Make Kitco Your Homepage

Boss Energy updates feasibility study

Kitco News

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.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.