Boss Energy Share Price Up as It Moves on Financing Uranium Project

At time of writing, the share price of Boss Energy Ltd [ASX:BOE] is up more than 15% to trade at 9.9 cents.

It’s been a strong rise from March for the BOE share price as momentum builds for a number of uranium stocks:

ASX BOE Share Price Chart

Source: Tradingview.com

Boss Energy Ltd wants to be Australia’s next uranium producer

Uranium market watchers will be familiar with what Boss does.

But for context, they’ve been trying to get the Honeymoon Uranium project back up and running in South Australia.

Here are the highlights from today’s announcement:

  • BOE has ‘signed confidentiality agreements with several global lenders and formal indicative financing proposals are now being sought with a view to ensuring debt funding is well advanced when the Company seeks to finalise offtake agreements.
  • BOE is ‘on track to complete the Enhanced Feasibility Study (EFS) on Honeymoon in the coming quarter.
  • The estimated CAPEX funding requirement for Honeymoon is just US$63.2 million. This is one of the lowest funding requirements of any pre-production uranium project worldwide, reflecting Honeymoon’s status as an established project with an existing full processing plant and infrastructure.

That last point may differentiate it from its other speculative uranium peers.

It’s one thing to have a big resource, but another thing to have a mine ready to go for a low amount of upfront money to get operations going again.

Outlook for BOE share price

I’ve been bullish on the uranium/nuclear story for a couple years, but definitely jumped the gun.

Based on the early speculative action I’m seeing on the charts for a number of BOE’s peers, it appears that those with an appetite for higher risk are starting to see the potential as well.

It’s underlined by a bipartisan support for nuclear in the US for the first time in nearly half a century.

As BOE Managing Director Duncan Craib says:

The price at which we enter into offtake agreements is dependent on our all-in costs and how we structure financing terms and maximise shareholder returns. Given that our all-in costs (before any potential EFS savings) are US$32/lb, and currently the long-term price index is in the high US$30s/lb, we are very well-positioned for the long-awaited uranium price correction.

It’s been a long time coming, but it’s possible we are at an important inflection point.

Nuclear, like it or not, will be part of the energy mix going forward.

Particularly considering the number of reactors under construction in China.

You can see Cameco’s uranium chart below:

Uranium Spot Price Chart - ASX BOE

Source: Cameco.com

Not exactly the most inspiring chart.

It’s a similar story to lithium in many ways.

Early price action on lithium players anticipating a bottom.

The action in the uranium space on ASX-listed stocks is something I covered in the video below:

Check out the channel for more coverage on emerging trends. It may just keep you one step ahead of the game.

Regards,

Lachlann Tierney,
For Money Morning

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Lachlann Tierney is an Analyst for Money Morning and has been investing for nearly a decade. With a Masters of Science from the London School of Economics, he brings a sound understanding of global markets to his writing. Lachlann is interested in emerging technologies, energy solutions and helping people invest their money wisely. Recently he has been working with Ryan Dinse. Lachlann is involved in two publications:


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