Boss board is pushing forward with a restart of the Honeymoon uranium site in South Australia, ambitiously looking toward production in the next 18 months.

This will be funded by the $125M capital raise 2 months ago.

Once back the project is expected to sun 2.45Mlb uranium oxide per annum at an all-in sustaining cost of US$25.60/lb over the current 11 year anticipated mine life.

Boss is also sitting on a 1.25 Mlb stockpile valued at almost US$60M based on the current spot price.

The Smallcaps podcast is great. Kerry Stevenson is good interviewer; I like the way she stops guest and gets them to explain concepts. One of the latest was with CEO, Duncan Craib.

Craib talks a great game of the prospect of nuclear, and therefore uranium return. Clean, efficient, carbon free*. 

The interview also followed the recent rise in price and how ready they are for the return, or possibly more accurately for Boss, the commencement of production. They certainly seem to have their ducks in a row. 

• Building a competent team
• Selecting a site that has access to services
• Process improvement to drive down cost of production
• Acquisition of permits
• Production readiness

Uranium as Craib indicated is sold over term contracts which lock in producers – and generally these terms are 3, 5 or even 10 years. The issues though, the generators lock in the price, meaning any further upside is lost. Is it a gamble of spot vs lock.

And while spot price has been on the increase it appears it is a waiting game until the price is right. It seems to be to be an investor, you need to trust the management team to:

• Get the price lock in price right
• Have production costs established
• Maintain the team
• Stay the course and deliver as expected

Could this one go 10x. Absolutely. Is there a better place for your investment dollars…your choice.

*with potential risks which he did not discuss.

Podcast is here if you are interested https://webplayer.whooshkaa.com/show/10156