Earnings call transcript: Boss Energy Reports First Free Cash Flow in Q2 2025

Boss Energy Ltd. (BOE.AX), with a market capitalization of $606.75 million, reported its first free cash flow quarter in the history of its Honeymoon project during the second quarter of 2025. The company achieved significant production increases while maintaining strong financial health, reflected in a 4.46% rise in its stock price to $2.92. According to InvestingPro data, the stock has shown robust momentum with significant returns over both the last week and month.

Key Takeaways

• Boss Energy generated its first free cash flow from the Honeymoon project.
• The company sold 268,000 pounds of uranium at a realized price of $83.50 per pound.
• Production increased 116% from the previous quarter.
• Boss Energy’s stock price rose by 4.46% to $2.92.

Company Performance

Boss Energy demonstrated robust performance in Q2 2025, highlighted by its first free cash flow from the Honeymoon project. The company produced 296,000 pounds of uranium, marking a 116% increase from the previous quarter. This achievement was supported by the successful introduction of Columns and Wellfield 3 into production, with a record monthly production rate of 123,000 pounds in February.

Financial Highlights

• Liquid assets: $229 million, including cash, physical uranium, and investments.
• Uranium sales: 268,000 pounds at $83.50 per pound.
• C1 costs: US$21 per pound, below guidance.
• C1 margin: 68-71% based on current uranium prices.

Outlook & Guidance

Boss Energy remains optimistic, targeting 850,000 pounds of uranium production in 2025 and 1.6 million pounds in 2026. The company expects C1 costs to range between AUD $37-$41 per pound in FY 2026. Additionally, Boss Energy is focused on the development of its satellite deposits, including Jason’s and Gould’s Dam. With a moderate beta of 0.86 and a P/E ratio of 9.74, the stock offers relatively stable market exposure. Discover more valuable insights about Boss Energy and access comprehensive analysis through the detailed Pro Research Report, available exclusively on InvestingPro, along with 10+ additional ProTips and advanced metrics.

Executive Commentary

Managing Director Duncan Craeb stated, "We are achieving exactly what we said we will do," highlighting the company’s strategic execution. He further noted, "Generating free cash flow within one year of starting production is a respectable outcome for any mining operation."

Risks and Challenges

• Volatility in uranium prices could impact revenue.
• Potential operational bottlenecks as production scales up.
• Geopolitical factors affecting uranium supply and demand.
• Regulatory changes impacting mining operations.

Boss Energy’s Q2 2025 performance underscores its strategic progress and operational efficiency, positioning the company well for future growth in the uranium market.

Full transcript - Boss Resources Ltd (BOE) Q3 2025:

Ashley, Conference Moderator: Session. If you have additional questions, you’re welcome to rejoin the queue and we’ll be able to ask further questions if time permits.

If we run out of time and you do not have time for your question, we ask that you please call our office on 263494 or email bossbossenergy dot com and speak to our team. I would now like to hand the conference over to Mr. Duncan Craeb, Managing Director. Please go ahead.

Duncan Craeb, Managing Director, Boss Energy: Thanks, Ashley. Good morning, everyone. Thank you for taking the time to dial into our second quarterly call. During the previous January quarterly presentation, we recognized a milestone event for the company when we declared commercial production and we published our first cost guidance. This quarter, we are proud to declare that we’ve started generating free cash flow from Honeymoon, which is the culmination of a highly successful ramp up where we saw drummed production of uranium doubling from the previous quarter to just shy of 300,000 pounds and associated C1 costs outperforming our guidance at US21 per pound.

So to be generating robust margins at current prices and delivering free cash flow within one year of starting production is a respectable outcome for any mining operation, particularly uranium where the pool of talent and expertise is more limited than other sectors. Our team has worked tirelessly to ensure that we meet our undertakings to the market and results such as today is testament to the skills and commitment of our people. As I stated in our announcement, we’re achieving exactly what we said we will do. Joining me on today’s call is our CFO, Justin Laird and our COO, Matt Ducey. So I’ll now walk you through key achievements of the March as well as providing an update on our investment in the Alta Mesa mining operation in Texas and our disciplined deployment of capital, representing about 3% of our market cap, into strategic uranium opportunities to generate future growth.

At the end of the call, Justin, Matt and I are readily available to take your questions. So if we turn to the presentation to Slide two, as mentioned, it was a really positive quarter, pivotal in fact, where we delivered outstanding operational and financial results. In summary, Honeymoon continued to deliver on our ramp up plan. For the quarter, we produced 296,000 pounds of uranium, which represented 116% increase from the prior quarter. The Nim6 columns were brought into production, the column three, as well as well as field three.

C1 costs were at AUD33 a pound or USD21, which is below our guidance. And globally, a C1 cost of USD21 per pound is an enviable position to be in. We, as mentioned, generated our first free cash flow quarter for Honeymoon, and that’s in the history of Honeymoon’s production given the robust margins. We also finished the quarter with $229,000,000 in liquid assets being cash, physical uranium and investments. And that we also sold 268,000 pounds in uranium at a realized price of US0.84 dollars a pound.

So the best news of all is that we now remain on track to deliver our 850,000 pounds production guidance and cost guidance for the full year 2025. And this was coupled with the continued growth of the company with construction of four columns four to six underway and we also during the quarter acquired a strategic investment of 19.7% in Laramite Resources. So really pleasing quarter, a great quarter, and we’d like to go into those highlights in more detail. So turning to Slide four of the presentation. Really, the March was characterized by those strong production results with 296,000 pounds of drummed uranium, 249,000 of uranium production, representing 116% increase and 15% increase from the prior quarter.

The graph on this slide shows the quarter on quarter growth of production as we continue to ramp up at Honeymoon. During the back end of the quarter, Columns and Wellfield three were brought into production as planned. We did, however, encounter some commissioning challenges, which we raised in previous announcements, with the second kiln and bag house resulting in some unplanned downtime. But despite these challenges, they’re above surface in an operating plant, and we achieved a monthly record production rate in February of 123,000 pounds of uranium. And that, if you annualize it, represents a run rate of 1,500,000 pounds So bearing in mind, our full year 2026 production guidance next year is 1,600,000 pounds So we’re well on track to meet next year’s guidance as well.

The focus for the coming quarter is to now increase flow rates and resolve any associated bottlenecks, improving run time of the kilns and involving the precipitation circuit from a batch to a continuous operation as intended. Construction activities on columns four to six increased during the quarter. The focus currently is on the steel works for the foundations along with pipes spooling and assembly. Construction activities would largely be complete by the end of the June financial year, so in the coming months, with commissioning and production at columns four and five in the first quarter of the next financial year. Looking at the cost update on Slide five, coupled with the strong production performance, we also had a good control on costs.

C1 costs, as mentioned, were an enviable US21 a pound or AUD33 a pound, which is below that second half twenty twenty five guidance. That implies a C1 margin of 68% to 71% based on the current term uranium price. Such results as these demonstrate the quality of the Honeymoon asset and the technical advancements we have made to the processing plant and optimizing well field operations since taking control of the asset. We are forecasting an increase in C1 costs next quarter to finish the second half at the lower end of our C1 cost guidance. Wellfield capital for the quarter totaled AUD 8,000,000 as we progressed the Wellfield development.

This included $3,500,000 for the first fill cost of Wellfields one, two and three and $4,900,000 for Wellfields development of AUD 4 to 9. The construction capitals the construction capital, excuse me, for columns four to six, totaled AUD 4,000,000 for the quarter. That expenditure will significantly increase during the coming quarter, which is aligned with construction activities and an increase in man hours with construction. We having given all that and sort of explained that background, we really do remain confident that we’ll achieve both our full year 2025 production and cost guidance for Honeymoon. When we look at our investment in Altamaster on the following slide, production for the quarter on a 100% basis totaled £98,000.

So the next slide, please. This includes GBP 50 thousand of uranium captured between March 6 to March 31. A total of GBP 29,126 was delivered to BOS’ account in the quarter to sell us our own inventory as per the JV agreement. So by that, it’s unencumbered we can sell into our own sales mix. As reported during the quarter, the ramp up to achieve 1,500,000 pounds uranium per year was impacted by wellfields development.

In turn, Encore, as the manager of the project, has taken a number of steps to accelerate wellfield development and improve wellfield planning during the quarter. The second IAC circuit at Altamesa also commenced operations during the back end of the quarter, and that effectively is doubling the project’s total flow capacity. The combination of the second IAC circuit and well fields expansion effectively utilized 75% of the current processing capacity. On the following slide, Slide eight, BOSS continues to add to its growth pipeline. So we’re really pursuing organic and inorganic opportunities whilst remaining disciplined on capital allocation.

Several of those opportunities that BOSS progressed during the quarter on the slide before you are our satellite deposits on the Honeymoon tenements being Jason’s and Goulds Dan, having completed the infill drilling on those deposits in previous quarters, formally engaged consultants, AMC consultants in Perth, Australia, to update the Jawke mineral resource, which we expect to be done towards the end of Q3, Q4 this year. We also entered into an earn in agreement with Eclipse Group whereby our minimal commitment is $250,000 in the first year with guided options to go forward at BOSS’ election to increase its ownership if technical due diligence proves positive. So it’s a very strictly disciplined approach to proving up that potential asset. Heading that is Penny Sinclair and Andy Wilde, our chief geologists, but notably Penny was Cameco’s lead geologist in Australia during the previous cycle, and Cameco owned these tenements for two years from 02/2006 to 02/2008. So we’re already head deep in reviewing all those old files.

We also increased our stake in Laramide Resources to 19.7%. So this is a really exciting project. We believe it’s been there’s a lot of opportunity here, a lot of potential to develop Laramide further. And their flagship asset of particular attention to us is the Westmorland uranium project in Queensland, which has a total JORC resource of GBP 65,000,000 that contains uranium. We believe our investment so far into Laramite, representing only 3% of our market cap, provides us with asymmetric upside should the moratorium in Queensland be lifted.

Onto the market, and there’s been some interesting developments, particularly overnight. We found that Bloomberg is now reporting that China has now committed to a further 10 nuclear power plants, which is wonderful news and really shows that the depth of the industry continues to grow. That commitment by China is significant, up to $27,000,000,000 and represents the third year in succession of committing to that growth. So worldwide, we are seeing from a medium to long term perspective that fundamental supply and demand forecast looking very positive as it has been for decades. And that’s really reflected in the turn price, which in the in the pre in the March, actually reached an all time high in Australian dollars of a hundred and $27 per pound.

So if you think that Boss Energy’s operating expenditure is 95% linked to Australian dollars, then we’re in a very good place earning The US revenue. We see this underlying strength on a day to day basis with utilities continuing to invite BOSS to tender for the supply of uranium from 2026 onwards. From a short term perspective, we continue to also see geopolitically uncertainty regarding Russian sanction Russia sanctions and the potential for US tariffs as having an adverse impact on spot uranium price, which is a measure of the current sentiment, in fact, worldwide affecting all markets. But positively, following the recent declines in spot price, we’ve started to see an increase in buyer interest in the short to mid term, and that can be seen in the spot price, which has recently stabilized at a mid $65.60 per pound to today’s spot price of $67.5 a pound. So it’s risen $2.5 in the past week.

Notably, in the past two weeks as well, we’ve received two substantial RFPs from globally significant fuel buyers. So what I would explain is the market is it’s beginning to thaw. Fuel buyers are now getting to come back to the market. They’ve been able to rely on their own inventories, but they do need to keep acquiring new inventories. So the large strategic utilities with strong cash balances and strong buying power and savvy teams are now entering the market saying the prices are reasonable to contract out.

When we look at our financial position on the following slide, BOSS remains in a very strong position sorry, the following slide, with a robust balance sheet that is supported by $229,000,000 in cash and liquid assets on hand as at thirty one March twenty five. This represents a decrease of $22,000,000 from the prior quarter, but please do keep in mind, this was primarily driven by mark to market movements in inventory and listed investments revalued today, one would see that balance increase. During the quarter, BOSS also received cash for £268,000 at an average realized price of US83.5 dollars per pound. That price was higher than the prevailing spot price, which was also supported by 118,000 of those pounds reflecting a repayment of a loan to Encore at US100 dollars a pound, the prevailing price at which the loan agreement was entered into just over a year ago. Positively, as mentioned, this quarter represents the first quarter that Honeymoon in its history has recorded positive free cash flow.

Given that Honeymoon is still only in its first year of ramp up, we believe this reinforces the decision to bring the mine online when we did. The following slides really just to summarize how Honeymoon is placed and really becoming free cash flow positive in the first year ramp up, we’re really chuffed about, and it’s a full credit to the team, particularly on-site for achieving these healthy C1 margins. Production and costs remain on track to meet production guidance. We continue to invest in honeymoon development of wellfields. Columns four to six are underway, and you can see pictorially in announcement today of the steel structure that have provided the foundations.

And again, it’s the same installation teams that built the first three, so we’re getting quicker at rolling these out. And column four is scheduled to be in production in the first quarter of the next financial year. We are also developing a strong asset portfolio, but remaining very disciplined on capital allocation, and I can’t emphasize that enough. Our focus to date, and it still continues to be, Honeymoon, and now we’re supporting Altamesa with their ramp up. The company has a strong balance sheet of $229,000,000 in cash and liquid assets.

So with that, I would like to take this opportunity to really again acknowledge the BOSS team, particularly on-site. Throughout the organization, there has been a considerable work and effort in getting the company to this point. It’s a great result to see today’s announcement come through, highlighting the continued success of the ramp up at Honeymoon. The team’s current focus is now hitting guidance for the year at 850,000 pounds in this coming quarter of produced uranium, and we’re doing our best to achieve that. So with that, it concludes the presentation, and we can now turn to Q and A.

Thanks, Ashley.

Ashley, Conference Moderator: Thank Your first question comes from Branko Skosic with E and P. Please go ahead.

Branko Skosic, Analyst, E and P: Good morning, guys. Thanks for your time. On the unit costs, that looks very encouraging. So just came to understand first why they’re expected to rise next quarter and perhaps more importantly, whether the AUD 33 per pound number is a good reference point for us over the coming six to twelve months? Thank you.

Justin Laird, CFO, Boss Energy: Yes. Thanks, Francois. So primarily, as you say, it’s a great result in terms of that C1 cost, and it is slightly below guidance for the first quarter of the half. The the expectation that costs are gonna increase is is more to do with the quarter that we’ve just had, that we’ve had some one off cost savings during the quarter, which we don’t expect to be repeated in the following quarter. So that that would get us to the bottom end of guidance for for the full half.

Matt Hope, Analyst, Ord Minute: Yeah. Yeah. Yeah. I was really pleased. You should leave it.

Branko Skosic, Analyst, E and P: And in terms of how you’re thinking about 33 per pound moving forward, is that a good reference point I’m thinking to FY ’20 ’20 ’6?

Justin Laird, CFO, Boss Energy: Yes. Yes. We expect that guidance range of $37 to $41 AUD to be a good range for FY 2026 at this stage, but we’ll be coming out with full year cost guidance as part of our June quarterly.

Branko Skosic, Analyst, E and P: That makes sense. And just a final question just on the inventory build that we saw this quarter. Just how you guys are thinking about uranium sales versus further inventory builds over the coming quarters given the spot prices?

Duncan Craeb, Managing Director, Boss Energy: Yes. Thanks, Brink. I think it’s really important to keep a healthy inventory level for a producer, certainly to cover working capital outflow. But really, three months on average is a is a good is a good sort of balance to keep. So if you think annual production ramped up is about 2,450,000, well, take three months of that or a quarter or a third of that.

You’re probably looking at, say, a minimum of £800,000 in any given time. So that that’s what we’d like to keep, and you keep that on hand if in case there are any logistical problems with shipping. What you don’t wanna do is find yourself in a position where suddenly under contract you’re contractually obliged to deliver pounds, but you’re unable to because you don’t have the pounds in the right conversion facility or you can’t book transfer to the right conversion facility. And in that case, and we’re seeing this with some others companies that they’re then forced to go into the market and either borrow uranium or buy uranium off the market. So we don’t want to find ourselves in that position.

So it makes sense to have commercial sense to have some of your own inventory on hand at all times. And for the differential between that 800,000 pounds and where we are now with 1,100,000 pounds, We fundamentally believe the uranium price is going higher. So for us, it makes financial sense to hold on to those pounds and wait for an increase in the spot price.

Branko Skosic, Analyst, E and P: Thanks a lot. Appreciate it.

Ashley, Conference Moderator: Your next question comes from Alastair Rankin with RBC Capital Markets. Please go ahead.

Alastair Rankin, Analyst, RBC Capital Markets: Good morning, Duncan, Justin, Matt, and congrats on the solid results. I might just dial in on the first field cost that you mentioned. You said that for Wellfields one to three, they were roughly CAD3.5 million, which implies about CAD1.2 million per field. And then you’ve got an estimate for Wellfields four to nine is a bit lower at around CAD0.8 million per field. So can you just touch on what’s driving that lower cost per field going forward?

Justin Laird, CFO, Boss Energy: Yes. Hi, Alistair. So in terms of the well field costs, part of the well field cost for one to three was included in the project capital. So potentially, there there are some additional cost for those world fields. For future world fields, we are currently seeing some potential opportunities for savings.

Some of the specific initiatives that we’re doing, probably one of the biggest is looking to construct the well houses off-site. And so, essentially, a well house is a containerized unit, and we and we kind of working through the engineering design, but believe that we can get those constructed off-site, which means that we don’t have to pay that higher rate for contractors and and flights and accommodation costs for those contracts. That’s one of the key opportunities that we believe for reduced well food cost the future well fields. And then also just to note that around a third of the well field CapEx can be reused. So given that those well houses are a kind of containerized module, we can just pick those up and move them to future world fields once we’ve kind of got that once we’ve got those constructed.

Matt Ducey, COO, Boss Energy: Alex, there’s Matt here too. The other the other driver there too is also utilizing that first field too. So how we can how we can utilize first field that we put into those wellfields, including ferret, and recycle that back into additional wellfields.

Alastair Rankin, Analyst, RBC Capital Markets: Okay. Understood. That’s really clear. And then I just might ask around uranium price exposure coming into the second half of this year. You realized a pretty solid price at around $84 with that being with some benefit from that on core loan pricing as well.

But can you just give some color around your price exposure in the second half of this year and your strategy around it at the moment?

Duncan Craeb, Managing Director, Boss Energy: We are we’ve got the second half of the Encore loan also being repaid by the June this year. So that will be the complete repayment of that loan. But yes, in terms of pricing, we are contractually we have entered into contracts. We did so about a year ago with some with market related contracts with healthy floors. So, you know, I suspect that you’ll see realized price above the current spot price, certainly, going into this second sec going into this quarter.

But, yeah, it’s one that we we’ve been quite savvy with how we are contracting. Having entered into I think we’re about eighteen percent contracted over life of mine. Predominantly, that’s in these initial next three to four years. But we’re also able to take, you know, advantage of sort of more so near term, short term type contracting ability with utilities. So it’s not just simply fixed price contracts or market related contracts.

You can also take advantage of the near term. So we’re being very savvy. We’ve got a very strong marketing team as as I think you’re aware with Sachi Davies. We work closely with Scott Lawrence as well behind Nemurco and some others that we’ve got around the world. So, yeah, we we feel that we’re walking in tandem with the market.

We feel that we’re more nimble and flexible than some of the other larger producers that have to find pounds for or homes for their pounds, and we can afford that sort of flexibility.

Alastair Rankin, Analyst, RBC Capital Markets: Perfect. Very clear. Thank you all three.

Ashley, Conference Moderator: Your next question comes from Regan Burrows with Bell Potter. Please go ahead.

Regan Burrows, Analyst, Bell Potter: Thank you for taking my questions. Congratulations, Duncan and team. First question just on capacity of the wellfields and also capacity for column number three. How I guess, what is the capacity currently that you’re running it at? And how sort of hard can you push that flow rate over the fourth quarter?

Matt Ducey, COO, Boss Energy: Hi, Greg. It’s Matt here. So in terms of capacity, what we’re trying to do this quarter is push flow. I mean we’ve had head grade come through stronger on the previous quarters. Now with column three and well field three, it’s all about pushing flow through this quarter.

Part of that is so that we can continue to look at any sort of commissioning challenges shifting to a focus on that flow.

Regan Burrows, Analyst, Bell Potter: Okay. So it’s it’s sort of reasonable to expect that the flow rates on, say, a a normalized full run rate are gonna be higher over the fourth quarter than sort of, I guess, comparatively to the second quarter if you assume that the column number three was running at capacity or thereabouts?

Matt Ducey, COO, Boss Energy: Correct. So we brought the column thought we didn’t have to bring in wealth well field three and column three straight away in that last quarter. We brought that in we brought that in towards the end of this quarter with the idea that this full this quarter coming will push three the three columns, three well fields on flow with head grade coming down a little bit.

Regan Burrows, Analyst, Bell Potter: Okay. Great. And potentially just on sales and shipment guidance, obviously you touched on that slightly before DUNC, but just in terms of your FY 2026 guidance, I mean how much of that is covered by your contractual commitments and how does that sort of match up Are they going to be sort of lumpy? And is that going to translate to, I guess, lumpy cash flows coming through?

Or how should we sort of think about that?

Duncan Craeb, Managing Director, Boss Energy: I don’t think it’s it won’t be so lumpy as such. I mean, our objective, we can hold quite a bit of material on-site, but really, there is a maximum capacity of uranium that we can hold, and then we need to ship it to a conversion facility. So our objective really is to ship as much material as we can at the moment into The U. S, into Confidant particularly, Cameco as well, and then looking across to Europe at Arano’s facility. So yes, cash flow, you’ll see steadily flow.

We’re not concerned at all about the ability to sell uranium. We’ve we’ve managed our cash flow very well over the forthcoming years and and our forecast. So, yeah, I don’t you won’t see it being lumpy, but, yeah, we’ll take advantage of the market when it comes. If you see uranium prices suddenly shoot up, we’ll probably be in there taking advantage of it. So it’s tactful.

I mean, we’ve got a percentage that we’ve contracted. We’re still talking to utilities. We’re still engaging with fuel buyers. As mentioned, we received two very large requests for tenders or requests for proposals, I should say, in the last few weeks. So it’s one of staying actively engaged with the market, whether that be on those contractual basis or near term type, medium term, forward selling type arrangements to utilities.

But what we’re not doing is selling into the spot market.

Regan Burrows, Analyst, Bell Potter: Great. Thank you for taking my questions.

Duncan Craeb, Managing Director, Boss Energy: Thanks, Reagan. Thank you.

Ashley, Conference Moderator: Your next question comes from Matt Hope with Ord Minute. Please go ahead.

Matt Hope, Analyst, Ord Minute: Thanks very much. Look, I just wanted to check just a bit more on these wellfields. With the tenor of the liquor, I think you mentioned it was going to come down next quarter. I just wanted to sort of get a progress on what rate does it move from hundred and eight PPM down to the sort of 47? I think it’s 47.

Did you expect it locked to mine? What kind of rate is it going to decline at?

Matt Ducey, COO, Boss Energy: Hi, Matt. It’s Matt here again. Yeah. You won’t get to that life of mine until we have the full five columns in. So, you know, mean, you’re probably looking at a 10 or 20% decrease compared to last quarter.

Matt Hope, Analyst, Ord Minute: Right. Thanks. And then Yeah. It will take us

Matt Ducey, COO, Boss Energy: there’s only one column five and six coming that will start to normalize around about the life of mine head grade.

Matt Hope, Analyst, Ord Minute: Alright. And how does the grade of well field three look compared to the previous two that you had currently operating?

Duncan Craeb, Managing Director, Boss Energy: Not very promising. It’s it’s a big well field. It’s up to I think it’s 1.2 to 1,400,000 pounds. And now the that’s current grades are very healthy. So it bodes well.

I mean, when you look at Honeymoon, how we’ve started with those initial two well fields, really, they’re in a good part of the ore body, but those wellfields, as you’ve seen on-site, they were established by the previous owners, uranium one. So it made sense to utilize that existing infrastructure during startup. All we simply did was modernize the wells and pumps and flush those wellfields prior to leaching. So now we’re stepping out and bringing in these additional wellfields. So wellfield three is new.

Wellfield four and five are getting prepped, but they’re they’re sort of nearly complete to bring on when we’re ready. So we always try and stay at least sort of six months ahead or twelve months ahead of when these wellfields are required to bring on. But, yeah, from a from a construction perspective on wellfields, we’re we’re well advanced for the current for the forthcoming year, actually. So so now it’s one of just blending the product and bringing in those additional additional fields.

Matt Hope, Analyst, Ord Minute: Right. And just finally on the uranium price, you mentioned that there’s a bunch of very sort of short term contracts that you could leap into that you wouldn’t be selling on spot. Did short term contracts for near term delivery, do they essentially have the same price as spot anyway? Or how how does that work?

Duncan Craeb, Managing Director, Boss Energy: You normally get a premium. So for example, we sold one when the spot price was 64 and a half. We’re able to sell it at 69 and a half. So, you know, you normally get a forward a forward premium.

Matt Hope, Analyst, Ord Minute: Right. Okay.

Alastair Rankin, Analyst, RBC Capital Markets: That’s it

Matt Hope, Analyst, Ord Minute: for me. Thanks very much.

Duncan Craeb, Managing Director, Boss Energy: Good. No, thanks, Matt.

Ashley, Conference Moderator: Your next question comes from Alistair Rankin with RBC Capital Markets. Please go ahead.

Alastair Rankin, Analyst, RBC Capital Markets: Thanks for taking my follow-up. Actually, just a question about the head grade at Alta Mesa. I don’t think there was anything in the pack about it. And I think the last quarter, it was around 65 mg per liter. Any more any update on that or on the maybe on the recovery curves as well for the new well fields there at Altamosa?

Duncan Craeb, Managing Director, Boss Energy: We don’t. Sorry. I mean, they got on average, they were averaging around 65 ppm. They got up to I think it was 120. So they they were doing well.

What we are doing, however, is with Alta Mesa that what held them back was the lack of well field development. They weren’t staying in front of what their production requirements were. So they’ve really been focused on bringing new wellfields into production and sort of ramping up in that field. The operating plant itself is working very well. As mentioned, they’ve brought their second ion exchange circuit into production.

So the focus for them is now Wellfield, and they’ve they’ve sort of parachuted in a chap called doctor Dennis Stover, who was on their board of directors, and he’s like the leading ISR guru in The US and has been for for decades. But our own colleagues, Matt Matt Ducey and head geologist Andy Wilde and a few others are heading across their early May so we can actually get a good good view of of how they’re progressing. So, yeah, I think the next call we have will perhaps we can report back in a few weeks’ time.

Alastair Rankin, Analyst, RBC Capital Markets: Okay. Sounds good. Look forward to it. And then just on Wellfield b two at Honeymoon, I think in that analyst pack you had, it was recovering a touch faster than expected. Have you got any update on how that’s been progressing since then?

Matt Ducey, COO, Boss Energy: Alistair, you’re right. So b one, first well field was on the line, and that’s with that 70% recovery out of that 74 volume exchange. And then b two was we’re getting higher recoveries out of b two than we would have expected, And that’s why we delayed bringing B3 in. That B2 continues to outperform. It’s too early to tell what B3 is doing at this point in time.

Alastair Rankin, Analyst, RBC Capital Markets: Okay. No stress at all. Thanks very much.

Ashley, Conference Moderator: Your next question comes from Tim Arievinger with UBS. Please go ahead.

Tim Arievinger, Analyst, UBS: Thanks guys and congrats on the result. Maybe if you can just help me with the medium term glide path again. So I guess the road to full capacity and then expanding Honeymoon further, how do you think about that versus future acquisitions, learning Laramide? Like is there anything else that you’re thinking about right now maybe in The U. S?

Or yes, how you guys kind of weigh that dual mandate up? How do you think about that internally?

Duncan Craeb, Managing Director, Boss Energy: Yes. Sure, Tim. So the focus is very much on honeymoon as it’s been for these past few years and really getting that mine ramped up. So the actual guidance for to achieve GBP 850,000 is in sight, and that’s to achieve by June this year calendar year. The following year, it’s to ramp up to GBP 1,600,000.0, and we’re feeling confident that we can get there given how well we produced in February, for example, and getting that annualized run rate.

And then it’s on to GBP 2,400,000.0, 2 point 4 5 million. It really is a step by step process and which is very much typical to our in situ recovery projects ramp up, bringing new well fields online. So in terms of our sort of growth within Honeywell’s production, it’s we’ve got a per our feasibility study, just a map of how we’re going to bring those additional well fields on starting in Far East Kalkuru and then drifting back towards or grafting back towards the Honeymoon processing site. And then you look at organic growth in terms of our satellite deposits, so Jason’s and Gould’s Dam, which combined has a job resource inferred and indicated of GBP 36,000,000. So we needed to get greater confidence with those before doing an economic assessment.

And to that level, we’ve done the infill drill program, handed those that data really over to AMC Consultants to do an independent review and block modeling. So that’s with them, and we hope to get that data back by the end of this current quarter or early next. But the view there is really to incorporate them into the production profile for Honeymoon. So, you know, there are a number of steps with that. It’s it’s completing the resource estimate.

It’s development of the project description, commencement of permitting and studies. So to finalize once we’ve done those studies and it makes economic sense, one then needs to go through the regulatory format. So it’s likely to take sort of two to three years before we can bring those satellite deposits into complementing our existing production profile. Yeah. And then the inorganic profile. Opportunities as mentioned. But, I mean, the key is I’ve tried to emphasize earlier is just that strict disciplined approach. I mean, we’ve only committed 3% of our market cap

basically got our foot on a on a really exciting project of a series of projects, actually, within Laramard Resources. And we’re also very much focused on assisting our sort of partners in with Encore Energy and their Alta Mesa project, which we still believe is one of the best projects in The U. S. In terms of production.

Branko Skosic, Analyst, E and P: There

Ashley, Conference Moderator: are no further questions at this time. I’ll now hand back to Mr. Craig for closing remarks.

Duncan Craeb, Managing Director, Boss Energy: Well, thank you very much. Thanks for your time this morning. Our next challenge, as mentioned, is to really achieve that production guidance of 850,000 pounds by the June this year. And we very much look forward to providing you with a further update in the coming months. But with that, thank you very much.

Ashley, Conference Moderator: That does conclude our conference for today. Thank you for participating. You may now disconnect.

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