Boss Energy Confirms FY26 Guidance, Withdraws 2021 Feasibility Study Amid Resource Reassessment

Background and Review Outcome

Boss Energy Limited has announced a significant update regarding its Honeymoon uranium project. Following an extensive review, the company has identified material and significant deviations from the assumptions underpinning its 2021 Enhanced Feasibility Study (EFS). These deviations primarily relate to the continuity and grade of mineralisation, leachability, and wellfield size, which are expected to impact production and costs from fiscal year 2027 onwards.

As a result, Boss Energy has formally withdrawn the 2021 EFS, advising that it should no longer be relied upon for future operational guidance. This move underscores the challenges the company faces in accurately modelling the resource under current assumptions.

New Feasibility Study and Wide-Spaced Wellfield Design

In response to these findings, Boss Energy has initiated a New Feasibility Study centred on an alternative wide-spaced wellfield design. This concept, still at an early stage, involves increasing the spacing between injection and extraction wells, reducing reagent use, and extending leaching time. The approach aims to lower operating costs and improve uranium recovery, particularly from lower-grade mineralisation that was previously uneconomical under the existing design.

The company plans to provide an initial update on this study in the first quarter of calendar year 2026, with a scoping study targeted for the second quarter and completion of the full feasibility study by the third quarter of 2026.

Delineation Drilling and Satellite Deposits

Boss Energy is accelerating its delineation drilling program, focusing on the East Kalkaroo and Brooks Dam domains to refine its resource model. The drilling results to date indicate less continuity of higher-grade mineralisation but confirm extensive lower-grade mineralisation throughout the area.

Additionally, the company is advancing plans to incorporate the Gould’s Dam and Jason’s Deposit satellite deposits into its production profile. These deposits, characterised by sandy horizons conducive to wide-spaced wellfield design, represent near-term organic growth opportunities. An updated resource model and development timeline for these deposits are expected in early 2026.

Financial Position and FY26 Outlook

Despite the challenges ahead, Boss Energy maintains a robust financial position with A$212 million in cash and liquid assets as of 30 September 2025. This liquidity supports the company’s capacity to self-fund the New Feasibility Study and potential development of satellite deposits without external financing.

The company reaffirmed its FY26 production guidance of 1.6 million pounds of drummed uranium oxide (U3O8), with C1 cash costs projected between A$41-45 per pound and all-in sustaining costs (AISC) between A$64-70 per pound. Production in the December quarter is tracking well, with 357,000 pounds drummed as of 10 December 2025.

Looking ahead to FY27, production and cost estimates are expected to be broadly in line with FY26, although sustaining capital costs may increase by approximately 15% due to a higher proportion of sustaining capital expenditure. These projections remain subject to revision following the New Feasibility Study’s outcomes.

Strategic Implications

Boss Energy’s withdrawal of the 2021 EFS and pivot to a wide-spaced wellfield design reflect a pragmatic response to evolving geological data. If successful, this new approach could unlock additional uranium resources previously excluded due to cutoff grade constraints, potentially extending mine life and improving cost efficiency.

The company’s commitment to advancing satellite deposits further diversifies its resource base and enhances its growth prospects. However, the New Feasibility Study remains at an early stage, and its technical and economic viability will be critical to restoring and enhancing shareholder value.