Boab Metals Limited (ASX: BML), an Australian resources company focused on the exploration, development, and production of base and precious metals, has presented its comprehensive Project Delivery Plan for the 100%-owned Sorby Hills Silver-Lead Project in Western Australia. The announcement confirms the project has decisively moved from development into delivery, with construction underway and a target for first concentrate production in Q3 2027. Key updated economics highlight a compelling pre-tax NPV₈ of approximately A$1.06 billion and an Internal Rate of Return (IRR) of 97%, based on forward-curve pricing. The project also projects A$1.7 billion in life-of-mine free cash flow and average annual EBITDA of A$184 million, with an estimated remaining capital expenditure of A$205 million, including contingency.
The company has successfully secured over A$350 million in debt and equity funding to see the project through construction and commissioning. Strategic enhancements, including mine plan optimisation and the acquisition of the DeGrussa Process Plant, have extended the mine life from 8.5 years to 10.5 years. The Ore Reserve has been upgraded by 15% for contained silver and 10% for contained lead, now standing at 18.3 million tonnes at 37.3g/t silver and 3.2% lead. Construction is well advanced, with early works complete, the accommodation village operational, and bulk earthworks significantly underway. Dismantling of the DeGrussa plant for relocation is nearing completion, and foundations for its reconstruction at Sorby Hills are being poured.
Operational optimisations, such as prioritising the high-grade Norton Deposit in the mine schedule and enhanced metallurgical recoveries, are designed to accelerate early cash generation. Boab’s cost structure is positioned such that lead production is expected to cover operating costs, effectively delivering “free silver” and providing significant leverage to silver prices. Managing Director and CEO, Simon Noon, stated that with construction advancing and funding secured, Sorby Hills is well-positioned to become a long-life Australian silver-lead operation, with potential for further value through resource growth and ongoing optimisation.
