How Will Boab Metals Harness Triple Silver Prices at Sorby Hills in 2026?

Strategic Momentum Builds at Sorby Hills

Boab Metals Limited is entering a pivotal phase in 2026 as it advances construction at its flagship Sorby Hills Silver-Lead Project in Western Australia's East Kimberley region. Following a Final Investment Decision (FID) in late 2025, the company has secured full funding and is progressing with key construction activities, including site establishment, bulk earthworks, and the relocation of the DeGrussa Processing Plant.

The project’s location, just 50 kilometres from Kununurra and with access to sealed roads leading to Wyndham Port, positions Boab well to efficiently transport its anticipated silver-rich lead concentrate. The company remains on track for first concentrate production in the second half of 2027, a milestone that will mark its transition from development to operational status.

Exceptional Silver Price Leverage

One of the standout features of Boab’s outlook is the exceptional leverage to silver prices. Current spot prices sit at approximately US$83.7 per ounce, roughly three times higher than the US$27.4 per ounce assumed in the 2024 Front-End Engineering Design (FEED) study. This significant price uplift underpins a more robust project economics profile and offers substantial near-term upside potential.

Boab plans to incorporate these favourable market conditions into a comprehensive Project Delivery Plan due in the second quarter of 2026. This plan will integrate optimisation initiatives aimed at enhancing capital and operating cost efficiencies, reducing execution risks, and refining contracts and execution strategies.

Unlocking Value Through Targeted Drilling

In 2026, Boab will undertake a focused drilling program designed to support both immediate production ramp-up and longer-term resource growth. This includes resource-to-reserve conversion drilling to upgrade existing mineral resources for detailed mine planning, as well as silver-focused resource expansion drilling targeting extensions of known mineralisation previously excluded due to lead-only cut-off grades.

Exploration drilling will also extend to the broader Sorby Hills tenure and the nearby Manbarrum Zinc-Silver-Lead Project, where Boab holds 100% ownership. These efforts aim to identify new discoveries and further define resources, potentially extending the mine life and enhancing shareholder value.

Corporate Milestones and Strategic Flexibility

Boab is poised to complete several key corporate milestones early in 2026, including acquiring full 100% ownership of Sorby Hills by exercising its option to buy out Henan Yuguang Gold & Lead Co. Ltd.’s 25% stake. The company will also finalise the purchase of the DeGrussa Processing Plant from Sandfire Resources and complete documentation for a committed A$236 million project finance debt facility arranged with Merricks Capital and Davidson Kempner.

Importantly, Boab retains strategic flexibility over concentrate sales, with no obligation to enter additional long-term offtake agreements beyond those required for financing. This discretion allows the company to optimise sales terms and capitalise on favourable market conditions for its high-quality silver-rich lead concentrate.

As Boab transitions from development to construction, the market will be watching closely for updates on construction progress, drilling results, and how the company leverages the current silver price environment to maximise project value.