The Boss Energy Ltd (ASX: BOE) share price is on the slide on Wednesday morning.
At the time of writing, the uranium producer's shares are down 2% to $3.60.
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Why are Boss Energy shares falling?
Investors have been selling the company's shares this morning following the release of its quarterly update.
According to the release, Boss Energy didn't generate any revenue during the three months ended 30 June. However, it was busy producing the first uranium from the Honeymoon in South Australia and 30%-owned Alta Mesa Project in South Texas.
Boss Energy achieved 57,364 pounds of uranium production at the Honeymoon project during the June quarter. Its ramp-up to steady-state production is proceeding to plan, with key production metrics meeting feasibility study forecasts.
In light of this, the company is expecting Honeymoon production of at least 850,000 pounds in FY 2025, which will be in line with its forecasts.
Over at Alta Mesa, it successfully commenced production in June and is expected to reach full operational capacity by 2026. At that point, Alta Mesa is expected to be producing 1.5 million pounds of uranium per year. Boss Energy notes that its shares of this will be 450,000 pounds per year at nameplate capacity.
But it may not stop there. Management notes that Alta Mesa has the potential for further resource growth and additional drying capacity of 500,000 pounds a year.
At the end of the period, Boss Energy held liquid assets of A$272.5 million and no debt. The former includes uranium inventory valued at A$166.8 million.
'Putting cake in the can'
Boss Energy's managing director, Duncan Craib, was very pleased with the quarter and described the period as a "significant milestone" for the company. He said:
Putting cake in the can with our first production at Honeymoon was a significant milestone for Boss which proved that our lixiviant chemistry and ion exchange technology works at commercial scale. "The production ramp up at Honeymoon, including the key production metrics, is progressing in line with our Feasibility Study forecasts and therefore we are on track to produce at least 850,000 pounds of U308 in FY25.
This strong outlook is also supported by the progress being made in the construction of the second and third NIMCIX columns which are scheduled to start operating, in line with the production ramp-up timetable, by Q3 and Q4, 2024 respectively. With both Honeymoon and Alta Mesa producing, Boss has become the only multi-asset uranium producer on the ASX.
The Boss Energy share price is up more than 20% over the past 12 months.
