Here's why the Boss Energy (ASX:BOE) share price has surged 37% in a week

The Boss Energy share price has seen a stellar week…

Key points
  • The Boss Energy share price has increased 37% in a week
  • Uranium is now trading at more than US$50 a pound, up 5% in a day 
  • Oil and gas prices are also surging today

The Boss Energy Ltd (ASX: BOE) share price has been soaring recently despite no official news from the company. The price surge has coincided with a rise in energy prices across the board.

At the time of writing, the Boss Energy share price is up 2.82% to $2.55. To compare, the ASX All Ordinaries Index (ASX: XAO) is up just 0.11%.

So what's been going on with the uranium producer?

A uranium plant worker in full protective gear removes his head covering and holds it in his hand as he smiles slightly to have his picture taken.

Image source: Getty Images

Uranium prices surge

The last we officially heard from the company, it had appointed a new non-executive director. The appointee had previously worked at Boss's new joint venture partner, the Canadian-listed First Quantum Minerals Limited.

The Boss Energy share price jumped 8% on the joint venture announcement on 10 February.

And since its last announcement to the market on 21 February, the Boss Energy share price has jumped by 30%.

However, it's not just Boss Energy shares seeing price increases. At the time of writing, the S&P/ASX 200 Energy Index (ASX: XEJ) is up 3.78% — making it the best performing sector so far today.

It coincides with uranium's performance on commodities markets. At the time of writing, it's trading at US$50.35 a pound, according to Trading Economics. That's up 5% on the day and more than 11% in the past month.

Gas prices up amid Ukraine crisis

Its energy sector cousins are also soaring. At the time of writing, the price of natural gas is US$4.64/MMBtu, up 5% in the past week. Similarly, Brent crude oil is currently fetching US$108.77 a barrel — its highest price in five years.

The surge in energy prices during the last month have been attributed to"supply disruption" concerns surrounding the Russian invasion of Ukraine.

"The traders are becoming increasingly reluctant to buy Russian oil and are dancing payment and delivery difficulties," according to Trading Economics.

Meanwhile, The Wall Street Journal is reporting the US and "other major oil-consuming nations" are tossing up whether to dip into emergency oil stockpiles due to the conflict.

Once Boss Energy restarts uranium operations at its flagship site in South Australia, the miner may have a hungry market waiting. Already many major consumers are looking to switch to carbon-free energy sources — as seen in France and Germany.

Boss Energy share price snapshot

Over the last 12 months, the Boss Energy share price increased by 125%. In that time, Boss shares have seen a 52-week low of 31 cents and a high of $3.08.

The company has a market capitalisation of $719 million and a price-to-earnings ratio (P/E) of around 666.7.

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.

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