Morning Trading December 4, page-111

https://eastcoastresearch.com.au/reports/boab-metals-limited-asxbml

Valuation range of A$0.74–0.84 per share

Using the DCF approach and conservative assumptions on commodity prices, we have valued BML at A$0.74 per share in a base-case scenario and A$0.84 per share in a bull-case scenario. The target price range represents a Price/NAV of 0.24x, which we believe provides enough cushion for potential investors. We expect BML to get re- rated with the announcement of an offtake agreement or a debt funding arrangement prior to the FID and be able to raise equity capital at A$0.35 per share (25% higher than the latest capital raising price of A$0.28 per share in November 2022). Our valuation does not take into account the possible value-unlocking from non-core assets. The key risks include: funding risk, project delays and commodity price risk.