ASX 200 uranium stock Boss Energy surges on copper news

Boss Energy is best known for its Honeymoon uranium project. Now copper and gold have joined the menu.

| More on:
Miner looking at a tablet.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

S&P/ASX 200 Index (ASX: XJO) uranium stock Boss Energy Ltd (ASX: BOE) is charging higher today.

The Boss Energy share price closed yesterday at $5.66. In earlier trade shares were swapping hands for $5.79 apiece, up 2.3%. At the time of writing shares are trading for $5.75 apiece, up 1.6%.

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

The ASX 200 uranium stock is, obviously, best known for its uranium assets at its Honeymoon project in South Australia.

Boss Energy produced its first drum of uranium at Honeymoon in April.

The company recently said it's on track to ramp up to a steady-state production rate of 2.45 million pounds of U3O8 per year.

However, it's not uranium that's got investors bidding up the ASX 200 uranium stock today.

It's copper.

Here's why.

ASX 200 uranium stock strikes copper

This morning Boss Energy announced that Canadian-listed First Quantum Minerals Ltd (TSE: FM) maiden diamond drilling program at Honeymoon successfully intersected "basement-hosted base metal mineralisation".

The copper and gold intersections came in below the Yarramba Palaeovalley, which holds the uranium.

The ASX 200 uranium stock entered into an earn-in exploration agreement with First Quantum back in February 2022.

At the time, management stated:

The agreement enables Boss to remain fully focused on its core business of uranium exploration, development and production while having exposure at no cost to the significant potential associated with a base and precious metals exploration program led by a global major.

That exposure looks to be paying off.

First assay results included:

  • 16 metres at 0.27% copper and 0.1 grams of gold per tonne at 288 metres
  • 47 metres at 0.19% Cu from 404 metres, with a number of narrower zones of 5 metres to 6 metres containing up to 0.5% Cu and 0.12g/t Au

Under the existing agreement, First Quantum has the right to earn a 51% interest in Honeymoon's base metal endowment by spending $6 million on exploration and a further 24% interest by sole-funding all base metals expenditure up to a decision to mine.

Following receipt of these results, First Quantum said it will continue to fund further copper and gold exploration at Honeymoon.

However, management noted:

Boss retains the sole right to explore for and exploit all uranium discoveries on the JV Project (being greater than 50% of the in-situ metal value being uranium). Boss will have a first right of offer in respect of any uranium discoveries made by First Quantum within the Curnamona craton of South Australia.

With copper, gold and uranium prices all surging over the past year, Boss Energy's Honeymoon project could prove to be more profitable than expected.

With today's intraday gain factored in, the ASX 200 uranium stock is up 110% since this time last year.

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.

More on Resources Shares

Miner looking at a tablet.
Resources Shares

ASX 200 mining stocks flying higher on 'most relaxed' Chinese stimulus ever

BHP, Fortescue and Rio Tinto shares could all benefit from China’s new stimulus measures.

Read more »

A man closesly watch a clock, indicating a delay or timing issue on an ASX share price movement
Mergers & Acquisitions

BHP shares charging higher as the clock ticks down on the Anglo American takeover

BHP has less than three days before the clock runs down on its $64 billion Anglo American takeover bid.

Read more »

Mining workers in high vis vests and hard hats discuss plans for the mining site they are at as heavy equipment moves earth behind them, representing opportunities among ASX 200 shares as nominated by top broker Macquarie
Resources Shares

2 of the best ASX mining stocks to buy now

Analysts have good things to say about these miners.

Read more »

A woman in hammock with headphones on enjoying life which symbolises passive income.
Dividend Investing

Buy 300 shares in this glorious ASX 200 dividend stock and create almost $2,000 in passive income

Atop the juicy passive income, I like this ASX dividend beauty for its potential share price gains.

Read more »

A woman sits at her computer with her chin resting on her hand as she contemplates her next potential investment.
Resources Shares

Up 51% from their 52-week low, is it too late to buy Mineral Resources shares?

Mineral Resources has been on a tear since mid-January. Do these top brokers think it's too late to buy?

Read more »

Three satisfied miners with their arms crossed looking at the camera proudly
Resources Shares

ASX 200 mining shares charging higher amid China's $210 billion cash injection

The big three ASX 200 miners are charging higher on Friday even as the benchmark sinks.

Read more »

Two excited mining workers in yellow high vis vests and hardhats shake hands to congratulate each other on a mineral discovery
Resources Shares

What this unprecedented short squeeze signals for ASX copper stocks

ASX copper stocks have been benefiting from soaring demand for the red metal amid limited new supplies.

Read more »

Female miner standing next to a haul truck in a large mining operation.
Resources Shares

What's the outlook for ASX iron ore shares after the federal budget?

There may be trouble ahead for the iron ore price according to broker Citi.

Read more »