Shares in Boss Energy Ltd (ASX: BOE) are gaining today after news the company has all the permits it needs to start producing uranium in Australia. At the time of writing, the Boss Energy share price is rocketing 16.13% higher than yesterday's closing price, trading at 18 cents.
Let's take a closer look at the mineral exploration company's announcement.
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Production permission
Boss Energy shares are surging after the company announced positive results from its review of the permits required to produce uranium in South Australia.
The company has found it already holds all the necessary permits to get its Honeymoon project up and running, including those needed to up its nameplate production to 2.45 million pounds per year.
State and federal government approval has been received for Boss Energy to mine, process, store, transport, and export uranium. This means it's one step closer to becoming Australia's next uranium producer.
The review also found the company's planned IX expansion and process modifications – aimed at reducing the project's costs – can be combined with existing state and federal approvals.
Boss Energy has received Honeymoon's mineral lease, EPA licences, and an approved transport management plan from the South Australian Government to move uranium oxide concentrate from the project to port.
It also has the federal permits needed to possess nuclear material and to ensure the security of uranium oxide concentrate, as well as recently renewed federal export permissions.
Boss Energy also shared it has recently signed agreements to purchase 1.25 million pounds of uranium oxide concentrate. It says this will enhance the project's financial position, increase flexibility in its funding and negotiations, and protect the project's commissioning phase.
Commentary from management
Boss Energy managing director Duncan Craib commented on the company's news, saying:
The soon-to-be-completed [enhanced feasibility study] will provide a roadmap to re-commissioning with simple modifications… Combined with a significant uranium stockpile locked in at attractive prices and all the required approvals and permits for near term production in place, Boss is well on track to be Australia's next uranium producer.
Boss Energy share price snapshot
Following this morning's news, Boss Energy shares have hit a new, 52-week high.
The Boss Energy share price is now up 80% year to date. It's also 157% higher than it was this time last year.
The company has a market capitalisation of around $353 million, with approximately 2.2 billion shares outstanding.
