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 Highlights:

  • Boss Energy shares drop 40% as FY26 cost outlook exceeds market expectations
  • BOE's FY25 production reaches 872,607 lbs U3O8 with Q4 output up 18% QoQ
  • Boss Energy's FY26 C1 cash costs forecast at AUD 41–45/lb; AISC up to AUD 70/lb

Boss Energy Ltd (ASX:BOE), a uranium development and production company listed on the ASX 200, experienced a sharp sell-off in morning trade on Monday. Shares were down by approximately 40%, trading at AUD 2.03 following the release of its fourth-quarter FY25 operations update and FY26 production guidance. In its Q4FY25 update, the company reported that it had produced 349,188 pounds of U3O8, marking an 18% increase compared to the March quarter. Over the full year, Boss Energy achieved total uranium production of 872,607 pounds. The company reported an average realised price of AUD 109/lb (USD 71/lb) during the quarter but received cash for only 100,000 pounds of material sold. 

The company’s quarterly C1 cash cost came in at AUD 36/lb (USD 23/lb), which is lower than the previously guided second-half range of AUD 37–41/lb (USD 23–25/lb). For the second half of FY25 overall, Boss recorded a C1 cost of AUD 35/lb (USD 23/lb). While operational performance in FY25 met and slightly outperformed guidance, investor sentiment turned negative due to the FY26 outlook provided by the company. Management revealed production guidance for the Honeymoon Project of 1.6 million pounds of U3O8, but with a notably higher cost profile. Boss Energy expects C1 cash costs in the range of AUD 41–45/lb (USD 27–29/lb) and all-in sustaining costs (AISC) of AUD 64–70/lb (USD 41–45/lb).

This anticipated rise in operating costs appears to have surprised the market and is being viewed as the key factor behind Monday’s sharp decline in share price. According to the company, the expected increase in costs is primarily due to changes in processing chemistry and a projected decline in average tenor, which could impact extraction efficiency in the near term. Boss Energy Managing Director Duncan Craib acknowledged the cost increases in the guidance but expressed confidence in the company’s strategy for continued scale-up and exploration progress. He stated that FY26 will involve further development of the Gould’s Dam and Jason’s deposits, with updated resource estimates expected this quarter. Additional work will also continue at greenfield exploration targets across the company’s portfolio.

Founded in 2005, Boss Energy is headquartered in Adelaide and owns the Honeymoon Uranium Project in South Australia. The project, which was restarted in recent years, is a key part of the company’s growth strategy as global interest in nuclear energy has increased. 

No changes were announced to the company’s broader strategic direction, and management reiterated its commitment to advancing its exploration pipeline alongside the ramp-up in output. Boss Energy has not yet provided earnings or revenue guidance for FY26.