Energy

Highlights

  • Boss Energy reported 359,000 pounds of drummed uranium output at Honeymoon during the September 2026 quarter.
  • Quarterly sales Revenue reached A$35.2 million, while C1 costs were A$47 per pound.
  • FY27 Honeymoon production and cost guidance remained unchanged following the latest update.
  • The transition to wider-spaced wellfields continued, alongside water treatment upgrades.
  • Boss retained a debt-free balance sheet, although its US joint venture experienced production constraints.

Boss Energy Limited (ASX:BOE) operates the Honeymoon uranium project in South Australia and owns a 30% interest in the Alta Mesa operation in South Texas. The company released its September 2026 quarterly activities report and presentation on 28 October 2026, detailing production, expenditure and the shift to a revised wellfield design. Its shares advanced during the session, although the cause cannot be established.

Honeymoon Production and Sales in the September Quarter

Honeymoon produced approximately 359,000 pounds of drummed U3O8 in the first quarter of FY27, compared with around 362,000 pounds in the preceding quarter. Ion-exchange production was approximately 337,000 pounds, reflecting a decline from the prior quarter. Boss Energy (ASX:BOE) said higher flow rates helped offset lower uranium concentrations in maturing wellfields. The operation also experienced interruptions following heavy rainfall in August.

The company reported sales of approximately 301,000 pounds at an average realised price of A$117 per pound, generating A$35.2 million in sales revenue. Boss Energy (ASX:BOE) continues to manage its sales commitments alongside production and the commissioning of the updated mine plan.

Operating Costs and the Wide-Spaced Wellfield Transition

C1 cash costs were A$47 per pound in the September quarter, compared with A$45 per pound in the preceding quarter. All-in sustaining costs increased to A$79 per pound from A$70 per pound. Boss Energy (ASX:BOE) attributed the cost trajectory to its ongoing transition and changes in wellfield performance. Quarterly Capital Expenditure was approximately A$13 million, encompassing sustaining expenditure and process or project work.

The company commenced flushing at EKT1, the first wide-spaced wellfield under its revised design. Early flushing observations were described as supportive, but further leaching and production data will be needed to assess performance over time. Upgrades to water treatment infrastructure are also part of the transition. The New Feasibility Study released in August 2026 envisaged approximately 13.8 million pounds of drummed U3O8 over a nine-year operating period, with projected life-of-mine all-in sustaining costs of A$79 per pound.

Financial Position and FY27 Guidance

At the end of September, Boss Energy (ASX:BOE) reported approximately A$194.9 million in cash and Liquid assets and no debt. The balance was lower than the A$207.3 million reported at 30 June 2026. The balance supports transition spending but does not remove operating risks.

FY27 guidance remained at 1.25 million to 1.30 million pounds of U3O8 production, C1 cash costs of A$51–56 per pound and all-in sustaining costs of A$83–92 per pound. Capital expenditure guidance was A$58–65 million. Guidance remains subject to execution risks.

Alta Mesa Constraints and Other Operational Risks

The Alta Mesa uranium joint venture in Texas, in which Boss Energy (ASX:BOE) holds a 30% interest, reported lower drummed production during the September quarter. Permitting delays constrained development of additional wellfields, highlighting a separate execution risk outside Honeymoon. Within Australia, changes in recovery, uranium concentrations, water treatment performance and commissioning timelines could affect quarterly costs and output.

Key Insights

The latest quarterly disclosure adds current production, sales and cost information to Boss Energy’s August feasibility work. Honeymoon output remained broadly steady on a drummed basis while unit costs increased, and the revised wellfield approach has entered an early operational testing stage. Unchanged FY27 guidance and a debt-free Balance Sheet provide context for the company’s ongoing work, while Alta Mesa permitting and Honeymoon execution remain material considerations.