Guess which ASX 200 uranium share is jumping 8% on first production

ASX 200 investors are bidding up the newly minted uranium producer on Monday.

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Up 84% in a year, this high-flying S&P/ASX 200 Index (ASX: XJO) uranium share is leaping higher again today.

Shares in the newly minted uranium producer closed on Friday trading for $4.38. In late morning trade on Monday, shares are changing hands for $4.71 apiece, up 7.5%.

For some context, the ASX 200 is up 0.5% at this same time.

Any guesses which ASX uranium share is leading the charge higher?

If you said Boss Energy Ltd (ASX: BOE), go to the head of the virtual class.

Here's why investors are snapping up Boss Energy shares today.

What's lifting the ASX 200 uranium share?

Boss Energy released its quarterly update today.

The biggest tailwind propelling the ASX 200 uranium share higher looks to be the successful commissioning at its Honeymoon uranium project, located in South Australia.

This saw Boss produce its first drum of uranium earlier in April. And the company reported its ramp-up to a steady-state production rate of 2.45 million pounds of U3O8 per year is now underway. With uranium prices expected to remain elevated over the medium to longer term, that could bode well for the Boss Energy share price moving forward.

Investors will also be pleased to hear that the company's core processing technology in use at Honeymoon has been "meeting or exceeding" expectations.

Boss Energy said it is now working to increase the production rate and mine life at Honeymoon. The company noted that its current mine plan utilises only 36 million pounds of Honeymoon's total 71.6-million-pound JORC Resource.

And the ASX 200 uranium share is poised to become a multi-mine uranium producer in the second half of 2024.

Boss acquired 30% of the Alta Mesa Project in the United States earlier in December. The miner said commissioning is advancing to plan, with first uranium production expected in the coming weeks.

As at 31 March, Boss Energy had no debt and $298 million of liquid assets (cash, equity investments and physical uranium).

What did management say?

Commenting on the results lifting the ASX 200 uranium share today, Boss Energy managing director Duncan Craib said:

With production at Honeymoon now underway, we have established that the ion-exchange processing route we put in place is extremely effective. In light of this huge success, we are accelerating plans to unlock the vast inventory which sits outside the mine plan at Honeymoon.

We aim to utilise this additional inventory, much of which is already covered by a mining licence, and the additional capacity we have under our existing uranium export permit, to expand the project's production rate and cashflow.

Motley Fool contributor Bernd Struben 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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