Boss Energy lowers production guidance, share stabilising

BOE has lowered its FY26 production outlook for the Honeymoon Operation due to weather related disruptions and operational delays. The update also outlines current performance, revised expectations and ongoing efforts to stabilise operations and support future growth.

Boss Energy Limited (ASX: BOE) 

on 15 April 2026 reduced its FY26 production outlook for the Honeymoon Operation in South Australia. The new target is between 1.40 million and 1.45 million pounds of U3O8 drummed. Earlier guidance was 1.6 million pounds. The change follows operational challenges that affected output during the year. BOSS Energy had initially thought that it would remain on track to achieve full year guidance after evaluating site conditions in March. However, site conditions have not improved as anticipated.

Effect of Weather

Rain was one of the significant causes of this problem. The occurrence of rains starting from March 2026 prevented access into the project area. This restricted delivery of reagents and other supplies needed for production and infrastructure work. Additional rainfall during March worsened road conditions and extended delays. Accordingly, Q3 FY26 production came in at 203 thousand pounds of U3O8. This was below the earlier expectation of 240 thousand to 270 thousand pounds. Lower tenors also contributed to the weaker result during the quarter.

Q4 FY26 Outlook and Cost Guidance

For Q4 FY26, BOE now expects production between 356 thousand and 406 thousand pounds of U3O8. This is lower than the past estimate of 490 thousand to 520 thousand pounds. Despite reduced output the cost outlook remains unaffected. C1 costs are expected to stay within 36 to 40 dollars per pound. All in sustaining costs are guided at 60 to 64 dollars per pound. Though, costs per pound are likely to sit near the top of these ranges. This is due to higher fuel related charges affecting transport and air services.

Operational Delays 

During the quarter there were delays in commissioning key infrastructure. This included NIMCIX column 4 primary pumps and completion of wellfield B6. These issues combined with poor weather slowed progress in ramp up activities. Completion of NIMCIX columns 1 to 5 is expected by the end of FY26 and is seen as an important step for future production. Earlier updates highlighted focus areas such as consistent production delivery cost reduction and completion of a new feasibility study scheduled for Q3 CY26. Work on wider wellfield design and development of satellite deposits continues to support long term growth plans.

Strong Balance Sheet

The company continues to maintain a strong balance sheet to support its forward plans. This financial position is expected to help fund future development and manage ongoing operations without strain. A clear pathway to drive value remains in place through focused strategic programs. These include building a uranium inventory and maintaining disciplined capital management. Efforts are also directed at strengthening the overall financial position further. Also, the Alta Mesa joint venture remains an important part of the broader strategy with a focus on extracting value from this partnership over time.

(Source: Company Report)