Boss Energy hits key milestones as Honeymoon uranium project ramps up

Australian uranium miner Boss Energy (ASX: BOE) has achieved a number of key milestones that will de-risk the delivery of its FY25 production guidance.

The company said work undertaken during the December quarter had positioned its Honeymoon project in South Australia for the next step-change in its ramp-up profile to a 1.6-million-pound annualised uranium throughput rate.

Key achievements during the reporting period included the commissioning of kiln 2, the final kiln required to achieve nameplate capacity, as well as the final installation and commissioning of NIMCIX column 3.

Production on target

Managing director Duncan Craib said Honeymoon is on track to meet its FY25 production guidance of 850,000lb.

“Outstanding progress was made at Honeymoon during the December 2024 quarter [and] the ramp-up of operations continued to proceed on schedule across all key production metrics,” Mr Craib said.

“We have officially declared commercial production, with C1 cost guidance provided for 2H FY25 of AU$37-41 (US$23-25)/lb U₃O₈.”

“This compares favourably to other uranium development projects and is in line with inflationary increases recorded since the June 2021 enhanced feasibility study.”

Technical changes

“The strong results reflect the significant technical changes Boss has implemented at Honeymoon, including improvements to the lixiviant chemistry and the adoption of ion exchange processing,” Mr Craib added.

“Both these measures, which were central to Boss’ restart strategy, have proved extremely efficient and effective.”

“Adding to Honeymoon’s progress, our valuable [30%] investment into the Alta Mesa operation is bearing fruit, with the project’s solid ramp-up resulting in Boss receiving its first shipment of 35,181lb of U₃O₈.”

A number of the company’s remaining construction activities are nearing completion, with NIMCIX 1 and NIMCIX 2 operating at nameplate production and NIMCIX 3 commissioned and expected to achieve nameplate capacity in February 2025.

Nuclear market

“Security of supply is a major concern for nuclear utilities, particularly in the western world, and as a multimine tier 1 uranium producer, Boss is set to benefit from this changing and growing market,” Mr Craib said.

“These achievements position us for long-term success and creation of shareholder value, maximising our ability to capitalise on what is clearly a new uranium cycle.”