Boss Energy (ASX: BOE) has maintained a strong financial position while advancing infrastructure delivery, wellfield development, and technical work designed to support the next stage of its Honeymoon uranium operation in South Australia.
The company ended the March quarter with no debt and $211 million in cash and liquid assets including cash, liquid investments, trade receivables, and physical drummed uranium inventory.
Boss also recorded $34.4m in quarterly sales from 325,000 pounds of uranium oxide at an average realised price of $106/lb, while retaining substantial strategic inventory of 1.53 million pounds.
While the quarter was affected by heavy March rainfall, infrastructure commissioning, wellfield development, and the new feasibility study all continued to progress.
Strong Financial Position Supports Ramp-Up
Boss’ cash and liquid assets increased by $3.3m from the December quarter, despite the timing of $11.1m in sales receipts that were booked in March and received in April.
Cash on hand was $38m at quarter-end, while inventory on hand was valued at $113.3m and investments and other liquid assets totalled $48.9m.
The company’s under-contracted position and large drummed uranium inventory provide flexibility as it continues to align sales with market conditions and long-term uranium value.
Chief executive officer Matthew Dusci said Boss was restoring stable operating conditions and completing additional capacity to support a stronger June quarter, and had made strong progress with the upcoming Feasability Study.
“This included advancement of a new Honeymoon Mineral Resource Estimate and the calibration of our reactive transport simulation model,” he said.
“We also progressed with the development of wide-spaced wellfields trials at Honeymoon and East Kallaroo.”
Infrastructure Delivery Advances
Honeymoon produced 203,000lb of uranium oxide in the March quarter and 1.04Mlb for the nine months to 31 March.
The reduced quarterly output was largely driven by the heavy and repeated rainfall that restricted access to site and limited delivery of key reagents needed to maintain stable leaching conditions.
Column 4 was commissioned in April and is now operational, representing an important step in de-risking the June quarter production outlook.
Column 5 is expected to be completed by the end of the June quarter, while Wellfield B5 began production in April and Wellfield B6 is expected to start production by the end of the quarter.
Boss expects June quarter production of between 356,000lb and 406,000lb of uranium oxide, supporting revised full-year guidance of between 1.40Mlb and 1.45Mlb.
Cost Guidance Remains in Place
Boss maintained its full-year C1 cost guidance of $36/lb to $40/lb and all-in sustaining cost guidance of $60/lb to $64/lb, with both expected to finish toward the upper end of the range.
March quarter costs rose as lower drummed production reduced the ability to spread fixed costs, with C1 costs of $60/lb and all-in sustaining costs of $93/lb.
The operation has not experienced fuel availability disruption at Honeymoon and has not recorded any disruption or cost increase in sulphuric acid procurement.
Sulphuric acid is sourced from Nyrstar’s multi-metal smelter in Port Pirie, while the plant and wellfields remain connected to the main electricity grid.
Wide-Spaced Wellfields Shape Long-Term Plan
Boss continues to assess wide-spaced wellfields as the optimal pathway forward for Honeymoon.
The work has identified uranium continuity at lower grades, strong permeability and hydraulic connectivity, relatively low acid consumption, and favourable groundwater behaviour.
A reactive transport simulation model has been developed and history-matched to actual Honeymoon production data, giving Boss a more sophisticated tool for modelling fluid flow, leaching behaviour, and reagent consumption.
With the wide-spaced trial patterns now underway at Honeymoon and East Kalkaroo, Boss has targeted the September quarter of 2026 for completion of the new feasibility study.
Growth Pipeline Expands Beyond Honeymoon
Boss also released updated mineral resource estimates for Gould’s Dam and Jason’s Deposit during the quarter as it accelerated the development pathway for both assets.
Gould’s Dam now hosts 38.7 million tonnes at 388 parts per million uranium oxide for 33.1Mlb of contained uranium oxide.
Jason’s Deposit hosts 13.3Mt at 410ppm uranium oxide for 12.0Mlb of contained uranium oxide.
Baseline and technical studies for permitting applications are advancing, with state and federal approvals targeted to begin in the second half of calendar 2026.
The wide-spaced wellfield extraction approach under review for Honeymoon may also be applicable to Gould’s Dam and Jason’s Deposit, potentially supporting higher conversion of total mineral resources into future mine plans if successful.
Alta Mesa Continues Wellfield Development
The Alta Mesa uranium project in Texas produced 97,000lb of uranium oxide on a 100% basis during the quarter.
Boss received 35,000lb of uranium oxide from Alta Mesa, reflecting its 30% share of shipped production from the joint venture with enCore Energy.
Wellfield 7 is operating with additional modules coming online, while drilling and module development are planned to continue through calendar 2026.
Development has also continued on the Wellfield 3 extension, while Alta Mesa East remains a focus for additional drilling and permitting acceleration.
