Boss Energy shares enter the spotlight as uranium stocks rally

Movement at the station.

| More on:
A female coal miner wearing a white hardhat and orange high-vis vest holds a lump of coal and smiles as the Whitehaven Coal share price rises today

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

In late July, uranium miner Boss Energy (ASX: BOE) dropped a series of announcements that rattled the market.

Firstly, long-standing managing director Duncan Craib made the decision to step down from his position.

Days later, the company unveiled an update for the fourth quarter of FY25, alongside production guidance for its Honeymoon mine.

The market reacted sharply.

Boss Energy shares tumbled by 44% on the day and dipped even lower in subsequent sessions to round out July at $1.74 per share.

However, the tide could now be starting to turn.

Production cuts from two uranium heavyweights have sparked a broad rally in ASX-listed uranium stocks including Boss Energy.

What happened?

Last week, leading Canadian uranium miner Cameco Corp (NYSE: CCJ) slashed the 2025 production forecast for its McArthur River mine by nearly 20%.

McArthur River is one of the largest uranium mines in existence.

The news followed a similar move from Kazakhstan's state-owned uranium giant Kazatomprom, which also trimmed its total 2026 output target by about 10%.

For context, Kazatomprom is by far the world's top uranium producer, responsible for 23% of global supply in 2022.

Combined with Cameco, the pair accounted for roughly 35% of total production that year.

So what?

Uranium is a critical fuel for nuclear power plants.

And nuclear energy is one of the cleanest sources of electricity thanks to its minimal carbon footprint.

A recent research report by BP PLC (NYSE: BP) projected global nuclear energy generation to rise by 50% through to 2050, under a 'business-as-usual' scenario.

This figure could more than double under a more optimistic outlook.

So, production cuts from the world's biggest uranium miners could tighten supply for the metal, potentially driving prices higher as demand grows.

This dynamic strengthens the case for improved future financial performance for ASX-listed uranium stocks such as Boss Energy.

Uranium stocks rally

Boss Energy shares have rallied by 12% over the past month to reach $1.96 per share at the end of last week.

Some peers have fared even better.

Shares in Namibia-focused miner Paladin Energy Ltd (ASX: PDN) have risen by 26% across the same period. And shares in uranium developer Deep Yellow Ltd (ASX: DYL) jumped by 20%.

Elsewhere, the Betashares Global Uranium ETF (ASX:URNM) gained 10.5% in August.

The fund offers investors a one-stop shop for diversification, international exposure, and access to leading players in the uranium sector.

Its portfolio spans 34 companies involved in uranium production, mine development, exploration, and physical uranium holdings.

Motley Fool contributor Bart Bogacz has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended BP and Cameco. 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 Energy Shares

Smiling attractive caucasian supervisor in grey suit and with white helmet on head holding tablet while standing in a power plant.
Energy Shares

4 reasons to buy this surging ASX 300 energy share today

A leading fund manager forecasts outsized near-term gains from this ASX 300 energy share. Let’s see why.

Read more »

Two workers at an oil rig discuss operations.
Broker Notes

Should you buy Santos, Beach Energy or Woodside shares? Here's Macquarie's top pick

Macquarie has released its new share price expectations for Santos, Beach Energy and Woodside shares.

Read more »

A man in a suit looks sad as oil is spilled from a barrel.
Energy Shares

Is Beach Energy's 7.7% dividend yield a tempting passive income opportunity?

A 7.7% yield is enough to tempt anyone...

Read more »

Man leaps as he runs along the street.
Energy Shares

Guess which ASX uranium stock is jumping 9% on big news

This uranium producer is reporting major progress in Malawi.

Read more »

Coal-fired power station generic.
Energy Shares

Macquarie raises target price on APA Group shares following joint-venture announcement

Here's what the broker had to say.

Read more »

an oil refinery worker checks her laptop computer in front of a backdrop of oil refinery infrastructure. The woman has a serious look on her face.
Energy Shares

Do Woodside shares really have a 6.5% dividend yield right now?

Woodside is currently one of the highest yielders on the market...

Read more »

An oil miner with his thumbs up.
Energy Shares

This surging ASX energy stock is tipped to storm another 42% higher

Here's why the stock is set to surge.

Read more »

ASX uranium shares represented by yellow barrels of uranium
Energy Shares

Uranium company taps former Rio Tinto exec as new managing director

Deep Yellow has named a senior Rio Tinto executive as its new boss as it looks to progress its flagship…

Read more »