ASX 200 uranium share Boss Energy inks maiden US sales contract

Boss Energy will supply one million pounds of uranium to the US power utility over a seven-year period.

| More on:
ASX uranium shares represented by yellow barrels of uranium

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

S&P/ASX 200 Index (ASX: XJO) uranium share Boss Energy Ltd (ASX: BOE) is dipping into the red today.

Shares in the ASX uranium stock closed yesterday trading for $4.13. In morning trade on Thursday, shares are swapping hands for $4.09 apiece, down 0.9%.

For some context, the ASX 200 is down 0.6% at this same time.

Boss Energy shares are slipping despite the announcement this morning of the miner's first United States sales agreement.

Here's what's happening.

What sales agreement did the ASX 200 uranium share announce?

The Boss Energy share price is struggling today despite the ASX 200 uranium share reporting it just inked its first binding sales contract with a major publicly listed US power utility.

The agreement will see Boss supply one million pounds of uranium, sourced from its Honeymoon Project in South Australia. The contract spans a seven-year period, running from 2025 through to the end of 2031.

Boss will sell its uranium based on market-related pricing. The company said that the agreement contains a ceiling price and a floor price above its forecast production costs at Honeymoon.

Other terms and conditions of the agreement were said to be in line with industry standards.

Commenting on the sales agreement achieved by the ASX 200 uranium share, managing director Duncan Craib said, "Signing our first sales contract is a major milestone for Boss and another key de-risking event for the Honeymoon Project."

Craib noted that with production about to start at Honeymoon, and with the project running on time and on budget, "We are extremely well-placed to capitalise on the rising uranium price."

Craib added:

Now we also have a binding sales contract in place which gives us financial security while allowing us to retain exposure to further increases in the uranium price. In the process, we have established a long-term relationship with this large strategic customer.

Boss Energy share price snapshot

The Boss Energy share price has benefited from soaring uranium prices this year. Yellowcake is up some 55% year to date, trading north of US$85 per pound.

That's helped boost the ASX 200 uranium share by 102% so far in 2023.

Motley Fool contributor Bernd Struben 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 Scott Phillips.

More on Energy Shares

Multiracial happy young people stacking hands outside - University students hugging in college campus - Youth community concept with guys and girls standing together supporting each other.
Energy Shares

Which ASX 200 uranium stock is surging on huge news

Let's see why investors are bidding this stock higher today.

Read more »

Oil rig worker standing with a clipboard.
Economy

What does the changing oil price mean for the ASX 200?

Oil continues to wobble with the tensions seen on the world stage.

Read more »

Australian notes and coins symbolising dividends.
Energy Shares

Tempted by the big dividend yields on ASX energy shares? Here's why you should think again

The income from these stocks might not be as good as it seems.

Read more »

A man looking at his laptop and thinking.
Energy Shares

Up 100% since April, why is this ASX 300 uranium stock plunging today?

The ASX 300 uranium miner has come under heavy selling pressure on Thursday. But why?

Read more »

Excited couple celebrating success while looking at smartphone.
Energy Shares

Paladin Energy share price races higher on big announcement

Let's see why this uranium producer's shares are charging higher today.

Read more »

Oil worker using a smartphone in front of an oil rig.
Share Market News

ASX 200 up strongly while energy shares plummet on ceasefire news

ASX 200 energy shares are tumbling with Karoon Energy and Woodside Energy the biggest fallers.

Read more »

An oil worker assesses productivity at an oil rig as ASX 200 energy shares continue to rise.
Share Market News

ASX 200 energy shares lead for the second week as world awaits US decision on Iran

ASX energy shares lifted 5.31% while the ASX 200 fell 0.49% amid the US President contemplating strikes.

Read more »

Copal miner standing in front of coal.
Energy Shares

What happened to Coronado Global Resources shares on Friday?

The ASX coal miner announced new funding this week.

Read more »