Boss Energy shares gain as Macquarie hikes output forecasts
Make us a preferred source
Make us a preferred source on Google
The news: Boss Energy was the second-best performing ASX 200 stock in morning trade after Macquarie reiterated its ‘outperform’ rating on the uranium miner, following a visit to its flagship Honeymoon project in South Australia.
The numbers: Boss shares were up 2.7% to $2.52 at 11:40am AEDT as the ASX 200 index shed 1.6%.
Macquarie retained its 'outperform' rating on the stock and cut its target price by 6% to $4.50.
The context: Macquarie analysts noted that the Honeymoon uranium project is “continuing to perform strongly”. They expect Boss to exceed its full-year production guidance of 850,000 pounds, lifting their forecast to 892,000 pounds.
Earlier this year, Boss said the Honeymoon project is on track to meet its full-year guidance, after commercial production began 1 January.
Operations at the mine were suspended by its previous owner Uranium One in November 2023, due to falling uranium prices. The project was acquired by Boss in 2015 with a view to re-start the operation.
What they said: "Industry has generally had difficult restarting idled uranium assets from the last cycle — however [Boss] is bucking the trend," the analysts said.
"Honeymoon ramping up ahead of plan, modified process performing as expected. M&A strategy has been measured and prudent."
The source: Macquarie research
