Boss Energy Limited · ASX:BOE
Boss Energy — Boss Resources — Investor Presentation (October 2016)
24 slides from Boss Energy's investor presentation, Oct 11, 2016
Slide 1: Honeymoon Uranium Project Investor Presentation
HONEYMOON URANIUM PROJECT South Australia For personal use only INVESTOR PRESENTATION October 2016
Slide 2: 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 3: Why Uranium? Nuclear Power: The Best Solution
WHY URANIUM? Nuclear Power: The Best Solution For personal use only • Nuclear power provides the best solution for a non-polluting 24:7 base load power source • Zero carbon emissions • Over 440 existing nuclear plants, focused in Europe, North America, Russia, South Korea and Japan • 1.7 billion of
Slide 4: Climate Change Requires Nuclear Energy Involvement
CLIMATE CHANGE REQUIRES NUCLEAR ENERGY For personal use only INVOLVEMENT “There’s really only one technology that we know of that supplies carbon-free power at the scale modern civilization requires, and that is nuclear power” - Ken Caldeira of Stanford University’s Department of Global Ecology
Slide 5: Market Demand: Global Reactor Growth
MARKET DEMAND Global Reactor Growth For personal use only • Global nuclear power generation capacity will increase 70% over the next decade from 374,067MWe to 636,693MWe • Annual uranium demand will increase from 177mlbs to 280mlbs by 2020, representing a 58% increase • Additional 390mlbs will be ne
Slide 6: China
CHINA For personal use only 223mlbs U3O8 purchased since 2009 Breaking ground on 6-8 new units per year (increasing to 10 per year post-2020) Air Quality Imperative – moratorium on new coal plants CURRENT NUCLEAR GROWTH PLAN 2020 58GWe 2025 97GWe 2040 160GWe
Slide 7: India
INDIA For personal use only Official Plan – 15 GWe installed by 2025 Uranium buying spree (long term contracts) – Canada, Kazakhstan, Uzbekistan Establishment of “Strategic Uranium Reserve” of between 13 and 39mlbs U3O8 21 6 4 REACTORS OPERATING UNDER CONSTRUCTION PLANNED With installed capacity of
Slide 8: Japan
JAPAN For personal use only 20-22% NUCLEAR POWER PLANNED Government approved 26 5 4 APPLICATIONS APPROVED RESTARTED NRA has received 26 reactor Five reactors approved for Four reactors have restart applications restart started
Slide 9: Honeymoon Highlights
HONEYMOON HIGHLIGHTS For personal use only PERMITTED TARGET INFRASTRUCTURE LOW CAPEX Fully permitted uranium Significant exploration target $170m plant and Expansion Study highlights operation infrastructure in place low CAPEX expansion Huge 80+ km potentially (1 of only 4 in Australia) mineralised
Slide 10: Corporate Structure
CORPORATE STRUCTURE For personal use only Shareholder Breakdown Existing Shares (ASX:BOE) 903 million 14% Directors & Related Parties Performance Rights* 58 million 12% Offshore Holdings Options ($0.02 Aug 18) 10 million Cash (30 June 2016) ~ $3 million 4% Nominee Companies Market Capitalisation ~$5
Slide 11: Australian Uranium Projects
AUSTRALIAN URANIUM PROJECTS For personal use only HONEYMOON URANIUM PROJECT • One of the highest grade un- mined uranium resources in Australia • 1 of only 4 fully permitted uranium projects in Australia • Curnamona Basin – a significant underexplored uranium province • Targeting >100mlbs resource •
Slide 12: Honeymoon Uranium Project
HONEYMOON URANIUM PROJECT For personal use only • Located 75Km NW of Broken Hill, in the Curnamona Region of South Australia • Resources amenable to ISL recovery • Mineralisation occurs at 90-120m depth • Over 5,300 drill holes in data base • Multiple styles of uranium mineralisation identified 12
Slide 13: Infrastructure
Water Treatment Plant INFRASTRUCTURE Production Well Fields $170M EXISTING INFRASTRUCTURE IN PLACE For personal use only Control Admin Buildings Centre Production Facility Camp PLS Ponds Workshop
Slide 14: Honeymoon Resource
HONEYMOON RESOURCE SIGNIFICANT EXISTING HIGH GRADE RESOURCES – HIGHEST GRADE AMONGST ASX-LISTED PEERS For personal use only Million U3O8 Contained U3O8 Contained U3O8 Classification Tonnes ppm (Mkg) (Mlb) Measured 1.7 1720 2.95 6.5 Indicated 5.9 810 4.80 10.6 Inferred 32.5 569 18.50 40.7 Total 40.1
Slide 15: Expansion Study
EXPANSION STUDY LOWEST CAPEX URANIUM PLAY ON ASX WHILST MAINTAINING LOW OPEX For personal use only • Completed September 2016 by GR Engineering and ANSTO • The Expansion Study was based on results from past production operations • A hybrid ELUEX process utilizing $170m existing infrastructure • Low
Slide 16: Eastern Tenements Exploration Potential
EASTERN TENEMENTS EXPLORATION POTENTIAL For personal use only • Eastern Tenement Resource of 32.8mlb U3O8 YARRAMBA • Additional regional Exploration Target of 18-47mlb U3O8 NORTH JASONS • 30 strike km of potential mineralision LAWLORS • Drill ready targets - historical drilling shows numerous >1,000
Slide 17: Western Tenements Exploration Potential
WESTERN TENEMENTS EXPLORATION POTENTIAL For personal use only • Western Tenement Resource of 25mlb U3O8 • Additional regional Exploration Target of 24-53mlb U3O8 • 54 strike km of potential mineralision • Goulds Dam / Billeroo system underrated: – 12km strike length – Under drilled highly prospectiv
Slide 18: Milestones
MILESTONES For personal use only ✓ Project Acquisition Lowest cost per lb acquisition in recent history ✓ Resource Upgraded Total resource of 57.8mlb U3O8 @ 654ppm – 3.5 times the resource at acquisition in December FEASIBILITY PLANNING SCHEDULE 2015 ✓ Project Activities Q₃ 2016 Q₄ 2016 Q1 2017 End
Slide 19: Directors: Experienced Board and Management
DIRECTORS EXPERIENCE BOARD AND MANAGEMENT For personal use only • Mark Hohnen Chairman Mr Hohnen has extensive international business experience in a wide range of industries. He is currently a Board member of Swakop Uranium and was the founding Executive Chairman of Kalahari Minerals Plc. • Marat A
Slide 20: Competitive Advantage
COMPETITIVE ADVANTAGE BOSS RESOURCES For personal use only TEAM ASSETS APPROVALS LOW COST Executives with project Honeymoon Uranium All approvals are in Expansion Study management, asset in South Australia place highlights low CAPEX development, financing, expansion (US$57m) Underestimated Only non-
Slide 21: Uranium Peers Cost Analysis
URANIUM PEERS COST ANALYSIS – ASX Uranium Companies For personal use only Athabasca Basin (Canada) Ultra high grade 1% plus However ultra high costs Typical CAPEX ~ $1 Billion Kazakhstan Produces ~ 40% world uranium Typical OPEX $20-30/lb Berkeley (Spain) ISL production Peninsula (USA) ASX:BKY Typic
Slide 22: Peer Comparison ASX Listed Stocks
PEER COMPARISON ASX LISTED STOCKS For personal use only Initial Capex Mining Resource Market Cap $ C1 Costs Company Grade ppm Mining Type Resource (US$) Permit mlb (AUD$) Valuation/lb US$/lb Toro Energy (ASX:TOE) $315m ✗ 84 482 Bulk surface $100m $1.94 $31 Vimy (Energy & Minerals) (ASX:VMY) $378m ✗
Slide 23: For personal use only
For personal use only 23
Slide 24: Contact
For personal use only Contact Grant Davey – Operations Director Suite 23, 513 Hay Street +61 (0) 447 753 163 Subiaco, WA 6008 www.bossresources.com.au 24 +61 8 6143 6730
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