Ann: Increased Uranium Extraction at Alta Mesa, page-3

AI ?

"

Boss's share of uranium from Alta Mesa's production is valued at approximately $29.07 million USD. This calculation is based on:

Production Entitlement

• Annualized production rate: 1.5 million pounds of U₃O₈.

• Boss's entitlement: 30% of production, equating to 450,000 pounds of uranium.

Market Value

• Uranium price on March 31, 2025: $64.60 per pound24.

• Total value:
  $450,000\text{lb}\times 64.60\text{USD/lb}=29,070,000\text{USD}$

"

What will Boss do with its share

"

Boss Energy has not explicitly disclosed specific plans for its 30% share of Alta Mesa's uranium production in the provided search results. However, key operational and strategic context can be inferred:

1. Inventory Management:
   Boss retains ownership of its 30% share (450,000 lbs/year at full capacity) as unencumbered inventory, allowing flexibility to sell into spot or term markets15.

2. Market Exposure:
   No long-term contracts for Alta Mesa’s output are mentioned. The company likely prioritizes spot market sales (currently ~$123/lb) or opportunistic term agreements, contrasting with its floor/ceiling-priced Honeymoon contract16.

3. Operational Integration:
   Alta Mesa’s uranium is processed into yellowcake and shipped to conversion facilities, aligning with Boss’s broader strategy to expand market-ready inventory56.

4. Strategic Optionality:
   The lack of fixed commitments suggests Boss is positioning to capitalize on rising uranium prices while maintaining liquidity (zero debt, $252M in liquid assets)5.

While enCore (operator) has delivered 290,000 lbs under utility contracts in 20257, Boss’s proportional share would be distributed pro rata without disclosed price terms. Future announcements may clarify sales strategies as Alta Mesa reaches full capacity (1.5M lbs/year by 2026)5.

"

My bold and underline. Sweet