Boss Energy shares enter the spotlight as uranium stocks rally

Movement at the station.

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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.

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