Investing

Boss Energy: Multi-mine Uranium Producer in Australia and the US

Australian uranium producer Boss Energy (ASX:BOE) has two projects – the 100 percent-owned Honeymoon uranium project in South Australia and the 30 percent-owned Alta Mesa project in the US.

The macro-environment and steps taken by the US government remain favorable for uranium producers such as Boss Energy. The US Congress recently enacted legislation prohibiting the importation of Russian uranium products known as the Prohibiting Russian Uranium Imports Act (HR 1042), valid until 2040.

The Honeymoon uranium project in South Australia spans approximately 80 kms northwest 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.

Company Highlights

  • 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 the US.
  • In June 2024 Boss became a multi-mine uranium producer through the Honeymoon and Alta Mesa Projects.
  • 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 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 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.

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