News, Uranium

Honeymoon on track for next quarter

Boss Energy has announced that its Honeymoon uranium project is making strong progress toward commencement.

Boss Energy has announced that its Honeymoon uranium project in South Australia is on track to achieve first uranium in the 2023 December quarter.

The project is running both on time and on budget, with the committed expenditure representing 79 per cent of the budgeted $105 million.

“The construction and re-start program continued to proceed to plan in the June quarter, ensuring we remain on budget and on schedule for first production this calendar year,” Boss managing director Duncan Craib said.

“We are completely focused on executing our plan, which will see us become Australia’s third uranium producer in the coming quarter.

“We are also extremely encouraged by the strong progress being made on site and the ongoing tightness in the uranium market, which augurs very well for the spot price over coming months.”

During the June quarter, Honeymoon reached a key milestone in the completion of construction of its three startup wellfields. Pressure testing and line flushing of the first wellfield was also completed.

“Given we are fully funded through to production, with cash on hand of $89 million and a strategic uranium stockpile valued at $106 million based on current spot prices, as well as no debt, we are in the enviable position of being able to enter offtake arrangements when we deem the market position to be highly desirable,” Craib said.

“This is reflected in the rising level of inbound inquiries we are receiving in respect to offtake and long-term contracts generally.”

Boss undertook infill drilling at Honeymoon in early July of this year in a effort to expand the site’s inventory.

“Our timing is looking ideal, with the uranium market continuing to tighten and the spot price moving up,” Craib said at the time.

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