Boss Energy has trimmed its FY26 uranium production guidance due to severe weather disruptions at its Honeymoon project, while advancing a new feasibility study targeting cost reductions with wide-spaced wellfields.
- Q3 Honeymoon production down 56% to 203 klbs U3O8
- FY26 production guidance lowered to 1.40-1.45 Mlbs
- C1 costs rose to $60/lb amid lower output
- New feasibility study on wide-spaced wellfields underway
- Strong balance sheet with $211 million in liquid assets
Production Slumps as Weather Hits Honeymoon
Boss Energy (ASX:BOE) faced a tough quarter at its Honeymoon uranium project, with Q3 FY26 production plunging 56% to 203,000 pounds of U3O8 drummed. Heavy and repeated rainfall in March restricted site access and delayed reagent deliveries, disrupting leaching conditions and infrastructure commissioning. This weather-induced setback forced Boss to cut its FY26 production guidance to between 1.40 million and 1.45 million pounds, down from the previous 1.6 million pounds forecast.
The impact on costs was stark: C1 cash costs nearly doubled quarter-on-quarter to $60 per pound (US$41/lb), reflecting the lower output diluting fixed costs. All-in sustaining costs (AISC) also surged to $93 per pound (US$64/lb). Despite this, management remains confident it will meet full-year cost guidance at the upper end of the range, with C1 costs expected between $36 and $40 per pound and AISC between $60 and $64 per pound.
Progress on Wide-Spaced Wellfield Feasibility Study
In response to operational challenges and evolving resource characteristics, Boss is advancing a new feasibility study centred on a wide-spaced wellfield design at Honeymoon. This approach aims to unlock lower-grade uranium zones more economically by leveraging improved permeability and hydraulic connectivity observed in the deposit. The study incorporates an updated JORC Mineral Resource Estimate and a calibrated reactive transport simulation model, which Boss says significantly enhances its ability to optimise wellfield layouts and reagent consumption.
Trial wide-spaced wellfields have commenced at Honeymoon and East Kalkaroo, with pattern sizes expanded to cover larger surface areas and potentially increase resource conversion. This strategic pivot follows the withdrawal of the 2021 Enhanced Feasibility Study due to material deviations in resource assumptions, marking a substantial shift in Boss’s operational planning. Completion of the new feasibility study is targeted for the September quarter 2026.
Resource Updates and Permitting Timelines
Boss also provided updates on satellite deposits Gould’s Dam and Jason’s Deposit, which have seen contained uranium increase by 30% and 9% respectively, despite lower average grades. These deposits are considered amenable to in-situ recovery mining and are being integrated into Boss’s broader development plans. Permitting applications for these projects are expected to commence in the second half of calendar 2026, with mining leases and environmental approvals potentially taking 24 to 36 months to secure.
Resource extension and delineation drilling at Gould’s Dam is scheduled to start in Q1 FY27, supporting Boss’s aim to expand its resource base and production profile. These developments build on prior announcements detailing the mineral resource growth and advancing permitting efforts around Honeymoon’s satellite projects. boosts uranium resources
Alta Mesa JV Production and Financial Position
Meanwhile, the Alta Mesa Uranium Project in Texas, operated under a joint venture with enCore Energy Corp, saw production fall to 97,000 pounds in Q3 from 143,000 pounds the previous quarter. The decline is attributed to administrative permitting delays affecting new wellfield commissioning. Boss’s 30% share of production was 35,000 pounds, down from 68,000 pounds last quarter.
Financially, Boss ended the quarter with a robust balance sheet, holding $211 million in cash and liquid assets, including $38 million in cash on hand. The company reported positive operating cash flow of A$1.7 million for the quarter despite significant mine development spending of A$15 million. Inventory levels slightly decreased to 1.53 million pounds of drummed U3O8, maintaining a strategic buffer amid under-contracted sales exposure.
Boss’s Managing Director Matthew Dusci emphasised the company’s focus on restoring stable operations and highlighted the commissioning of NIMCIX column 4 in April as a key step in de-risking production. The company is also recruiting a new Non-Executive Chair, expected to be appointed by the end of Q4 FY26.
Safety and Operational Outlook
On the safety front, Boss reported an improvement in its Total Reportable Injury Frequency Rate (TRIFR), which declined to 16.6 in Q3 from 19.6 in Q2, though the quarter included three lost time injuries. Operationally, Boss expects a stronger Q4 FY26 with production guidance of 356,000 to 406,000 pounds at Honeymoon, supported by commissioning progress and infrastructure ramp-up.
However, challenges remain, including weather-related delays to exploration programs such as passive seismic surveying and aircore drilling, which have been pushed into the next quarter. The company also flagged ongoing commissioning issues with primary pumps on NIMCIX column 4 and is reviewing the necessity of column 6 as part of the feasibility study.
Boss’s approach reflects a balancing act between managing short-term operational disruptions and executing a longer-term strategic pivot via its new feasibility study and resource development plans. The market will be watching closely how these initiatives translate into production stability and cost improvements in the coming quarters, especially given the company’s under-contracted position and inventory levels. lower cost guidance
Bottom Line?
Boss Energy’s Q3 weather setbacks underscore the operational risks in uranium ISR mining, but the new feasibility study and resource growth offer a strategic reset that could reshape its cost and production profile by late 2026.
Questions in the middle?
- Will the wide-spaced wellfield design deliver the anticipated cost reductions and resource conversion improvements?
- How quickly can Boss restore stable production and ramp up output in Q4 FY26 amid lingering weather and commissioning challenges?
- What impact will permitting timelines for Gould’s Dam and Jason’s Deposit have on Boss’s medium-term production growth?