DVP reported Mining Services revenue of A$31.9m from its underground mining contract at Bellevue, 4% higher than we expected. Mobilisation and site establishment activities at Mt Marion are underway and the box cut has commenced. DVP was also recently awarded an underground contract at Beta Hunt. The stronger mining services revenue and catch-up payments from Bellevue resulted in DVP reporting positive free cash flow of A$11.1m for the 3QFY24. DVP’s Woodlawn project is development ready, and assuming a minority selldown can be secured to fund the A$42m re-start capex, we would expect DVP to formally approve the project in coming months. Drilling at Pioneer Dome has outlined potential for an increase in the resource grade. We are reiterating our SPEC BUY rating on DVP and lift our price target 13% to A$3.50 due to stronger spot base metal prices.
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