Boss Energy (ASX:BOE) has secured its first binding sales agreement for uranium from its Honeymoon Project in South Australia.
Under the agreement, the $1.67 billion market capitalisation company will sell 1 million pounds (Mlbs) of uranium to a ‘major’ publicly listed US power utility over 7 years, starting in 2025 and continuing until the end of 2031.
Boss says the agreement is based on market-related pricing and contains a ceiling price and a floor price which is above Boss’ forecast production costs at Honeymoon.
Managing Director Duncan Craib says this agreement is a ‘major’ milestone for the company and another key de-risking event for the Honeymoon project.
“With production about to start and the project running on time and on budget, we are extremely well-placed to capitalise on the rising uranium price.
Now we also have a binding sales contract in place which gives us financial security while allowing us to retain exposure to further increases in the uranium price.
In the process, we have established a long-term relationship with this large strategic customer.”
“Now we also have a binding sales contract in place which gives us financial security while allowing us to retain exposure to further increases in the uranium price”
Boss Energy is an ASX-listed uranium company focused on re-starting production at the Honeymoon Uranium Project in South Australia.
As of 30 September 2023, the company had $63.118 million cash and cash equivalents at hand, according to its latest quarterly report. The company also holds a 100% cash-backed environmental bond of $8.92 million, which Boss treats as restricted cash.
Further, as previously reported, the company also conducted a $205 million capital raise.
Write to Aaliyah Rogan at Mining.com.au
Images: Boss Energy
