ASX-listed Develop says its fledgling mining services arm can generate about A$175 million of revenue in FY25, versus the $68 million reported for FY23 and $65.8m in the first half of the current year.
The company, run by former Northern Star Resources boss, Bill Beament, is pursuing a “mine ownership – mining services strategy”, focused on Australia at this stage, with mine development interests in New South Wales and Western Australia.
Its key current mining services contracts are in the WA gold, lithium and nickel sectors, headlined by a circa-$400 million development and mining contract at the significant new Bellevue gold operation.
The company said this week mining services was “recording rapid growth in capability, activity and revenue, with progress running well ahead of its five-year business plan”.
In a February 2024 investor presentation management cited a forecast 50% increase in underground hard-rock mine production activity – about 24 million tonnes per annum – “just in Western Australia” in the next five years. Significant underground activity was also building in eastern Australia.
Develop wants its mining services business to be able to handle 5-7 projects, including internal projects.
“The company’s latest agreement will see it undertake specialised underground development activities for Karora Resources at its Beta Hunt mine in the Kambalda/Southern Goldfields district of Western Australia,” management said.
“The work on the Fletcher and Western Flanks South Development at Beta Hunt is underway.”
Beament said: “The strong revenue now being generated from the provision of mining services will also be highly valuable as we seek to secure the most attractive funding terms possible to advance our critical minerals assets in Australia.”
Develop’s share price has drifted about 13% lower so far in 2024, giving the company a current market value around $584 million.
