Ann: Honeymoon Achieves Project Milestone - NIMCIX delivery, page-36

I'm not sure he actually said overshoot but he and the CEO if PDN were on the same page and very bullish. I trust you''be able to get to the article from here.
Boss is clear Diggers winner as MD predicts uranium price will ‘overshoot on supply deficit’ - Barry FitzGerald | Livewire (livewiremarkets.com)

It was the one from Boss Energy (ASX: BOE) by Duncan Craib. The proof in the pudding was the uranium developer’s share price outperformance following Craib’s err…boss performance on the big stage at the Goldfields Arts Centre. Craib spoke on Monday, the first day of the conference. On the Friday before when the 2600 conference delegates were still winding their way to Kalgoorlie, Boss was a $2.92 stock.

By the time everything was said and done in Kalgoorlie, and all the delegates were back in their Perth and Eastern states offices on Thursday morning nursing their heads, Boss had headed off to $3.35, making for a 14.7% gain on its pre-conference levels.In essence, Craib served up a reminder that while lithium is rightly a hot investment thematic, so too is the uranium thematic, one which Boss is about to capitalise on with first production from its Honeymoon project in South Australia’s outback due before the end of the year.

Uranium currently fuels about 12% of the world’s electricity. And with growing support for nuclear power in a decarbonising world, the fuel has finally picked itself up from the ground after the fallout of the Fukushima accident in 2011. Add the world’s decarbonising imperative to the turmoil in energy markets of all types caused by Russia’s invasion of Ukraine, and Craib reckons there is no doubt that the uranium price will take off big time in the next 1-3 years. He told Diggers that energy security post the Russian invasion had become a priority around the world. “Supply is under threat like we haven’t seen since the early 1970s,” Craib said.“Demand is growing and so too is the supply deficit. Inventories are now significantly lower than they were in the early 2000s. The US on average has about two years of cover, and when we look across the EU, there is about 36 months of cover.“Those inventories need to be replenished.

The tide has turned.“There is very little inventory around and new production is needed in the near term. With an emphasis on security, fuel buyers around the world are looking for uranium from geopolitical stable countries, friendly nations such as Australia.“And here we are, in that sort of sweet spot.’’As it is, uranium has been one of the strongest performing commodities in the past couple of years, rising from $US29.63/lb at the start of CY2021 to $US56/lb of late. In past uranium price booms, the price has demonstrated a potential to go crazy.“There is no doubt in my mind that the price is going to overshoot in response to this currently forecast supply deficit,” Craib said. As he said earlier, pending first production from Honeymoon puts Boss in a sweet spot. It is actually a restart of the operation after its mothballing in 2014 when uranium prices really were in the dumps.

The in-situ leach project though is coming back with an ion-exchange (IX) enhancement over the solvent extraction method previously used.It is not novel to the uranium industry and allows Honeymoon’s annual production to be increased to 2.25Mlbs (export permits allow for an eventual increase to 3.3Mlbs annually) at lower operating costs (cash costs of less than $US20/lb and AISC of $US32/lb are forecast).

The low-capex restart is fully funded and because of its $200m in cash and 1.25mlb uranium inventory position (acquired a couple of years back at about $US30/lb) Craib has been able to avoid contracting too early in a rising market.“In the last 6-12 months we have been constantly inundated with fuel buyers wanting to enter in to off-market contracts,” he said.“I am confident that we will be announcing contracts before we enter production by the end of this year. We have been resisting, however, the temptation to do so in the lead up this point because we have a strong belief that uranium prices would rise. And they have.”