Mine Restart

Boss Energy delivered an Enhanced Feasibility Study (EFS) for the Honeymoon Mine restart in June 2021.

Following careful analysis of the mines' historical production performance under the previous owner, the EFS was focused on building a more resilient and sustainable mining operation.

The key outcome of the EFS was the decision to remove the existing Solvent Extraction (SX) plant and replaced it with Ion Exchange (IX) capacity to increase the production profile to 2.45Mlb/annum over a +10-year mine life and reduce operating costs to achieve industry benchmark goals for low-cost producers.

The EFS confirmed this planned change to Honeymoon’s processing plant would lower costs and increase financial returns, with key outcomes including:

• Honeymoon pre-tax NPV increased to US$309m (up 35% from the January 2020 Feasibility Study), with a forecast pre-tax IRR of 47% and EBITDA margin of 62%
• All-In Costs decreased by 11% to US$31.86/lb; All-In-Sustaining Costs decreased by 16% to US$25.62/lb; with Cash Costs decreased by 21% to US$18.46/lb
• Capital cost of expanding production estimated to be US$80m – utilising Ion Exchange as a replacement of the existing Solvent Extraction plant
• Honeymoon is fully permitted for production, storage and export of U₃0₈
• EFS is based on only 36Mlbs of the total JORC Resource of 71.6Mlbs, highlighting scope for significant growth

Based on the parameters outlined in the EFS, Boss’s Board made a Final Investment Decision to develop the Honeymoon Project in June 2022, with construction and development programs now proceeding on schedule to deliver first production in the December Quarter of 2023.

The Project will utilise in-situ recovery (ISR), a proven and cost-effective extraction process that delivers a range of important environmental benefits. The ISR process involves the installation of multiple wells in a specific pattern over the orebody, achieving a 19-28% reduction in energy requirements and producing 17-32% of the greenhouse emissions of conventional mining. Unlike conventional mining, ISR also results in minimal, temporary ground disturbance within mining areas.