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Introduction & Market Context
Boss Energy Ltd (ASX:BOE) released its March 2025 quarterly results presentation on April 29, highlighting significant production growth at its Honeymoon uranium mine in Australia. The company achieved a major milestone with Honeymoon generating its first positive free cash flow since operations began, despite a challenging uranium market environment.
The quarter was characterized by uncertainty in the uranium sector due to sanctions on Russian uranium and potential tariffs on imports of nuclear fuel into the USA. While the spot price declined by 10% during the quarter to US$64.45/lb, the term price remained stable at US$80.00/lb, reflecting the divergence between short-term market fluctuations and longer-term supply-demand fundamentals.
As shown in the following chart of uranium pricing trends:
Quarterly Performance Highlights
Honeymoon’s production metrics showed substantial improvement, with U3O8 drummed production reaching 295,819 pounds, representing a 116% increase from the December quarter. IX production also grew by 15% to 246,869 pounds. The company remains on track to meet its FY2025 production guidance of 850,000 pounds of U3O8 drummed.
The production growth chart below illustrates the consistent quarterly improvement:
Boss Energy also reported strong operational performance at its Alta Mesa joint venture with enCore Energy (NASDAQ:EU) (Boss ownership:30%), which produced 91,000 pounds of U3O8 (on a 100% basis) during the quarter. Alta Mesa is ramping up toward an annualized production rate of 1.5 million pounds U3O8, with Boss’s share being 30%.
The company achieved a record production month in February, with 123,000 pounds drummed at Honeymoon, representing an annualized run-rate of approximately 1.5 million pounds. This performance came despite some commissioning challenges with the kiln and baghouse in the drying and packing area, which the company reports are being resolved.
Detailed Financial Analysis
A significant milestone for the quarter was Honeymoon recording its first positive free cash flow since operations began. The company reported C1 costs of A$33/lb (US$21/lb), below the 2H25 guidance range of A$37-41/lb (US$23-25/lb), reflecting strong operational performance.
The detailed cost breakdown is presented in the following table:
Boss Energy maintained a robust financial position with A$229 million in cash and liquid assets, including A$64 million in cash and 1.21 million pounds of uranium inventory on hand. This represents a decrease of A$22.4 million from the December quarter, primarily driven by mark-to-market movements in inventory and listed investments.
The company received cash for 268,000 pounds of uranium during the quarter at an average realized price of US$83.5/lb, an improvement from the previous quarter’s US$77.5/lb. This included 150,000 pounds from sales and 118,000 pounds from loan repayment.
The financial position summary is detailed in the following table:
The quarterly cash flow movements show the various factors affecting the company’s cash position:
Strategic Initiatives
Boss Energy continues to advance both its operational ramp-up and growth initiatives. Key activities include continued drilling at Honeymoon and ordering long-lead items for additional wellfields, along with the completion of NIMCIX columns 4-6 to increase processing capacity.
A notable strategic move during the quarter was Boss increasing its shareholding in Laramide Resources Ltd to 19.7%, securing exposure to the Westmoreland Uranium Project in Queensland, which has a mineral resource estimate of 65.8 million pounds of U3O8.
The company is also progressing exploration activities in South Australia, with completed infill drilling at the Gould’s Dam and Jasons satellite deposits. Consultants have been engaged to produce updated mineral resource estimates for these deposits, expected in Q4 FY2025.
Forward-Looking Statements
Looking ahead, Boss Energy expects C1 costs for Q4 FY2025 to increase but still finish at the bottom end of 2H25 guidance of A$37-41/lb. Capital expenditure is projected to ramp up in Q4 FY2025, particularly for wellfields and project development.
Key next steps in the company’s ramp-up plan include increasing flow rates with the availability of Wellfield 3 and IX Column 3, and changing the precipitation circuit operating regime from batch to continuous operation. The company will also continue construction of columns 4 to 6.
Management remains focused on both organic and inorganic growth opportunities while maintaining discipline in capital allocation. With a strong balance sheet and improving operational performance, Boss Energy appears well-positioned to capitalize on the long-term fundamentals of the uranium market despite near-term price volatility.
The company’s operational metrics show consistent improvement across key parameters:
Full presentation:
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