small-cap

One Uranium Stock Trading Near Resistance Levels - BOE

Mar 02, 2023 | Team Kalkine

Read Time :5 mins

One Uranium Stock Trading Near Resistance Levels - BOE

This report is the updated version of the report uploaded on 2 March 2023 at 4:18 PM GMT +11.

Boss Energy Ltd.

BOE Details

Boss Energy Ltd. (ASX: BOE) is an energy company primarily focused on the development of its 100%-owned Honeymoon Uranium Project, South Australia.

Financial Results for FY22

The company has no long-term debt obligations as on 31^st December 2022.
The group has posted a Total Comprehensive Profit for FY22 of AUD 31.18 mn as compared to AUD 0.86 mn in FY21. The spot price of Uranium was USD 50.00 per pound as at 30^th June 2022 which resulted in an overall gain on investment in uranium over 12-month period of approx. AUD 36.85 mn (using the USD/AUD exchange rate of 0.6889)

Key Updates

On 31 January 2023, Boss Energy Limited reported the Net cash used in operating activities of AUD 1.30 mn for the quarter ended 31 December 2022 and the Unrestricted cash and cash equivalents of AUD 115.59 mn for a similar period.

Outlook

The long-term fundamentals supporting Uranium are improving. Nuclear power is being recognized as the clean energy source which is required to meet future global climate change targets.

Key Risks

BOE is exposed to key risks such as government regulations, delay in the start of production, volatility in uranium prices, currency volatility, and credit risks.

Stock Recommendation

Over the last 1 month, the stock delivered a positive return of ~1.16% and, in the past 9 months, the stock has given a return of ~20.37%. The impact of fluctuating Uranium prices and government regulations along with the volatility in the currency rates are some of the concerns.

Resultantly, it is prudent to liquidate at the current levels.

Hence, a ‘Sell’ rating has been provided on the stock at the current price of $2.66 per share as on 2^nd March 2023 (Time: 10:31 AM (GMT +11), Sydney, Australia).

Technical Overview:

Daily Price Chart

BOE Daily Technical Chart, Data Source: REFINITIV

Markets are trading in a highly volatile zone currently due to certain macroeconomic and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is neither an indicator nor a guarantee of future performance.

Note 2: The reference date for share price chart and stock valuation is based on 2 March 2023. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Small-Cap

One Clean Energy Stock Focused on Expanding Shipments and Production Capacity – CSIQ