Why are Boss Energy shares jumping 17% on Wednesday?

Uranium miner Boss Energy is blasting off today. But why?

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Key points

  • Boss Energy shares are getting a boost following the US pledge of US$80 billion to expand nuclear reactor purchases, adding interest to the ASX 200 uranium stock.
  • The company's Honeymoon Uranium Project reported record quarterly production and lower-than-expected costs, boosting investor confidence.
  • Boss Energy maintains a strong financial position with $212.4 million in cash and liquid assets, a new CEO appointed, and strategic projects underway, though shares remain down 26% year to date.

Boss Energy Ltd (ASX: BOE) shares are lifting off today.

Shares in the S&P/ASX 200 Index (ASX: XJO) uranium miner closed yesterday trading for $1.59. In morning trade on Wednesday, shares jumped to $1.86 each, up 17%. After some likely profit taking, shares are changing hands for $1.84 apiece at the time of writing, up 15.7%.

For some context, the ASX 200 is down 0.1% at this same time.

Boss Energy shares look to be catching tailwinds from two fronts.

First, ASX investors awoke today to news that the United States has pledged more than US$80 billion (AU$121 billion) to purchase nuclear reactors from Westinghouse Electric Co. This marks the biggest US push to expand its nuclear power generation in decades.

Also grabbing investor interest, the ASX 200 uranium stock released its September quarterly report this morning.

Here's what we know.

Boss Energy shares surge on record Honeymoon uranium production

At its 100% owned Honeymoon Uranium Project in South Australia, the miner reported record quarterly production of 385,910 lbs of U3O8 drummed, up 11% from the June quarter.

The company achieved an average realised price of $114.3 per pound with sales and loan repayments of $57.1 million over the quarter.

Boss Energy shares could also be getting a boost with the C1 cost from drummed U3O8 of $34 per pound coming in below FY 2026 guidance of $41 to $45 per pound. The all-in sustaining cost (AISC) of $50 per pound was also below the guidance of $64 to $70 per pound.

The 376,025 pounds of IX (ion exchange) produced was down 5% from the prior quarter. Management noted that the decline in IX production was due to closing over the three months, with significant inventory in the circuit.

At Boss' 30% owned Alta Mesa Uranium Operation in South Texas, the company reported drummed production of 206,231 pounds of U3O8 (on a 100% basis). Boss received 45,102 pounds of U3O8, reflecting its 30% pro rata share of shipped production.

Boss Energy shares could also be getting a boost from the strong balance sheet, with the company ending the quarter with $212.4 million of cash and liquid assets on hand and no debt.

Boss also reported drummed inventory on hand of 1.44 million pounds of U3O8.

As for the new quarter, Matthew Dusci was appointed managing director and CEO of Boss Energy, effective from 1 October.

The crucial Honeymoon Review was said to remain a priority and on track for completion in the December quarter.

What did management say?

Commenting on the results helping lift Boss Energy shares today, CEO Matthew Dusci said, "Our construction and production results are proceeding to our FY26 plan as we bring wellfields and the IX columns online. As a result, we are well on track to meet FY26 guidance of 1.6 million pounds."

Dusci added:

Significant progress was made in the quarter on advancing a number of work programs, including the commencement of a significant resource delineation drilling program at Honeymoon to improve our understanding of the resource.

We have also established a team to conduct the permitting and technical studies for the satellite deposits of Gould's Dam and Jason's Deposit.

With today's intraday boost factored in, Boss Energy shares remain down 26% year to date.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. 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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