Here's why the Boss Energy (ASX:BOE) share price is racing 8% higher today

An agreement with a major international mining company is helping Boss shares climb higher.

| More on:
Young boy in business suit punches the air as he finishes ahead of another boy in a box car race.

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

sdf

Key points

  • The Boss Energy share price reached as high as 12.9% in morning trade
  • The energy company has entered into an agreement with Canadian-listed First Quantum Minerals
  • The agreement gives Boss "exposure at no cost to the significant potential" of further exploration in partnership with "a global major"

The Boss Energy Ltd (ASX: BOE) share price is rocketing today after the company announced it has entered into an agreement with Canadian-listed First Quantum Minerals Limited.

Following the announcement, Boss Energy shares jumped as high as 12.9% in morning trade on Thursday. At the time of writing, shares are up 8.61% at $2.27.

So, what did the miner announce? Let's dive straight in.

Boss Energy's new joint venture

This morning, the energy company announced it had entered into an "earn-in" exploration agreement alongside Canadian miner First Quantum Minerals.

Under the agreement, First Quantum Minerals will provide $6 million in base and precious metal exploration funding over five years in return for a 51% interest on any discoveries found. The agreement relates to five mining sites at the Honeymoon project.

But first, First Quantum Minerals will undertake an assessment of the area. Quantum has committed $250,000 towards an "exploration targeting and due diligence program," which is now on deadline to be completed by 31 December.

After such time, First Quantum Minerals will either choose to go ahead with the agreement or pull out.

Boss Energy describes its South Australian site, the Honeymoon Uranium Project, as "one of the few uranium projects ready to participate in the early stages of the new uranium bull market."

Commentary from management

In its announcement, Boss Energy describes First Quantum Minerals' record of "discovering and developing deposits" positioning it as "an ideal partner in the exploration and potential development of any base or precious metal discoveries."

Further, the release says:

The agreement enables Boss to remain fully-focused on its core business of uranium exploration, development and production while having exposure at no cost to the significant potential associated with a base and precious metals exploration program led by a global major.

Boss managing director Duncan Craib commented on today's development:

This agreement is an outstanding opportunity for Boss and our shareholders.

We will have a global leader in FQM funding base and precious metals exploration at Honeymoon, giving Boss significant exposure to their success at no cost to us while we focus on our goal of becoming Australia's next uranium producer.

Boss Energy share price snapshot

In the last 12 months, the Boss Energy share price has increased by an impressive 136%.

Based on its current share price, Boss has a market capitalisation of $596.65 and a price-to-earnings ratio (P/E) of 567.5.

Motley Fool contributor Alice de Bruin 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 Energy Shares

An oil worker in front of a pumpjack using a tablet PC.
Energy Shares

Why did ASX 200 energy shares rip up the charts on Friday?

Analysts say oil prices are on track for their best week since February 2022.

Read more »

A male oil and gas mechanic wearing a white hardhat walks along a steel platform above a series of gas pipes in a gas plant.
Energy Shares

$10,000 invested in Santos shares 5 years ago is now worth…

Have Santos shares beaten the ASX 200 over five years? Let’s find out.

Read more »

a man in a business suit looks at a map of the world above a line up of oil barrels with a red arrow heading upwards above them, indicting rising oil prices.
Energy Shares

Woodside, Santos, and this ASX energy stock are storming higher on oil price jump

Oil prices jumped overnight amid escalating tensions between the US and Iran.

Read more »

Young man in shirt and tie staring at his laptop screen watching the Paladin Energy share price tank today
Energy Shares

Looking for opportunity? This sector has fallen the furthest in 2025

Whilst the ASX 200 has largely rebounded from a turbulent start to the year, this sector is yet to recover. 

Read more »

A female coal miner wearing a white hardhat and orange high-vis vest holds a lump of coal and smiles as the Whitehaven Coal share price rises today
Share Gainers

The Coronado Global share price just surged to a 114% weekly gain. Here's why

Investors have sent the ASX coal stock flying higher in June. But why?

Read more »

Worker inspecting oil and gas pipeline.
Dividend Investing

Should I buy Woodside shares today for their 8% dividend yield?

With an 8% dividend yield and a resurgent share price, should I buy Woodside shares right now?

Read more »

Happy coal miner.
Share Gainers

Up 75% this week, why is this ASX All Ords stock rocketing again today?

Investors are piling into this ASX 300 stock on Wednesday. But why?

Read more »

Man pointing at a blue rising share price graph.
Share Gainers

Guess which ASX 300 stock just rocketed 43% on big news!

Investors are piling into this ASX 300 stock on Wednesday. But why?

Read more »