- Boss Energy (BOE) has started discussions with global lenders about funding an operations reboot at its Honeymoon Uranium Project in South Australia
- The estimated capital expenditure requirements for Honeymoon total US$63.2 million (roughly A$82.8 million), one of the lowest funding requirements of any pre-production uranium project worldwide
- Confidentiality agreements between Boss and several global lenders have been signed and formal indicative financing proposals are now being sought
- Additionally, Boss is also on track to complete an enhanced feasibility study (EFS) on Honeymoon in the coming quarter
- The EFS aims to reduce costs and increase nameplate capacity by removing the existing solvent extraction columns at Honeymoon and replacing them with new NIMCIX columns
- Boss Energy is up 16.3 per cent, trading at 10 cents per share
Boss Energy (BOE) has started discussions with global lenders about funding an operations reboot at its Honeymoon Uranium Project in South Australia.
The company says this is a key step in its strategy towards becoming Australia’s next uranium producer.
The estimated capital expenditure requirements for Honeymoon total US$63.2 million (roughly A$82.8 million), one of the lowest funding requirements of any pre-production uranium project worldwide. Boss chalks this up to the project’s existing full processing plant and infrastructure.
So far, confidentiality agreements between Boss and several global lenders have been signed and formal indicative financing proposals are now being sought, with the aim to ensure debt funding is well advanced when the company seeks to finalise offtake agreements.
“There is a widespread expectation that uranium prices will rise in the near term as the supply deficit grows. Our strategic timetable is aimed at ensuring we are in a position to sign long-term offtake agreements when prices strengthen, locking in robust margins and substantial free cashflow in the process,” said Managing Director, Duncan Craib.
“This strategy is underpinned by the fact that the 100 per cent-owned Honeymoon is already fully permitted, including the permit to export uranium. It also has an existing plant (in care and maintenance) and a large JORC resource and will have one of the lowest operating costs among uranium producers worldwide.”
Additionally, Boss is on track to complete an enhanced feasibility study (EFS) on Honeymoon in the coming quarter, expected to coincide with a rising uranium price. This will aim to reduce costs and increase the project’s nameplate capacity by removing the existing solvent extraction columns at Honeymoon and replacing them with new NIMCIX columns.
The EFS provides a base case to fast-track uranium production from Honeymoon’s restart area, with no further permits required to resume production. This means there is substantial scope to extend the mine life and increase the production profile from the remaining identified JORC resources.
According to Boss, the increased production rate, combined with the lower costs stemming from the new NIMCIX columns, has the potential to increase free cashflow generation substantially.
“Our strategy is designed to ensure we have all the pieces of the puzzle in place to capitalise on the forecast increase in uranium prices,” Duncan commented.
“The price at which we enter into offtake agreements is dependent on our all-in costs and how we structure financing terms and maximise shareholder returns”.
Boss Energy is up 16.3 per cent, trading at 10 cents per share at 10:21 am AEDT.