• Earthworks have commenced at the Sulphur Springs Project, including construction of the boxcut for the underground decline and clearing the surface site
• The updated definitive feasibility study (DFS) is scheduled for completion in the Dec-25 quarter, which will pave the way for project funding and a Final Investment Decision
• Sulphur Springs is forecast to generate strong financial returns, with Life-of-Mine (LOM) based on annual production of ~30,000t of copper-equivalent metal

Develop Global (ASX: DVP) has started substantial works, including construction of the boxcut for the underground decline and preparations for surface infrastructure, at its Sulphur Springs zinc-copper project in Western Australia. This represents a major milestone for Sulphur Springs as it will pave the way for construction of the underground decline and a revised definitive feasibility study (DFS). The upfront capital development strategy, which mirrors the successful approach used at Develop's Woodlawn project, will significantly de-risk the project while setting up the mine for higher productivity. The updated DFS is scheduled for completion in the Dec-25 quarter, which will pave the way for project funding and a Final Investment Decision (FID). Sulphur Springs is forecast to generate strong financial returns, with Life-of-Mine (LOM) based on annual production of ~30,000t of copper-equivalent metal. The previous June-23 DFS had a pre-tax Net Present Value (NPV) of A$523 million, and Develop believes there is significant potential to further increase the production and financial returns by accelerating the underground development. By developing the decline and underground capital infrastructure upfront, Develop can establish the potential for further growth, enhancing the project's financing options in the process. This approach also means Develop can adopt a 'bottom-up' mining strategy such as that employed successfully at its Woodlawn copper-zinc mine, which will increase mining efficiency, reduce risks, lower costs and significantly increase Sulphur Springs' NPV.

Sulphur Springs is forecast to generate Life-of-Mine (LOM) revenue of A$2.9 billion and free cash flow of A$745 million, with average annual production for years one to four of 80.8kt of zinc metal and 16.4kt of copper metal in payable streams.

Develop believes there is significant potential to further increase the production and financial returns of the Sulphur Springs project by accelerating the underground development. The updated definitive feasibility study (DFS) is scheduled for completion in the Dec-25 quarter, which will pave the way for project funding and a Final Investment Decision.