Boss Energy successfully meets first year production guidance at Honeymoon uranium project

Boss Energy’s (ASX: BOE) re-started Honeymoon operation in South Australia has met its first-year production guidance of 850,000 pounds of uranium oxide drummed.

$229 million in liquid assets including $64m held in cash, as well as 1.21 million pounds of uranium on hand underpinned the achievement.

Boss has produced a total of 328,102lb of uranium oxide drummed in the June quarter to date, representing an 11% increase on the previous three-month period.

Major achievement

Managing director Duncan Craib was pleased to have met production guidance in the first year of operating Honeymoon.

“This is a major achievement which confirms that the changes we made to the processing circuit at Honeymoon, including the adoption of ion exchange technology, have met or exceeded our expectations,” he said.

“Not once since announcing the enhanced feasibility study in June 2021 have we revised the project’s cost or production guidance and we have increased production in every successive quarter.”

Maintenance program

Production at Honeymoon will continue throughout June around a planned maintenance program and preparations for an ongoing ramp-up from July.

Boss expects to release new production and cost guidance for the 2026 financial year and the company remains committed to delivering on its promises to the market and project stakeholders.

“This will ensure we maximise our ability to grow production and cash flow and capitalise on the opportunities arising from the increasingly favourable demand-supply outlook for uranium,” Mr Craib said.

Eclipse earn-in

Boss recently expanded its uranium footprint when it entered into an agreement with Eclipse Metals (ASX: EPM) and its subsidiary North Minerals in respect of the Liverpool uranium project in the Northern Territory.

The agreement provides Boss with an option to earn up to 80% of the project in return for $250,000 in exploration expenditure over a 12-month period and an additional $8m in expenditure over a seven-year period (split into two stages).

The company can boost its interest by 10% to a total 90% for $50m consideration on completion of the earn-in arrangement.

Liverpool comprises five exploration licences over an area of 1,229 square kilometres where previous exploration has yielded several high-grade uranium assays in rock chips and is prospective for unconformity-type uranium mineralisation.