DVP reported underlying Ebitda of A$16.6m and earnings of A$1.2m in the 1HFY25. The Ebitda result was materially higher than we had expected, due to a stronger performance from the Mining Services division. We attribute the stronger result to higher margins at Bellevue and more positive outcomes from the shorter contracts at Mt Marion and Beta Hunt. We have adjusted our margin assumption at Bellevue, which has translated to upgrades to our earnings outlook. The Woodlawn project is on the cusp of declaring first ore and first concentrate production. We view the transition from developer to producer as a key positive catalyst for DVP and we reiterate our BUY rating, lifting our price target 4% to A$4.80, reflecting the improved margins in Mining Services.
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