Australia’s newest uranium producer Boss Energy (ASX:BOE) is gearing up for first sales from its Honeymoon Mine in South Australia with commissioning “proceeding to plan”.
Managing Director Duncan Craib says Boss is meeting or exceeding key feasibility study forecasts and the processing technology is performing as expected.
“These early production results provide confidence that we are on-track to meet our ramp up targets,” he says.
“Ramp-up timing has been designed to align with a rising uranium market. We believe we will be hitting our straps as the uranium price rises in the near term.”
In early April, Boss — which has $2.3 billion market capitalisation — delivered its first drum of uranium.
The company is in the process of ramping up to steady state production of 2.45 million pounds of annual uranium production.
Boss has so far secured two binding sales agreements to sell 1.8 million pounds to major European and US power providers over eight years from 2024 to 2032.
The company says it plans to strike further deals as the uranium price rises.
Since August last year the price of the nuclear fuel has more than doubled to US$92.25 ($140) a pound. In January it hit a record $106 a pound.
The price momentum has largely been driven by geopolitical factors including the US placing a ban on imports of uranium from Russia, in an effort to disrupt Moscow’s ongoing war against Ukraine.
As at 31 March 2024, Boss had around $300m in liquid assets and no debt, which the company says provides it flexibility to choose when it enters into contracts.
Write to Angela East at Mining.com.au
Images: Boss Energy
