Interview with Duncan Craib, MD & CEO of Boss Energy Ltd.

Our previous interview: https://www.cruxinvestor.com/posts/boss-energy-boe-47-irr-australian-uranium-producer-1150

Recording date: 31st January 2025

Boss Energy (ASX:BOE), an Australian-based uranium producer, is strategically positioned to capitalize on rising uranium prices through its ownership of the Honeymoon mine in South Australia and a 30% stake in Encore Energy's Alesa mine in Texas.

Under CEO Duncan Craib's leadership, Boss Energy is executing a measured production ramp-up at Honeymoon, targeting 850,000 pounds through June 2025, scaling to 1.6 million pounds by June 2026, and reaching full capacity of 2.45 million pounds annually by June 2027. The company's restart of Honeymoon leverages existing infrastructure and permits, enabling a faster and more cost-effective return to production compared to greenfield projects.

A key aspect of Boss Energy's strategy is its conservative approach to long-term contracts. With only 16% of production currently contracted, the company maintains flexibility to capitalize on expected uranium price increases. This unhedged position reflects management's confidence in the market outlook, as uranium prices rose 48.25% from 2023's average to the end of 2024.

The company's financial position is robust, with no debt and a valuable carried-forward tax loss position. As an in-situ recovery (ISR) producer, Boss Energy benefits from relatively low operating costs, positioning it to generate significant cash flow from 2026 onwards.

Beyond Honeymoon's current operations, Boss Energy is evaluating growth opportunities through satellite deposits and potential M&A activities. While maintaining strict discipline in asset evaluation, the company is open to various mining methods, including open pit and underground operations.

The broader uranium market context supports Boss Energy's strategy. Growing recognition of nuclear power's role in decarbonization, combined with years of underinvestment in new mines, has created a supply deficit. Many uranium developers are struggling to meet projected timelines, which CEO Craib believes will drive prices higher to incentivize new production.

Craib emphasizes the company's focus on delivering shareholder returns: "We want to build a solid footing and be corporately responsible and really deliver returns to shareholders and stakeholders alike."

With its early-mover advantage, low-cost production profile, and strategic approach to market exposure, Boss Energy represents a compelling opportunity in the uranium sector. The company's disciplined expansion strategy and strong financial position make it well-placed to benefit from the growing recognition of nuclear power's role in the global energy transition.

View Boss Energy's company profile: https://www.cruxinvestor.com/companies/boss-energy

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