Uranium

Boss Energy weathers inflationary storm: Honeymoon Uranium Mine restart costs remain unchanged

Thu 31 Mar 22, 11:16am (AEST)
Uranium 9 Mine
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Key Points

  • Front-end engineering design studies confirm Honeymoon cost estimates are in-line with previous estimates
  • A final investment decision is expected to be made in the coming weeks
  • Boss expects first uranium to be produced within 12-18 months of final investment decision

Boss Energy (ASX: BOE) is on-track to become Australia’s next uranium producer after a recently completed front-end engineering design (FEED) study reaffirmed previous cost, technical and financial metrics. 

The FEED study confirmed the cost estimates from a previous enhanced feasibility study completed in June 2021. Key highlights include: 

  • Total capital estimate of $113m for Honeymoon restart

  • Nameplate production of 2.45m lb of uranium per annum

  • All-in sustaining cost of US$25.60

  • First uranium expected within 12-18 months of final investment decision

  • Initial life of mine of 11-years

“The FEED shows Honeymoon’s costs are in line with the forecasts contained in last year’s enhanced feasibility study, which is a superb outcome given the wider inflationary environment,” commented Boss Managing Director Duncan Craib. 

“These key findings come against a backdrop of significant increases in the uranium price and an exceptionally strong supply-demand outlook.”

Final investment decision timeline

The final investment decision is expected to be made after the completion of the Tranche 2 Placement, around 5 May. 

For the uninitiated, Boss Energy successfully raised $120m at $2.15 per share on 18 March. The offer takes place in two tranches: 

  1. Approximately $92m

  2. Approximately $28m, subject to shareholder approval at the company’s extraordinary general meeting held in late-April

 

Written By

Kerry Sun

Finance Writer & Social Media

Kerry holds a Bachelor of Commerce from Monash University and was Vice President of the University Network for Investing and Trading (UNIT). He is an avid swing trader, and drawn to breakouts and technical set ups. Outside of writing and trading, Kerry is a huge UFC fan, loves poker and bouldering.

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