Stocks In Focus: Boss Energy, April 1 2026

0:02Scott:A listener production. Shares. Marker. The S &P. The OSEC. Stocks. Motley Fool Money. Stocks in Focus. G'day and welcome to Motley Fool Stocks in Focus. If you're not familiar, I'm Scott Phillips. I'm the Motley Fool's Chief Investment Officer here in Australia. And this is Stocks in Focus, our weekly series where we look at one company that is in the news, widely owned, topical, appropriate just to discuss for whatever particular reason, brought to you, brought to me as well, by our team of gun analysts. And we broadcast this. Is broadcast still a thing? Maybe it's not. We make it available on podcast feeds around the country under the Motley Fool Money podcast feed, your favourite podcast provider, and, of course, on our YouTube channel.

0:46Scott:So you can simply search Motley Fool Money or go to YouTube.com forward slash foolau. We don't own YouTube yet, unfortunately. You can find all the great stuff there. Just search Motley Fool Australia YouTube. You will find it. All right, that's enough of the ad. A little bit of boilerplate, though, and then we will get on to it. As you know, and I know I've said before, if you're a regular listener or watcher, but it's really important, either if you've forgotten, if I haven't said it for a while, or if you're new to the channel or new to this series, Stocks in Focus is where we have a look, as I said, at one particular company.

1:16Scott:It is not a formal recommendation to buy or sell, and it is a point in time. Things will change from here. We're recording this one at the end of March, 2026. Where to from here? Anybody's guess. So just keep that in mind. Lastly, this is general, not personal advice. We can tell you, we think about a company. We can't do what's right for you personally. That's your job to do for yourself. And if you need to, see a personal financial advisor. All right. That's enough from me. I'm going to introduce Vincent Wales, Motley Fool Gun Analyst. How are you, mate? Hello, Scott. How are you? I'm very well, thank you.

1:48Scott:Let's try a company that is, speaking of topical, Boss Energy. Once upon a time, the word energy meant kind of oil or gas, but there's other ways of finding, storing, and using energy. Tell us exactly what Boss Energy does, please. So Boss Energy is a uranium producer that runs the Honeymoon Project, which is way out on the outback, somewhere in South Australia. I think it's something like 400 kilometers from Adelaide or somewhere like that. So it's interesting. It's transitioning from a developer to a producer. And uranium, I think, as most people know, is one of the key requirements for nuclear energy.

2:29And it can provide nuclear energy baseload energy, which obviously is very topical at the moment. Everyone wants secure energy systems. It's also positioned within the Western supply chain as well. So it's French oring is the current term on that. so pros and cons of boss energy so obviously it's exposure to uranium a strong long term long-term demand during the energy transition especially for baseload secure secure supply it's a producer now it's moved from a developer to producer so it's de-risked in that perspective and that gives leverage versus earlier stage companies which are still exploring their there seems.

3:13Located in Australia, which is considered a stable tier one jurisdiction. So basically, it's a beneficiary of the energy security we're all looking for, the transition, and the French shoring trends, which is becoming ever more of an important consideration. So obviously, there's also potential upside if uranium prices strengthen, and if there's increased globally for nuclear power, secure nuclear power. On the other side, prices, uranium prices, a lot of commodities, notoriously volatile, often sentiment-driven as well. Everyone wants to get in or everyone wants to get out. Especially with commodity companies, execution risk is a lot higher than traditional companies.

3:59You know, these companies make educated guesses about the amount of uranium or coal or whatever is in the ground. That may turn out to be not the case. Very capital intensive industry as well. You have to build infrastructure, mines, those funding requirements as well. And also the share price is heavily driven by macroeconomics, which the company, you know, it's out of the company's control. It has to take that. And of course, there's a risk that the honeymoon project turns out not to be as rich as was originally considered. They always say with commodity companies and that, you shouldn't look at them in isolation.

4:41You should consider them in a portfolio context. Don't just think, I want that company. Maybe think, what's my view on uranium? Do I think it has a future? Is it part of the future energy transition? and look at a company as part of an investment strategy, not necessarily as a single strategy on its own.

5:02Scott:Yeah, mate, you're right. It's such a – commodities in general are really tough. And then you think about a commodity like uranium where oil, we can debate – obviously very topical – we can debate the price movement or potential supply changes, but it's big, it's well used, maybe electrification makes a difference at some point. But the demand curve is relatively foreseeable within a reasonably narrow range. Uranium is one of those stories where it could be everything, it could be almost nothing, it could be somewhere in between. How do we think about taking that into account? Because you say I have a view on uranium, which is right.

5:34Scott:That view could be spot on, it could be entirely wrong, or it could be somewhere in between. How do you kind of handicap the investment case, something like that, where there are so many potential ifs that kind of compound on top of each other? So as I said, first of all, don't put all your hopes on one company. Do your research and look what you think things will look at. Not now, but where will the puck be? Five years, 10 years and all that. There's definitely a change in my view between the old balances of efficiency and security. You can often get efficient energy supplies, but they're not secure, as we've seen recently from recent developments.

6:19And security is, it may even be more expensive, but in the future, can you have a steady baseload, for example? So that's the trade-off I think you need to look at, and you need to kind of look over five, ten-year horizon. and this is not something that you kind of think, I think it's going to go this direction in six months. It could go any direction in six months, to be honest, you know. Motley Fool Money. For more, subscribe to the free newsletter at fool.com.au forward slash listener.

6:52Scott:I looked it up too, mate. It's about 100 kilometres west-northwest of Broken Hill, so just over the South Australian border, way out in the outback of South Australia. I've been near there, but nowhere near close enough I didn't see the signs. Interestingly, it's technically a fly-in, fly-out. And the nearest town is Broken Hill, which is kind of a fly-in, fly-out town anyway, isn't it? A little bit. Maybe I'm bagging Broken Hill. I'm not sure. Our Broken Hill viewers and listeners, I'm sure, will correct us. If you do want to correct us, then that was Vincent, not me. No, I'm kidding. So, mate, let me hold your feet to the fire.

7:23Scott:Let's finish this off with a, you mentioned five or ten of you. I think that's probably the right approach. Let's take five years, though. Boss Energy, in five years' time, Do you expect it to be a market beater or you expect it to lag the ASX? So I would go back to what I said before, high risk, high reward. But on the balance, I would, and also in a portfolio context, I would expect this to outperform over a five-year period for your aim story if you pick your investments wisely and diversify accordingly. Nicely done. We should disclose you own a few shares in Boss Energy too. So we always like to disclose those things when we talk about a company.

8:03Scott:BOE is the code. I think I mentioned that at the top. So I mentioned that at the bottom. It'll be in the description too, so you'll be able to find that. But Boss Energy, fascinating story. I mean, man, the world's going to change in five years. Let's see what happens for Boss. We might check back and see if Vincent was right. Who knows? A reminder, though, this is not a formal recommendation for or against, not because of what Vincent said, or otherwise we just don't do it as stocks in focus. These are not formal, multiple recommendations. they're a chance for us to share with you a little bit about some of the companies that we research, sometimes own, sometimes don't, and also the businesses that are doing things in the market, either widely owned or in the news, and BOSS certainly very much in the news when it comes to the chance of the energy future looking like a nuclear-powered one.

8:44Scott:Thanks for watching. Thanks for listening. If you're on the podcast, do us a favour. Check out the YouTube channel. If you're on YouTube, do us a favour. Check out Motley Fool Money, where you think you'll enjoy both. Hey, it's all free too, by the way, so knock yourselves out if you're enjoying it. Then we hope it will bring you some education, a bit of entertainment, and hopefully just improve your understanding of the Australian Stock Exchange and the companies that trade therein. All right, that's it from me. Until next time, Fool on.

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