Good summary" ironwang" Also picked up this quote from another...

Good summary" ironwang" Also picked up this quote from another publication which reinforces their CR strategy.

Exposure to uranium price upside

Commenting on the raising, Boss managing director Duncan Craib said it would provide the financing required to develop Honeymoon through to the start of production.

He said the company had avoided obtaining debt because it would require fixing the uranium price through long term contracts.

“Boss anticipates that committing to long-term contracts in the current rising uranium price environment would adversely impact the long-term upside potential of Boss and we intend to wait for further increases in contract prices before making any offtake commitments.”

“We have deliberately structured our funding to maintain a highly conservative and robust balance sheet with no debt – $135 million of net cash and an additional $100 million contingency from our existing strategic uranium inventory,” Mr Craib explained.

De-risking Honeymoon

Mr Craib added the company had “worked relentlessly” to de-risk the restart of mining at Honeymoon.

Combined with existing cash reserves, Boss expects to have $142 million in cash, with funds for the raising to facilitate the completion of the FEED study, which remains in line with enhanced feasibility study results that were published in June last year.

Capital expenditure costs to restart Honeymoon are estimated at $113 million (including contingencies).

Mr Craib noted the purchase of 1.25 million pounds of uranium inventory also de-risks the mine’s restart, with that now worth about $100 million.

“With the uranium market’s continuing recovery, Boss to be funded (post equity raising) and Honeymoon having a unique short timeframe to production with all permits in place, Boss will be perfectly positioned to become the uranium producer of choice for investors and customers alike,” Mr Craib added.

First production from Honeymoon is expected within 18 months from commencement of development, with the mine forecast to produce 2.4Mlb uranium a year over the first three-to-four years.