Boss Energy updates feasibility study
Boss Energy (ASX: BOE ; OTC: BQSSF) announced today an updated feasibility study.
The company said its project's pre-tax NPV now estimated to be US$309m--which is up 35% from last year’s feasibility study. The forecast pre-tax IRR is 47% and EBITDA margin is 62%.
Nameplate production capacity rises 22.5% to 2.45Mlb of U3O8, and all-in costs fall 11% to US$31.86/lb.
Last year's feasibility study used US$50/lb U3O8 as a base case. This year it used US$60/lb U3O8.
"Boss considers a base case price of US$60/lb U3O8 over the LOM is reasonable given that current spot and term uranium prices are well below the price required to guarantee viability of a large proportion of the world’s existing production. Uranium analysts predict that a long-term spot price in the mid US$40’s will incentivise restart of idled production while a spot price closer to US$60/lb will be needed for most new mines," wrote the company.