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Investing.com -- Boss Energy reported fourth-quarter IX production that exceeded expectations by 4%, but drummed U3O8 production fell 7% below estimates due to June maintenance activities.
The uranium producer’s fiscal year 2026 guidance disappointed investors across several metrics. Production is projected at 1.6 million pounds, 7% below analyst expectations, as the company plans to operate nine wellfields at Honeymoon and East Kalkaroo by June 2026. The company noted that production tenor will decline as existing Honeymoon wellfields are depleted and lower-grade East Kalkaroo wellfields come online.
Cost projections also came in higher than anticipated, with unit cash costs at Honeymoon expected to rise to A$41-45 per pound, compared to analyst estimates of A$35-37 per pound. Capital expenditure guidance of A$56-62 million substantially exceeded market expectations of A$25-32 million.
The higher capital spending includes A$15 million carried over from fiscal year 2025 to complete IX columns 4-6 and supporting infrastructure for wellfields, including trunkline and power extensions. All-in sustaining costs are projected at A$64-70 per pound, well above analyst forecasts of A$47-51 per pound.
Recent delineation drilling at East Kalkaroo has revealed less continuity than was assumed in the earlier economic feasibility study, creating additional challenges for wellfields 6, 7, 8, and 9.
After 12 months of operations at Honeymoon, Boss Energy has identified potential challenges in achieving the previously outlined nameplate capacity of 2.45 million pounds of U3O8 annually, primarily due to less continuity of mineralization and leachability than initially expected.
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