Australia's Boss Energy eyes best day in nearly 3 years on robust output growth

Boss Energy

29/01/2025 01:01

By Aaditya GovindRao
       Jan 29 (Reuters) - Shares of Boss Energy  BOE.AX  rose
about 16% on Wednesday and were poised for their best day in
nearly three years, after the uranium miner reported quarterly
output well ahead of analysts' estimates for its flagship
Honeymoon project in South Australia.
    The stock climbed as much as 15.9% by 0026 GMT and was set
for its best single-day rise since March 2022 if current gains
held. It was the top gainer on the S&P/ASX 200  .AXJO  benchmark
index, which was up 0.5%.
    An ongoing production ramp-up at Honeymoon helped the miner
log uranium concentrate (U308) output of 215,319 pounds in the
October-December period, almost double from the prior quarter,
and beating a consensus estimate of about 157,400 pounds,
according to analysts at Jefferies.
    The company reiterated its fiscal 2025 production forecast
of 850,000 pounds of U3O8 for Honeymoon.    
    Boss Energy and other uranium stocks rose sharply last week,
propelled by a planned $500 billion private-sector investment to
fund AI infrastructure and U.S. President Donald Trump's plans
for tariffs on major uranium exporter Canada.
    "Security of supply is a major concern for nuclear
utilities, particularly in the western world, and as a
multi-mine tier 1 uranium producer, Boss is set to benefit from
this changing and growing market," Boss Energy Managing Director
Duncan Craib said in a statement on Wednesday.
    The miner forecast costs of A$37 to A$41 per pound of U3O8
for the Honeymoon project for the second half of fiscal 2025.
    The costs demonstrate an element of inflation, which is not
unexpected and given industry-wide trends, analysts at Jefferies
said.
    "We see the potential of these to decrease marginally as the
operation reaches steady state production over the course of
CY26," they said.

 (Reporting by Aaditya Govind Rao in Bengaluru; Editing by
Subhranshu Sahu)
 ((Aaditya.GovindRao@thomsonreuters.com;))