Boss Energy continues dual-site uranium strategy as Alta Mesa production ramps up
Boss Energy’s (ASX: BOE) dual uranium development strategy continues to pay off, with further increases in production and revenue recorded at the Alta Mesa project in Texas.
The company added Alta Mesa to its Honeymoon project in South Australia with the acquisition in February this year of a 30% stake in the operation from enCore Energy for $93 million.
Boss has now reported that Alta Mesa’s operator has achieved further success at the Texas project, with production continuing to ramp up to an annualised rate of 1.5 million pounds.
Revenue growth
In a statement released overnight, enCore said Alta Mesa is now providing substantial revenue growth and additional production as extraction wells continue to come online.
Boss reported in late October that the production ramp-up at Alta Mesa had passed another important milestone, with the first of three ion exchange (IX) plants nearing flow capacity.
Ion exchange is a filtration system that removes liquid uranium from groundwater before drying and processing it into yellowcake uranium.
Positive outlook
“The nuclear industry outlook remains extremely positive with demand projections outpacing supply for the foreseeable future, driven in part by increased electrical demand from artificial intelligence and the commitment of many sectors of the economy to achieve zero carbon,” enCore noted in its latest report.
“Continued primary uranium production supply disruptions and constraints continue on a global basis as geopolitical tensions, trade restrictions and local government decisions are observed.”
The Alta Mesa operator highlighted that current contracting conditions remain favourable, with term contract pricing now higher than the current spot price, around US$70 per pound, up from a recent 12-month high of US$107/lb.
Honeymoon ramp-up
In September, Boss reported continued strong progress in the commissioning and production ramp-up at the Honeymoon uranium mine, with the company continuing to meet or exceed its key targets.
The first IX circuit is now operating at nameplate capacity, demonstrating that the technology works at the rate and scale forecast in the feasibility study.
Commissioning of the second IX circuit is underway and construction of the third circuit was advancing rapidly.