Boss Energy lowers Honeymoon cost guidance, hits record production
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The news: Boss Energy has lowered cost guidance for its Honeymoon mine as the uranium producer progresses a new feasibility study on the project after it identified a “material and significant deviation” from key assumptions underpinning nameplate capacity estimates.
The numbers: Guidance for direct cost of extraction at Honeymoon has been revised down from $41 to $45 per pound to $36 to $40 per pound. All-in sustained cost guidance was revised from $64 to $70 per pound to $60 to $64 per pound.
The guidance update comes after Honeymoon reported a 12% quarter-on-quarter fall in direct costs to $30 per pound “following positive results mainly from reagent optimisation in the wellfields and plant”.
Quarterly drummed production of uranium also hit a record 455,791 pounds in December, up 18% from the September quarter.
Meanwhile, Alta Mesa production fell by 31% quarter on quarter from 206,231 pounds in the September quarter to 142,699 pounds in the December quarter.
Production guidance of 1.6 million pounds for FY26 was also reiterated.
The context: Boss Energy managing director and CEO Matthew Dusci said the December quarter “was significant for Boss”.
Following the completion of the Honeymoon review and initiation of the new feasibility study, Dusci said the new wide-spaced wellfield design could lower operating costs, optimise production profiles and extend mine-life.
The company’s chair, Wyatt Buck, intends to step down with a replacement expected to be found within the first half of 2026. When a new chair is found, Buck will remain on the board as a non-executive director.
The source: ASX
