Why is the Boss Energy (ASX:BOE) share price sinking 6% today?

The Boss Energy ASX: BOE) share price is sinking in morning trade, down 6%. We look at what’s moving the ASX uranium share’s price.
The post Why is the Boss Energy (ASX:BOE) share price sinking 6% today? appeared first on The Motley Fool Australia. –

down arrow chart

The Boss Energy Ltd (ASX: BOE) share price is sinking in morning trade, down 6.45% at 14 cents.

Boss Energy emerged from a trading halt this morning after entering the pause of trade on Thursday.

Below we take a look at the ASX resource share’s latest announcement on its uranium inventories.

What did Boss Energy report on its uranium inventory?

The Boss Energy share price is falling this morning after the company reported it had completed a $60 million capital raising at 14 cents per share. Boss Energy shares closed on the last trading day (Wednesday 24 March) at 16 cents per share.

The company will use the funds to acquire 1.25 million pounds (568,000 kilograms) of U-3 O-8 on the uranium spot market at US$30.15 (AU$39.67) per pound. The uranium is warehoused at the ConverDyn Facility in Metropolis, Illinois and will remain stored there following the deal’s completion.

Boss Energy said it would acquire 0.25 million pounds of uranium by the end of April, with the other 1 million pounds acquired by the end of June. The company plans to use the remaining funds from the capital raise to cover uranium storage costs and for general working capital.

Why the stockpile?

Citing tight supply amid strong demand for uranium and the potential for further future price rises, Boss said its increased stockpiles represented a “clear strategic value and upside” for its shareholders. Boss also reported the acquisition puts it in a better financial position for its planned re-start of the Honeymoon Uranium Project.

Commenting on the uranium stockpile increase, Boss Energy’s Managing Director Duncan Craib said:

We have been able to create this unique opportunity thanks to our highly experienced and well-connected operatives in the global uranium market. The stockpile will be highly valuable to us on several levels as we secure offtake agreements, finalise project funding and move into production.

Boss Energy share price snapshot

Despite today’s fall, Boss Energy shares are up 263% over the past 12 months. By comparison, the All Ordinaries Index (ASX: XAO) is up 36% in that same time.

So far in 2021, the Boss Energy share price is up 45%.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Motley Fool contributor Bernd Struben 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 Bruce Jackson.

The post Why is the Boss Energy (ASX:BOE) share price sinking 6% today? appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!