Boss Energy delivered a record uranium production quarter at its Honeymoon project, lowering cost guidance and initiating a new feasibility study to reshape its mining strategy.
- Record Q2 uranium production of 456 klbs at Honeymoon
- C1 cash cost reduced by 12% to $30/lb, with guidance lowered accordingly
- New wide-spaced wellfield feasibility study underway following review
- Strong balance sheet with $208M in liquid assets and growing uranium inventory
- Alta Mesa JV production down but Boss’s share increased by 51%
Robust Production Performance
Boss Energy has reported a standout second quarter for fiscal year 2026, with its Honeymoon uranium project achieving record drummed production of 456,000 pounds of U3O8, an 18% increase quarter-on-quarter. This surge was driven by higher flow rates from new wellfields, reinforcing the company’s confidence in meeting its full-year production target of 1.6 million pounds.
Alongside this production milestone, Boss successfully reduced its C1 cash cost to $30 per pound, down 12% from the previous quarter, thanks largely to reagent optimisation programs and improved operational efficiencies. This cost reduction has prompted the company to revise its FY26 C1 cost guidance downward from $41-45/lb to $36-40/lb, signalling a more competitive cost position in the uranium market.
Strategic Shift, New Feasibility Study
Following a comprehensive Honeymoon Review, Boss Energy identified significant deviations from the assumptions underpinning its 2021 Enhanced Feasibility Study. These differences, including less continuity of higher-grade mineralisation and smaller wellfields, have led to the formal withdrawal of the prior study.
In response, the company has launched a New Feasibility Study focused on a wide-spaced wellfield design concept. This approach aims to lower operating costs, improve lixiviant grades, reduce reagent consumption, and extend mine life by utilising infrastructure over a larger surface area. While still at a conceptual stage, this study is a strategic priority, with completion targeted for the third quarter of calendar year 2026.
Financial Strength and Inventory Growth
Boss Energy’s balance sheet remains solid, closing the quarter with $208 million in cash and liquid assets, including $53 million in cash on hand. The company also increased its drummed uranium inventory by 12% to 1.62 million pounds, positioning itself to capitalise on a tightening uranium market.
Sales for the quarter totalled 350,000 pounds at an average realised price of US$74 per pound, supporting the company’s strategy to remain under-contracted and benefit from rising spot prices. Meanwhile, the Alta Mesa joint venture saw a 31% drop in total production, but Boss’s share increased by 51%, reflecting operational improvements.
Exploration and Development Progress
Exploration efforts continue around Honeymoon, with passive seismic data collection and drilling programs aimed at defining prospective palaeovalleys and improving geological models. The company also advances construction activities, with new NIMCIX columns nearing completion and additional wellfields scheduled to come online later this year.
Satellite deposits such as Gould’s Dam and Jason’s Deposit remain key growth opportunities, with updated resource statements and development plans expected in the coming quarters. The potential application of the wide-spaced wellfield design at these sites could further enhance recoverable uranium and reduce costs.
Corporate Update
On the corporate front, Non-Executive Chair Wyatt Buck has announced his intention to step down, with recruitment underway for a successor. Mr Buck will remain on the board to ensure continuity during the transition.
Bottom Line?
Boss Energy’s record production and cost improvements set a strong foundation, but the success of its new feasibility study will be pivotal for sustaining growth and profitability.
Questions in the middle?
- Will the wide-spaced wellfield design deliver the anticipated cost savings and production improvements?
- How will the legacy contract deliveries at discounted prices impact overall realised uranium prices?
- What are the implications of the Alta Mesa JV production decline for Boss’s medium-term growth?