Commodities, Finance, News, Uranium

Stars aligning for Boss Energy

uranium

If there’s anything to learn from the commodity world in recent months it’s the importance of supply diversity.

This has become more and more pertinent in a uranium industry recently affected by supply disruptions and changing global priorities in the wake of the Russia-Ukraine war.

At the beginning of 2022, concerns surrounded uranium supply from Kazakhstan, which was overcome by deadly protests as citizens voiced their discontent for the government and growing economic inequality in the country. Kazakhstan accounts for more than 40 per cent of the world’s uranium production.

Then Russia invaded Ukraine, resulting in comprehensive economic sanctions which upset oil, natural gas and uranium markets, and prompted widespread reconsiderations of energy supply and imports.

Uranium prices shot above $US60 ($83.6) per pound in mid-April and increased the world’s attention upon Australia’s emerging uranium players, including Boss Energy.

Boss believes the stars are aligning for the company to have a genuine crack at being not just a uranium producer, but a secure energy purveyor.

“In Europe, there is a move to reduce dependence on Russian gas supply,” the company said in its quarterly report.

“A direct consequence of this has been the decision in Belgium to keep two nuclear reactors in operation which had been slated for early closure.

“Growing awareness of these issues has reinforced the need for new reactors and is likely to lead to an increase in uranium demand in the near term as reactor lifetimes are extended.

“Honeymoon is ready to go and committed to sustainable long-term operation to ensure stakeholder value.

“The mine has an experienced management team which has brought uranium mines into operation, is fully licenced and financed, and can respond quickly to changing market situations.”

Boss recently completed the front-end engineering study (FEED) for its Honeymoon uranium project in South Australia, which reinforced prior cost estimates.

The company also launched an over-subscribed $125-million equity raise and announced the date for a final investment decision (FID).

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.

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.

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