Boss Energy Ltd. has lowered its full-year production guidance for the Honeymoon uranium project in South Australia following a challenging third quarter marked by heavy rainfall and logistical bottlenecks.
The company reported production of 203,000 pounds (klbs) of uranium oxide a 56 per cent decrease from the previous quarter. The downturn was primarily attributed to severe and repeated rainfall events in March, which restricted site access and hampered the delivery of essential reagents required to maintain stable leaching conditions in the wellfields.
Consequently, Boss has lowered its fiscal 2026 production guidance to between 1.40 million pounds (Mlbs) and 1.45 Mlbs, down from the previous target of 1.6 Mlbs.
Boss CEO Matthew Dusci acknowledged the operational hurdles but noted that recovery efforts are already underway.
“Operationally, this was a difficult quarter for business,” the CEO said.
“The primary driver was the impact of heavy and repeated rainfall events during March, which restricted access to the site and limited the delivery of key reagents required to maintain stable leaching conditions. This was compounded by the knock-on effect of delays in commissioning critical infrastructure.”
Despite the production dip, the company reconfirmed its full-year C1 cost guidance of AU$36 to AU$40/lb and all in sustaining cost guidance of AU$60 to AU$64/lb, though it expects to land at the upper end of the range. C1 cash costs for the quarter sat at AU$60/lb, reflecting the lower volumes and declining tenors as existing wellfields mature.
Progress continues behind the scenes, with the company focusing on a new wide-spaced wellfield design, which is tipped as the optimal pathway for the project’s long-term future. A new mineral resource estimate (MRE) is also being prepared to support a feasibility study targeted for the September quarter of 2026.
In positive news for the project’s longevity, Boss updated the MRE for its satellite deposits, Gould’s Dam and Jason’s Deposit, which now collectively hold over 45 million pounds of contained uranium.
With the recent commissioning of Column 4 in April, Boss expects a stronger final quarter, targeting up to 406 klbs of production.
The company’s balance sheet remains robust, holding AU$211 million in cash and liquid assets, while an average realised sale price of AU$106/lb highlights the ongoing strength of the global uranium market.
