Develop Global Wins $200m OceanaGold Contract- What It Means for Investors

Develop Global (ASX: DVP) climbed 4% to A$4.36 on Friday after securing a A$200 million underground development contract with global gold producer OceanaGold. The timing is notable: just one day after OceanaGold received final approval under the New Zealand Government’s Fast-track Approvals Act for its Waihi North Project, Develop locked in one of the largest mining services contracts announced on the ASX this year.

For Managing Director Bill Beament, this win validates the strategy he has been building since taking the reins. The contract adds meaningful, multi-year revenue visibility to a business that already has significant operational momentum.

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Develop Tapped to Unlock New Zealand Gold Mine

The contract scope centres on establishing underground access for OceanaGold’s Wharekirauponga Underground mine, a high-grade asset holding approximately 1.2 million ounces of gold reserves. Develop will construct the 6.5-kilometre twin decline needed to reach the orebody from the Willows Road portal site, with tunnelling expected to begin in the first half of 2026.

What makes this contract particularly appealing is the client. OceanaGold is a well-funded, mid-tier producer with decades of operating history in New Zealand. Winning work from a major international miner signals that Develop’s underground expertise is being recognised beyond Australian borders, which could open doors to further international opportunities.

The project timeline also suits Develop’s current workload. With tunnelling starting in mid-2026 and the mine targeting first gold in 2032, this represents a long-dated revenue stream that complements rather than competes with the company’s existing commitments.

Mining Services Order Book Strengthens

At A$200 million, this is a material contract for a company with a market capitalisation of around A$1.4 billion. It builds on Develop’s track record of winning work from quality operators, including the A$46 million Mt Marion lithium decline for Mineral Resources and the ongoing development contract at Bellevue Gold.

The revenue from mining services serves a dual purpose: it generates cash flow while Develop advances its own mineral projects. The Woodlawn zinc-copper mine in New South Wales remains the company’s flagship production asset, having successfully delivered first ore in mid-2025 and currently ramping up to steady-state production. Having steady contract income reduces pressure on the balance sheet and provides flexibility as Woodlawn ramps up.

We believe this business model gives Develop an edge over pure-play explorers or single-asset developers. The services division effectively de-risks the investment case by providing income regardless of commodity price movements or project delays.

The Investor’s Takeaway

The stock has risen sharply from lows around $2 earlier this year, reflecting both the Woodlawn progress and growing appreciation for the mining services business. Today’s contract win adds another layer of support to the investment case.

That said, valuation has moved with sentiment. At current levels, investors are paying for both successful execution at Woodlawn and continued services growth. The key risks remain execution-related: can Woodlawn transition smoothly into production, and can the services division maintain its win rate against larger competitors?

What gives us confidence is the management team. Beament built Northern Star Resources from a penny stock into one of Australia’s largest gold miners. He has skin in the game at Develop and a track record of delivering on ambitious targets.

For investors comfortable with the execution risks, Develop offers an attractive combination of near-term cash generation and longer-term project optionality. The OceanaGold contract strengthens the near-term case and demonstrates that quality clients trust this team to deliver.