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

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.

The post Boss Energy (ASX:BOE) share price wobbles after operational update appeared first on The Motley Fool Australia.

More reading

• Why has the Boss Energy (ASX:BOE) share price tanked 30% in 2 weeks?
• How did ASX uranium shares perform in September?
• A sea of red for ASX uranium shares. Is the run over?
• Are ASX uranium shares fully valued?
• Why the Boss Energy (ASX:BOE) share price is tanking 18% today

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.

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