Boss Energy shares climb as explorer flags uranium ramp-up
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The news: Boss Energy shares surged at market open on the ASX after the minerals explorer released the results of a "highly successful" quarter for the three months to March, as it transitions to becoming a global uranium producer.
The numbers: In its quarterly report, Boss Energy said that having produced the first drum of uranium at its Honeymoon uranium project in South Australia, it is now ramping-up a steady-state production range of 2.45 million pounds of uranium triuranium octoxide a year.
The company said that the current mine plan utilises only 36 million pounds of the project’s total 71.6 million pounds resource.
Boss Energy held cash and cash equivalents of $100 million by 31 March, with a strategic inventory of 1.25 million pounds of uranium triuranium octoxide, which has a current sport market value $169 million.
Shares were trading 5.7% higher at $4.63 by 11:00am AEST.
The context: Boss Energy climbed on the ASX last week after informing the market that it had produced the first drum of uranium at Honeymoon.
Boss Energy said that Honeymoon is "already exceeding" feasibility study forecasts. Its new processing technology is also "meeting or exceeding" the company's expectations.
The explorer said it will become a multi-mine uranium producer in the first-half of 2024, with first production at its 30% owned Alta Mesa uranium project in South Texas expected within weeks.
What they said: Boss Energy's managing director Duncan Craib said: "Production of the first drum of uranium was a major milestone in the growth of Boss and reflects the incredible amount of hard work, technical skills and vision contributed by so many people since our company acquired the project at the end of 2015".
"As well as being the culmination of this journey, the first drum marks the start of Boss' next phase, which we believe will be notable for the growth we will generate in our inventory, mine life, production rates and cashflow," he said.
The source: ASX announcement
