- Boss Energy (BOE) makes a final investment decision (FID) regarding the development of its Honeymoon uranium project in South Australia
- The project is expected to cost $113 million to develop and will be fully funded through a recent $125 million capital raise
- Managing Director Duncan Craib says the FID puts the company “firmly on track” to be Australia’s next uranium producer, with first production targeted for Q4 2023
- Front-end engineering studies are completed and Boss Energy is ordering key equipment to start construction immediately
- Boss Energy shares are down 2.88 per cent to $2.36 at 10:14 am AEST
Boss Energy (BOE) has made a final investment decision (FID) regarding the development of its Honeymoon uranium project in South Australia.
The FID follows Boss Managing Director Duncan Craib and Director Bryn Jones providing a full updated briefing to the South Australian Minister for Infrastructure, Transport, Energy and Mining, Tom Koutsantonis, on Friday, May 27.
The decision means the company will progress construction to target first production for the December 2023 quarter.
Including contingency, the development is expected to cost $113 million and is fully funded through a recent $125 million placement and share purchase plan.
Boss has no debt, which the company said positioned it well for maximum flexibility and pricing leverage in offtake negotiations.
Mr Craib said the FID put Boss Energy “firmly on track” to be Australia’s next uranium producer.
“We are fully-funded with no debt, fully-permitted and extensive infrastructure in place. Our front-end engineering studies are completed and we are ready to order key equipment and start construction immediately,” he said.
“This puts us in an extremely strong negotiating position with utilities and ensures we can capitalise on the looming uranium supply deficit.”
According to front-end engineering studies which confirmed cost estimates in early feasibility studies (EFS), the Honeymoon Project will be a “technically and financially robust project”.
Honeymoon has forecast nameplate production of 2.45 million pounds per annum within three years at an all-in sustaining cost of US$25.60 (A$35) per pound over its initial 11-year mine life. It also boasts strong economics with an internal rate of return of 47 per cent at a uranium price of US$60 per pound.
Boss Energy has ordered several long lead items including the award of a NIMCIX columns tender and the Water Treatment Plant tender, and detailed engineering is underway.
Boss Energy shares were down 2.88 per cent to $2.36 at 10:14 am AEST.