) • Equipment finance debt of A$24.8m at 31 August, which is Cash $21.8m covered by the Bellevue mining services agreement Other Current Assets $15.1m
Slide 67: Thank You
PRODUCING POTENTIAL DEVELO U
Slide 68: Important Information and Disclaimer
IMPORTANT INFORMATION AND DISCLAIMER Cautionary Statement The information contained in this document (“Presentation”) has been prepared by DEVELOP Global Limited (“Company”). This Presentation is being used as a presenter’s aid with summarised information. See DEVELOP’s other and periodic disclosure
Slide 69: Mineral Resources Tables
MINERAL RESOURCES TABLES NOTES 1. Tonnages are dry metric tonnes. Minor discrepancies may occur due to rounding. 2. The Sulphur Springs MRE is reported at a A$80/t Net Smelter Return (NSR) cut-off and been extracted from the Company’s ASX announcement ‘Sulphur Springs Updated Mineral Resource Estima