Boss Energy Limited · ASX:BOE
Boss Energy — Boss Resources — Investor Presentation (June 2018)
22 slides from Boss Energy's investor presentation, Jun 7, 2018
Slide 1: Honeymoon Uranium Project: Australia's Next Uranium Producer
HONEYMOON URANIUM PROJECT Australia’s Next Uranium Producer For personal use only INVESTOR PRESENTATION BOSS RESOURCES ASX:BOE June 1 2018
Slide 2: Best project for an uncertain market with a short lead time to production
HONEYMOON URANIUM PROJECT Best project for an uncertain market with a short lead time to production For personal use only • Few uranium projects ready to participate in the early stages of a new bull market • Located in South Australia, the premier uranium jurisdiction • Fully permitted uranium oper
Slide 3: Investment Highlights
INVESTMENT HIGHLIGHTS For personal use only OPEX LOWEST COST QUARTILE $ AISC of < US$24 /lb Cash Costs C1 of <US16 /lb EXISTING OPERATIONAL PLANT Uranium demand and prices expected to $170m plant exists, successfully produced and maintained increase 9 months until production cf 7 -10 years average:
Slide 4: Directors and Executive
DIRECTORS EXECUTIVE For personal use only Mark Hohnen Duncan Craib Sashi Davies Non-Executive Chairman Managing Director & CEO Strategic and Marketing Mr. Hohnen was founding Executive Mr Craib has served as Finance Director to Ms Davies has over 35 distinguished years of Chairman of Kalahari Minera
Slide 5: Uranium Spot Market
URANIUM SPOT MARKET The Spot Market is Perception and Event Driven For personal use only US$/lb U308 $140 Jun '07: The Exchange Value® peaks at $135 due to tight supply, rising spot prices, and intense bidding for Aug-Sep '07: Spot supply uranium (auction format) available from sellers $120 Mar '11:
Slide 6: Current Growth in Nuclear Capacity
CURRENT GROWTH IN NUCLEAR CAPACITY Highest level of construction in 25 years: 58 reactors worldwide For personal use only Reactors under construction (58) Reactors in operation (449) CHINA 18 UNITED STATES OF AMERICA 99 FRANCE 58 RUSSIA 6 JAPAN 42 CHINA 39 INDIA 6 RUSSIA 36 KOREA, REPUBLIC OF 24 UNI
Slide 7: Growth in Installed Nuclear Capacity
GROWTH IN INSTALLED NUCLEAR CAPACITY Significant increase in reactors operating (and under construction, planned, proposed) For personal use only 2012 2040 China’s nuclear commitment: Rest of World 37 reactors in operation 20 under construction, +54% 40 planned, +162% Other non-OECD Asia 143 propose
Slide 8: Honeymoon Project: JORC Resource ~63.3 Mlb U3O8
HONEYMOON PROJECT JORC Resource ~ 63.3 Mlb U3O8 For personal use only Million Contained Contained Classification U3O8 Ppm Tonnes U3O8 (Mkg) U3O8 (Mlb) Measured 1.7 1,720 2.95 6.5 Indicated 5.9 810 4.8 10.6 • Honeymoon located 75Km NW of Broken Hill, South Australia Inferred 35.9 586 21.0 46.2 • Sout
Slide 9: Honeymoon Project: Exploration Upside ~100Mlb
HONEYMOON PROJECT Exploration Upside ~ 100Mlb For personal use only Million Targeted AREA U3O8 Ppm Eastern Tenements Tonnes U3O8 (Mlb) • Close proximity to the processing plant Eastern Tenements 10 - 25 380 – 1,200 18 - 47 • Regional scale assessment by proven methods Western Tenements 20 - 50 480 –
Slide 10: Existing Infrastructure
EXISTING INFRASTRUCTURE A$170M of Existing Infrastructure in Good Condition For personal use only Existing infrastructure – proven plant, FIELD LEACH power, roads, airstrip, camp and TRIAL water Production Well Water Treatment Fields Plant Control Centre Admin Buildings Camp Production Facility PLS
Slide 11: Proposed Staged Development
PROPOSED STAGED DEVELOPMENT For personal use only Annual Production Operating cost (AISC) Mlbs U308 US$/lb U308 3.50 40 35 3.00 $37.03 2.50 3.2 Mlbs 30 25 2.00 20 $23.36 $23.90 1.50 2 Mlbs $20.48 15 1.00 10 0.50 0.88 Mlbs 5 0.00 Capex - US$10M 0 Year 2 Year 4 Year 1 Quick Restart Year 2 Redevelopmen
Slide 12: Production Cost Curve
PRODUCTION COST CURVE By Mine-type Contribution For personal use only US$/lb U308 $70 Honeymoon – in the lowest quartile of cost producers AISC US$ 23.90/lb Cash Costs of US$ 15.50/lb over LOM $60 • Current long term U3O8 price is unsustainable $50 • 75% of production in 2016 uneconomic below $30/lb
Slide 13: Honeymoon Restart
HONEYMOON RESTART For personal use only Tribeca investment partners appointed to act as arranged and underwriter for CAPEX facilities of up to US$65M Annual PROJECT PARAMETERS All-in Sustaining Cost Cash Cost Production Process CAPEX spend Production 1st Year Quick Restart 880,000 lbs US$37.03/lb U3
Slide 14: Real Opportunity for Boss Resources
REAL OPPORTUNITY FOR BOSS RESOURCES For personal use only Running out of fuel is not an option for Nuclear Plants. Honeymoon can quickly be in production: • Fully Permitted with Export Licence of 3.3M lb pa U3O8 only represents ~ 8% of • Resource 63.3M lb U3O8 JORC OPEX for plants, so they can • Exi
Slide 15: Global Peer Comparison
GLOBAL PEER COMPARISON Honeymoon is one of the most advanced uranium development projects; can resume production within 12 months For personal use only Average annual production (Mlbs U3O8) 0.0 2.5 5.0 7.5 10.0 12.5 15.0 17.5 20.0 Exploration > PEA > PFS Macroeconomic Factors Haggan Shirley Basin PE
Slide 16: Path to Recommencing Production
PATH TO RECOMMENCING PRODUCTION Independently assessed by GR Engineering and ANSTO For personal use only Strategy to Advance Honeymoon Restart SCOPING STUDY PRE- FIELD STUDIES & INFILL ENGINEERING FEASIBILITY LEACH DRILLING STUDY TRIAL EXECUTION Targeted production 3.2Mlb U308 AISC $23.90lb • Highly
Slide 17: Incorporation of Ion Exchange
INCORPORATION OF ION EXCHANGE For personal use only Commence with Solvent Extraction, expand with Ion Exchange => targeted 3.2 Mlbs U308 per annum BOSS RESOURCES ASX:BOE 17
Slide 18: Existing Infrastructure $170M
EXISITNG INFRASTRUCTURE $170M Maximize utilization of the existing infrastructure with quick start potential For personal use only BOSS RESOURCES ASX:BOE 18
Slide 19: Burkina Faso Gold Project
BURKINA FASO GOLD PROJECT For personal use only Joint Venture salient terms • Teranga Gold Corporation (TSX: TGZ) owns 51% interest in the Burkina Faso gold assets • Boss 49% free carried to DFS and decision to mine • Thereafter Teranga’s interest will be 70% • Teranga then has right to acquire addi
Slide 20: Corporate Structure
CORPORATE STRUCTURE Trading Information (as at 4 June 2018) Historical Share Price For personal use only Share price 6.4cents Shares on Issue 1,574m Options On Issue1 55.5m Performance Rights2 37.3m Market capitalisation A$101m Cash on hand (at 20 May 2018) A$7.25m 1 Average exercise price of 6.5 ce
Slide 21: Disclaimer
DISCLAIMER For personal use only The information contained in this presentation or subsequently provided to any recipient of this presentation whether orally or in writing by or on behalf of Boss Resources Limited (“Boss”) or its respective employees, agents or consultants (Information) is provided
Slide 22: Keep Up to Date With Us
KEEP UP TO DATE WITH US: @Boss_Resources www.bossresources.com.au For personal use only Suite 23, 513 Hay Street Subiaco, WA 6008 DUNCAN CRAIB +61 8 6143 6739 Managing Director NATHAN RYAN nathan.ryan@nwrcommunications.com.a BOSS RESOURCES ASX:BOE VICTORIA HUMPHRIES victoria@nwrcommunications.com.au