Boss Energy dives 28% as it re-evaluates Honeymoon feasibility
Make us a preferred source
Make us a preferred source on Google
More news: Boss Energy rout deepened in afternoon trade after the uranium producer announced it needs to re-evaluate the feasibility of its flagship Honeymoon uranium project beyond FY27.
At 3:34pm AEDT, shares in Boss Energy had slipped 28% to $1.13. The stock has now fallen 75.8% over the last six months and is set to be removed from the ASX 200 index on 22 December.
The uranium producer is currently advancing a new scoping study that will feed into a new feasibility study to be released in Q3 2026.
While still on track to meet FY26 production and cost guidance, in FY27 all-in sustaining cost is expected to be 15% higher.
The Honeymoon project was previously shuttered in November 2013 by Russian state-owned producer Uranium One. It was later acquired by Boss Energy in 2018, with commercial production officially declared in January 2025.
The review found that under the existing wellfield design, the project would be expected to produce between 1.5 million pounds and 2.5 million pounds less over its life time than the 9 million pounds set out in the enhanced feasibility study released to the market in November 2021.
Ord Minnett mining and metals analyst Matthew Hope told Capital Brief that with “the new knowledge, you probably wouldn’t have gone ahead and you probably wouldn’t see this [as] feasible”.
“The funny thing about Boss is that it seemed to be doing really well. In fact, it was a market darling... Unlike Paladin and some of these other miners, which had a little trouble when they started, this one just seemed to go pretty well, and they were hitting all of their targets,” Hope said.
Boss Energy slumps 21% as Honeymoon production capacity invalidated
More news: Boss Energy shares have slumped in morning trade after a review of its Honeymoon uranium project flagged material and significant deviation from a 2021 feasibility study that is expected to impact production capacity and cost from FY27.
At 10:22am AEDT, shares in Boss Energy had fallen 20.5% to $1.24 each.
Boss Energy withdraws Honeymoon feasibility study on faulty production assumptions
The news: Boss Energy has identified “material and significant deviation” from key life-of-mine, annual production and cost assumptions in determining nameplate capacity for its Honeymoon uranium project.
The uranium producer has now withdrawn its enhanced feasibility study for the Honeymoon project.
The context: The Honeymoon project was put under review in late June after flagging expected difficulties in meeting nameplate production capacity from FY27.
The review has now confirmed that the mine is expected to have a higher cost structure, lower pounder under leach per wellfield, less uranium under leach, lower annual production rates, shorter life-of-mine and the exclusion of lower-grade mineralisation from the mine plan.
The company will progress a new feasibility study on the potential wide-spaced wellfield design and has commenced a “series of parallel accelerated work programs to deliver”. An update will be provided in Q1 of 2026.
A scoping study and completion of deliberation drilling is due for completion in Q2 2026 while the new feasibility study and a final mineral resource estimate is planned for completion in Q3 2026.
Despite development setbacks, Boss Energy said it is still on track to meet FY26 production and cost guidance.
What they said: "Although Boss acknowledges this disappointing outcome, the Honeymoon Review and delineation drilling programs have enabled the identification of a potential pathway forward through a new wide-spaced wellfield design," Boss managing director Matthew Dusci said.
"While additional work is necessary to finalise a New Feasibility Study, this development presents an opportunity for Boss to potentially lower operating costs, optimise production profiles, and extend mine life compared to the current wellfield design."
