Boss Energy (ASX: BOE) continues to make significant strides in the development of its Honeymoon Uranium project in South Australia. The recent arrival of NIMCIX loading and elution columns marks a crucial milestone for the project. These advanced components are integral to the new Ion Exchange (IX) circuit, a technology chosen by Boss Energy for its Honeymoon processing plant. This strategic selection reflects the company’s confidence in the efficiency and effectiveness of IX technology for capturing, concentrating, and purifying uranium from wellfields.
Global Acknowledgment: IX Technology’s Proven Success
IX technology has garnered widespread recognition and adoption by some of the world’s largest uranium producers, including Husab in Namibia, Ranger in Australia, and Priargunski / Krasnokamensk in Russia. At Honeymoon, Boss Energy anticipates that the implementation of IX technology will lead to enhanced throughput, increased production, and reduced costs compared to the previously employed solvent extraction system.
Managing director Duncan Craib emphasised that the decision to embrace IX technology was validated through rigorous testing conducted by the company and independent industry experts. This technology will drive operational efficiencies, streamline production, and position Honeymoon as one of the world’s most advanced uranium development projects.
IX Circuit: Efficiency and Lower Costs
The introduction of the IX circuit at Honeymoon is poised to generate several advantages, including increased production throughput up to a nameplate capacity of 2.45Mlb/annum of U3O8. This circuit will also contribute to shorter ramp-up times and reduced technical risks. Furthermore, operating costs are expected to align with industry benchmarks, including an all-in sustaining cost (AISC) forecast of $38 per pound and cash costs of less than $30 per pound.
Duncan Craib highlighted IX technology’s dominance in uranium in-situ leach operations across Kazakhstan, the USA, and Australia. Its operational and capital cost advantages reinforce the decision to implement this technology, positioning Honeymoon for long-term success.
On Track for December Production
Boss Energy’s proactive approach is evident in its steady progress towards production at Honeymoon. The company has procured a significant portion of the steel required for the IX tower reconfiguration. With its first set of loading and elution columns in place, Boss Energy is well-positioned to commission the project and initiate production. Subsequent phases of production ramp-up will involve the addition of five more sets of columns.
The company’s most recent quarterly report reaffirms its commitment to achieving first uranium production at Honeymoon during the December quarter. Moreover, Boss Energy’s financial discipline is evident, as it has already utilised 79% of the committed budget of $105 million.
Becoming Australia’s Third Uranium Producer
Duncan Craib underscored Boss Energy’s unwavering focus on its strategic plan, which aims to establish the company as Australia’s third uranium producer in the upcoming quarter. The progress achieved on-site and the positive trends in the uranium market are sources of encouragement for the company. The tightness in the uranium market, combined with inbound inquiries for offtake and long-term contracts, bodes well for Boss Energy’s market positioning.
With a robust financial foundation, including cash reserves of $89 million and a strategic uranium stockpile valued at $106 million, Boss Energy is well-equipped to navigate market dynamics and capitalise on favourable opportunities.
Significant Contribution to Australian Uranium Exports
Honeymoon’s impending production has caught the attention of the Australian government. The Resources and Energy quarterly forecasts highlight Honeymoon’s potential to significantly enhance the nation’s uranium exports. Projections indicate a rise in Australian uranium exports from approximately 5,560 tonnes in 2022–23 to around 6,000 tonnes by 2024–25, largely attributed to Honeymoon’s anticipated opening and ramp-up.
The positive impact of Honeymoon’s output, combined with improving prices, is expected to elevate Australia’s uranium export values from approximately $780 million in 2022–23 to an impressive $900 million by 2024–25. With expectations of the uranium price reaching around $95 per pound by 2025, Honeymoon’s contribution aligns with the evolving dynamics of the uranium market, characterised by low investment and potential supply shortfalls.
