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Boss Energy Ltd (ASX:BOE) reported strong production growth in its Q4 FY2025 quarterly presentation released on July 28, 2025, highlighting that its Honeymoon uranium project exceeded full-year guidance. However, the company also flagged potential challenges in achieving previously outlined nameplate capacity in the future.
Production Highlights
Boss Energy’s Honeymoon project demonstrated robust quarterly growth with 349,188 pounds of U3O8 drummed in Q4, representing an 18% increase from the March quarter. Even more impressive was the 60% jump in IX production to 396,346 pounds, positioning the company for continued strong performance into FY2026.
As shown in the following chart of quarterly production growth, Honeymoon has maintained consistent upward momentum throughout FY2025:
The company also reported that its Alta Mesa joint venture with enCore Energy (NASDAQ:EU) (Boss ownership:30%) produced 204,000 pounds of U3O8 in Q4, more than doubling from 98,000 pounds in Q3. Boss received 44,000 pounds as its pro-rata share, up from 29,000 pounds in the previous quarter.
Financial Performance
Boss Energy maintained a strong financial position with $224 million in cash and liquid assets at the end of Q4, including $37 million in cash and 1.41 million pounds of uranium inventory. The company’s C1 costs for the quarter came in at A$36/lb (US$23/lb), below the 2H25 guidance range of A$37-41/lb.
The following table illustrates the company’s cost performance against guidance:
During Q4, Boss sold 100,000 pounds of uranium at a realized price of US$71.15/lb, down from 150,000 pounds at US$83.50/lb in Q3. This strategic decision to reduce sales volume appears to reflect the company’s view on market pricing, as noted in their financial position summary:
The quarterly cash flow bridge reveals that Boss Energy’s cash position decreased from approximately $63.8 million to $36.5 million during the quarter, with significant capital expenditures directed toward wellfields and project development:
FY2026 Guidance and Challenges
Looking ahead, Boss Energy provided guidance for FY2026, projecting production of 1.6 million pounds with cash costs of A$41-45/lb (US$27-29/lb) and all-in sustaining costs of A$64-70/lb (US$41-45/lb).
The company explained that production for FY2026 will come from both the Honeymoon and East Kalkaroo domains, with operations based on Wellfields B1-B5 (Honeymoon) and B6-B9 (far East Kalkaroo):
However, in a significant development, Boss Energy disclosed potential challenges that may impact its ability to achieve the nameplate capacity outlined in its earlier Enhanced Feasibility Study (EFS):
"Now that Boss has been able to analyse the initial 12 months of actual performance and design for wellfields B1 to B5, and assess recent delineation drill results for wellfield development at East Kalkaroo (B6 to B9), Boss has identified potential challenges that may arise in achieving nameplate capacity as previously outlined in the EFS. This is largely due to the potential for less continuity of mineralisation and leachability."
The company announced that an independent review by subject matter experts will commence shortly to determine the extent of these challenges.
Management Transition
Boss Energy also announced a significant leadership change, with Managing Director and CEO Duncan Craib stepping down effective September 30, 2025. Chief Operating Officer Matt Dusci will be appointed as the new Managing Director and CEO from October 1, 2025. Craib will transition to a Non-Executive Director role starting January 1, 2026.
This management change comes after the company recently strengthened its board with two new Non-Executive Director appointments: Joanne Palmer, who will chair the Audit Committee, and Caroline Keats.
Uranium Market Context
The company provided an update on uranium market conditions, noting that Q2 2025 reflected "what could be a positive turning point" with several catalysts emerging. These include improved support from the US Nuclear Fuel Security Act and Department of Energy initiatives, along with continued nuclear reactor development in China, India, Japan, Canada, and France.
The following chart illustrates uranium price trends, showing spot price volatility but stability in the term price:
Boss Energy noted that while the spot price remained volatile in Q4, ranging from US$64.40/lb to US$78.50/lb, the term price (which the company considers the main indicator of fundamental value) held firm at US$80.00/lb.
Outlook
Despite the flagged challenges regarding nameplate capacity, Boss Energy’s immediate outlook remains positive with continued production growth expected. The company’s strong balance sheet, with $224 million in cash and liquid assets and no debt, provides flexibility to navigate market volatility while advancing its growth initiatives.
The company continues to progress its growth pipeline across multiple regions, including resource estimate updates for Gould’s Dam and Jason’s deposits in South Australia, exploration at the Liverpool Uranium Project in Northern Territory through an earn-in agreement with the Eclipse Group, and increased investment in Laramide Resources to 19.9%, which recently received a Mineral Development License for the Westmoreland Uranium Project.
With uranium prices showing signs of stabilization and global nuclear energy development continuing to expand, Boss Energy appears well-positioned for FY2026 despite the newly identified challenges that will require careful management and potentially revised expectations regarding long-term production capacity.
Full presentation:
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