Boss to fast track Honeymoon as supply shortages loom

Boss managing director Duncan Craib said there was a widespread expectation that uranium prices would rise in the near term as the supply deficit grew.

The company is hoping to reduce costs and increase Honeymoon’s nameplate capacity to 2.45 million pounds a year of triuranium octoxide.

The EFS is anticipated to provide a base case for Boss to fast track uranium production from only 36 million pounds of Honeymoon’s mineral resource of 71.6 million pounds.

This opens up opportunities for mine life extension and production profile improvements, according to Boss.

Craib said the company’s strategy was designed to ensure it had all the pieces of the puzzle in place to capitalise on the forecast increase in uranium prices.

“Given that our all-in costs (before any potential EFS savings) are $US32 ($42) per pound, and currently the long-term price index is in the high $US30s per pound, we are very well positioned for the long-awaited uranium price correction,” he said.

“We will complete the EFS and progress project funding so that when the widely predicted uranium price rises materialise in the near term, we will be poised to meet our goal of becoming Australia’s next uranium producer with very robust margins and strong free cashflow.”

Boss is also progressing its funding discussions ahead of securing offtake agreements, with the funding required for Honeymoon amounting to $US63.2 million.

This is one of the lowest funding requirements of any pre-production uranium project globally, according to Boss.

The Honeymoon project already has a full processing plant and infrastructure and is currently under care and maintenance.