Here’s why the Boss Energy (ASX:BOE) share price is busting 4% higher today

We look at what’s boosting the uranium developer’s stock on Wednesday.

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The Boss Energy Ltd (ASX: BOE) share price is surging upwards today on the back of news of its Honeymoon uranium project.

The company is continuing to make progress towards re-starting uranium production at the project which has been out of action since 2013.

At the time of writing, the Boss Energy share price is $2.46, 3.8% higher than its previous close.

Let’s take a closer look at today’s news from the minerals exploration company.

Boss Energy share price surges on project update

Wednesday is a good day on the ASX for the Boss Energy share price. It’s taking off after the company announced it’s more than halfway with the Honeymoon project’s front end engineering design.

The company’s getting the project ready so it can hit the go button as soon as it’s commercially feasible.

Honeymoon’s previous owners stopped commissioning the project in 2013 during a period of low uranium prices. However, the price of the commodity has surged in recent months.

The project’s front end engineering design is set to be completed in the first quarter of 2022. That will allow detailed design work to begin as soon as a final investment decision is made.

Boss Energy managing director Duncan Craib said making sure the project is ready to hit the ground running will allow the company to “capitalise on a rising uranium price at the moment of our choosing”.

The company has also nearly finished piping and instrumentation diagrams for the project. It has already organised Honeymoon’s power supply and optimised its wellfields.

The Honeymoon project’s global mineral resource currently stands at 71.6 million pounds with an average grade of 620 parts per million of uranium oxide, using a cut-off grade of 250 parts per million.

Right now, the Boss Energy share price is 215% higher than it was at the start of 2021. It has also gained 10.3% over the last 30 days.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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