Boss Energy (BOE)
Hi Guys, it's been a couple of days since BOSS Energy got smashed after their update. do you have any further thoughts or information around it? I was hoping for a bounce thinking it was over done. regards, Simon
The Latest Q&A
Answer
Hi Simon,
BOE has halved this week after revealing potential challenges that may arise in achieving nameplate capacity’ in FY27 and beyond. Ironically Q4 uranium production exceeded expectations but we are in forward focused market.
- Management gave more detail on the investor call and our interpretation is that the total resource estimate remains unchanged.
- However, the question is now what it will cost to get to nameplate capacity, with more clarity to be provided via an independent report which is already underway.
Like yourself we feel the sell-off appears overdone given stronger uranium market fundamentals but the stock is likely to remain under pressure until the independent review is finalised. Plus, investors have already recently been burnt by ASX uranium peer Paladin (PDN), its not surprising they’re adopting an “if in doubt, get out” approach.
- At current levels we prefer PDN over BOE but if the review is “ok” the latter is likely to pop higher.
