Production Delays and Weather Events Test Boss Energy’s Ramp-Up Plans

Robust Production Growth Amid Operational Milestones

Boss Energy has reported a significant uptick in uranium production for the December 2024 quarter, with U3O8 drummed volumes rising 53% to 137,084 pounds and ion exchange (IX) production nearly doubling with a 96% increase to 215,319 pounds. These gains reflect the successful commissioning of Kiln 2 and the ramp-up of the NIMCIX Column 3, alongside steady operations of Columns 1 and 2 at nameplate capacity.

Despite some production interruptions caused by an abnormal weather event affecting power supply in October and minor commissioning delays, the company has demonstrated strong momentum. Daily production rates in January 2025 have already surpassed the required run rate to meet FY2025 targets, signaling effective derisking of the ramp-up process.

Financial Strength Supports Growth Trajectory

Boss Energy’s financial position remains solid, with $252 million in cash and liquid assets, including $65 million held in cash, and no debt obligations. The company sold 200,000 pounds of uranium in the December quarter at a realised price of USD 77.5 per pound, maintaining disciplined contracting strategies with approximately 85% of Honeymoon product still uncontracted. This approach positions Boss to capitalise on rising uranium prices while retaining flexibility.

Cost guidance for the second half of FY2025 projects cash costs between AUD 37-41 per pound (USD 23-25 per pound), underscoring a competitive cost structure that benefits from operational efficiencies and inflation-aligned adjustments since the Enhanced Feasibility Study.

Strategic Expansion and Resource Development

Looking ahead, Boss Energy remains on track to deliver 850,000 pounds of U3O8 drummed in FY2025. The commissioning of Wellfield 3 and planned installation of additional NIMCIX columns (4-6) by June 2025 will further enhance production capacity. Meanwhile, exploration efforts continue to focus on satellite deposits such as Gould’s Dam and Jasons, with a mineral resource update expected in Q3 FY2025.

At the Alta Mesa project in the United States, Boss Energy’s 30% share is ramping up toward full operational capacity of 1.5 million pounds annually by 2026. The project benefits from experienced management by partner enCore Energy and has seen steady improvements in wellfield solution grades.

Market Context and Outlook

Boss Energy is well positioned to benefit from a rising long-term uranium price environment, supported by increasing demand from data centres and nuclear utilities, alongside geopolitical supply risks. While spot prices softened during 2024, term prices have trended upward, reinforcing the strategic value of Boss’s uncontracted inventory and disciplined sales approach.

With commercial production now declared, the company transitions into a new phase of operational and financial reporting, setting the stage for further growth and value creation in a sector poised for resurgence.