BOE’s September quarterly indicates ramp-up of uranium production at the 100% owned Honeymoon project is progressing well. Production during the period was ahead of our physicals model. Production statistics suggest both well field extraction and ionic exchange processes are operating efficiently. The sale of 200,000 lb of U3O8 during the quarter (Honeymoon production + Inventory) for A$23.4M provided revenues to offset ramp-up operating costs. During the quarter partner EnCore Energy (Not Covered / No Rating) officially opened its Alta Mesa operation in the US (30% BOE ownership). Ramp-up at 1.5Mlbs of annual production at Alta Mesa is expected by CY2026. Our Price Target of $3.65 per share is maintained. Recent improvement in BOE’s share price has shifted closer to this level. Consequently, we moderate our recommendation from Buy to Hold.
To access the full report please log in under the Client Area at the bottom of this page.
Argonaut’s Client Area allows you to view delayed share prices, access Argonaut’s wealth of Research as well as create custom portfolios and set up company watch lists.
If you would like to access our research please contact us to create an account.
