Develop Global Limited

Section 1: Company Overview and Fundamentals Insights

1.1 Company Overview

Develop Global Limited (ASX: DVP) is involved in production of clean metals used in sustainable energy generation and storage. The Company’s projects include the Sulphur Springs Project and the Whim Creek Joint Venture Project. 

1.2 The Key Positives, Negatives, Investment Highlights, and Risks

1.3 Top 10 Shareholders: The top 10 shareholders together form ~47.10% of the total shareholding. Beament (William James) and Mineral Resources Ltd are holding maximum stakes in the company at ~14.32% and ~13.87%, respectively.

1.4 Key Metrics: The company reported a rise in total assets to AUD 204.9mn at the end of 30 June 2022 vs. AUD 57.3mn on pcp basis. Below is captured other metrics:

Section 2: Business Updates, Financial and Operational Highlights

2.1 Recent Updates:

2.2 Results Highlights of 2QFY23 & 1QFY23: Below mentioned are some key financial highlights:   

Section 3: Key Risks and Outlook:

Section 4: Stock Recommendation Summary

4.1 Price Performance and Technical Summary

The stock has witnessed a rise of ~20.68% in 3 months and over the last 6 months, it has increased by ~45.22%. The stock has a 52-week low and 52-week high of AUD 1.760 and AUD 4.000, respectively and is currently trading above the average of 52-week high-low average.

4.2 Fundamental Valuation

Valuation Methodology: P/B Multiple Based Relative Valuation (Illustrative)

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is neither an indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is February 22, 2023. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.

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