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Highlights
- Australia registered AU$564 million of earnings from exports of uranium in FY21-22.
- ASX-listed Deep Yellow is developing two projects in Tier-1 uranium jurisdiction.
- Boss Energy is developing the Honeymoon Uranium project, among the few uranium projects ready to be a part of the new uranium bull market.
Australia is the third largest producer of uranium and has the largest uranium reserves globally, according to the Minerals Council of Australia. In the financial year 2021-22, Australia reported AU$564 million of earnings from exports.
Uranium has significant potential for future growth as global energy trends bolster the advantages of nuclear generation, comprising reliable supply, low emissions and energy security.
With this backdrop, let’s skim through two ASX-listed uranium companies – Boss Energy Ltd (ASX:BOE) and Deep Yellow Limited (ASX:DYL).
Deep Yellow Limited (ASX: DYL)
Deep Yellow is an energy company engaged in developing two projects – Tumas and Mulga Rock. Both projects are located in Tier-1 uranium jurisdiction. Presently, the company is advancing with its strategy to create a multi-mine firm, targeted to produce 10+Mlb annually.
In the financial year 2023, the company merged with Vimy, resulting in the acquisition of two Australian projects. Meanwhile, the period saw advancement across its Mulga Rock and Tumas project. At the beginning of CY23, the company completed a definitive feasibility study (DFS) over Tumas and proceeded with Front-End Engineering and Design and project financing. The project’s DFS has achieved significant financial results despite the exposure to inflation across the resource industry.
The DFS is being optimized at Mulga Rock, and a revised DFS is expected to be progressed in FY24.
The company intends to drive its growth via inorganic and organic methods. Organic growth will be delivered through the development of its project, and the inorganic plan includes targeted mergers and acquisitions to diversify its portfolio.
DYL shares were trading at AU$1.34 apiece, 1.90% up, at the time of writing on 2 October 2023. Including this, in the past one year, DYL’s share price has increased by nearly 59% and year-to-date gain is approximately 91%.
Boss Energy Limited (ASX: BOE)
An energy group, Boss Energy is focused on developing its Honeymoon Uranium project, located in South Australia. Honeymoon is among the few uranium projects which are ready to be a part of the new uranium bull market.
Operations at the Honeymoon project were paused in 2013, and in 2015, Boss Energy acquired the project. Presently, BOE is focused on re-commencing operations at the project and leveraging the infrastructure which is present on-site. Construction and development activities are on track, with the first production expected in the last quarter of 2023.
All permits are in place at the Honeymoon project to produce, store and export uranium oxide. The company informed that the project’s all-in cost has fallen by 11%, AISC by 16%, and cash costs by 21%.
The mine life of the Honeymoon project is over ten years, with an expected production rate of 2.45Mlb annually.
BOE shares were trading at AU$4.77 apiece, 1.65% down at the time of writing on 2 October 2023. With this, BOE’s stock price has appreciated by almost 88% in the past 12 months and has increased by 124% on a year-to-date basis.
