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Boss Resources looking forward to business as usual with the US in uranium

Earlier this week US President Donald Trump declined to issue suggested quotas for US uranium imports.

President Trump
This means the US utilities market remains fully open to Boss as a potential off-take partner

Boss Resources Ltd (ASX:BOE) has welcomed President Trump’s decision to not limit uranium imports to the US, which has seen uranium prices move higher this week.

The decision from Trump means the US market is still fully open to non-US based potential uranium producers such as Boss.

Boss is completing a definitive feasibility study (DFS) evaluating the restart of production at its flagship Honeymoon Uranium Project in South Australia.

The advanced nature of the project means Boss is highly leveraged to a rebound in the uranium price, which many market commentators are suggesting is coming in the short to medium term.

Background to the US Department of Commerce investigation

In July 2018, the US Department of Commerce (DOC) launched an investigation into "the present quantity and circumstances" of uranium imports and if they threatened US national security.

The investigation, under Section 2321 of the Trade Expansion Act of 1962, was triggered by the January 2018 filing of a petition by two US uranium mining companies.

In it, the companies said the loss of a viable US uranium mining industry would have a significant detrimental impact on the country's national, energy and economic security and its ability to sustain an independent nuclear fuel cycle.

The companies sought a quota to limit imports of uranium into the US, effectively reserving 25% of the market for domestic production, and a "buy American" policy for federal entities needing to purchase the material.

On 15 April 2019, the DOC submitted to the White House the results of an investigation into the effects of uranium imports on US national security.

US President Donald Trump then had up to 90 days to decide whether to act on the DOC's findings and recommendations, which he now has.

READ: Boss Resources increases uranium exploration target at Honeymoon project

Boss Resources’ managing director Duncan Craib said: “We welcome US President Trump’s resolve as Boss is in a very good position to respond as US utilities come back to the market.

We have solid relationships with a variety of US utilities with whom we have been discussing off-take contracts. Australia has been a long-term reliable and important supplier of uranium to the US and this decision will see this continue, underpinning project development in Australia as well as providing foreign investment.

Honeymoon is 100% owned and fully permitted

“The outlook on improved uranium prices is positive. Boss’ 100%-owned and fully permitted Honeymoon Uranium Project has the same cost structure and restart timeline as most the tier one and tier two producers with existing and expansion capacity, making it one of the few uranium projects worldwide positioned that can participate in the early stages of a new bull market.

“President Trump’s announcement is timely as Boss advances its restart strategy and continues contractual discussions with US utilities, in concert with the underlying price of uranium.

“We look forward to business as usual in the US without tariffs or trade restrictions.”

Quick facts: Boss Resources Ltd

Price: 0.054 AUD

Market: ASX
Market Cap: $85.72 m

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