ASX-listed uranium producer Boss Energy has announced a December quarter deadline for the completion of a review into its flagship Honeymoon mine, located in South Australia. The review is examining production assumptions outlined in a 2021 enhanced feasibility study. Boss Energy is focused on developing its Honeymoon uranium mine. The company aims to become a globally competitive uranium producer.
The review follows a significant drop in Boss Energy’s share price in late July, triggered by a warning that the company was unlikely to meet its production target for the Honeymoon project. Concerns were also raised regarding the quality of the uranium being produced. The initial production target was 2.45 million pounds of uranium annually, but this was revised down to 1.6 million pounds for the current financial year.
Recent research and drilling results indicated “less continuity of mineralisation and leachability” at the Honeymoon mine, prompting Boss Energy to reassess the targets outlined in the feasibility study. The company also cautioned that this setback would likely increase production costs, leading to the decision to launch a comprehensive review of the mine’s future.
According to Managing Director Duncan Craib, Boss Energy has engaged leading experts to conduct an accurate and independent assessment of the mine’s resources and optimum production rates. Boss Energy shares closed at $1.98 on Wednesday, reflecting a 24 per cent decrease over the past year.
