HIGHLIGHTS
Project updates (excluding any change in macroeconomic assumptions) have delivered an increase of +A$73M Net Cash Flow and +A$41M NPV8 compared to the DFS.
Key Base Case Project Metrics include upfront Capital Expenditure of A$264M, average C1 Cost of US$ 0.36/lb payable Lead (including silver credits), pre-tax NPV8 of A$411M, pre-tax IRR of 37%, and average annual EBITDA of A$126M.
Importantly, the net change to pre-production Capital Expenditure is limited and project pre- tax cash flows over the initial 5 years of production have improved by +A$150M providing a stronger profile to support debt financing.
Assuming current spot pricing1 for Lead, Silver, Exchange Rate and current Benchmark Lead Treatment and Silver Refining Charges results in an NPV8 of A$596M, pre-tax IRR of 47% and average annual EBITDA of A$160M.
Key Project updates include:
Boab Managing Director and CEO, Simon Noon, stated:
“Following the DFS, we identified clear opportunities to optimise and de-risk the Project both technically and economically. Over the past year, we have pursued these opportunities in conjunction with completing Front End Engineering & Design on our Process Plant with GRES.
We are pleased to present the results of our work during this period in the form of this FEED Study. We now look forward to accelerating our engagement with financiers and further advancing Sorby Hills toward a Final Investment Decision.”
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