Compelling Reasons to Invest in Boss Resources

5 Key Points:

  • 1. Fully Permitted with Export Licence for 3.3M lb pa with a JORC compliant Resource of 63.3M lb U3O8.
  • 2. Existing plant valued at $170M in good condition which has successfully produced and exported uranium.
  • 3. AISC of < US$24 /lb , ranking the Honeymoon Project in lowest cost quartile of world-wide producers.
  • 4. Significant exploration target of 100M lb U3O8, with huge 80km potentially mineralised strike.
  • 5. Team is highly skilled in the industry with an extraordinarily successful track record.

Advantages of South Australian Jurisdiction

South Australia is a major exporter of uranium oxide to the world and currently attracts many companies (including global majors) exploring, developing and mining uranium in the state.

The South Australian Government has made it clear that it openly and actively supports exploration for uranium as it forms a significant part of South Australia’s mineral resource.  Despite having 23% of the world’s uranium resources, South Australia only produces around 10% of the world’s uranium, indicating that there is significant potential for long term production, expansion and demonstrated geology with high potential for further discoveries.

South Australia has demonstrated experience with technologies for processing uranium ore, developed from the state’s uranium mines using different ore beneficiation processes.  The state government’s royalty rates are competitively low (2% for new mines, and 5% after the first 5 years), and the state boasts over 30 years of proven safe uranium handling and transportation through the Australian approved uranium export facility of Port Adelaide. There have been over 10,000 shipments of uranium from South Australia to date, with no effects to the public or the environment.

Internationally viewed as a supply destination of choice, South Australia exports to the United States, Japan, China, South Korea, Taiwan, Canada, France, Germany, Sweden, Belgium and potentially India and the United Arab Emirates.

Uranium Market

Current market conditions are not supportive of Honeymoon recommencing production, particularly with the current sustained low uranium market prices.

Ultimately the investment decision to recommence production at Honeymoon will depend on the anticipated market price of uranium and ensuring the project’s positive NPV over Life of Mine satisfy all stakeholders.   This critical aspect underpins the motivation for pursuing a staged development approach as the Company technically de-risks the Honeymoon Project to ensure all assumptions surrounding the deposit and process plant are fully evaluated prior to recommencing production, and thereby ensuring Honeymoon can operate in the lowest cost quartile of competitive global producers.

The Company’s expectations for the market remain positive and in the meantime strict cost consciousness and budget control is being adhered to.  Whilst difficult to accurately predict the timing of favourable catalysts on price, the industry consensus indicates prices will have to rise before 2020 to bring on new prospective mines or demand will significantly outstrip supply.

As underlying uranium prices rise, Honeymoon is arguably being positioned to be Australia’s next uranium producer.

Twenty Largest Shareholders (as at 27 October 2017)

Name Number of Shares %
1 Mr Antonius Joseph Smit 83,000,000 7.74
2 National Nominees Limited 80,246,513 7.48
3 Kingslane Pty Ltd 56,161,837 5.24
4 Neon Capital 40,000,000 3.73
5 Mr James David Taylor 39,533,336 3.69
6 Purple Bougainvillea Pty Ltd 32,505,979 3.03
7 Citicorp Nominees Pty Ltd 21,930,724 2.05
8 J P Morgan Nominees Australia Limited 21,210,349 1.98
9 Zero Nominees Pty Ltd 21,148,205 1.97
10 Mr Stephen John Dobson 21,107,253 1.96
11 Vynben Pty Ltd 16,666,667 1.55
12 Epic Feast Pty Ltd 15,833,333 1.48
13 Precambrian Pty Ltd 15,000,000 1.40
14 Ossart Holdings Pty Ltd 13,550,000 1.26
15 Somas Super Pty Ltd 13,066,667 1.22
16 Kobia Holdings Pty Ltd 12,500,000 1.17
17 Mr Morou Francois Ouedraogo 12,000,000 1.12
18 Mr James David Taylor & Mrs Marion Amy Taylor 11,769,960 1.10
19 Davey Management Australia Pty Ltd 10,483,333 0.98
20 Mark John and Margaret Patricia Bahen 10,328,421 0.96
TOTAL 547,952,577 51.11