Boss Energy says it will produce first drum of Honeymoon uranium in Q1

  • Boss Energy runs the Honeymoon uranium mine in South Australia
  • The company says that it’s set to produce the first drum of uranium this quarter
  • Shares climbed to just under A$5.00/sh at 10.30am AEDT

South Australian-based Boss Energy (ASX:BOE), which oversees the much-watched Honeymoon uranium project, is set to capitalise on high uranium prices around US$100/lb.

Shares were up 1.63% to $4.99/sh at 10.30am AEDT on Thursday.

The company has reported Honeymoon will see the first drum of uranium produced before the start of April, bringing production into Q1CY24.

The company reported a “major achievement” on Thursday – the successful testing of an ion-exchange circuit, part of the company’s on-site processing plant.

Other facilities have also been refurbished as the company makes rapid progress while uranium prices stay at record historical highs.

Case in point: the Honeymoon project is now running 24/7.

In between the lines, it’s clear that management don’t want to risk doing all this work if uranium prices are just going to go and crash again like they did when Fukushima occurred.

At a share price already A$5/sh, a somewhat subdued reaction from the market on Thursday morning – given the macro – might reflect that investors have largely priced in what they think is enough for Boss to get underway.

The actual confirmed commencement of uranium production could likely see momentum build behind the stock, especially if Boss is able to grow Honeymoon like it wants to.

One to watch.

BOE shares last traded at $4.99/sh.

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