Boss Energy Ltd (ASX: BOE) shares are on the move this morning.
At the time of writing, the ASX 200 uranium stock is up 5% to $4.75.
Image source: Getty Images
Why is this ASX 200 uranium stock pushing higher?
Investors have been buying the uranium miner's shares this morning following a highly encouraging operational update from its joint venture Alta Mesa uranium project in the United States.
The Alta Mesa uranium project hosts a fully licensed and constructed ISR Central Processing Plant and operational wellfield located on 200,000+ acres of private land and mineral rights in and regulated by the state of Texas.
Its total operating capacity is 1.5 million pounds of uranium per year with additional drying capacity of 0.5 million pounds. Boss Energy holds a 30% interest and is entitled to receive 30% of the uranium produced.
What was announced?
The ASX 200 uranium stock revealed that its partner and project operator, enCore Energy Corp (NASDAQ: EU), is making significant progress at the Alta Mesa project as it ramps up toward its targeted annualised production rate of 1.5 million pounds.
In fact, uranium production appears to be ramping up faster than expected. During the seven days to June 23, daily uranium capture averaged more than 3,000 pounds, peaking at 3,705 pounds on June 20. That's a record rate since the plant resumed operations.
For context, uranium output averaged 2,410 pounds per day over the first 22 days of June for a monthly total of 53,022 pounds. That itself was up from an average of 2,103 pounds per day in May and 1,942 pounds per day in April.
Based on these numbers, the Alta Mesa Central Processing Plant is now on a clear trajectory toward steady-state output, with wellfield development also accelerating.
More wells, more uranium
Its partner, enCore Energy, advised that to support this production ramp-up, wellfield development continues at a rapid clip. The joint venture has added 28 new wells in the current development area – 13 extraction wells and 15 injection wells – as part of a broader strategy to expand production capacity every four to five weeks.
Commenting on the progress, enCore Energy's executive chairman, William M. Sheriff, stated:
The continued improvements in our rate of uranium extraction and advancement of wellfield development are truly a result of a top performing team focused on extraction and streamlined operations. We have always recognized the depth of experience and strength of our team, and their expertise is being clearly demonstrated during this ongoing ramp up phase.
I also want to take this opportunity to commend the Texas Legislature for the passage of bills, and Governor Abbott for signing the legislation, which streamlined the permitting process for production area development and waste disposal wells.
Boss Energy shares are now up 29% since this time two weeks ago.
