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.
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.
The post ASX 200 uranium stock storms higher on first shipment appeared first on The Motley Fool Australia.
Should you invest $1,000 in Boss Resources Limited right now?
Before you buy Boss Resources Limited shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Boss Resources Limited wasn’t one of them.
The online investing service heâs run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
See The 5 Stocks
*Returns as of 24 June 2024
More reading
- Here are the top 10 ASX 200 shares today
- 3 of the best ASX 200 stocks to buy in FY25
- Here are the top 10 ASX 200 shares today
- Will the blistering rally for ASX uranium shares charge on into FY 2025?
- ASX 200 uranium stock tumbles despite significant new production potential
Motley Fool contributor James Mickleboro 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.
Leave a Reply