There are a few important and interlinked catalysts round the corner.
i) Note the last sentence in this slide from the latest presentation. DVP is aiming to update the SS mine plan and DFS with latest assumptions min-year which is not far. The revised commodity price assumptions and TC/RC rates will materially improve the economics of an already good project.
ii) A 20% stake sale in Woodlawn may not be too far away now given the site visits by senior execs (from potential buyer's side). I have a feeling the party could be Trafigura. Once the mine achieves commercial production and is cash flow positive - Its time to do a deal.
iii) Last but not the least, DVP may even be working on arranging the debt stack needed for constructing SS, with the equity coming from WL stake sale - this could lead to an FID decision for SS and accelerating its timeline. That party again could be Trafigura
The two deals can be structured in a single transaction solidifying the relationship between DVP and Trafigura. (e.g a 100M Debt for 20% equity swap at WL project level and allocating the 100M debt to fund the construction of SS in return on an offtake and perhaps future 20% interest)
The stock has gone up materially in last couple weeks - This doesn't happen without reason.
DVP Price at posting:
$3.46 Sentiment: Buy Disclosure: Held
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