Boss Energy is an Australia-based uranium producer focused on its two key projects – the 100 percent owned Honeymoon Uranium Project in South Australia and the 30 percent owned Alta Mesa Project in South Texas of the US (80% by enCore Energy). In June 2024, Boss became a multi-mine uranium producer through the Honeymoon and Alta Mesa Projects.
The Honeymoon Mine Processig Plant, South Australia
- The Honeymoon uranium mine commenced production in April 2024, with the first sale of uranium expected in July 2024. Annual production at Honeymoon is forecast to reach 2.45 Mlbs of U3O8.
- The Alta Mesa uranium mine in South Texas commenced production in June 2024, with first sale of uranium expected in October 2024. Annual production at Alta Mesa is forecast to reach 1.50 Mlbs of U3O8. Once steady-state operations are established, Boss’s 30 percent share of the production amounts to 500,000 lbs yellowcake per year.
- Uranium prices have been the highest since 2008 at over US$80/lb. Prices are expected to remain strong due to the tightness of the uranium supply/demand balance. The company’s first production is timed with strong market fundamentals. The company has signed two sales agreements to supply 1.8 million pounds of U3O8 to leading power utilities in Europe and the US, spanning eight years from 2024 to 2032. The company plans to pursue additional agreements as the price of uranium increases.
The macro-environment and steps taken by the US government remain favorable for uranium producers such as Boss Energy. The United States Congress recently enacted legislation prohibiting the importation of Russian uranium products. Known as the Prohibiting Russian Uranium Imports Act (HR 1042), this legislation was passed by the House of Representatives on December 11, 2023, and later approved by the Senate on April 30, 2024. The prohibition is valid until 2040.
The legislation's sunset provision, set for 2040, aims to encourage the sustained deployment of uranium conversion and enrichment facilities and services in the United States and its allied nations over the long term. This should benefit domestic suppliers such as Boss Energy.
According to UxC estimates, annual uranium demand could surge by nearly 65 percent, exceeding 300 million pounds (Mlbs) U308 by 2030, up from the current demand level of 197 Mlbs U308. Meanwhile, the projected mine supply for 2024 is approximately 155 Mlbs U308, suggesting a deficit of nearly 40 Mlbs. Moreover, there is an expected surge in demand for uranium due to the projected 18 percent increase in nuclear reactor capacity from 2023 to 2030. Nuclear energy will be critical in meeting the global ambition of net zero emission. Thus, ensuring a secure supply is crucial, and the Honeymoon mine is strategically positioned to provide uranium from South Australia to a market facing escalating geopolitical instability.
Spot uranium prices have jumped dramatically. They are the highest since 2008, at over US$80/lb. Due to the tightness of the uranium supply/demand balance, prices are expected to remain strong.
The Honeymoon Mine - South Australia
The company’s first drum production in April 2024 at the Honeymoon mine is timed with strong market fundamentals. Boss has entered into two binding sales agreements to sell ~1.8 Mlbs U308 to two major Western utilities in 2032. These agreements ensure a stable revenue flow for Boss, offer strong profit margins, and reinforce the trust utilities placed in the supply from the Honeymoon Uranium Mine in South Australia.
The 100 percent owned Honeymoon uranium project is situated in South Australia, approximately 80 kms northwest of the town of Broken Hill. The project is home to the historical Honeymoon uranium mine, Australia's second operating in-situ recovery uranium mine. It began production in 2011 under the previous ownership of Uranium One. Operations at Honeymoon were halted in November 2013 due to declining uranium prices. Subsequently, Boss Energy acquired the project in 2015. The company has since restarted the mine, with the first drum of uranium produced in April 2024.
Boss Energy’s enhanced feasibility study (EFS), released in June 2021, demonstrates the financial robustness of the Honeymoon mine. It indicates an 11-year mine life, a production rate of 2.45 Mlb/annum, and a pre-tax NPV of 8 percent of US$309 million at the U3O8 price of US$60/lb. The existing EFS is based on just 50 percent of the existing JORC resource, i.e. only 36 Mlbs of the total JORC Resource of 71.6 Mlbs.
Using the remaining identified JORC resource, there is considerable potential to prolong the mine's lifespan and enhance the production nameplate capacity of 2.45 Mlb per annum. Boss Energy is currently implementing strategies to boost both the production rate and the lifespan of operations at Honeymoon. This includes targeting satellite deposits such as Gould’s Dam (25 Mlb of U3O8) and Jason (11 Mlb of U3O8). These target deposits are expected to increase the forecasted production at Honeymoon from 2.45 Mlbs per annum of U308 to over 3 Mlbs per annum.
Alta Mesa Mine - South Texas
The 30 percent owned Alta Mesa (80% by enCore Energy) project is a high-grade uranium ISR project in South Texas, a prolific US district for sandstone-hosted ISR production, having historically produced ~80 Mlbs. South Texas is the most progressive permitting production jurisdiction in the United States, and the typical AISC for similar ISR projects in the region is US$30-35/lb.
Alta Mesa In-Situ Recovery Processing Plant, South Texas
Boss Energy purchased its 30 percent stake in the Alta Mesa project from enCore Energy for US$60 million in cash. enCore Energy is a reputable US uranium developer and operator with a strong track record. They successfully initiated operations at the Rosita ISR re-start project in the United States in just 20 months. Prior to this, the enCore Energy team managed the Alta Mesa project before undergoing care and maintenance.
The Alta Mesa project boasts an NI 43-101 compliant resource with 3.41 Mlbs at 0.109 percent U3O8 in the measured and indicated category, and 16.97 Mlbs at 0.120 percent U3O8 classified as inferred. The project has an annual production capacity of 1.5 Mlbs U3O8, with Boss Energy’s share at 500,000 lbs per annum. The project commissioning is on track, with the first production expected in May 2024.
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