The Boss Energy Ltd (ASX: BOE) share price is under pressure on Tuesday.
At the time of writing, the ASX 200 uranium stock is down 1.5% to $3.93.
One broker that is likely to see this as a buying opportunity is Bell Potter. Let's see what its analysts are saying about the uranium miner.
What is Bell Potter saying about this ASX 200 uranium stock?
Bell Potter highlights that Boss Energy has extended its loan agreement with enCore Energy.
It appears to see this as a win-win for the ASX 200 uranium stock. It said:
BOE has extended the loan agreement terms with enCore Energy for the remaining US$10.4m unpaid facility, with repayment now to be made by the 27th of Dec-25. In addition to this, a new cash facility of US$3.6m has been extended also repayable on the 27th of Dec-25 or when an equity raise of at least US$23.5m is conducted.
The purpose of the repayment extension and additional facility are to provide working capital to EU for use in the Alta Mesa JV. Should a default event be triggered, BOE has the right to control 51% of the JV for Alta Mesa. EU had US$29.7m in unrestricted cash as of 31 March.
Given Boss Energy's strong balance sheet, it believes this was a relatively good move by management. It adds:
Whilst the extension of payment does raise concerns about the financial stability of BOE's JV partner, the strength of BOE's balance sheet has allowed it to capitalise on, and generate a return from, its strategic inventory. In the event of default, BOE taking an additional 21% in the JV would raise some questions, given the asset's slower performance to date and historical track record.
On the other hand, a majority ownership would provide BOE control over one of the only operating US uranium mines, which has benefits from an energy onshoring and working capital perspective. Given EU's cash balance and burn rate, we wouldn't rule this scenario out.
Time to buy
In response to the news, the broker has reaffirmed its buy rating and $4.65 price target on the ASX uranium stock. Based on its current share price, this implies potential upside of 18% for investors over the next 12 months.
The broker then concludes:
Our target price is unchanged at $4.65/sh and we retain our Buy recommendation. BOE are scheduled to release their 4QFY25 results on the 28th of July, with guidance of 850klbs met earlier in June (pre-released), focus will be on cost performance and the status of construction for IX columns 4-6. We prefer BOE in the uranium space given its leverage to underlying spot prices, and the potential upside on satellite deposits Jasons and Goulds Dam, which we see as being lower risk than peers.
All in all, this could make Boss Energy worth considering if you're looking for exposure to this side of the market.
