Boss Energy Ltd (ASX: BOE) shares are catching the eye on Thursday morning.
At the time of writing, the ASX 200 uranium stock is up 3% to $4.32.
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Why is this ASX 200 uranium stock pushing higher?
Investors have been buying the company's shares today in response to the release of announcement.
According to the release, Boss Energy has been making strong progress in the commissioning and ramp up of its Honeymoon uranium mine in South Australia.
So much so, it notes that a total of 57,364lbs of U308 was produced by 30 June 2024.
This means that the ASX 200 uranium stock can now make its first delivery to European nuclear utilities under its existing sales contracts. As a result, revenue will be received in the current quarter.
What's next?
It appears to be onwards and upwards from here for Boss Energy.
Management notes that with the NIMCIX Column 1 performing to expectations and the construction of Columns 2 and 3 on track for completion in the September and December quarters, respectively, it expects production to total at least ~850,000lbs of U308 by 30 June 2025. This is in line with its feasibility study schedule.
After which, the company is positioned to outperform feasibility study forecasts in FY 2026. Management expects production to be greater than 1.63Mlb. It then sees potential for capacity to increase to 2.45Mlb per annum the year after and onwards.
The ASX 200 uranium stock's managing director, Duncan Craib, appeared to be pleased with the performance of the Honeymoon project. He said:
The start-up phase at Honeymoon is proceeding comfortably to plan, with all the key metrics running in line with, or exceeding, the forecasts contained in the Feasibility Study schedule. Construction of the second and third columns is also advancing well, ensuring we are on track to continue increasing our production rates.
Total production in FY26 is set to meet or exceed our feasibility study forecasts at 1.63Mlb. The addition of columns 4, 5 and 6 are forecast to further increase the production rate to nameplate capacity of 2.45Mlb/annum by year three.
Should you invest?
Bell Potter still sees a lot of value in the ASX 200 uranium stock at current levels. Last month, it put a buy rating and $6.35 price target on its shares.
This implies significant potential upside of 47% for investors over the next 12 months from where its shares trade today.
