Why is this ASX 300 stock charging 6% higher on Wednesday?

This uranium developer's operation is close to commencing production at the perfect time.

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The Boss Energy Ltd (ASX: BOE) share price is catching the eye on Wednesday.

At the time of writing, the ASX 300 uranium stock is up 5.5% to $4.57.

This latest gain means that its shares are now up a whopping 115% in 2023.

Why is this ASX 300 stock rising again?

While most uranium shares are climbing today, Boss Energy is rising more than most thanks to the release of an announcement.

According to the release, mining activities at its Honeymoon have now commenced.

This has seen the first wellfield being pre-conditioned in the lead-up to in-situ recovery (ISR) feeding the processing plant with extracted uranium during the current quarter.

What is pre-conditioning?

Pre-conditioning aims to clean the wellfields of unwanted chlorides and calcium prior to uranium recovery being extracted.

Management advised that to achieve this milestone, Boss has successfully completed major construction activities including wellfield development, gypsum repository construction, water treatment, and RO plant commissioning.

Positively, project development is proceeding to plan and remains on time and on budget.

It has been almost exactly 10 years since production was suspended at the South Australia-based operation. And what a great time to be starting up again. With the uranium market continuing to tighten, the spot price is now trading at decade highs of US$69 per pound.

In addition, analysts are tipping the chemical metal price to continue to rise over the next two decades as demand increases for use in nuclear power.

The ASX 300 uranium stock's managing director, Duncan Craib, was pleased with the news. He said:

It is a testament to the hard work and effort undertaken by all Boss employees over many years to reach today's pivotal milestone, the commencement of mining activities on Honeymoon.

Motley Fool contributor James Mickleboro 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 Scott Phillips.

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