Boab Metals (BML) Q4 2024 TU earnings summary

Executive summary

• Completed Front End Engineering (FEED) Study for Sorby Hills Lead-Silver-Zinc Project, confirming strong project economics and technical optimizations.

• FEED Study delivered a pre-tax NPV of A$411M, IRR of 37%, and average annual EBITDA of A$126M, with further upside at spot prices.

• Raised A$5.0M via placement and entitlement offer to support project advancement and exploration.

• Cash balance at 30 June 2024 was approximately A$5.7M.

Financial highlights

• FEED Study base case: NPV8 of A$411M, IRR 37%, average annual EBITDA A$126M, net cash flow A$778M.

• Spot case (May 2024): NPV8 of A$596M, IRR 47%, average annual EBITDA A$160M, net cash flow A$1,067M.

• Upfront capital expenditure increased to A$264M; sustaining capex A$26M.

• C1 cost reduced to US$0.36/lb payable lead (including silver credits).

• Operating cash flow over life of mine projected at A$1,069M.

Outlook and guidance

• Final investment decision targeted for December 2024; first ore expected December 2026, first concentrate shipment March 2027.

• Offtake agreement negotiations ongoing, with updates expected in the September quarter.

• Phase VIII drilling program planned to expand mineralisation at the 'Keep' target.