Boss Energy has outlined a date for a final investment decision (FID) regarding a restart of its Honeymoon uranium project in South Australia.
The FID will take place on or around May 5 following the completion of tranche two in Boss’ $125 million equity raise, which requires shareholder approval at a general meeting in late April.
It comes after the Honeymoon front-end engineering design (FEED) study confirmed a technically and financially robust project, solidifying the cost estimates from the enhanced feasibility study (EFS) released in June 2021.
“The planets are aligning perfectly for Boss and Honeymoon in every respect,” Boss managing director Duncan Craib said.
“The FEED shows Honeymoon’s costs are in line with the forecasts contained in last year’s enhanced feasibility study, which is a superb outcome given the wider inflationary environment.”
The uranium price has enjoyed significant increases in 2022, achieving a 10-year high of $US53 ($70.8) per pound in early March. At the time of writing, the price was nudging $US60 ($80) per pound with the Russia-Ukraine conflict a constant backdrop.
Craib said this is another stimulant for Honeymoon.
“(The FEED) findings come against a backdrop of significant increases in the uranium price and an exceptionally strong supply-demand outlook,” he said.
“Our recently announced $125 million equity raising, combined with the value of our strategic uranium inventory, means we are fully-funded through to production and cashflow.
“All these highly favourable factors have laid exceptional foundations for us to make a final investment decision in coming weeks, ensuring Boss will be Australia’s next uranium producer.”
If the FID is successful, Boss will immediately commence detailed engineering, procurement and construction works at Honeymoon, with an aim to produce first uranium within 12-18 months of the FID.