The Boss Energy Ltd (ASX: BOE) share price is up 3.5% in morning trade after closing up more than 7% yesterday.
This comes after the ASX uranium miner released its quarterly activities report for the quarter ending 31 March.
What did Boss Energy report for the quarter?
The Boss Energy share price is moving higher after the company reported significant progress in completing the Enhanced Feasibility Study (EFS) at its Honeymoon uranium project in South Australia.
The aim of the EFS is to reduce costs and increase uranium production capacity at the project. Boss expects to release the results of the study in the June quarter.
Commenting on the company’s progress during the quarter, Boss Energy’s Managing Director Duncan Craib said:
It was a highly productive quarter which saw us move into the final stages of preparation for the re-start of production at Honeymoon. The technical EFS is almost finished, project funding discussions are underway and interest from fuel buyers continues to increase.
The successful acquisition of 1.25 million pounds of uranium further strengthens Boss’ strategic and commercial advantages in respect to resuming production and capitalising on the forecast increase in uranium prices and our low costs, tier-1 location and extensive JORC Resource.
Total funding estimates for the Honeymoon project is US$63.2 million (AU$81.0 million). According to the release, that makes Honeymoon “one of the lowest funding requirements of any pre-production uranium project worldwide”. Boss credits the project’s existing full processing plant and infrastructure for the low cost of bringing the project online.
Boss is also engaged in an exploration campaign, including an initial scout drill program and has completed its review of Honeymoon’s historical database. It reported a strong balance sheet with no debt and “significant carried-forward tax losses”.
The company stated that the global outlook for nuclear power is improving while the uranium market continues to tighten.
Boss Energy share price snapshot
Boss Energy shareholders have enjoyed a profitable 12 months, with the ASX uranium miner gaining 114%. By comparison, the All Ordinaries Index (ASX: XAO) is up 31% in that same time.
Year-to-date, the Boss Energy share price has continued to perform well, up 50% so far in 2021.
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Motley Fool contributor Bernd Struben 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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