Boss Energy has given the green light to proceed with development of the Honeymoon Uranium Project in South Australia.
The decision means that Boss will now accelerate construction, ensuring Honeymoon remains on track for first production in the December quarter of 2023, ramping up to a steady-state rate of 2.45 million pounds of U3O8 (triuranium octoxide) a year.
The forecast $113 million capital cost of the development (including contingency) is fully-funded. Boss raised $125 million via a share placement and share purchase plan in March 2022.
The company also holds a strategic 1.25 million pound uranium stockpile valued at US$59.38 million.
Boss has no debt, ensuring it has maximum flexibility and pricing leverage in its offtake negotiations.
Boss managing director Duncan Craib said the Final Investment Decision put the company firmly on track to be Australia’s next uranium producer.
“Our front-end engineering studies are completed and we are ready to order key equipment and start construction immediately,” he said.
“This puts us in an extremely strong negotiating position with utilities and ensures we can capitalise on the looming uranium supply deficit.”