Boss Energy Limited · ASX:BOE
Boss Energy — Investor Presentation (December 2023)
45 slides from Boss Energy's investor presentation, Dec 7, 2023
Slide 1: Becoming a multi-mine Uranium producer
Becoming a multi-mine Uranium producer Alta Mesa Investment and Strategic Joint Venture with enCore Energy and A$215m Capital Raising 6 December 2023 ASX: BOE | OTCQX: BQSSF bossenergy.com
Slide 2: Disclaimer and Important Notices
Disclaimer and Important Notices IMPORTANT: You must read the following before continuing. recipient’s investment objectives, financial circumstances or particular needs. Each recipient must make his/her own independent assessment and investigation of Boss Energy and its business and assets when dec
Slide 3: Disclaimer and Important Notices
Disclaimer and Important Notices JORC CODE have not relied on any statements made by a Limited Party in relation to the Placement and you further expressly disclaim that you are in a fiduciary relationship with any of them. It is a requirement of the ASX Listing Rules that the reporting of ore reser
Slide 4: Honeymoon and Alta Mesa Resource Tables
Honeymoon and Alta Mesa Resource Tables HONEYMOON JORC EXPLORATION TARGETS AND MINERAL RESOURCE ALTA MESA NI 43-101 MINERAL RESOURCE ESTIMATE (2023) The information in this Presentation relating to the Enhanced Feasibility Study (“EFS”) is extracted from the For the purposes of Listing Rule 5.12, Bo
Slide 5: Summary
SUMMARY BOSS ENERGY 5 BOSS ENERGY | AUSTRALIA’S PREMIER URANIUM JURISDICTION 5
Slide 6: Alta Mesa JV and strategic relationship with enCore
Alta Mesa JV and strategic relationship with enCore Transaction Overview • Boss Energy to purchase 30% of Alta Mesa for US$60m cash, forming an asset JV and strategic relationship with the owner, enCore Energy¹ • Alta Mesa is a high-grade uranium mine with 3.41 million pounds at 0.109% U3O8 measured
Slide 7: Financial and Operating Highlights
Financial and Operating Highlights AT CURRENT US$80/lb SPOT URANIUM, AUD:USD 0.65 AND RAISING PRICE OF A$3.95 Capital raising and valuation Boss Energy’s post transaction asset portfolio Pricing Honeymoon Project Capital raising price A$/sh 3.95 Ownership % 100 Discount to last closing price on 5 De
Slide 8: Transaction Overview & Rationale
TRANACTION OVERVIEW & RATIONALE BOSS ENERGY 8 BOSS ENERGY | AUSTRALIA’S PREMIER URANIUM JURISDICTION 8
Slide 9: Key Transaction Terms
Platform transaction structured for alignment and a long-term partnership with enCore Key Transaction Terms • Boss Energy to acquire a 30% stake in enCore’s Alta Mesa ISR project in South Texas for US$60m cash consideration Alta Mesa 30% JV • Boss Energy and enCore to create a 30/70 incorporated JV,
Slide 10: Strategic Rationale
Transaction consistent with Boss’ strategy Strategic Rationale Foothold in Tier 1 US geography with exposure to a quality high grade ISR project with 3.41 million pounds at 0.109% U3O8 measured and ✓ indicated and 16.97 million pounds at 0.120% U3O8 inferred N.I. 43-101 compliant resources and signi
Slide 11: Alta Mesa ISR Uranium project
High grade 1,200ppm ISR project in a Tier 1 jurisdiction with significant potential for growth Alta Mesa ISR Uranium project ALTA MESA PROCESSING FACILITY • Located in South Texas – a prolific US district for sandstone-hosted ISR production with historic production of ~80Mlb1 uranium • Most progress
Slide 12: Global Uranium Platform in Tier 1 Locations
On time and on budget to be a multi-mine ISR producer in 1H 2024 Global Uranium Platform in Tier 1 Locations Texas Alta Mesa Project enCore Corpus Christi Head Office HONEYMOON: ALTA MESA: • Startup wellfield installation complete, pre-flushing producing production-grade uranium • Wellfield delineat
Slide 13: Total U3O8 contained in resource (Mlb)
Boss Energy will own two large resource, high grade ISR projects located in Tier 1 uranium mining jurisdictions, both producing in 1H 2024 US & Australian ISR Development Projects1 Alta Mesa has been the third largest ISR production asset in the US 120 21st Century US ISR Production 24.0 22.0 20.0 1
Slide 14: In-Situ Recovery (ISR) Mining
ISR is a proven cost-effective uranium extraction process with reduced environmental impact relative to traditional mining In-Situ Recovery (ISR) Mining • ISR accounts for ~60% global uranium mined, used in Australia, Kazakhstan, USA • ESG friendly mining method - unlike conventional mining, tempora
Slide 15: Honeymoon ISR & IX Mine
Honeymoon ISR & IX Mine
Slide 16: ISR Resource Growth & Replacement of Mining Depletion
Australian ISR mines have historically extended their initial mine life, including the producing Four Mile ISR mine in South Australia ISR Resource Growth & Replacement of Mining Depletion HONEYMOON ISR URANIUM MINE IN SOUTH AUSTRALIA - RESOURCE GROWTH & MINE LIFE Contained U3O8 in Resource Honeymoo
Slide 17: Leading Development and Operating Experience
Partnership able to leverage the combined experience in development, commissioning and operating mining projects globally Leading Development and Operating Experience BOSS RESOURCES Wyatt Buck (Chair) Duncan Craib (CEO and MD) Jan Honeyman (NED) Bryn Jones (NED) • GM of McArthur River Uranium Mine •
Slide 18: Honeymoon Exploration Potential
Substantial Exploration Target of 58Mlbs to 190Mlbs at grades up to 1,080ppm U3O81 Honeymoon Exploration Potential • Following strong infill drilling results at Gould’s Dam, Boss Energy is now preparing for technical and economic studies on developing the satellite deposit as an additional productio
Slide 19: Alta Mesa Exploration Potential
Large ~200,000 acres of underexplored land package in a prolific uranium region Alta Mesa Exploration Potential • Large underexplored land package totaling ~200,000 acres (~800sqkm) • Uranium mineralisation occurs locally as roll-front deposits hosted in porous and permeable standstones, at depths r
Slide 20: Transaction Funding
Raising up to A$215m via a A$205m Placement and A$10m SPP to fund transaction and accelerate growth strategy Transaction Funding EQUITY RAISING OVERVIEW USES OF FUNDS (excluding A$10m SPP) • Raising up to A$215m via A$205m Placement and A$10m SPP Alta Mesa A$M • Single tranche Placement to sophistic
Slide 21: Indicative Timetable and Pro Forma Capital Structure
Indicative Timetable and Pro Forma Capital Structure INDICATIVE TIMETABLE PRO FORMA SHARES AND CASH Key Event Indicative Date¹ Ordinary Shares (m) ² Cash (A$m) 5:00pm AEST on Tuesday, 5 Record Date for Eligible to participate in SPP December 2023 Existing issued capital 352.9 63³ Announcement of Tra
Slide 22: Uranium Market Update
URANIUM MARKET UPDATE BOSS ENERGY 22 BOSS ENERGY | AUSTRALIA’S PREMIER URANIUM JURISDICTION 22
Slide 23: Nuclear: the only viable means of global de-carbonisation
Nuclear: the only viable means of global de-carbonisation NUCLEAR IS THE DENSEST FUEL AVAILABLE MINIMAL ENVIRONMENTAL IMPACT 200 – 310m windmills = 1 – 1750 MW Nuclear Plant LOWER DEATH RATES PER UNIT OF ELECTRICITY PRODUCTION Source: enCore corporate presentation 2023 Boss Energy | Australia’s Next
Slide 24: Vulnerable Open vs Captured Fuel Markets
Security of supply is under threat as for the first time since the 1970’s there is very little inventory and new production is needed in the near term. China and Russia taking significant positions in Kazakhstan, deliveries from Kazakhstan vulnerable Vulnerable Open vs Captured Fuel Markets Green =
Slide 25: U.S. Uranium supply
US uranium supply heavily reliant on imports from vulnerable sources U.S. Uranium supply Uranium Production By Country (2022) 4.1% Kazakhstan, Canada and 5.1% 5.3M Namibia produce nearly 6.5M 5.6% 70% of the world’s uranium. 7.2M Kazakhstan 43% 6.7% 8.6M Canada 14.9% 43.0% 55.2M Namibia 11.4% MILLIO
Slide 26: Inventory supplies at all-time low
Inventory supplies are needed to fill the gap Inventory supplies at all-time low • Without the buffer of low-cost inventory and secondary supplies, demand will be needed from new production from existing mines, restarts and new mines • US inventories are back to 2012 levels and represent about 28 mo
Slide 27: Spot and Term prices
Uranium price is currently trading at 15-year highs ~ US$ 81/ lb U308 Spot and Term prices • From Sept ‘21 to April ’22 spot price consistently higher than term price, resulting in utilities moving into the term market Ux U308 Price (Spot vs. Long-Term) • Activity in term market has increased signif
Slide 28: Key Risks and Foreign Offer Jurisdictions
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 Energy generally, as with any securities market investment. This section summarises the key risks specific to the existing business and operations of Boss Energy and to the Offer. Potential investors should conside
Slide 30: Key Risks
Key Risks Completion Risk There is no certainty that the acquisition of Boss Energy’s 30% interest in the Alta Mesa Project will complete. Completion is subject to various conditions precedent and the parties to the Master Transaction Agreement have specific termination rights. The Alta Mesa acquisi
Slide 31: Key Risks
Key Risks 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 demand for uranium) be
Slide 32: Key Risks
Key Risks Resource Estimates The Company has identified a mineral resource at the Honeymoon Project, and has relied on foreign mineral resource estimates prepared by enCore. The mineral resource estimate at Alta Mesa is a foreign estimate prepared in accordance with Canadian National Instrument 43-1
Slide 33: Key Risks
Key Risks Commodity Price The price for commodities (including uranium) will depend on available markets at acceptable prices and transmission and distribution costs. Any substantial Volatility and Exchange decline in a commodity or an increase in transmission or distribution costs could have a mate
Slide 34: Key Risks
Key Risks 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 of its competitors, w
Slide 35: Foreign Offer Restrictions
Foreign Offer Restrictions This Presentation does not constitute an offer of New Shares of the Company in any jurisdiction in which it would be unlawful. In particular, this Presentation may not be distributed to any person, and the New Shares may not be offered or sold, in any country outside Austr
Slide 36: Foreign Offer Restrictions
Foreign Offer Restrictions Canada (British Statutory rights of action for damages and rescission. Securities legislation in certain Provinces may provide a purchaser with remedies for rescission or Columbia, Ontario and damages if an offering memorandum contains a misrepresentation, provided the rem
Slide 37: Foreign Offer Restrictions
Foreign Offer Restrictions Malaysia This Presentation 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 offered, sold or issue
Slide 38: Foreign Offer Restrictions
Foreign Offer Restrictions United Arab Emirates This Presentation does not constitute a public offer of securities in the United Arab Emirates and the New Shares may not be offered or sold, directly or indirectly, to the public in the UAE. Neither this Presentation nor the New Shares have been appro
Slide 39: Annexures
ANNEXURES BOSS ENERGY 39 BOSS ENERGY | AUSTRALIA’S PREMIER URANIUM JURISDICTION 39
Slide 40: Annexure A - Additional Technical Information Relating to the Foreign Estimate
Annexure A - Additional Technical Information Relating to the Foreign Estimate Under the definition of defined terms in the Listing Rules Chapter 19, the Alta Mesa Project mineral resources are classified as a foreign estimate. Additional information is presented in the table below. Listing Rule ASX
Slide 41: Annexure A - Additional Technical Information Relating to the Foreign Estimate
Annexure A - Additional Technical Information Relating to the Foreign Estimate Listing Rule ASX Explanation Commentary 5.12.5 To the extent known, a summary of the work • A database comprising 10,744 drill holes was used to inform the Alta Mesa resource estimate, while a database of 460 holes was us
Slide 42: Annexure A - Additional Technical Information Relating to the Foreign Estimate
Annexure A - Additional Technical Information Relating to the Foreign Estimate Listing Rule ASX Explanation Commentary 5.12.9 A cautionary statement proximate to, and • Boss Energy cautions that the mineral resources reported for the Alta Mesa and Mesteña Grande uranium projects are not reported in
Slide 43: Annexure B – Resource Tables for US & Australian ISR Development Projects
Annexure B – Resource Tables for US & Australian ISR Development Projects The tables below provide an overview of the resource potential of comparative US and Australia ISR Projects. LANCE PROJECT ¹ SHIRLEY BASIN PROJECT ⁴ Contained U3O8 Contained U3O8 Tonnes (Mt) Grade (ppm U3O8) Grade (ppm U3O8) (
Slide 44: Annexure C - enCore Corporate Overview
enCore Energy (NYSE: EU, TSX.V: EU) is a diversified ISR uranium development company headquartered in Texas Annexure C - enCore Corporate Overview¹ • enCore holds a portfolio of uranium assets located across the US, with a focus on its three licensed In-Situ Recovery processing plants in South Texas
Slide 45: Keep in touch
Keep in touch +61 (8) 6263 4494 boss@bossenergy.com ASX: BOE | OTCQX: BQSSF