Boss Energy: Australia’s Next Top Uranium Miner in Making

Boss Energy (ASX: BOE) has to be one of Australia’s major Uranium miners today. Their story 

is such an important lesson about strategic timing, and waiting it out. And how it serves you wonders. Their Honeymoon project mine has catapulted this gold-seeking company to a bright and lustrous future when the Uranium markets are readying for a speedy run. Upon acquiring the Honeymoon Project Uranium mine from Uranium One Inc. due to a downfall of the Uranium market in 2013, the company has invested in a behemoth which is just starting to run.. 

As of today, Boss Energy has 71.6 million pounds of the Uranium resource base in the form of Uranium Trioxide (U3O8) in the Honeymoon Project located in Southern Australia. They have physical uranium of 1.2 million pounds available, waiting to be exported in a de-risked environment. With its evolving venture, here is more about what Boss Energy’s plans are like in the future in regards to upgrading and redefining the Uranium market.

Image of a nuclear power plant
(Source: www.pixabay.com)

Brief History of the Honeymoon Project

The Honeymoon Project is a Uranium-rich mine that Boss Energy put its money on when the Uranium markets tumbled back in 2013, the complete takeover happened in 2012. Before that, this Project was in multiple hands. If we look back to the mine’s origins, it was discovered by a joint effort of three major companies Mines Administration, Carpentaria Exploration, and Teton Exploration Drilling in 1972. 

The Honeymoon Project remained in the hands of the joint venture until 1997. In 1981 the first environmental clearance was applied, upon being successful a small Uranium Processing Plant was made to demonstrate its capabilities in 1982. In 1997 the Honeymoon Project was then handed to Southern Cross Resources (later known as Uranium One Inc.)  From 2007-2012 the company had to struggle through regulatory approvals and various environmental checks. Between 2011 and 2013 Uranium One Inc. procured 335 tonnes of U3O8.

In 2013 the Uranium market tumbled badly, and Uranium One Inc. struggled financially because of this and faced operational challenges, during this time Boss Energy swooped in and bought the mine. After buying it, Boss Energy ran feasibility studies, looked for operational options and also secured many additional approvals.

Image of Uranium Nitrate Ore
Source: ASX BOE News Presentation

Boss Revitalizes the Honeymoon Project

The Honeymoon Project site now has $170 million infrastructure, and the site is located under Tier 1 mining Jurisdiction, meaning there are direct routes and pathways where the Uranium can be shipped and exported to international energy markets. Along with the existing operations, Boss is also doing site exploration to expand on its existing resource base.

Boss Energy is ramping up the production profile areas by expanding to nearer green fields where mineralization is expected in the ground. They are carrying out Enhanced Feasibility Studies (EFS) to spot sensitive zones where Uranium traces could be obtained. They are also increasing satellite resources near Gould Dam and Jason deposits where they have obtained a good amount of Uranium Trioxide. The existing load of Uranium Trioxide in its physical capacity is expected to be 2.5 million pounds/year, but with further exploration, it can easily change to 3 million pounds/year. Here is an ASX letter regarding the findings at the Gould Dam.

Drilling results to expand procurement of Uranium in Gould Dam report-1
(Source: BOE ASX Announcement)

Drilling results to expand procurement of Uranium in Gould Dam report-2
(Source: BOE ASX Announcement)

Boss Raises Capital for Honeymoon Project

Boss’s ability to woo investors is evident through major developments, on 7th December 2023, Boss raised a capital of $205 million to fund 30% of the Alta Mesa Uranium Project in South Texas, USA. Encore, who had a 30% stake, owned it beforehand, Boss bought the stake for $60 million. Encore also got a $10 million investment from Boss in areas of exploration of Uranium-rich zones. Under the new deal, Boss manages $51.9 million worth of shares of Encore at $3.95/ share. 

Duncan Craib, Managing Director of Boss Energy states, that this is an exciting time for them to garner so much attention as they move towards multiple in situ excavation work of Uranium resources. 

On January 4th 2024, Boss Energy shared its SPP (Share purchase plan) which garnered investor’s enthusiasm; the company wanted to raise a capital of $10 million, but they got $29.6 million in applicants. Here’s a copy of its SPP response letter:

Boss Energy SPP Update Letter
(Source: BOE ASX Announcement)

Duncan Craib, the Boss MD states that the board members have decided to extend the offer only to $15 million, as they do not want the dilution of the retailer's share in the ownership of the company. He reiterates all the proceeds received will be used to fund the company’s growth graph, also acknowledging that the entire team of Boss Energy is humbled by the way their SPP was accepted by investors.

Boss has also acquired a major sales deal with the USA, where Boss can choose any of the US’s publicly listed power companies and supply them in a 7-year contract with 1 million pounds of Uranium. Here is an official copy of the announcement letter.

 

Boss’s first binding sales contract with the United States.
(Source: BOE ASX Announcement)

Global Development in Nuclear Energy Use

Companies like Boss Energy are seeing unbridled hope because of the global centre-stage of energy usage shifting towards greener sources. A piece written on Financial Review, states, “The world is eyeing again towards Nuclear Energy being their primary energy source looking past the 2011 Fukushima nuclear disaster in 2011.”

Japan has restarted 40 reactors since the 2011 incident. China, the United States, Turkey and Canada are obtaining new reactors. The Australian Department of Industry states that the price of Uranium will be $61/pound in 2024, and then increase to $63/pound in 2025. It also expects Uranium exports to increase by up to 6000 tonnes. Along with Boss Energy, another company called Paladin Energy (ASX: PDN) is twice the size of Boss and they are exploring and doing research work and expanding to territories of Uranium excavation in Canada, Africa and Australia. It has grown 52% in 2023.

Conclusion

Boss Energy’s Honeymoon Project is a treasure trove for Australia as it became operational after a long-awaited period possessing Uranium deposits. It has received $29.6 million in response to its SPP. The company also acquired a Uranium field called the Alta Mesa Uranium Project in South Texas. With its constant improvement in the mineral analysis domain. It also proposes to expand its resource base of Uranium. I have listed all the major key moments of this company, and how incredibly motivating their work is in the larger scheme of things.