Boab Metals [ASX: BML, OTCQB: BMLQF] February 2026 Update
Metals & Mining
FID Achieved, Fully Funded & Advancing Toward First Production
We revise our Target Share Price on Boab Metals (ASX: BML, OTCQB: BMLQF) to $1.936, implying ~223% upside from the current share price of $0.600 and a ~145% increase from the previous Target Share Price of $0.791 as outlined in our Update report from September 2025. The re-rating potential is supported by the achievement of Final Investment Decision (FID) at Sorby Hills, the move to 100% ownership of the DeGrussa processing plant, and the securing of approximately A$350 million in committed funding, providing full funding certainty and materially de-risking project execution. With Sorby Hills targeting first production in H2 2027, BML has the potential to emerge as the fourth-largest ASX-listed silver producer, significantly improving cash flow visibility and market positioning.
FID De-Risks Sorby Hills and Unlocks Full Ownership
The achievement of FID at the Sorby Hills Silver-Lead Project represents a pivotal milestone for BML, formally transitioning the asset from development into construction. Importantly, FID also unlocked BML’s option to consolidate 100% ownership of Sorby Hills, simplifying the project structure and allowing the company to capture the full economic upside from development and production. Combined with full funding certainty and supportive commodity markets, this step materially reduces project risk, enhances strategic flexibility, and strengthens BML’s positioning as it advances toward first production by H2 2027.
Fully Funded Development Pathway with ~A$350m in Committed Capital
BML has secured approximately A$350 million in committed funding, providing full financial capacity to develop and construct the Sorby Hills Project through to first production. This funding comprises a A$236 million senior project finance debt facility together with approximately A$117 million in equity funding, including a recent Share Purchase Plan that was oversubscribed and capped at A$7 million, alongside earlier institutional placements. Recently, Franklin Templeton increased its holding in BML, raising its stake to over 7%, signalling stronger institutional confidence in BML. The strong demand for the SPP highlights continued investor support following FID.
Rising Silver Prices and FID Position BML for Meaningful Re-Rating
We update our valuation for BML to $1.715 per share in the base case and $2.157 in the upside case with a Price/NAV of 0.31x. Our updated valuation for BML is anchored in the project economics and strength in silver prices, supported by a combination of factors heading towards the global energy transition. Silver continues to benefit from its dual role as both a safe-haven asset and a critical industrial metal, with growing applications across energy storage technologies providing a compelling long-term structural demand backdrop. In contrast, lead remains one of the more stable metals within the base metals complex, underpinned by its entrenched role in automotive, industrial, and backup power batteries, offering a dependable revenue and cost-offset component within the Sorby Hills Project. Against this favourable commodity environment, BML is currently trading at a discount to its ASX-listed silver peers on a resource-adjusted comparison basis, despite having secured FID, full funding certainty, and a clear pathway to production. As a result, our valuation captures meaningful near-term upside while highlighting the durability of long-term cash flows and the potential for re-rating as execution risk continues to decline and BML heads towards production.