Boss Energy (ASX:BOE) is on its way to becoming Australia’s third uranium producer as mining activities begin at its Honeymoon Uranium Mine in South Australia.
The $1.52 billion market capitalisation company says wellfield pre-conditioning has begun in the lead-up to production, which is scheduled for the December quarter.
The company reports it has also completed ‘major’ construction activities, including wellfield development, gypsum repository construction, water treatment, and RO plant commissioning.
Boss notes these operations represent the first activities being undertaken at Honeymoon since November 2013 following the suspension of all mining operations due to falling uranium prices.
The company also notes completion of these various milestones ensures it is on track for production in December this year.
Shares in Boss Energy were up 6% to $4.59 at 11:45am AEDT.
Addressing the start of mining, Boss Energy Managing Director Duncan Craib says these activities have been a long time coming.
“It is a testament to the hard work and effort undertaken by all Boss employees over many years to reach today’s pivotal milestone, the commencement of mining activities on Honeymoon.”
“It is a testament to the hard work and effort undertaken by all Boss employees over many years to reach today’s pivotal milestone”
The company says its production timing is looking ‘ideal’, with uranium prices now trading at decade-long highs.
Boss Energy is a uranium-focused company actively working to restart operations at its Honeymoon Uranium Project in South Australia.
The project represents one of the few uranium projects globally that is ready to come on-stream in the early stages of what could be an emerging uranium bull market.
Boss Energy had $88.94 million cash and cash equivalents at hand as of 30 June 2023, according to its latest quarterly report.
Write to Adam Drought at Mining.com.au
Images: Boss Energy
