Boss Energy Limited (ASX: BOE) is a leading uranium producer, with its flagship 100% owned Honeymoon Uranium Project in South Australia. Currently ramping up to a nameplate capacity of 2.45Mlbs of uranium per year, Honeymoon offers significant growth potential, with substantial resources outside the current mine plan. Positioned in a tier-one jurisdiction, the fully permitted Honeymoon Mine is poised to become Australia’s next major uranium producer, potentially reaching 3.3Mlbs U3O8 annually. Boss Energy is well-placed to capitalise on the rising global demand for uranium, leveraging its infrastructure and low-cost operations for strong financial returns.
Boss Energy has made remarkable progress at the Honeymoon Uranium Project, with the company now ramping up production towards its target of 2.45Mlbs U3O8 per annum. In the December quarter, the Honeymoon Project produced 137,084lbs of U3O8, a 53% increase compared to the September quarter. The company also recorded 215,319lbs of ion-exchange (IX) production, reflecting a 96% increase. These results are a testament to the effective implementation of Boss Energy’s strategy, including improvements in lixiviant chemistry and the adoption of Ion Exchange processing technology, which have proven to be highly efficient and effective.
The company has successfully achieved nameplate capacity at NIMCIX Columns 1 and 2, while Column 3 is ramping up and expected to achieve full capacity in February 2025. This steady progress is a critical part of Boss’ long-term plan to increase production to 2.45Mlbs U3O8 annually by FY2027. The remaining NIMCIX columns (4, 5, and 6) are scheduled to be commissioned by the third quarter of 2025, further solidifying Boss’ growth trajectory.
Given the strong ramp-up and operational performance, Boss Energy has declared commercial production at Honeymoon. This marks a major milestone for the company as it looks to capitalise on the positive outlook for uranium and expand its production footprint.
Boss Energy’s financial performance continues to reflect solid operational results, with strong growth in liquid assets and sales revenue during the December quarter. The company reported liquid assets of $252M, up by $7M from the previous quarter, and remains debt-free. This positions Boss Energy as a financially secure company, capable of funding its ramp-up without the need for external capital or debt.
The company achieved total sales of 200,000lbs of U3O8 during the quarter at an average realised price of US$77.50/lb, generating total revenue of US$15.5M (A$25.2M). As of 31 December 2024, Boss Energy holds an inventory of 1.1 million pounds of U3O8, ensuring it is well-positioned to meet its delivery commitments and take advantage of the strong uranium price environment. Further shipments are already in transit, with 57,000lbs U3O8 arriving at the Honeywell Uranium Hexafluoride Processing Facility and additional shipments scheduled for delivery in February 2025.
The company’s robust balance sheet and liquidity provide it with the financial flexibility to pursue its growth initiatives, including the continued ramp-up at Honeymoon and the development of its Alta Mesa operation.
Boss Energy’s growth strategy is centred on increasing production capacity and expanding its resource base at Honeymoon. The company’s full-year production guidance for FY25 is 850,000lbs U3O8, and with the recent ramp-up success, the company is on track to meet this target. Additionally, Boss has provided C1 cost guidance for the second half of FY25 of $37-41/lb (USD $23-25/lb), in line with inflationary increases recorded since the June 2021 Enhanced Feasibility Study.
The company is also making significant progress at its Alta Mesa Uranium Operation in South Texas. Boss received its first shipment of 35,181lbs U3O8 during the quarter, with wellfield solution head grades peaking at approximately 140 mg/l U3O8. The first IX circuit at Alta Mesa is operating at nameplate capacity, and the second IX circuit is expected to be commissioned in the March quarter of 2025, with the third circuit planned for completion by the end of 2025. Boss expects Alta Mesa to reach full operational capacity of 1.5 million pounds of U3O8 per annum by 2026, with the company’s share of production at 30% (approximately 450,000lbs U3O8 per year).
Boss Energy’s growth outlook is supported by a strong uranium market, driven by global demand for clean energy solutions and the increasing focus on energy security. With its assets in tier-one jurisdictions, the company is well-positioned to benefit from the tightening supply-demand dynamics in the uranium market.
Chifley Tower, 2 Chifley Square,
Sydney NSW 2000
1300 854 151
© 2023 KOSEC | Kodari Securities Pty Ltd | ABN 90 147 963 755 | FSG | Terms & Conditions | Disclaimer & Legal
© 2023 KOSEC | Kodari Securities Pty Ltd
ABN 90 147 963 755
KOSEC - Kodari Securities does not provide any investment advice, nor is anything mentioned an offer to sell, or a solicitation of an offer to buy any security or other instrument. Anything discussed is for informational purposes only and does not address the circumstances or needs of any particular individual or entity. Investing in the stock market is high risk. Under no circumstances should investments be based solely on the information provided. We do not guarantee the security or completeness of information on this website and are not held liable. Kodari Securities PTY Ltd trading as KOSEC is a corporate authorized representative (AFSL no.246638) which is regulated by the Australian securities and investment commission (ASIC).