Boab’s Full Ownership of Sorby Hills Brings Production and Payment Risks
Boab Metals has secured 100% ownership of the Sorby Hills Silver-Lead-Zinc Project, fully funding the operation and setting sights on first production in the second half of 2027.
- Acquisition of Yuguang’s 25% stake completed
- Boab now owns 100% of Sorby Hills project
- Project fully funded with over A$350 million raised
- First concentrate production targeted for H2 2027
- Deferred payments to Yuguang contingent on production start
Full Ownership Secured
Boab Metals Limited has officially completed the acquisition of Yuguang (Australia) Pty Ltd’s 25% interest in the Sorby Hills Silver-Lead-Zinc Project, elevating its stake to 100%. This strategic move grants Boab full control over the project’s output, including an anticipated 897,000 tonnes of concentrate containing 18.6 million ounces of silver and 575,000 tonnes of lead.
Funding and Production Timeline
The company has raised more than A$350 million to fully fund Sorby Hills through to first production, which remains on track for the second half of 2027. This milestone follows Boab’s Final Investment Decision in December 2025, signalling strong confidence in the project’s viability and market potential.
Financial Terms and Future Obligations
Boab paid an upfront sum of A$12.5 million to Yuguang for the acquisition, with deferred payments of A$5.5 million and A$5.0 million scheduled 12 and 18 months after concentrate production begins. These staggered payments align incentives and reflect the project’s transition from development to operational phase.
Market Context and Strategic Implications
With silver prices currently nearly four times higher than those assumed in earlier feasibility studies, Boab stands to benefit from improved operating margins. Managing Director Simon Noon highlighted the company’s readiness to become a significant base and precious metals producer, leveraging full ownership to maximise shareholder returns amid favourable market conditions.
Location and Logistics Advantage
Situated in the East Kimberley region of Western Australia, Sorby Hills enjoys excellent infrastructure access, including sealed roads facilitating concentrate transport to Wyndham Port, 150 kilometres away. This logistical advantage supports efficient project execution and cost management.
Bottom Line?
Boab’s full ownership and funding of Sorby Hills set the stage for a pivotal growth phase as production approaches.
Questions in the middle?
- How will fluctuating silver and lead prices impact Sorby Hills’ profitability?
- What are the key operational risks as Boab transitions to production?
- Could Boab pursue further expansions or partnerships leveraging full project control?
