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Boab Metals Limited (ASX:BML)

ALERT: Price-sensitive ASX Announcement for BML
Current share price for BML : $0.365 0.275 (305.56%)+
Announcement
Release
31 Jul 2024 11:35AM
Price at Release
$0.090
Full Release
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Summary
Boab Metals Limited announced the completion of the FEED study for its Sorby Hills Lead-Silver-Zinc Project, reflecting a pre-tax NPV8 of A$411 million and IRR of 37%. The company raised A$5.0 million through a Placement and Entitlement Offer, bringing its cash balance to A$5.7 million as of 30 June 2024. Key project metrics indicate an upfront capital expenditure of A$264 million and an average C1 cost of US$0.36/lb payable lead. The project benefits from updated mining and bulk earthworks contract pricing and is strategically located near Kununurra, Western Australia, with ready infrastructure for production. The company also advanced its drilling plans and reported improvements in net cash flow and pre-tax NPV8 compared to the DFS.
Key Points
  • Boab Metals Limited completed a FEED study for the Sorby Hills Lead-Silver-Zinc Project.
  • The project's pre-tax NPV8 is A$411 million and IRR is 37%, with an average annual EBITDA of A$126 million.
  • They raised A$5.0 million through a Placement and Entitlement Offer.
  • The cash balance as of 30 June 2024, is approximately A$5.7 million.
  • Key project metrics include an upfront capital expenditure of A$264 million and an average C1 cost of US$0.36/lb payable lead.
  • Updated pricing for mining and bulk earthworks contracts.
  • The project is located 50km from Kununurra in Western Australia and has established infrastructure for fast-track production.
  • The company completed a fully underwritten A$5.0 million capital raising.
  • Planning for Phase VIII drilling is advanced, with the program expected to start in the coming quarter.
  • A high-level comparison shows a 10% increase in net cash flow and an 11% increase in pre-tax NPV8 from the DFS to FEED study.
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.