Highlights

  • Boab Metals increased the Sorby Hills Mineral Resource to 50.6 million tonnes grading 3.0% lead, 34 g/t silver and 0.4% zinc, containing approximately 54.7 million ounces of silver.
  • Construction activities progressed during the September 2026 quarter, including processing plant relocation, bulk earthworks and infrastructure development.
  • Cash holdings stood at approximately AUD 29.9 million at 30 September 2026, with a AUD 236 million Debt Facility available subject to drawdown conditions.

Boab Metals Limited (ASX:BML) is an Australian mineral development company advancing the Sorby Hills silver-lead project in Western Australia's East Kimberley region. The company is progressing processing infrastructure, mine development preparations and financing arrangements ahead of planned concentrate production. On 29 September 2026, Boab announced an updated Mineral Resource Estimate, increasing the defined mineral inventory while construction activities continued across the project.

What Does the Sorby Hills Resource Upgrade Establish?

Boab Metals reported an updated Mineral Resource Estimate of 50.6 million tonnes grading 3.0% lead, 34 grams per tonne silver and 0.4% zinc.

The estimate contains approximately 54.7 million ounces of silver and represents a 7% increase in tonnage compared with the December 2021 estimate.

The updated inventory comprises approximately 13.1 million tonnes classified as Measured, 12.7 million tonnes as Indicated and 24.9 million tonnes as Inferred.

For Boab Metals (ASX:BML), the larger resource provides additional geological information for evaluating future Mining opportunities and potential extensions to the existing development plan.

However, Mineral Resources are distinct from Ore Reserves, and additional technical assessments are necessary before further material can be incorporated into economically supported mining schedules.

How Does the Resource Relate to the Existing Mine Plan?

Sorby Hills has a reported Ore Reserve of approximately 15.2 million tonnes grading 3.5% lead and 39 g/t silver.

The existing development plan supports an initial mine life of approximately 8.5 years, with projected average annual production of around 68,000 tonnes of lead and 2.2 million ounces of silver.

During January 2026, Boab completed the Acquisition of the remaining minority interest in Sorby Hills, increasing its ownership to 100%.

The transaction included an upfront consideration component and deferred payments linked to future concentrate production.

For Boab Metals (ASX:BML), full ownership provides greater direct exposure to the project's operating results while also concentrating development responsibilities and financial commitments.

The expanded Mineral Resource may support future reserve conversion studies, although any resulting changes to mine life or production schedules remain subject to further evaluation.

Construction Progress Across Sorby Hills

During the September 2026 quarter, Boab continued development activities involving processing infrastructure, earthworks and accommodation facilities.

Deconstruction of the acquired processing plant progressed, with relocation activities commencing as part of the project execution programme.

Site works included progress on the evaporation pond, tailings storage facility and foundations for processing infrastructure.

Construction expenditure during the quarter included approximately AUD 13.0 million for processing plant engineering, AUD 7.4 million for bulk earthworks and AUD 3.9 million for accommodation facilities.

Additional expenditure supported owner-managed project activities and associated infrastructure.

For Boab Metals (ASX:BML), the construction programme represents a transition from technical planning towards physical project delivery.

However, contractor performance, equipment installation, seasonal weather and commissioning requirements remain important schedule considerations.

FY2026 Financial Performance and Project Funding

Boab Metals reported a statutory net loss of approximately AUD 7.22 million for FY2026, compared with AUD 3.84 million in FY2025.

Cash holdings declined from approximately AUD 60.9 million at 30 June 2026 to AUD 29.9 million at 30 September 2026 as construction expenditure increased.

The September quarter included approximately AUD 29.2 million in net investing cash outflows, largely associated with Sorby Hills development.

The company also reported approximately AUD 1.7 million in net operating cash outflows.

A syndicated debt facility of AUD 236 million remained undrawn at 30 September 2026, with the initial drawdown expected during the December quarter, subject to satisfying the relevant conditions.

For Boab Metals (ASX:BML), access to this financing is important for meeting remaining construction expenditure.

The facility also introduces interest costs and repayment obligations that will need to be managed alongside future project cash flows.

What Risks Remain Before Concentrate Production?

The Sorby Hills development remains exposed to construction, financing and Commodity market uncertainties.

The company's September 2026 project delivery plan estimated total Capital Expenditure of approximately AUD 262 million, with substantial spending remaining.

Timely access to debt funding is therefore important for maintaining the development schedule.

Lead and silver prices, treatment charges, operating costs and processing recoveries will influence future project economics.

For Boab Metals (ASX:BML), the presence of Inferred resources also means that part of the broader mineral inventory requires additional geological confidence before potential reserve conversion.

What Are the Next Development Milestones?

The company expects further progress on financing, construction contracts and site establishment during the December 2026 quarter.

Mining activities are targeted to commence by March 2027, while first concentrate production is planned for the third quarter of calendar 2027.

Outstanding exploration assays may also contribute to future geological and resource assessments.

For Boab Metals (ASX:BML), meeting these milestones will depend on financing availability, construction progress and successful operational commissioning.

Key Insights

Boab Metals' expanded Sorby Hills Mineral Resource strengthens the project's defined mineral inventory while construction advances towards planned 2027 concentrate production. Full project ownership provides greater direct exposure to potential future operations, but remaining capital expenditure and debt drawdown requirements are significant. Construction execution, commodity prices and commissioning performance will remain important factors.