Slides
Page 1
Corporate Presentation December 2024 ASX: BML A near-term producer with a margin highly leveraged to the Silver Price For personal use only
Page 2
2 Forward-Looking Statements Certain statements in the presentation are or may be “forward-looking statements” and represent the Company’s intentions, projections, expectations or beliefs concerning, among other things, future operating and exploration results or the Company’s future performance. These forward-looking statements speak, and the presentation generally speaks, only at the date hereof. The projections, estimates and beliefs contained in such forward-looking statements necessarily involve known and unknown risks and uncertainties, and are necessarily based on assumptions, which may cause the Company’s actual performance and results in future periods to differ materially from any express or implied estimates or projections. General Disclaimer The information in this presentation remains subject to change without notice. This presentation may contain information (including information derived from publicly available sources) that has not been independently verified by the Company. Not an Offer This presentation is for information purposes only. The presentation does not comprise a prospectus, product disclosure statement or other offering document under Australian law. The presentation does not constitute or form part of any invitation, offer for sale or subscription or any solicitation for any offer to buy or subscribe for any shares in Boab Metals Limited. No Liability Boab Metals Limited has prepared this document based on information available at the time of preparation. No representation or warranty, express or implied is made as to the fairness, accuracy or completeness of the information, opinions and conclusions contained in this presentation. To the maximum extent permitted by law, Boab Metals Limited, its related bodies corporate and the officers, directors, employees, advisers and agents of those entities do not accept any responsibility or liability for any loss arising from the use of the presentation or its contents or otherwise arising in connection with it. Compliance Statement The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the ‘JORC Code’) sets out minimum standards, recommendations and guidelines for Public Reporting in Australasia of Exploration Results, Mineral Resources and Ore Reserves. Information included in this presentation relating to Mineral Resources has been extracted from the Mineral Resource Estimate dated 17 December 2021, available to view at www.boabmetals.com.au. The Company confirms that it is not aware of any new information or data that materially affects the information included in the Mineral Resource Estimate and that all material assumptions and technical parameters underpinning the estimates, continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the Mineral Resource Estimate. Information included in this presentation relating to Ore Reserves, Production Targets and Financial Forecasts has been extracted from the Sorby Hills Definitive Feasibility Study and FEED Study dated 19 January 2023 and 6 June 2024 respectively, available to view at www.boabmetals.com.au. The Company confirms that it is not aware of any new information or data that materially affects the information included in the Ore Reserve Statement and that all material assumptions and technical parameters underpinning the estimates, production targets and financial forecasts continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the Ore Reserves Statement. Information included in this presentation relating to Exploration Results has been extracted from the ASX Announcements titled “KEEP confirmed as a Target for Further Exploration” dated 22 October 2024, “Significant Intercepts at Sorby Hills” dated 8 November 2023, “Amended Drilling Announcement” dated 4 September 2023”, “Assays Confirm Further Positive Outcome for Sorby” dated 23 January 2023, “High-Grade Lead- Silver Confirmed at Beta Deposit” dated 1 February 2022 available to view at www.boabmetals.com.au. The Company confirms that it is not aware of any new information or data that materially affects the information included in these announcements. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the form in which they were first presented. Disclaimer 2 For personal use only
Page 3
3 • ASX-listed base and precious metals developer and explorer. • Advancing toward Final Investment Decision on Sorby Hills. • Board & Management team with a proven track record in development. • Top 20 shareholders hold 35% of issued capital. Share Price A$0.155/share Shares on Issue 233 million shares Market Cap A$36 million Debt Nil Cash A$3.8 million 1 Performance Rights 7,600,000 # Holder Name 10 Dec 2024 1 Villiers Queensland PL 7.82% 2 Zero Nominees Pty Ltd 4.11% 3 Acuity Capital Investment 3.33% 4 Citicorp Nominees Pty Limited 3.23% 5 BNP Paribas Nominees Pty Ltd 2.34% Capital Structure (10 December 2024) Top 5 Shareholders Share Price History Boab Metals Corporate Summary 1. In addition to the $3.8m existing cash reserves the company has a $4.8m At the market (ATM) Facility available for use at the company’s absolute discretion 3 0.00 0.05 0.10 0.15 0.20 0.25 0 1 2 3 4 5 6 7 8 9 10 Share Price (A$/sh) Volume (M Shares) Volume Price For personal use only
Page 4
4 Sorby Hills Project A near term producer of Lead & Silver Investment Highlights • Located 50km northeast of Kununurra, Western Australia and 150km by sealed roads to Wyndham Port • High quality 47.3Mt Mineral Resource at 4.3% PbEq (or 123g/t AgEq)1 • Resource includes 53Moz contained Silver • Initial Production Target of 18.3Mt (39% of Resource) underpinned by 83% Reserves • Significant near pit mine life extension opportunities • Conventional open pit mining and flotation process plant producing a high-grade Lead-Silver concentrate • FEED Study Complete – NPV8 A$411M, IRR 37% • Concentrate Offtake awarded • Binding US$30M Prepayment Term Sheet executed • Engagement with additional debt Financiers ongoing • Targeting a Final Investment Decision H2 2025 Figure: Location of the Sorby Hills Project 1. See Appendix for Resource breakdown and Metal Equivalent Assumptions Boab Metals Limited ASX: BML 4 For personal use only
Page 5
5 0 20 40 60 80 100 120 140 160 180 200 0 20 40 60 80 100 120 140 160 180 200 Resource Grade (g/t Ag) Contained Silver in Resource (Moz) Reserve Ounces Contained Non Reserve Ounces Contained Resource Grade Sorby Hills Project 53Moz - A significant Silver Resource Boab Metals Limited ASX: BML 5 Comparison of contained Silver in undeveloped Australian Silver deposits Feasibility Study Complete PFS Study Complete Scoping Study Complete No Study For personal use only
Page 6
6 2024 ✓ Completion of a Front-End Engineering & Design Study (“FEED Study”) delivering improve project economics1. ✓ Agreement to acquire 100% Sorby Hills upon Final Investment Decision2. ✓ Execution of Binding Offtake and US$30 Million Prepayment Facility with Trafigura3. ✓ Identified opportunity to acquire DeGrussa Process Plant and reduce project Capex4. Sorby Hills Project Progress toward a Final Investment Decision 1. ASX Release 6 June 2024 2. ASX Release 23 September 2024 3. ASX Release 10 December 2024 4. ASX Release 25 October 2024 6 Recent achievements provide Boab with significant momentum heading into 2025 2022 - 2023 ✓ Completion of the Sorby Hills Definitive Feasibility Study (“DFS”)1. ✓ Heads of Agreement to source green power from the Ord-River Hydroelectric Plant executed with Horizon Power2. ✓ Port Access Agreement executed with port operators Cambridge Gulf Limited3. ✓ 178-person Accommodation Facility acquired and relocated to site4. 1. ASX Release 19 January 2023 2. ASX Release 22 April 2022 3. ASX Release 31 March 2022 4. ASX Release 15 September 2022 For personal use only
Page 7
7 NPV8 A$411m IRR 37% Strong pre-tax economics A$264m pre- production Capex underpinned 75% by tendered pricing Average Annual Production 103kt Lead-Silver concentrate 64kt Lead and 2.0Moz Silver C1 cash cost US$0.36/lb payable Pb Incl. net Silver credit of US$0.37/lb payable Pb A$126m p.a. Average EBITDA 2.25Mtpa 8.5 Year Mine Life A$1.1bn Operating Cash Flow Sorby Hills Project FEED Study completed June 2024 FEED Study Highlights Boab Metals Limited ASX: BML 7 FEED Study Macroeconomic Assumptions Pb: US$2,252/t (A$3,312/t), Ag: US$27.4/oz (A$40.4/oz), FX: 0.68, Lead TC: US$125/t Spot Macroeconomics As at 11 December 2024 • Lead: A$3,230/t • Silver: A$49.8/oz • FX: 0.64 AUD:USD • Spot Lead TC: US$30/t1 NPV8 = A$559m 1. Source: What do the record low base metal concentrate TCs have in common? – Fastmarkets 28 June 2024 Shallow high grade and Low Strip Ore delivering strong low risk early cashflows and rapid payback For personal use only
Page 8
8 1st Quartile 2nd Quartile 3rd Quartile 4th Quartile Sorby Hills Project 2027 Lead Cost Curve (ex-works basis) US$/t Lead Low risk open cut mining and high process plant throughput drives low operating cost relative to global peers. CRU, Independent Market Consultant Report for Boab Metals’ Sorby Hills Pb-Ag Project (Sept 2023). Sorby Hills Project Confirmed Low-Cost producer Independently confirmed as a 1st Quartile Project on the Global Lead cost curve Boab Metals Limited ASX: BML 8 For personal use only
Page 9
9 Sorby Hills Project Agreement to acquire 100% Interest Boab Metals Limited ASX: BML 9 Further Project value attributable to Boab upon acquisition +218kt Concentrate +137kt Payable Lead +4.3Moz Payable Silver +A$103M NPV based on the Sorby Hills FEED Study - ASX Release 6 June 2024 Terms of the Agreement 12-month option for Boab to acquire remaining 25% interest in Sorby Hills existing JV partner. Full control over joint venture budgets and work programs during the Option Period. Should the Option be exercised, Boab will pay: • Tranche 1: A$12.5M upon reaching a Final Investment Decision at Sorby Hills; • Tranche 2: A$5.5M payable within 12 months following first concentrate production; and • Tranche 3: A$5.0M payable within 18 months following first concentrate production. Importantly, the option agreement requires no immediate payment and provides a new basis on which to engage potential Financiers. ASX Release 23 September 2024 For personal use only
Page 10
10 Sorby Hills Project Offtake and Prepayment Agreement Boab Metals Limited ASX: BML 10 Attractive and flexible offtake terms from global commodities trader Trafigura US$30M Prepayment represents a cornerstone element of targeted financing plan for Sorby Hills. Terms of the Agreement with Trafigura Binding Prepayment Term Sheet • US$30M for the development and construction of Sorby Hills. • 5 Year Term, 18 Month Repayment Grace Period. • Interest Rate of Term SOFR + 5%. • Repaid via monthly instalments following the Grace Period. Binding Offtake Agreement • 75% of the lead-silver Concentrate produced at Sorby Hills. • Minimum Quantity of 531kt (~7 years based on the FEED Study). • Market standard metal pricing and metal payabilities. • Ability for Boab to scale back Offtake Percentage and Minimum Quantity should the Prepayment Facility not proceed or Boab’s sources alternative financing. ASX Release 10 December 2024 For personal use only
Page 11
11 Sorby Hills Project High Quality Concentrate Boab Metals Limited ASX: BML 11 Wyndham Port located just 150km from Sorby Hills by existing sealed road. Concentrate to be transported from site to Wyndham in sealed containers. 873kt of Concentrate shipped at an average 103kt per annum. • Average 65.8% Lead. • Average 664 g/t Silver. Port Access Agreement executed with port operators Cambridge Gulf. Figure: Loading at Wyndham Port For personal use only
Page 12
12 Sorby Hills Project Development Ready Figure: 3D Model of the Sorby Hills Process Plant produce by GRES during FEED. SAG Mill Ball Mill Tailings Thickener Filter Press Flotation Circuit Concentrate Container Loading Primary Crusher Conventional Crush-Mill- Flotation circuit to produce Lead-Silver concentrate. High metallurgical recoveries (92% Lead, 82% Silver) based on extensive testwork. Front End Engineering & Design (“FEED”) has been completed by GR Engineering Services (“GRES”). FEED EPC pricing consistent with pricing adopted in the DFS. Options to further reduce costs have been identified by GRES. Boab Metals Limited ASX: BML 12 For personal use only
Page 13
13 Sorby Hills Project Cost Reduction Initiatives Boab Metals Limited ASX: BML 13 Company is assessing two material opportunities to reduce the costs for Sorby Hills. Second Hand Process Plant • Sandfire Resources’ DeGrussa Process Plant has been identified as highly prospective and fit-for-purpose opportunity to reduce project capital costs. • Currently located 900km northeast of Perth. • The plant was part of the world-class DeGrussa Copper mine that was built and operated by Sandfire between 2011-2023. • Boab is working with GRES to undertake a thorough review of the plant and assess the technical and economic benefit of its incorporation into the Sorby Hills Project. 100% Clean Energy from the Ord River Hydroelectric Plant • FEED Study included provision or a full-scale diesel generator back up on-site (in addition to grid power). • The Company is exploring the opportunity to reduce the size of, or remove the need for, back-up diesel generators and further increase to percentage of green, grid power from the hydroelectric plant beyond the current ~90%. Figure: DeGrussa Process Plant For personal use only
Page 14
14 Sorby Hills Project Strategic Growth Opportunities Vision to establish a long-life presence in the east Kimberley Region Figure: Location of the Manbarrum Project, Eight Mile Creek Project and Keep n-Pb Target relative to Sorby Hills. Manbarrum Zn-Pb-Ag Project ▪ located 25km east of the Sorby Hills Project. ▪ 175km2 of prospective tenements (including two granted mining leases) covering geology related to that found at Sorby Hills. ▪ Mineral Resources declared at two prospects which are zinc and silver dominated. ▪ Conceptual open pit mining studies completed by CSA Global in 2018. Keep Zinc Lead Target ▪ New Zinc-Lead mineralisation recently discovered via greenfield exploration within the existing Sorby Hills mining leases ▪ Ore grade intercepts include: ▪ SHSD_185: 9.55 m @ 5.10% PbEq (2.59% Pb & 2.26% Zn) and 17.6 g/t Ag from 242.55 m ▪ SHSD_189: 2.00 m @ 7.73% PbEq (1.23% Pb & 5.86% Zn) and 36.7 g/t Ag from 303.0 m Eight Mile Creek Project ▪ 30km of along-strike geology, highly prospective for deposits similar to Sorby Hills. ▪ The exploration success based on seismic data at the Keep Zinc-Lead Target has opened the door for more bold exploration at Eight Mile Creek. Eight Mile Creek (Pb-Ag-Zn) Keep Zn-Pb Target Boab Metals Limited ASX: BML 14 ASX Release 22 October 2024 For personal use only
Page 15
15 Sorby Hills Project Final Investment Decision Milestones Boab Metals Limited ASX: BML 15 ✓ Completed FEED Study on the Sorby Hills Project. ✓ Secured option to acquire 100% of the Project. ✓ Secured cornerstone Offtake and Financing. • Q4/2024 - Q1/2025: • Complete review of the DeGrussa Process plant and assess the technical and economic benefit of its incorporation into the Sorby Hills; • H1 2025: • Secure additional non-dilutive debt finance to support funding of the Sorby Hills Project; and • Finalise regulatory approvals required to commence construction at Sorby Hills. • H2 2025: • Final Investment Decision • Sorby Hills Mine life extensional and infill drilling • Growth project exploration For personal use only
Page 16
16 Board and Technical Team Engineer with over 30 years’ experience in the Australian mining industry, with a strong track record in successfully commissioning and operating base metal mines. Gary Comb Chairman Board and Management with a proven track record in exploration and development Experienced mining executive with a strong background in management, capital raising and operating JV’s with mid to top tier miners in a variety of commodities. Simon Noon Managing Director and CEO Geologist with over 30 years’ experience in technical, commercial, marketing and finance within the exploration and mining industry. Richard Monti Non-Exec. Director Lawyer with significant experience in the exploration and mining industry. Wealth of expertise in corporate advisory, strategic consultancy and raising capital. Andrew Parker Non-Exec. Director Bill Darcey – Project Manager Simon Dorling - Exploration Manager Mining professional with over 40 years of experience and a proven track record of successfully managing, optimising, and developing mining operations. Bill was previously Operations Manager at the Mt Garnet Cu-Pb-Zn operation, where he oversaw the successful start- up and management of an 800,000 TPA zinc-lead operation in China. Bill holds degrees in both mining engineering and metallurgy. Geologist with more than 26 years’ experience in exploration, development and the mining of base metals, precious metals, energy minerals and industrial minerals. Technical Team Boab Metals Limited ASX: BML 16 For personal use only
Page 17
17 Simon Noon – Managing Director & CEO info@BoabMetals.com www.BoabMetals.com www.linkedin.com/company/boab-metals Thank You 17 For personal use only
Page 18
18 Appendix Appendix 18 For personal use only
Page 19
19 Boab is extremely proud to be the Naming Rights Sponsor of the Ord Valley Muster for 2023 and beyond. • Sense of community plays a key role in economic and social well-being of stakeholders across the east Kimberley Region. • The Ord Valley Muster has been a highlight of the Kimberley community calendar for 20 years. Boab is an enthusiastic supporter and active contributor to the Teach Learn Grow program. • Boab Metals has been partnering with Teach Learn Grow (TLG) since 2021 in the delivery of their Rural Program which supports one-on-one tutoring and mentorship to students in East Kimberley schools. Images: Ord Valley Muster 2023 and Simon Noon - Managing Director/CEO with team at Teach Learn Grow, East Kimberley Boab Metals Establishing Deep Roots within the Local Community Boab Metals Limited ASX: BML 19 For personal use only
Page 20
20 Sorby Hills Project High Quality Resource Estimate Deposit Tonnes (Mt) Grade Contained Metal Pb Zn Ag PbEq1 Pb Zn Ag % % g/t % kt kt koz A 0.6 5.3% 0.1% 23 6.1% 31 6 427 B 2.7 3.6% 0.3% 20 4.3% 97 8 1,720 Omega 17.2 3.3% 0.4% 34 4.5% 566 71 18,948 Norton 21.1 2.8% 0.4% 34 4.0% 590 96 24,090 Alpha 1.5 3.1% 0.9% 64 5.3% 45 13 2,975 Beta 4.2 3.6% 0.4% 43 5.1% 151 17 5,856 Measured 12.6 3.5% 0.4% 43 5.0% 444 45 17,521 Indicated 11.0 3.4% 0.4% 34 4.6% 377 46 12,114 Inferred 23.6 2.7% 0.5% 31 3.8% 645 117 23,406 Total 47.3 3.1% 0.4% 35 4.3% 1,465 207 53,042 Figure: Location of the Sorby Hills Resources See ASX announcement 17 December 2021 1. See Appendix for Lead & Silver Equivalent calculation method A different perspective - 47.3Mt @ 123g/t Silver Equivalent 20 For personal use only
Page 21
21 Sorby Hills Project Low Risk Open Pit Ore Reserve See ASX announcement 19 January 2023 Pit Total (Mt) Waste (Mt) ROM (Mt) Pb (%) Ag (g/t) PbEq (%) Strip Ratio Pit A 4.1 3.7 0.5 3.7 16.4 4.3% 8.1 Pit B 14.8 12.6 2.3 3.2 17.4 3.8% 5.5 Omega South 21.1 18.3 2.8 2.9 29.5 3.9% 6.5 Omega Main 57.7 50.3 7.4 3.6 38.7 5.0% 6.8 Norton 21.4 19.5 1.9 4.0 78.5 6.8% 10.0 Beta 35.6 32.2 3.4 3.3 41.5 4.8% 9.5 Total Production 154.8 136.5 18.3 3.4 38.8 4.8% 7.5 Ore Reserve Category Ore (Mt) Grade Contained Metal Pb (%) Ag (g/t) Pb (kt) Ag (Moz) Proved 10.4 3.5% 42 358 14.1 Probable 4.9 3.5% 32 172 5.0 Total Ore Reserve 15.2 3.5% 39 531 19.1 FEED Study Production Target Ore Reserve Statement 1. See Appendix for Lead Equivalent calculation method Figure: DFS pit shells with respect to the Resource block model Production Target underpinned 83% by Measured and Indicated Resources. Including 95% Measured and Indicated Resources over the first 7 years of production. 57%26% 17% Measured Indicated Inferred Boab Metals Limited ASX: BML 21 For personal use only
Page 22
22 PHYSICALS SUMMARY Unit Total 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 ROM Mined Mt 18.3 - 0.4 2.1 2.3 2.4 2.5 2.3 2.0 1.1 3.0 0.3 - Waste Mined Mt 134.6 - 3.8 11.7 14.3 25.7 25.4 21.0 17.3 13.0 4.2 0.2 - % Measured % 56.7% - 67.3% 91.7% 64.7% 72.0% 89.7% 71.8% 47.7% 16.6% - - - % Indicated % 26.5% - 32.7% 8.3% 35.3% 27.2% 8.9% 26.7% 49.7% 30.6% 31.1% - - % Inferred % 16.8% - - - - 0.9% 1.4% 1.5% 2.7% 52.8% 68.9% 100.0% - Lead Grade % 3.4% - 3.8% 4.1% 3.2% 3.8% 3.3% 3.1% 3.1% 3.6% 3.4% 2.9% - Silver Grade g/t 39 - 24 39 28 60 50 22 27 42 41 50 - Processed Tonnes Mt 18.3 - - 1.39 2.25 2.26 2.25 2.25 2.25 2.26 2.25 1.11 - Lead Grade % 3.4% - - 5.5% 3.4% 4.0% 3.5% 3.1% 3.0% 2.5% 3.5% 3.0% - Silver Grade g/t 39 - - 47 30 59 54 24 27 30 41 41 - Lead Recovery % 91.6% - - 90.9% 94.1% 90.0% 88.0% 92.7% 94.7% 93.8% 90.3% 90.3% - Silver Recovery % 81.7% - - 87.2% 86.2% 82.2% 81.4% 86.9% 86.9% 85.7% 70.4% 70.3% - Concentrate Produced kt 873 - - 109 110 126 112 99 98 80 97 42 - Lead Grade % 65.8% - - 64.2% 65.6% 63.5% 62.4% 65.9% 66.0% 65.7% 72.2% 72.3% - Silver Grade g/t 664 - - 529 532 860 878 479 535 730 677 770 - Payable Lead kt 546 - - 61 69 79 65 63 63 50 68 30 - Payable Silver Moz 17.2 - - 1.5 1.7 3.2 3.0 1.4 1.5 1.8 2.0 1.0 - Sorby Hills Feed Study Life of Mine Physicals Boab Metals Limited ASX: BML 22 For personal use only
Page 23
23 FINANCIAL SUMMARY Unit Total 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 Lead Revenue A$M 1,803 - - 198 225 260 215 207 208 165 226 98 1,803 Silver Revenue A$M 693 - - 59 69 131 121 57 62 71 82 40 693 Total Revenue A$M 2,496 - - 257 295 392 337 264 269 236 308 138 - TR/RCs A$M (191) - - (21) (23) (30) (26) (21) (21) (18) (22) (10) - Royalties A$M (95) - - (10) (11) (14) (12) (10) (10) (9) (12) (5) - Net Revenue A$M 2,209 - - 227 260 347 299 233 238 210 274 123 - Logistics A$M (117) - - (14) (15) (17) (15) (13) (13) (11) (13) (6) - Mining A$M (547) - - (51) (62) (94) (93) (81) (71) (54) (36) (4) - Processing A$M (388) - - (38) (47) (47) (47) (47) (47) (47) (47) (24) - G & A A$M (88) - - (10) (10) (10) (10) (10) (10) (10) (10) (5) - Operating Cash Flow A$M 1,069 - - 114 126 180 134 81 96 88 167 84 - Pre-production Capex A$M (264) (131) (133) - - - - - - - - - - Sustaining Capex A$M (26) - - (12) (1) (3) (1) (0) - - - (5) (4) Project Cash Flows A$M 778 (131) (133) 101 125 177 133 81 96 88 167 78 (4) NPV8 A$M 411 IRR % 37 Average EBITDA A$M 126 Sorby Hills Feed Study Life of Mine Cashflows Boab Metals Limited ASX: BML 23 For personal use only
Page 24
24 -2.00% -1.50% -1.00% -0.50% 0.00% 0.50% 1.00% 1.50% 2.00% -6.00% -4.00% -2.00% 0.00% 2.00% 4.00% 6.00% Sorby Hills Project Continuing to Delivering Silver Exposure to Investors Boab Metals Limited ASX: BML 24 ▪ Since the acquisition of the Sorby Hills Project in June 2018, Boab’s share price has exhibited a strong correlation with movements in the price of Silver. ▪ Significant positive movements in Silver price correspond to significant positive movements in the Boab share price Rolling 30-day average daily % changes in USD Silver price & BML share price since June 2018 -2.00% -1.50% -1.00% -0.50% 0.00% 0.50% 1.00% 1.50% 2.00% -6.00% -4.00% -2.00% 0.00% 2.00% 4.00% 6.00% BML 30-day Avg Daily % Change USD Silver 30-day Avg Daily % Change -4.00% -2.00% 0.00% 2.00% 4.00% 6.00% Jun-18 Dec-18 Jun-19 Dec-19 Jun-20 Dec-20 Jun-21 Dec-21 Jun-22 Dec-22 Jun-23 Dec-23 Jun-24 30 Day Average Daily Return BML Silver For personal use only
Page 25
25 Viewed differently, the Sorby Hills Project may be considered a low-cost silver producer AISC = negative US$14/oz Ag Sorby Hills Project Exposure to Silver Price Boab Metals Limited ASX: BML Operating Costs covered by a historically non-volatile Lead Price leaves the Operating margin fully leveraged to Silver price movements. *Based on FEED Study Price of US$27/oz Ag Sorby Hills AISC ex-Silver Credits US$0.81/lb Pb US$/lb 1.0 2.0 0 10-Year average Lead Price US$0.93/lb Pb Sorby Hills Net Silver Credits* US$0.37/lb Pb Sorby Hills Project Costs are more than covered by the 10-year average1 Lead Price Sorby Hills AISC ex Lead “Credits” US$51/oz Ag US$/oz 0 50 -50 Sorby Hills Net Lead “Credits” US$65/oz Ag AISC = negative US$14/oz Ag Sorby Hills – A low-cost Silver Producer? 38% Margin 25 AISC = All in Sustaining Cost or “Breakeven” cost Project Costs Project Revenue 1 As at 5 August 2024 Increasing Silver Price For personal use only
Page 26
26 Sorby Hills FEED Study Capital Cost Breakdown Item Pre-Production (A$M) Sustaining (A$M) Total (A$M) EPC Contract 134.9 - 134.9 Site Est / Bulk Earthworks 31.9 4.9 36.9 Water Management 8.1 11.7 19.8 Accommodation Village 11.5 - 11.5 Other Infrastructure 8.5 0.6 9.1 Owners Costs 32.0 - 32.0 Contingency 22.7 - 22.7 Pre-Production Opex 15.0 - 15.0 Closure Costs - 9.3 9.3 Total Capital Costs 264.5 26.5 290.9 Total upfront capital cost of A$264M including A$22.7M contingency. ~66% of capital costs underpinned by tendered pricing, including an updated Process Plant EPC pricing following the completion of Front-End Engineering & Design by GRES. A$32M Owner Costs including operational readiness items such as critical spares and owner’s team. Opportunities being explored to further reduce upfront capital costs and project implementation risk. Boab Metals Limited ASX: BML 26 For personal use only
Page 27
27 Sorby Hills FEED Study Operating Cost Breakdown Unit Operating Costs based on 18.3Mt of Ore, 546kt of Payable Lead, average exchange rate of AUD:USD 0.68 and average Silver price of US$27.4/oz. Item Total (A$M) Unit Costs A$/t ore US$/lb payable Pb Logistics 117 6.4 0.07 Mining 547 30.0 0.31 Processing 388 21.3 0.22 G & A 88 4.8 0.05 Lead Treatment 160 8.8 0.09 C1 Costs (ex-Credits) 1,300 71.2 0.74 Net Silver Credits (661) (36.2) (0.37) C1 Costs 639 35.0 0.36 Royalties 95 5.2 0.05 Sustaining Capital 26 1.4 0.01 AISC 760 41.6 0.43 Competitive C1 cash cost of US$0.36/lb payable Pb (including Silver Credits). ~80% of Mining Costs underpinned by tendered pricing. Opportunity to reduce Process costs through the optimisation of back-up power requirements. Boab Metals Limited ASX: BML 27 For personal use only
Page 28
28 Sorby Hills Project Peer Comparison (as at 23 October 2024) Boab Metals Limited ASX: BML 28 Project Primary Commodity Ticker Owner Proved Reserve (Mt) Probable Reserve (Mt) Reserve Grade (g/t) Measured Resource (Mt) Indicated Resource (Mt) Inferred Resource (Mt) Resource Grade (g/t) Source Bowdens Silver SVL Silver Mines Limited 29 1 68 107 50 43 29 Company Presentation – 11 September 2024 Admiral Bay Zinc ARI Arika Resources Limited - - - - - 170 25 2023 Annual Report Maronan Silver MMA Maronan Metals Limited - - - - 2 30 107 Resource Report – 12 March 2024 Walford Creek Copper AML Aeon Metals Limited - - - 17 28 28 28 Resource Report – 15 March 2023 Peterlumbo Silver IVR Investigator Resources Limited - - - - 17 7 73 2024 Annual Report Sorby Hills Lead BML Boab Metals Limited 10 5 39 13 11 24 35 Resource Report – 17 December 2021 Wonawinta Silver MKR Manuka Resources Limited 1 4 54 1 12 25 41 Resource Report – 1 April 2021 Kempfield Silver ARD Argent Minerals Limited - - - - 23 16 34 2024 Annual Report Mt Mulgine Tungsten TGN Tungsten Mining NL - 140 6 - 183 76 5 Pre-Feasibility Study - 29 January 2021 Caravel Copper CVV Caravel Minerals Limited - - - - 681 574 1 Resource Report – 13 November 2023 Elizabeth Creek Copper COD Coda Minerals Limited - - - - 57 9 17 Company Presentation – 3 September 2024 Jervois Copper KGL KGL Resources Limited 10 1 30 4 13 11 25 Resource Report 25 November 2024 Nimbus Silver HRZ Horizon Minerals Limited - - - 4 3 5 52 Company Announcement – 28 August 2024 Stockman Copper AIS Aeris Resources Limited - - - - 13 2 36 Company Presentation – 7 August 2024 Lewis Ponds Zinc GRL Godolphin Resources Limited - - - - - 6 83 2024 Annual Report Hayes Creek Zinc PNX PNX Metals Limited - - - - 3 1 124 2023 Annual Report Whitewash Molybdenum AML Aeon Metals Limited - - - - 185 56 2 Resource Report – 30 May 2011 Wagga Tank Zinc PEX Peel Mining Limited - - - - 4 3 62 2024 Annual Report Sulphur Springs Copper DVP Develop Global Limited - 9 21 - 15 3 22 Company Presentation – 6 September 2024 Earaheedy Zinc RTR Rumble Resources Limited - - - - - 94 4 Company Presentation – 6 August 2024 All figures have been rounded to the nearest whole number For personal use only
Page 29
29 Feed Study Macroeconomic Assumptions The contained metal equivalence formula is based on the Sorby Hills FEED Study including: • Lead Price US$2,253/t; and • Silver Price US$27.4/oz. Lead Equivalent Calculations • Silver recovery of 82% (weighted average of oxide and fresh Ag recoveries); and • Silver Payability rate of 95%. Silver Equivalent Calculations • Lead recovery of 91% (weighted average of oxide and fresh Pb recoveries); and • Lead Payability rate of 95%. Pb Ag It is Boab’s opinion that all elements included in the metal equivalent calculation have a reasonable potential to be recovered and sold. The formula used to calculate lead equivalent grade is: Metal Eq (percent) = Gpri + (Gpri × [∑i Ri Si Vi Gi ]/(Rpri Spri Vpri Gpri)) where R is the respective metallurgical metal recovery rate, S is the respective smelter return rate, V is metal price/tonne or ounce, and G is the metal commodity grade for the suite of potentially recoverable commodities (i) relative to the primary metal (pri). Metal equivalents are highly dependent on the metal prices used to derive the formula. Boab notes that the metal equivalence method used above is a simplified approach. The metal prices are based on the DFS values adopted and do not reflect the metal prices that a smelter would pay for concentrate nor are any smelter penalties or charges included in the calculation. Owing to limited metallurgical data, zinc grades are not included at this stage in the lead equivalent grade calculation. Assumption Unit 2025 2026 2027 2028 2029+ Lead Price US$/t 2,259 2,268 2,269 2,254 2,251 Silver Price US$/oz 24.8 25.8 26.4 27.3 27.5 Exchange Rate A$:US$ 0.70 0.70 0.70 0.69 0.68 Boab Metals Limited ASX: BML Metal Equivalent Calculations 29 For personal use only