Boss Energy has reduced its production forecast for the Honeymoon uranium operation in South Australia, citing persistent weather disruptions and infrastructure commissioning delays.
The company has downgraded its fiscal 2026 production guidance to between 1.40 million and 1.45 million pounds of uranium oxide drummed, down from its previous target of 1.6 million pounds.
Boss Energy noted that heavy rainfall during March severely restricted site access and limited the delivery of essential reagents required for production and plant ramp-up.
While the company initially expected road conditions to stabilise in March, subsequent unexpected rainfall further degraded access routes, extending the disruption beyond initial projections.
Third quarter production finished at 203,000 pounds, falling short of the earlier target guidance range of 240,000 to 270,000 pounds.
In addition to the weather-related logistics hurdles, Boss Energy experienced technical delays in commissioning critical infrastructure, specifically the NIMCIX column 4 and primary pumps, alongside the completion of the B6 wellfield.
Despite the lower output forecast, CEO Matthew Dusci confirmed it remains on track to meet its C1 cost guidance of AU$36 to AU$40 per pound and its all-in sustaining cost (AISC) guidance of AU$60 to AU$64 per pound.
However, due to fuel-related cost increases passed on by transport and logistics providers, the company expects to finish the financial year at the upper end of these ranges.
“We recognise this downgrade is disappointing, particularly after maintaining guidance as recently as March,” Dusci said.
“At that time, our expectation was that site access and reagent deliveries would normalise during the month. Subsequent unexpected rainfall, combined with the degraded baseline condition of access roads, extended disruption materially beyond that assumption.”
The company’s immediate priority is restoring targeted lixiviant chemistry and finalising the commissioning of essential infrastructure.
With work on NIMCIX columns 1 through 5 expected to be complete by the end of fiscal 2026, Boss Energy aims to exit the financial year with a more robust operational footing as it pivots toward its production targets for fiscal 2027.
“These events have impacted performance in the short-term, however we anticipate rebounding to a normalised fiscal 2026 production run rate over the course of the fourth quarter of fiscal 2026,” Dusci said.
