Boss Energy has made a final investment decision (FID) to restart the Honeymoon uranium project in South Australia, paving the way for Australia’s next uranium producer to come onstream.
The company will now accelerate the construction of Honeymoon, with the aim to commence production in the December quarter of 2023, before ramping up to a steady-state rate of 2.45 million pounds (Mlb) of uranium oxide (U3O8) a year.
After successfully raising $125 million in March, Boss is fully funded to meet Honeymoon’s forecast $113 million capital cost. The company also has a 1.25Mlb uranium stockpile Honeymoon on hand, which is valued at $US59.38 million ($82.59 million).
“This final investment decision puts Boss firmly on track to be Australia’s next uranium producer,” Craib said.
“We are fully-funded with no debt, fully-permitted and extensive infrastructure in place. Our front-end engineering studies (FEED) are completed and we are ready to order key equipment and start construction immediately.
“This puts us in an extremely strong negotiating position with utilities and ensures we can capitalise on the looming uranium supply deficit.”
The FEED study demonstrated Honeymoon’s credentials as a technically and financially robust project and consolidated the cost estimates from the enhanced feasibility study (EFS) released in June 2021.
The EFS found Honeymoon to have an internal rate of return (IRR) of 47 per cent based on a uranium price of $US60 ($83.50) per pound. The project would have a 2.45Mlb per year production capacity at an all-in sustaining cost (AISC) of $US25.60 ($35.60) per pound over the life of the mine.
Boss has already advanced several objectives to expedite the time between FID and first production, with several long lead items ordered including the award of the NIMCIX columns tender.
This will support the new ion exchange processing method Boss is installing at Honeymoon, which is replacing the solvent extraction technique used previously.
The water treatment plant tender has also been awarded while detailed engineering is also underway.