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Investor Insight<\/p>\n<\/h3>\n
Boab Metals is well-positioned to capitalize on the rising demand for lead and silver, delivering value to shareholders and supporting the global transition to sustainable energy systems.<\/p>\n<\/div>\n
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Overview<\/p>\n<\/h3>\n
Boab Metals (ASX:BML) is an ASX-listed base and precious metals explorer and developer with a flagship project poised for near-term production. Boab Metals is progressing toward a final investment decision (FID) on its Sorby Hills project, a world-class lead-silver deposit, underpinned .<\/p>\n
Strategically located 150 km from Wyndham Port, the Sorby Hills project benefits from excellent infrastructure, including access to green power from the Ord River hydroelectric plant. The company’s strategy combines technical expertise, sustainable practices, and robust financial planning to advance the Sorby Hills project, which is slated to produce high-grade lead-silver concentrate through conventional open-pit mining.<\/p>\n<\/div>\n
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<\/p>\nStrong economics underpin the project with a net present value (8 percent) of AU$411 million and a 37 percent internal rate of return, as confirmed by the completed front-end engineering design (FEED) study. Life-of-mine operating cash flow is pegged at AU$1.1 billion with an average annual EBITDA of AU$126 million. It boasts a competitive C1 cash cost of US$0.36\/lb payable lead (after considering silver credits).<\/p>\n
Further boosting the prospects of the Sorby Hills project a binding offtake and prepayment agreements with Trafigura, which ensured 75 percent of the lead-silver concentrate produced at Sorby Hills is pre-sold, providing a cornerstone financial foundation.<\/p>\n<\/div>\n
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Company Highlights<\/p>\n<\/h3>\n
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- Boab Metals is an ASX-listed base and precious metals explorer and developer with a flagship project poised for near-term production.<\/li>\n
- The Sorby Hills project, Boab\u2019s flagship asset, boasts a high-quality 47.3 Mt resource at 4.3 percent lead equivalent (123 g\/t silver equivalent), including 53 Moz contained silver, and is in Western Australia, 50 km northeast of Kununurra.<\/li>\n
- Strong economics underpin the project with an NPV (8 percent) of AU$411 million and an IRR of 37 percent, as confirmed by the completed FEED study. Life-of-mine operating cash flow of AU$1.1 billion with an average annual EBITDA of AU$126 million. Competitive C1 cash cost of US$0.36\/lb payable lead (after considering silver credits).<\/li>\n
- Binding offtake and prepayment agreements<\/u><\/a> with Trafigura.<\/li>\n
- Access to green hydroelectric power and existing environmental approvals enhance the project\u2019s sustainability credentials and support reduced operational costs.<\/li>\n
- Committed to community engagement, Boab Metals fosters strong relationships with local stakeholders and supports regional development initiatives.<\/li>\n
- Expert leadership with a proven track record in exploration and development of mining assets<\/li>\n<\/ul>\n<\/div>\n
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Key Project<\/p>\n<\/h3>\n
Sorby Hills Project <\/h3>\n
Boab Metals owns 75 percent of the Sorby Hills Project, with the remaining 25 percent held by Henan Yuguang Gold & Lead Co., China’s largest lead smelting and silver producer. The project boasts a substantial, high-quality resource base<\/u><\/a> of 47.3 million ton resource base at 4.3 percent lead equivalent (123 g\/t silver equivalent), including 53 million ounces of contained silver, all with significant exploration upside. <\/p>\n<\/div>\n
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<\/p>\nProject Highlights<\/h4>\n
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- Strategic Location:<\/strong> Situated in the Kimberley region of Western Australia, 50 km northeast of Kununurra, Sorby Hills benefits from proximity to existing infrastructure, including access to the Wyndham Port, facilitating efficient export routes to Asian markets.<\/li>\n
- Low-risk Mining:<\/strong> Conventional open-pit mining with a shallow, high-grade orebody, ensuring rapid payback and early cashflows.<\/li>\n
- Straightforward Conventional Processing:<\/strong> The process plant employs a crush-mill-flotation circuit to produce high-grade lead-silver concentrate, achieving metallurgical recoveries of 92 percent for lead and 82 percent for silver.<\/li>\n
- Infrastructure and Accessibility: <\/strong>Excellent infrastructure, including sealed roads to Wyndham Port, facilitates efficient transport and export logistics.<\/li>\n
- Exploration Upside: <\/strong>Potential for near-pit resource growth and regional discoveries at prospects like the Keep zinc-lead target and Eight Mile Creek.<\/li>\n
- Sustainable Project:<\/strong> Powered by ~90 percent renewable energy from the Ord River hydroelectric plant. Opportunities are being explored to eliminate diesel power backups, further reducing emissions.<\/strong><\/li>\n
- Community Engagement:<\/strong> Boab Metals actively supports local initiatives, including partnerships with the Teach Learn Grow program and sponsorship of the Ord Valley Muster, which fosters community development in the East Kimberley region.<\/strong><\/li>\n
- Key Milestones Ahead: <\/strong>The company expects to finalize all regulatory approvals and secure debt financing to support project development by the first half of 2025, with construction and development expected by the second half of 2025. Boab Metals also plans to conduct infill drilling and exploration to expand the resource and refine the reserves.<\/li>\n<\/ul>\n<\/div>\n
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Management Team<\/p>\n<\/h3>\n
Gary Comb \u2013 Chairman<\/h3>\n
An engineer with over 30 years of experience in the Australian mining industry, Gary Comb has a strong track record in successfully commissioning and operating base metal mines. He previously served as chairman of Finders Resources, and was the managing director of Jabiru Metals and CEO of BGC Contracting.<\/p>\n
Simon Noon \u2013 Managing Director & CEO<\/h3>\n
Richard Monti \u2013 Non-executive Director<\/h3>\n
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Andrew Parker \u2013 Non-executive Director<\/h3>\n
<\/strong>Holding a Bachelor of Laws degree from the University of Western Australia, Andrew Parker has significant experience in the exploration and mining industry, with expertise in corporate advisory, strategic consultancy, and capital raising. Before joining Boab Metals, he co-founded Trident Capital, a corporate advisory and venture capital firm.\n<\/div>\n<\/div>\n
- Low-risk Mining:<\/strong> Conventional open-pit mining with a shallow, high-grade orebody, ensuring rapid payback and early cashflows.<\/li>\n