Boss Energy (ASX:BOE) management told investors its December quarter delivered record production at the Honeymoon uranium operation, lower unit costs, and a stronger inventory position, while the company also advanced plans for a new feasibility study aimed at changing wellfield design and improving long-term project economics.
Record production and expected quarterly phasing
Managing Director and CEO Matt Dusci said Honeymoon produced 456,000 pounds of uranium drummed in the quarter, up 18% from the prior quarter. Ion exchange (IX) production rose 8% to 406,000 pounds, which the company attributed to increased flow from wellfields B1 to B4 being online for the full quarter.
Boss expects wellfield B5 to begin production “in the coming few days” as flushing work continues. In Q4, the company expects B5 to contribute for a full quarter and plans to bring B6 online at the “very back end” of the quarter. Dusci noted B6 will be the first wellfield to operate at Far East Kalkaroo, but he said it is not heavily weighted toward achieving the FY26 guidance and is expected to contribute more meaningfully into FY27.
Costs below prior guidance and revised FY26 outlook
CFO Justin Laird and Dusci highlighted improved costs in the quarter. Boss reported C1 cash costs of A$30 per pound, down 12% quarter-over-quarter and below the company’s earlier guidance range of A$41–A$45 per pound. All-in sustaining costs (AISC) were A$49 per pound, down 3% from the prior quarter and below the prior A$64–A$70 per pound guidance range.
Management attributed the cost performance to lixiviant optimization, reagent optimization in the plant, and other productivity and cost reduction programs. Dusci also said sustaining capital was being phased, with some capital deferred while Boss works through a new feasibility study and avoids spending under a “non-optimal plan.”
Boss revised down its FY26 unit cost guidance while maintaining production guidance:
- C1 cash cost guidance: A$36–A$40 per pound (down from A$41–A$45)
- AISC guidance: A$60–A$64 per pound (down from A$64–A$70)
Project and supporting infrastructure capital costs totaled A$11 million for the quarter, up from A$9 million previously. Boss said A$4.5 million related to completing NIMCIX columns, while A$6.5 million supported East Kalkaroo infrastructure, including spending on a trunk line, monitoring wells, and high-voltage upgrades, plus delineation drilling. For the full year, Boss increased guidance for project and supporting infrastructure capital by A$3 million to A$30–A$33 million, primarily to include the Honeymoon delineation drill program.
Balance sheet, inventory build, and sales
Boss reported it ended the quarter with no debt and A$208 million of cash and liquid assets, including A$52.9 million in cash (up from A$47.8 million). The company noted the overall cash and liquid assets figure declined slightly quarter-over-quarter due to mark-to-market declines in the fair value of strategic equity shareholdings.
The company continued to build drummed inventory, which increased from 1.44 million pounds to 1.62 million pounds. Management described the inventory as strategic given what it sees as a tightening uranium market.
Sales during the quarter totaled 350,000 pounds at an average realized price of A$112 per pound (US$74), generating A$39.3 million in revenue. Laird said Boss expects sales quantities to remain roughly in line with production.
Management also discussed a legacy contract tied to the Honeymoon mining license, with first delivery expected in Q3 and continuing in Q4. The contract provides for up to 1.7 million pounds total, with annual deliveries linked to 20% of the prior calendar year’s production or a maximum of 250,000 pounds per calendar year. Boss said the pounds delivered under this contract are expected to realize roughly 65%–70% of spot price, but Laird said the precise terms are commercially sensitive and include multiple tranches and mechanisms.
In Q3 and Q4, Laird said Boss expects 125,000 pounds per quarter to be delivered under the legacy contract, with the timing of deliveries within a calendar year determined by the utility counterparty. He added that Q3 sales outside the legacy contract were largely executed in the prior quarter as forward sales, while Q4 forward sales had not yet been executed at the time of the call.
Management also confirmed the company is commencing royalty payments going forward and expects royalties to be reflected in the current half-year.
Alta Mesa joint venture update
Boss provided an update on its 30% stake in Alta Mesa, a joint venture with enCore. On a 100% basis, Alta Mesa produced 143,000 pounds drummed in the quarter, and Boss received 68,000 pounds. Management said the quarter-over-quarter production decline was due to the timing of bringing new wellfields online, noting that additional modules are being installed at wellfields 7 and 3. The company also said drilling at Alta Mesa East continued to confirm potential extensions of mineralization from Alta Mesa West.
New feasibility study and board update
Dusci reiterated that Boss began work on a new feasibility study following the company’s December 18 announcement concluding the Honeymoon Review. He said the alternative “wide-space” wellfield design is intended to increase residence time and lixiviant, reduce cost structure, unlock lower-grade mineralization, improve the production profile, and extend mine life. He also said the approach could have positive implications for satellite deposits.
In response to analyst questions, Dusci said test work patterns for wide spacing vary in location and spacing—up to 100 meters in one pattern—and include areas around existing wellfields as well as planned testing at Far East Kalkaroo. He said the feasibility study is due in Q3 and that Boss intends to provide market updates as data becomes available.
Boss also discussed work at Gould’s Dam and Jason’s Deposit, stating that technical and baseline studies progressed and that an updated mineral resource statement and a timeline for the permitting pathway would be provided in the coming quarter. Management said the wide-space wellfield design being developed could potentially improve recoverable uranium and reduce capital intensity and C1 costs at those deposits.
Finally, Dusci said Chairman Wyatt Buck informed the board of his intention to step down as chair. Upon appointment of a new chair, Buck will remain on the board as a non-executive director.
About Boss Energy (ASX:BOE)
Boss Energy Limited is a multi-asset energy company primarily focused on the development of its 100%-owned Honeymoon Uranium Project, South Australia. Boss Energy also has an interest in the Alta Mesa Uranium Project in Texas, USA.
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