Boss Energy (ASX:BOE) share price wobbles after operational update

It was all good news coming out of the uranium miner this morning.

| More on:
A little girl wearing wonky glasses checks out what's happening in the world on a mobile phone.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Boss Energy Ltd (ASX: BOE) share price took off this morning before handing its gains back.

The surge coincided with the company's release of a non-price sensitive update. The uranium-focused minerals exploration company updated the market on its uranium inventory, its Honeymoon Project, key appointments, and its prediction of future uranium prices.

At the time of writing, the Boss Energy share price is 24 cents, flat against its previous close.

However, the Boss Energy share price reached 25.5 cents earlier this morning – representing a 6.25% gain.

Let's take a closer look at today's news from Boss Energy.

Boss share price soars on market update

The Boss share price took off this morning as the company released a seemingly positive market update.

Firstly, Boss announced it has recorded a book profit of $21.81 million after the value of its uranium inventory soared.

Since Boss purchased its 1.25 million pound uranium stock in March, the price of the commodity has increased from US$30.15 per pound to US$41.25 per pound. That compares to Boss' forecasted price of US$31.90 per pound.

In addition to its inventory's increased cash value, Boss' inventory has boosted the flexibility of project funding and offtake negotiations with customers as it prepares to restart production at its Honeymoon Project.

Boss has also received requests for tender proposals from 3 countries with nuclear energy. It says the requests indicate the growing strength of the uranium market and its Honeymoon Project's industry status.   

The company is currently preparing for a final investment decision for the South Australian uranium project.

At the same time, it's ramping up its exploration strategy with a staged approach.

The strategy has already expanded Honeymoon's global JORC resource by around 433% to 71.67 million pounds since 2015.

Additionally, Boss is progressing its front-end engineering design studies. It's expected to be finished in the first quarter of 2022.

Finally, the company has appointed several new team members. Among the new faces is Jonathan Owen, who will be project manager of Honeymoon's restart.

Commentary from management

Boss managing director Duncan Craib commented on the update:

While the continued purchasing of U3O8 by the Sprott Physical Uranium Trust will have a positive impact on the market by sequestering significant quantities of uranium and strengthening the uranium price, we can expect to see continued volatility until more nuclear power utilities enter the market…

By continuing to advance Honeymoon on several fronts while growing the uranium inventory, we can ensure we can capitalise on the rapidly turning uranium market at the moment of our choosing.

Boss Energy share price snapshot

The Boss Energy share price has gained 140% since the start of 2021. It is also 242% higher than it was this time last year.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Resources Shares

Three miners stand together at a mine site studying documents with equipment in the background
Resources Shares

Up 46% since June, should you still buy Pilbara Minerals shares right now?

A leading expert offers his verdict on Pilbara Minerals' resurgent share price.

Read more »

Female miner smiling at a mine site.
Resources Shares

Up 60% this year, this ASX 200 mining stock just smashed production records

Production surge headlines quarterly results.

Read more »

a man in a hard hat and high visibility vest smiles as he stands in the foreground of heavy mining equipment on a mine site.
Resources Shares

After lifting its price target, Macquarie now expects 36% upside from this ASX mining stock

The precious metals producer released better-than-expected production guidance.

Read more »

A miner in a hardhat and high visibility clothing makes a thumbs up symbol.
Resources Shares

4 reasons to buy Rio Tinto shares today

A leading expert forecasts strong growth potential for Rio Tinto shares.

Read more »

Man with rocket wings which have flames coming out of them.
Resources Shares

Why Macquarie expects this ASX All Ords copper stock could surge 38%

With costs coming in below expectations, this ASX All Ords copper stock could rocket higher over the coming months.

Read more »

Iron ore price Vale dam collapse ASX shares iron ore, iron ore australia, iron ore price, commodity price,
Resources Shares

Major miners up as China announces new mega project

Can a new mega-dam absorb iron ore oversupply?

Read more »

A young man sits at his desk with a laptop and documents with a gas heater visible behind him as though he is considering the information in front of him. about the BHP share price
Broker Notes

Leading broker has just downgraded BHP shares. Is it time to sell?

Macquarie sees little upside. But why?

Read more »

A young woman wearing a blue blouse with white polkadots holds her phone up with an intrigued and happy look on her face as she reads some news.
Resources Shares

3 reasons why the BHP share price could be a buy

Here are my optimistic thoughts on BHP.

Read more »