Boss Energy weathers inflationary storm: Honeymoon Uranium Mine restart costs remain unchanged
Boss Energy expects to make a final investment decision for Honeymoon in the coming weeks
Source: iStock
Mentioned
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:
Approximately $92m
Approximately $28m, subject to shareholder approval at the company’s extraordinary general meeting held in late-April
