DVP has commenced the process plant modifications required to re-start production at its Woodlawn Cu-Zn project in NSW. GR Engineering was awarded A$25.7m in late September to complete the process plant upgrades and recommission the project. The award of the contract triggered the A$20m Final Investment Decision Milestone Payment, which DVP covered through a A$10m cash payment and the issue of A$10m in shares. The upgrades to our medium-term copper and zinc price forecasts have enhanced DVP’s earnings and cash flow for the first two years of production at Woodlawn. The improved outlook has more than offset the milestone payment, and we upgrade our price target 7% to A$4.50 and reiterate our SPEC BUY rating.
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