Boss Energy tanks on Honeymoon warning, FY26 cost guidance
Make us a preferred source
Make us a preferred source on Google
More news: Boss Energy shares took a 40% hit in early trading, before paring some losses, after the uranium producer warned of "potential challenges" in hitting nameplate capacity at its Honeymoon uranium project in South Australia, and set higher-than-expected cost guidance for the 2026 financial year.
Boss shares were down 36.5% to $2.16 at 10:55am AEST, leading losses on the ASX 200 index.
Citi analyst Paul McTaggart said Boss' FY26 production guidance of 1.6 million pounds was in line with Citi's estimate.
However, the miner's cash cost guidance of $41 to $45 per pound, and all-in sustaining cost guidance of $64 to $70 per pound, were "materially higher" than Citi's respective estimates of $34 per pound and $48 per pound.
Boss Energy beats FY25 guidance, flags 'potential challenges' at Honeymoon project
The news: Uranium miner Boss Energy has beaten full-year cost and production guidance at its flagship Honeymoon project in South Australia.
The numbers: Boss reported annual costs for drummed uranium at $36 per pound, compared to guidance of between $37 and $41 per pound.
The miner posted full-year production of 872,607 pounds, having confirmed that it had met guidance of 850,000 pounds last month.
Boss also provided guidance for fiscal 2026, expecting production of 1.6 million pounds. The company guided cash costs for FY26 of between $41 and $45 per pound, and all-in sustaining costs of between $64 and $70 per pound.
The context: Boss, which announced the resignation of chief executive Duncan Craib last week, said cash costs are expected to increase in FY26 compared to FY25 due to an expected decline in average tenor as existing wellfields from the Honeymoon domain are depleted and lower-grade wellfields at the East Kalkaroo deposit are brought online.
The miner also flagged "potential challenges" that may arise in achieving nameplate capacity at Honeymoon in FY27 and beyond. Recent drill results showed there is potential for less continuity of mineralisation and leachability as the project.
