Boss Energy has announced that the Honeymoon uranium project continues to make strong progress on all fronts.
Committed expenditure under the re-development program has now reached the halfway mark, totalling $55.1 million of the budgeted ~ $105.4 million CAPEX, excluding a $7.6 million contingency.
Achievement of this major milestone means the project is running on time and on budget.
Boss has cash on hand of $115.6 million and a strategic uranium stockpile valued at $88.3 million based on current spot prices, ensuring it is fully-funded through to production.
Boss Managing Director, Duncan Craib, said, “To reach the halfway mark on time and on budget at any project is an outstanding achievement, particularly given the current high-inflation environment shortages of skills and equipment. I would like to thank our staff and contractors for their dedication.
“This result positions Boss to capitalise on the growing demand for uranium, especially from western countries, as leading utilities around the world look to lock-in new long-term contracts and diversify from Russia as a supplier.
“The strong outlook is reflected in the growing level of inquiry we are receiving from utilities, which is coinciding perfectly with the development progress at Honeymoon, setting us up for a pivotal second half of the year”.
Mr Craib said the incentive price needed to establish new uranium mines had risen to around US$80/lb compared with the current spot price of US$48.75/lb.
“Costs for new mines, with some notable exceptions, have risen as inflationary effects are included in feasibility studies, meaning the incentive price is now widely seen as being around US$80/lb.
“This will severely restrict the availability of new supply, further helping to ensure the market remains tight.
“There is also a growing push among buyers to reduce their dependence on any individual company or geographic area. The recent contracts signed with developers, despite the availability of lower cost supply from existing producers, is evidence of this.
“If utilities continue to work towards reducing dependence on Russian supplies, fixed-term uranium demand could increase significantly during 2023, leading to higher term prices.”
