Boss Energy poised for strong FY25 as Honeymoon uranium project remains on track

Boss Energy (ASX: BOE), one of the real success stories among Australian mining companies in FY24, is set to continue its strategic growth in FY25.

The company now holds the title of being the only pure-play Australian uranium producer on the Australian Securities Exchange (ASX) and during FY24 also became the first ASX-listed multi-mine producer.

With $274.1 million in liquid assets and no debt obligations, Boss is well-positioned to support the ramp-up of its key Honeymoon uranium project in South Australia and the Alta Mesa project in Texas.

Commissioning on track

In its 2024 annual report, Boss stated it is on target with its plans to ramp up production at Honeymoon, having confirmed that its technology works as planned in the project feasibility study.

The successful ongoing commissioning of Honeymoon has so far produced 57,364 pounds of uranium and is on track to produce at least 850,000 lbs in FY25.

The company also revealed that it continues to receive requests for proposals regarding offtake and long-term contracts generally, with ongoing tightness in the uranium market auguring well for the term price over the coming years.

Honeymoon journey

Company chair Wyatt Buck described FY24 as a pivotal year for Boss with the commencement of production at the Honeymoon uranium project after a nine-year journey.

Mr Buck said restarting Honeymoon was a remarkable achievement as one of the first uranium mines globally to come back online in this new price cycle.

“While it took Boss nine years to bring Honeymoon back into production, the deposit was actually discovered over half a century ago in 1972,” he said.

“The time taken to successfully produce uranium at commercial scale at Honeymoon reflects the difficulty of bringing new uranium mines into production.”

“We know that the world needs more uranium to meet its net-zero goals, but we believe that new mines will not come on stream as quickly as many expect [and] think that this will have a positive impact on the uranium price.”

Alta Mesa success

Mr Buck also highlighted Boss’ collaborative partnership with US-based enCore Energy and the acquisition of a 30% interest in the Alta Mesa in-situ recovery uranium project in South Texas.

Alta Mesa, which has a total operating capacity of 1.5Mlbpa, commenced production in June 2024.

The companies have also agreed to a strategic collaboration to jointly research and develop enCore’s proprietary prompt fission neutron technology for uranium exploration and production.