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

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