Boss Energy shares fall as ASX uranium stocks extend losses
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More news: Shares in Boss Energy tumbled at market open on the ASX, despite announcing that its flagship Honeymoon uranium project was on track to meet its full-year guidance, as uranium stocks extended losses from Tuesday.
Boss shares fell 2.2% to $3.57 by 10:45am AEDT, while fellow uranium explorers Deep Yellow (-4.4%) and Paladin Energy (-2.2%) also lowered.
Uranium miners dived on the ASX on Tuesday after Boss rival Deep Yellow warned that escalating uranium demand was compounding a "dire" global supply environment.
Boss Energy's Honeymoon project on track for FY25 guidance
The news: Boss Energy said its flagship Honeymoon uranium project in South Australia is on track to meet FY25 production guidance, after making its first shipment and sale during the September quarter.
The numbers: The uranium producer said it produced 89,516 pounds (lbs) of triuranium octoxide from the project during the September quarter, up from 28,844 lbs in the previous quarter.
It leaves the miner on track to meet full-year production guidance of 850,000 lbs.
Elsewhere, the quarter saw the official opening of Boss' 30% owned Alta Mesa uranium operation in South Texas. Alta Mesa is expected to reach full operational capacity of 1.5 million lbs a year by 2026, with Boss' 30% share totalling 450,000 lbs a year at nameplate capacity.
Boss said it is in an "extremely strong" financial position with liquid assets of $245 million and no debt.
The context: Boss noted that it is well-positioned to benefit from rising uranium prices, with most of Honeymoon and all of Alta Mesa production uncontracted.
It said that the supply-demand fundamentals in the uranium market are "increasingly favourable", with long-term contract prices rising.
What they said: "Honeymoon's key metrics are all in line with out targets and we are on track to meet our FY25 production guidance," Boss managing director Duncan Craib said.
"... The growing demand for clean energy, particularly stemming from the rapidly expanding AI industry, further strengthens the outlook for uranium and supports our strategic decision to commit to contracts in a gradual manner, maximising our ability to capitalise on rising prices while maintaining financial security."
The source: ASX announcement
