Page 41 - pd292-Apr21-mag-web

Vows exchanged, now time

for honeymoon

he conversation around a clean, green ing completion of an enhanced feasibility is quite similar to the previous cycle where
Tenergy future has been largely focused study (EFS) on Honeymoon. government policies and statements sup-
on batteries, EVs and storage options, At the time of the print, the study was porting nuclear are coming to the fore; US
however, the one alternative seemingly 75% complete with process engineering President Joe Biden and [former presiden-
sidelined has been nuclear power. studies completed, with the completed tial candidate John Kerry] are two exam-
Nuclear power accounts for 11% of EFS to include engineering and pricing in- ples of the positive commentary we see as
the world’s electricity supply, with France formation into the financial model, which is really pleasing for the uranium industry.”
(70% of total power supply) and the US expected to commence in May. The bright greenlight shining for the ura-
(20%) the most dependent while Canada Craib said the EFS was tracking below nium sector is also helping Boss discuss
and China continue to increase their reli- budget and on schedule and was pleased potential funding scenarios with global
ance. with the progress made in incorporating lenders to resume operations at Honey-
“I think generally, on a global basis, ion-exchange columns instead of SX Pulse moon – capex $US63.2 million.
people accept that nuclear should be part columns to potentially ramp-up nameplate “We are ahead of the curve in that re-
of the energy mix; I am not saying that it capacity to 2.45 mlbpa at Honeymoon. gard with a restart project, with capital
should be the be all and end all, but I think Additionally, the ion-exchange system spent on something that already exists
alongside renewables it plays a part,” Boss has the capacity to reduce operating costs and is proven, ready to go. We are really
Energy Ltd managing director Duncan at Honeymoon, which was placed on care- fortunate that we have that first-mover ad-
Craib told Paydirt. and-maintenance in 2013 as the whole vantage,” Craib said.
“If we are really serious “We are aware that requests
about seeking a carbon-free for proposals for the tendering
global environment to live process that utilities undertake
in by 2040/2050, we’ll need are coming back into the mar-
uranium as part of the energy ket and we are really pleased
mix. That is part of the ESG with the level of interaction we
carbon-free-type principles have with utilities. Several utili-
which are actually driving this ties have done a deep techni-
current investor appetite and cal dive on us; we are not there
demand for uranium equities. yet on price or quantity, but the
They are seeing that as the credibility is there to establish
long-term future or the way a relationship. It is a question
the world should be heading.” of when now, not if.”
Boss tested the pulse of A restart at Honeymoon will
the investment community in make Boss Australia’s next
October when it raised $15 uranium producer, a status
million and reported strong enhanced by a further uplift in
uptake in a placement to ex- pricing.
isting and new domestic and Currently, long-term con-
international investors. tracts are believed to be priced
Furthermore, in February, An enhanced feasibility study on Honeymoon is expected to be released at about $US37-38/lb uranium.
the likes of Bannerman Re- in the June quarter. Meanwhile, site infrastructure and development “I think you are best off look-
sources Ltd ($12 million to ad- timelines are well advanced with tender packages for process ing at this new cycle in waves.
vance Etango-8 in Namibia) equipment issued for pricing Projects like Honeymoon can
and Deep Yellow Ltd ($40.8 come back online in the first
million for the Tumas DFS in Namibia, ex- uranium sector fell into the doldrums. wave and make really good operating prof-
ploration at Reptile and potential acquisi- While momentum is in favour of uranium its and decent cash flows in that $US50/lb
tions) also managed successful raisings, miners, access to people with the requisite range and then others follow at $US60-70/
indicating a strength in the uranium field skillset is an onerous task. lb mark,” Craib said.
not seen for several years. Boss has that area covered with techni- “The latent capacity generally would be
Craib noted there were smaller parties cal director Bryn Jones leading an owner’s coming in around that sort of high $US50-
starting to peg prospective uranium explo- team comprised of Trevor Robinson (pro- 60/lb and, of course, Cameco Corp will
ration ground, while even more promising ject manager), Merrill Ford (process con- bring back Cigar Lake sooner rather than
for the sector is the upcoming ASX listing sultant) and Jeremy Green (civil engineer). later. Macarthur River is a sleeping giant
of 92 Energy Ltd (see page 40). “That is part of the risk one also needs to that will also produce, so the high-cost,
Amid the recent flurry of uranium activ- take into account when restarting a mine high-capex projects are years away from
ity by ASX companies, Boss’s pursuit of a and coming into production; utilities want coming into production. That is the attrac-
restart at the Honeymoon mine in South to have some level of confidence that you tion of a restart project such as Honey-
Australia has continued to advance. can do it,” Craib said. moon; we are ahead of the curve.”
The company has been studiously pre- “I think this is the beginning of a new cy- – Mark Andrews
paring for the cycle to turn and is near- cle and a lot of the rhetoric we are hearing

aUSTRaLIa’S PaYDIRT aPRIL 2021 Page 41