Boab Metals Limited

Analyst Report Highlights Boab Metals' Potential with Offtake Agreement, Project Acquisition

Description

Euroz Hartleys has reinforced its confidence in Boab Metals (ASX:BML) following significant progress at the Sorby Hills lead-silver project in Western Australia. In its report, dated December 20, 2024, the firm maintains a "speculative buy" recommendation, revising its valuation to AU$0.50 per share (down from AU$0.62) and adjusting the price target to AU$0.55, reflecting updated timelines and funding requirements.


Financially, Sorby Hills is poised to deliver strong returns, with projected net cash flows of AU$778 million over its life and an average annual EBITDA of AU$126 million. The upfront capital expenditure is estimated at AU$264 million, reflecting an increase of 8 percent from the definitive feasibility study, but this is offset by improved operating cost efficiencies.

Location of Boab Metals' Sorby Hills resourcesLocation of Sorby Hills resources

Boab Metals anticipates making a final investment decision in the second half of 2025, with construction commencing later that year and production targeted for 2027. The company is in advanced discussions with potential financiers, including the Northern Australia Infrastructure Facility, Export Finance Australia, and commercial banks, to secure funding for the project.

Key highlights of the report:

     
  • Offtake Agreement Secured: A key milestone for Boab Metals is the binding offtake agreement secured with Trafigura Asia Trading. This agreement covers 75 percent of the lead-silver concentrate production from Sorby Hills, totaling 531,000 tonnes over seven years. In addition, Trafigura will provide a US$30 million prepayment facility with competitive terms, including an interest rate of SOFR plus 5 percent per annum. The facility is structured for long-term repayment, with an 18-month interest-only period followed by equal monthly installments over 42 months.
  • Strategic Acquisitions: In a move to solidify its position, Boab Metals has agreed to acquire the remaining 25 percent interest in Sorby Hills from its joint venture partner, Henan Yuguang, China's largest lead smelting company. The acquisition, valued at AU$23 million, will be paid in installments tied to project milestones, including the final investment decision and initial concentrate sales. With this deal, Boab gains full ownership of the project, maximizing its exposure to its economic potential.
  • Project Development: The recently completed front-end engineering and design study highlights the significant production potential of Sorby Hills. The study envisions a large-scale open-pit operation processing 2.3 million tonnes of ore annually. Average lead production is expected to exceed 64,000 tonnes per year, with peak production reaching 80,000 tonnes. The project also benefits from competitive C1 costs, estimated at US$0.36 per pound, and silver credits further enhancing its economics.

For the full analyst report, click here.

This content is intended only for persons who reside or access the website in jurisdictions with securities and other applicable laws which permit the distribution and consumption of this content and whose local law recognizes the scope and effect of this Disclaimer, its limitation of liability, and the legal effect of its exclusive jurisdiction and governing law provisions [link to Governing Law section of the Disclaimer page].

Any investment information contained on this website, including third party research reports, are provided strictly for informational purposes, are general in nature and not tailored for the specific needs of any person, and are not a solicitation or recommendation to purchase or sell a security or intended to provide investment advice. Readers are cautioned to seek the advice of a registered investment advisor regarding the appropriateness of investing in any securities or investment strategies mentioned on this website.

BML:AU
Boab Metals Limited

Boab Metals Limited Investor Kit

  • Corporate info
  • Insights
  • Growth strategies
  • Upcoming projects

GET YOUR FREE INVESTOR KIT

The Conversation (0)
Boab Metals Limited

Boab Metals Limited


Keep reading...Show less

Advancing toward near-term lead and silver production in Western Australia

Completion of Silver Acquisition & Appointment of New Managing Director

Completion of Silver Acquisition & Appointment of New Managing Director

Rapid Critical Metals Limited (‘Rapid,’ ‘RCM’ or ‘Company’) is pleased to advise that the Company has today completed the acquisition of Silver Metal Group Limited’s two wholly-owned subsidiaries, Conrad Resources Pty Ltd and Webbs Resources Pty Ltd (Transaction), the terms of which are contained in the Company’s announcement to ASX of 22 May, 2025. The Transaction was approved by shareholders at the Extraordinary General Meeting (EGM) held on 7 July, 2025.

Keep reading...Show less
Silver bars, stock market data and graph with "Weekly Editor's Picks" banner.

Editor's Picks: Silver Price Breaks US$39 Again, Rare Earths Stock Soars

The gold price saw both peaks and troughs this week, reacting to the release of June consumer and producer price index data out of the US, as well as renewed discussions about whether President Donald Trump may fire Federal Reserve Chair Jerome Powell.

Silver was the real precious metals star, pushing past the US$39 per ounce level once again.

Keep reading...Show less
Closeup of US silver coins with eagle and stars design on a black background.

Silver Price Update: Q2 2025 in Review

Silver took some luster from gold in Q2 as its price climbed to 14 year highs.

Many of the same contributors that affected the gold price were also in play for silver.

Uncertainty in financial markets, driven by a chaotic US trade and tariff policy, coincided with rising tensions in the Middle East and continued fighting between Russia and Ukraine, prompting investors to seek safe-haven assets.

Keep reading...Show less
Ted Butler, silver bars.

Ted Butler: Silver's Moment is Here, Time for Price to Outperform

Has silver's moment finally arrived?

Precious metals analyst Ted Butler believes the answer is "yes."

Keep reading...Show less
Mani Alkhafaji, silver bars.

Silver Price at New Base, What Comes Next? First Majestic's Mani Alkhafaji

Mani Alkhafaji, vice president of corporate of development and investor relations at First Majestic Silver (TSX:AG,NYSE:AG) discusses silver's recent price rise.

He notes that the gold-silver mining ratio is at seven to one, while the price ratio is at 90 to one.

Keep reading...Show less
Silver bar surrounded by shiny silver nuggets on a black background.

Top 5 Canadian Silver Stocks of 2025

Silver prices surged during the second quarter of 2025, surpassing the US$37 per ounce mark and reaching their highest levels in 14 years.

The price movements stem from a tightening supply and demand situation, which has seen above-ground inventories squeezed due to an increasing need from industrial sectors, particularly the growing photovoltaics industry.

However, demand has also increased due to heightened investor interest in alternative safe-haven assets, as gold prices reached record highs. The shifting sentiment comes amid uncertainty over a US trade policy that could reduce the world's gross domestic product by 1 percent.

Keep reading...Show less
Boab Metals Limited

Boab Metals Limited Investor Kit

  • Corporate info
  • Insights
  • Growth strategies
  • Upcoming projects

GET YOUR FREE INVESTOR KIT

Latest Press Releases

Related News

×