Boss Energy Limited · ASX:BOE
Boss Energy — Investor Presentation (March 2022)
39 slides from Boss Energy's investor presentation, Mar 16, 2022
Slide 1: Australia's Next Uranium Producer: Capital Raising to Fund Development
For personal use only AUSTRALIA’S NEXT URANIUM PRODUCER CAPITAL RAISING TO FUND DEVELOPMENT 16 March 2022 Not for release to US wire services or distribution in the United States
Slide 2: Disclaimer and Important Notices
DISCLAIMER AND IMPORTANT NOTICES For personal use only IMPORTANT: You must read the following before continuing. NOT INVESTMENT ADVICE Not for release to US wire services or distribution in the United States. This Presentation does not constitute in any way an offer or invitation to subscribe for se
Slide 3: Disclaimer and Important Notices
DISCLAIMER AND IMPORTANT NOTICES For personal use only FORWARD LOOKING STATEMENTS assumptions, uncertainties and contingencies which may affect future operations of Boss and the impact that different future outcomes may All dollar amounts are in Australian dollars unless otherwise indicated. This an
Slide 4: Investment Highlights
INVESTMENT HIGHLIGHTS For personal use only A$125M capital raising to fund Boss to become Australia’s next Uranium producer Technically proven, low-cost re-start operation in the uranium friendly jurisdiction of South Australia FEED Study practically complete (due in March ‘22) and remains mater
Slide 5: Equity Raising Overview
EQUITY RAISING OVERVIEW For personal use only Raising up to A$125M, including A$120M placement and A$5M SPP, to fund the Honeymoon restart Offer Structure and Size • Two Tranche Placement to sophisticated, professional and other institutional investors to raise up to A$120M (“Placement”) comprising
Slide 6: Sources & Uses of Funds
SOURCES & USES OF FUNDS For personal use only Strong balance sheet with no debt, ~A$140M net cash post transaction and an additional ~A$100M contingency from Boss’ existing strategic inventory post raising Sources A$M Uses A$M Honeymoon Development Capital Placement Proceeds 120 113 (incl contingenc
Slide 7: Indicative Timetable and Pro-forma Capital Structure
INDICATIVE TIMETABLE AND PROFORMA CAPITAL STRUCTURE For personal use only INDICATIVE TIMETABLE1 PRO-FORMA SHARES AND CASH Key Event Date Ordinary Cash Record Date for Eligibility to participate in SPP Tuesday, 15 March 2022 Shares (M)2 (A$M) Announcement of Placement Wednesday, 16 March 2022 Existin
Slide 8: Corporate Overview
CORPORATE OVERVIEW For personal use only BOARD OF DIRECTORS SHARE PRICE PERFORMANCE Non-Executive Chairman Peter O’Connor $3.50 12 Managing Director & CEO Duncan Craib $3.00 10 Share Price (A$/sh) Non-executive Director Jan Honeyman $2.50 Volume (M) 8 Non-executive Director Bryn Jones $2.00 6 $1.50
Slide 9: Key Milestones Achieved
KEY MILESTONES ACHIEVED For personal use only Track record of achieving key milestones Milestone Date Status Acquisition of Honeymoon Uranium Project - global Resources of 16.6Mlb U3O8 Dec 2015 Scoping study confirming low capital requirements and operating costs for Honeymoon re-start Sept 2016 PFS
Slide 10: Honeymoon's Path Forward
HONEYMOON’S PATH FORWARD For personal use only Well positioned to deliver on project outcomes to meet growing market demand Complete FEED – practically complete and due 31 March 2022 – on track and in line with EFS expectations Secure long-lead time items – including IX columns & Water Treatment Pla
Slide 11: Uranium Market Update
For personal use only URANIUM MARKET UPDATE BOSS ENERGY 11 BOSS ENERGY | AUSTRALIA’S PREMIER URANIUM JURISDICTION 11
Slide 12: Uranium Price History
URANIUM PRICE HISTORY For personal use only Increased activity in the spot market has led to a rapid increase in spot price $160 2005: Major Mine $140 Flood (Cigar Lake) ? $120 Spot Contract 2011: $100 Fukushima Honeymoon AIC US$31.9/lb Industry recognised incentive price US$/lb U3O8 Event $80 $60 $
Slide 13: Russia / Ukraine Impact
RUSSIA / UKRAINE IMPACT For personal use only It’s not just about short-term sanctions. It’s about strategic risk and sovereign security. Current Situation • President Biden announced US will sanction Russian oil & gas – Uranium/ nuclear fuel could be next • USA purchases ~ 20% of enriched uranium f
Slide 14: Compelling Uranium Market Fundamentals
COMPELLING URANIUM MARKET FUNDAMENTALS For personal use only Re-start projects are required to be online by 2023-2024 to fill a looming supply shortage World Nuclear Association - Reference (Base) Scenario3 RISING TIGHTENING BARRIERS TO 120 OPPORTUNITY DEMAND SUPPLY ENTRY • Strong fundamentals • Dem
Slide 15: Uranium Market Fundamentals
URANIUM MARKET FUNDAMENTALS For personal use only Multiple macroeconomic factors converging in support of a near term price recovery The uranium recovery Net zero carbon Increasing Lack of US$70/lb is underway emissions electrification alternatives incentive price After an extended period of Stimula
Slide 16: Honeymoon Uranium Project
For personal use only HONEYMOON URANIUM PROJECT AUSTRALIA’S NEXT URANIUM PRODUCER BOSS ENERGY 16 BOSS ENERGY | AUSTRALIA’S PREMIER URANIUM JURISDICTION 16
Slide 17: Honeymoon Uranium Project
HONEYMOON URANIUM PROJECT For personal use only A technically proven, low-cost re-start operation in a uranium friendly jurisdiction Honeymoon is a brownfield project that has produced and exported U3O8 to global markets Industry competitive upfront capital requirement of only ~US$80M BEVERLEY OLYMP
Slide 18: Honeymoon Mine Site
WATER TREATMENT HONEYMOON MINE SITE PLANT PRODUCTION WELL For personal use only FIELDS Sunk Infrastructure Cost of A$170M CONTROL CENTRE ADMIN BUILDINGS PRODUCTION FACILITY CAMP WORKSHOP PLS PONDS BOSS ENERGY | AUSTRALIA’S NEXT CLEAN ENERGY PRODUCER 18
Slide 19: JORC Resources ~71.6Mlb U3O8
JORC RESOURCES ~ 71.6Mlb U3O8 For personal use only • 71.6Mlb U3O8 JORC Resource1 at an average grade of 620ppm U3O8 • The Honeymoon Re-start Area (HRA) contains 36Mlb U3O8 • ML 6109 sits on top of the HRA • Shallow mineralisation at 90 - 120m depth • A further 36Mlbs sits outside the HRA on 2 satel
Slide 20: EFS Financial Highlights
EFS FINANCIAL HIGHLIGHTS For personal use only Honeymoon’s low cost of production delivers robust financial returns KEY STUDY OUTCOMES 2021 EFS US$1.28B US$25.62/lb Physical Summary REVENUE AISC Life of Mine Years 11 U3O8 Production Mlb 21.81 Financial Summary NPV 8%, Pre-tax (US$60/lb) A$M 412 62%
Slide 21: Project Development and FEED Update
PROJECT DEVELOPMENT AND FEED UPDATE For personal use only FEED practically complete reaffirming Honeymoon’s Enhanced Feasibility Study results • Front-End Engineering Design (FEED) studies are DEVELOPMENT CAPITAL SUMMARY practically complete and only minor remaining works Direct costs outstanding Io
Slide 22: Significant Upside Potential
SIGNIFICANT UPSIDE POTENTIAL For personal use only Substantial scope to add significant value and mine life beyond initial EFS mine plan EFS represents a base case to fast-track production from Honeymoon’s Restart Area and utilizes only ~50% of the Project’s resources OPPORTUNITY DESCRIPTION • The E
Slide 23: Growing the U3O8 Inventory
GROWING THE U308 INVENTORY For personal use only Solid base with significant exploration upside • Honeymoon has a substantial Exploration Target1 of 58Mlbs to 190Mlbs at grades up to 1,080ppm U3O8 • Exploration focused on : (i) Targeting the greenfields exploration targets to further advance current
Slide 24: In-Situ Recovery ESG Benefits
IN-SITU RECOVERY ESG BENEFITS For personal use only ISR mining has 19-28% lower energy requirements and produces just 17-32% GHG emissions compared to conventional mining • Low impact in-situ recovery (ISR) mining method employed at Honeymoon site • ISR has 19-28% lower energy requirements and produ
Slide 25: Appendix
For personal use only APPENDIX BOSS ENERGY 25 BOSS ENERGY | AUSTRALIA’S PREMIER URANIUM JURISDICTION 25
Slide 26: Boss Energy - Board of Directors
BOSS ENERGY - BOARD OF DIRECTORS For personal use only Highly credentialed team with a proven track record in the uranium industry Peter O’Connor Duncan Craib Jan Honeyman Bryn Jones Wyatt Buck Non-Executive Chairman Managing Director & CEO Non-Executive Director Non-Executive Director Non-Executive
Slide 27: Boss Energy - Operating Team
BOSS ENERGY – OPERATING TEAM For personal use only Highly credentialed team with a proven track record in the uranium industry Sashi Davies Jon Owen Trevor Robinson Ben Jeuken Merrill Ford Jason Cherry Strategic & Marketing Project Manager Processing Manager GM Wellfield and Resources NIMCIX Ion Exc
Slide 28: Key Risks and Foreign Offer Jurisdictions
For personal use only KEY RISKS AND FOREIGN OFFER JURISDICTIONS BOSS ENERGY 28 BOSS ENERGY | AUSTRALIA’S PREMIER URANIUM JURISDICTION 28
Slide 29: Key Risks
KEY RISKS There are various risks associated with an investment in New Shares or Boss generally, as with any securities market investment. This section summarises the key risks specific to the For personal use only existing business and operations of Boss and to the Offer. Potential investors should
Slide 30: Key Risks
KEY RISKS For personal use only Uranium as a source of Nuclear energy is in direct competition with other sources of energy including gas, coal and renewable energy (including solar, wind and hydro-electricity). energy Furthermore, any potential growth of the nuclear power industry (and increase in
Slide 31: Key Risks
KEY RISKS For personal use only Resource Estimates The Company has identified a mineral resource at the Honeymoon Project. Resource estimates are expressions of judgment based on knowledge, experience and industry practice. Estimates which were valid when originally calculated may alter significantl
Slide 32: Key Risks
KEY RISKS For personal use only Commodity Price The price for commodities (including uranium) will depend on available markets at acceptable prices and transmission and distribution costs. Any Volatility and Exchange substantial decline in a commodity or an increase in transmission or distribution c
Slide 33: Key Risks
KEY RISKS For personal use only Competition Risk The uranium industry is subject to domestic and global competition. Although the Company will undertake all reasonable due diligence in its business decisions and operations, the Company will have no influence or control over the activities or actions
Slide 34: Foreign Offer Restrictions
FOREIGN OFFER RESTRICTIONS For personal use only This document does not constitute an offer of new ordinary shares ("New Shares") of the Company in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may not be offered
Slide 35: Foreign Offer Restrictions
FOREIGN OFFER RESTRICTIONS For personal use only Canada (British Certain Canadian income tax considerations. Prospective purchasers of the New Shares should consult their own tax adviser with respect to any taxes Columbia, Ontario and payable in connection with the acquisition, holding or dispositio
Slide 36: Foreign Offer Restrictions
FOREIGN OFFER RESTRICTIONS For personal use only Malaysia This document may not be distributed or made available in Malaysia. No approval from, or recognition by, the Securities Commission of Malaysia has been or will be obtained in relation to any offer of New Shares. The New Shares may not be offe
Slide 37: Foreign Offer Restrictions
FOREIGN OFFER RESTRICTIONS For personal use only Switzerland The New Shares may not be publicly offered in Switzerland and will not be listed on the SIX Swiss Exchange or on any other stock exchange or regulated trading facility in Switzerland. Neither this document nor any other offering or marketi
Slide 38: Foreign Offer Restrictions
FOREIGN OFFER RESTRICTIONS For personal use only United States This document does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States. The New Shares have not been, and will not be, registered under the US Securities Act of 1933 or the securities la
Slide 39: Honeymoon Restart Project
For personal use only HONEYMOON RESTART PROJECT KEEP UP TO DATE WITH US: www.bossenergy.com @Boss_Energy BOSS ENERGY 39 BOSS ENERGY | AUSTRALIA’S PREMIER URANIUM JURISDICTION 39