Boss Energy (ASX:BOE,OTCQX:BQSSF) has officially begun uranium production at its Alta Mesa in-situ recovery central processing uranium plant and wellfields, located in South Texas.
“The start of production at the Alta Mesa Project is another key milestone in the implementation of our strategy to be a global uranium supplier with a diversified production base in tier-one locations,” said Managing Director Duncan Craib.
“With operations now ramping up at both Honeymoon and Alta Mesa, we are on track to hit our combined nameplate production target of 3 million pounds of uranium per annum," he added in the June 14 announcement.
This achievement comes just eight weeks after Boss Energy began production at its Honeymoon project in South Australia. Combined, the two operations are projected to produce approximately 3 million pounds of uranium annually.
The start of production at Alta Mesa is a step in Boss Energy's plan to become a major uranium supplier.
The mine is expected to reach a steady state production rate of 1.5 million pounds of uranium per year. Boss Energy holds a 30 percent stake in the project, with the remaining 70 percent owned by enCore Energy (TSXV:EU,NASDAQ:EU).
The start of production at Alta Mesa is particularly significant for the US uranium supply chain, with the market being impacted by the country's recently announced ban on Russian uranium imports.
Alta Mesa's contribution to US uranium supply is expected to help mitigate the risks associated with reliance on foreign imports, ensuring a more stable and secure supply chain for the US nuclear energy sector.
“Our timing could hardly be better given the increasingly tight supply and demand fundamentals in the uranium market. Given that we are ramping up production in both locations and we have strong growth prospects at each one, Boss is very well positioned to continue capitalizing on this huge opportunity,” added Craib.
Following the announcement, shares of Boss Energy rose as much as 4.9 percent to reach AU$4.28, marking its best day since May 1. The company’s share price is down about 4 percent year-to-date.
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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.