BOE has underperformed its peers both on the way down and in the recent recovery, however, we view BOE as a lower risk, lower beta way of investing in the Uranium sector. They operate the Honeymoon project in South Australia which we like, and having restarted operations in 2024, they are ramping up to full production of 2.4Mlb in FY27. Honeymoon produced 57,364lbs of uranium in the June quarter and Boss is guiding towards ‘at least’ 850klbs of uranium production in FY25.
In the short term, their processing plant is still in construction with the 2nd and 3rd ion exchange columns expected to be installed by year end, so there is some risk around this on the horizon
- We have traditionally preferred PDN over BOE on valuation grounds, however in recent times, BOE’s valuation has improved. We still prefer PDN, but also like BOE.
MM is bullish toward BOE
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