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Boab Metals Limited (ASX:BML)

ALERT: Price-sensitive ASX Announcement for BML
Current share price for BML : $0.310 -0.075 (-19.48%)+
Announcement
Release
29 Sep 2026 10:22AM
Price at Release
$0.385
Full Release
download
Summary
Boab Metals’ Sorby Hills Project Delivery Plan outlines the transition of its 100%-owned silver-lead project in the East Kimberley of Western Australia from development to delivery, with construction underway, funding secured and first concentrate production targeted for the September quarter of 2027, while the first 60 pages also include an ERM ore reserve addendum dated 3 September 2026 that supports the plan; the document reports stronger project economics following mine plan optimisation, improved Norton metallurgical recoveries, water and infrastructure changes, and the acquisition and repurposing of the DeGrussa processing plant, lifting mine life to 10.5 years and the production target to 22.0Mt for 690kt lead and 26Moz silver, supported by an updated Mineral Resource of 50.6Mt at 3.0% lead and 34g/t silver and an Ore Reserve of 18.3Mt at 3.2% lead and 37.3g/t silver, with total pre-production cost of about A$261.5 million, remaining capex of about A$205.2 million including contingency, robust base-case metrics such as pre-tax NPV8 of A$1.06 billion, IRR of 97%, life-of-mine free cash flow of about A$1.705 billion, average annual EBITDA of about A$184 million and C1 cash costs of US$2.80/oz payable silver, alongside noted construction progress, fixed-price contract coverage, logistics via Wyndham Port, 50% offtake with Trafigura, and a syndicated debt package arranged to support completion and commissioning.
Key Points
  • Project Delivery Plan released for Boab Metals’ 100%-owned Sorby Hills Silver-Lead Project in Western Australia.
  • Announcement date is 29 September 2026.
  • Sorby Hills has moved from development into delivery, with construction underway and funding secured.
  • First concentrate production is scheduled for Q3 2027, with first production targeted for the September quarter of 2027.
  • The project is fully funded through construction and commissioning with more than A$350 million in debt and equity secured.
  • The Base Case economics show a pre-tax NPV8 of A$1.06 billion and an IRR of 97%.
  • Life-of-mine pre-tax free cash flow is estimated at about A$1.705 billion under the Base Case.
  • Average annual EBITDA is estimated at about A$184 million in the Base Case.
  • Total project capex is about A$262 million, with remaining capex of about A$205 million including A$17 million contingency.
  • Around A$56 million, or about 21% of total capital, had been spent by 31 August 2026 / 1 September 2026.
  • Mine life has increased to 10.5 years.
  • Average production is expected to be about 2.1Moz silver and 60kt lead per annum.
  • The life-of-mine production target has increased to 22.0Mt containing about 690kt lead and 26Moz silver.
  • The updated Mineral Resource is 50.6Mt at 3.0% lead and 34g/t silver.
  • The updated Ore Reserve is 18.3Mt at 3.2% lead and 37.3g/t silver, containing 22.0Moz silver and 581.5kt lead.
  • The production target is supported by 53% Measured, 31% Indicated and 16% Inferred Resources.
  • The first 7.5 years of the schedule are supported by 97% Measured and Indicated Resources.
  • The mine schedule was revised to bring forward higher-grade Norton ore and improve early cash flow.
  • Additional metallurgical testwork improved Norton lead recovery from 83% to 88.4% and silver recovery from 78% to 83.3%.
  • An additional pyrite rougher stage and concentrate regrind circuit may be added later for Norton ore treatment.
  • The DeGrussa processing plant acquisition is a major capital and schedule de-risking measure.
  • The repurposed DeGrussa plant supports a 2.25Mtpa design throughput.
  • Throughput is planned to ramp to full design capacity by Month 6.
  • During the first year, throughput is intentionally moderated to about 1.5Mtpa while concentrate production remains around 110ktpa.
  • Construction progress includes completed early works and stage 1 accommodation village, with stage 2 at 95%, bulk earthworks at 60%, process plant package at 14% and non-process infrastructure at 30%.
  • Dismantling of the DeGrussa plant was forecast to complete by 30 September 2026.
  • Power strategy has shifted to self-funded diesel generation for commissioning, with hydroelectric grid connection still targeted by December 2027.
  • About A$11 million is included for diesel power station procurement, construction, delivery and installation.
  • Water management was re-optimised, including an above-ground TSF, pit water storage and planned evaporators from 2029.
  • The revised water strategy reduced pipeline requirements and delivered an estimated capital saving of A$10.5 million.
  • The initial tailings storage facility is designed to hold tailings through about Year 8, with a second TSF under evaluation for the extended mine life.
  • Concentrate logistics are based on sealed half-height containers trucked about 159km to Wyndham Port.
  • Boab has executed a 10-year port access and stevedoring agreement with Cambridge Gulf.
  • The project expects about one Handy-class vessel shipment per month at steady-state production.
  • Boab has a binding offtake agreement with Trafigura for 50% of Sorby Hills concentrate.
  • Expressions of interest have been issued for the remaining 50% of concentrate for the first two years of production.
  • Project financing includes a syndicated facility agreement signed on 27 April 2026 with Merricks Capital and Adare Finance DAC.
  • The syndicated debt package comprises A$118.0 million in AUD facilities and US$84.4 million in USD facilities including cost overrun facilities.
  • First debt drawdown is expected in Q4 2026.
  • The project benefits from all primary approvals required to commence construction and mining, including federal and WA approvals.
  • Boab highlights that Sorby Hills’ lead credits are expected to effectively cover operating costs, giving high leverage to silver prices.
  • The first 60 pages also include an ERM ore reserve addendum dated 3 September 2026 that reports an after-tax NPV of A$330 million and IRR of 37% on an ore-reserve-only basis using separate assumptions.
  • ERM concluded no fatal flaws were identified in the ore reserve report and recommended further drilling, continued slope and water monitoring, and further resource conversion.
IMPORTANT NOTE: This information is autogenerated and has not been reviewed for accuracy or completeness. You should refer to the full announcement here for further information.