Such is the buoyancy of the uranium market, Boss Energy has had to reign in subscriptions for its share purchase plan (SPP).
The company was targeting $10 million through the initiative but attracted $29.6 million worth of applications – an indication of current investor interest in uranium, which reached $US91 ($135.2) per tonne in early January.
Uranium prices haven’t been this high since 2007, when a uranium bubble was driven by factors such as growing expectations around India and China’s nuclear programs, the flooding of the Cigar Lake uranium mine in Canada and growing global optimism in nuclear power as an energy source.
Boss said it would be accepting $15 million through the SPP, which complemented a recently completed $205 million capital raise at a price of $3.95 per share.
“The Boss team has been humbled by the extraordinary show of shareholder support for our share purchase plan and we sincerely thank all those who participated,” Boss managing director Duncan Craib said.
“The number and value of applications is a strong endorsement of our growth strategy for Boss becoming a near term multi-mine uranium producer in the Tier-1 jurisdictions of Australia and the US.
“We move into 2024 in an exceptional position, with a robust balance sheet and both Honeymoon and Alta Mesa uranium projects continuing on time and on budget for 1H (first half) 2024 production, with significant potential to grow their existing resources.”
Nuclear power received a boost at this year’s United Nations Climate Change Conference (COP28), with 198 member countries officially calling for the acceleration of low emission technologies, including nuclear energy, to speed up global decarbonisation.
More significantly, 22 countries, including the US, UK, Canada, Japan and France, pledged to triple their nuclear power capacity by 2050.
Boss Energy is aiming to produce its first drum of uranium in early 2024.
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