Boss Energy board gives Honeymoon uranium project the green light

Boss Energy (ASX: BOE) managing director Duncan Craib joins Small Caps to discuss the board’s final investment decision to redevelop the Honeymoon uranium mine in South Australia.

A recently completed front-end engineering and design (FEED) study confirmed cost estimates in the enhanced feasibility study released in mid-2021 remain accurate.

Project economics include capital development costs of $113 million, a 47% internal rate of return based on a US$60 per pound uranium price, and a nameplate production capacity of 2.45 million pounds of uranium annually over an initial 11-year mine life.

Boss Energy confirmed first production is scheduled for the fourth quarter of 2023 with the reopened mine expected to ramp up to nameplate capacity within three years.

The company has ordered several long-lead items, including the award of NIMCIX columns tender and the water treatment plant tender, with detailed engineering underway.

The Honeymoon is fully funded thanks to a $125 million equity raising completed in March. Boss also holds a strategic 1.25Mlb uranium stockpile valued at US$59.38million based on the current spot price of around US$47.5/lb.

Article:
https://smallcaps.com.au/boss-energy-final-investment-decision-develop-honeymoon-uranium-project/

For more information on Boss Energy:
https://smallcaps.com.au/stocks/BOE/

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