Boss Energy posts revenue of $47.8m as uranium production from re-opened Honeymoon mine ramps up

Boss Energy (ASX: BOE) has posted revenue of $47.8 million for the six months to the end of December, driven by the sale of 400,000 pounds of uranium oxide from the re-opened Honeymoon mine in South Australia.

The price received for the sale was US$77.77/lb, reflecting a material increase in the uranium oxide price since the initial inventory purchase price of US$30.15/lb.

Boss recorded a $9.5m net loss after tax, primarily driven by $48.1m in operating costs and expenses of $12.7m.

Honeymoon production

Boss continued to ramp up production at Honeymoon during the period, with a total of 226,600lb of uranium oxide drummed, representing an increase of 197,756lb on the previous corresponding period.

The company completed key milestones including installing and commissioning two NIMCIX continuous ion exchange columns and the achievement of nameplate capacity, commencing in-situ recovery (ISR) extraction from Well-field 2 and the preparation of Well-field 3, commissioning of a second kiln and the first shipment of 57,000lbs uranium oxide.

The milestones and production results demonstrate that the improved ISR lixiviant and adoption of ion exchange technology – at the heart of Boss’ re-development strategy at Honeymoon – are effective and meeting expectations.

Boss will commission the remaining three NIMCIX columns  later this year in an effort to ramp up to the feasibility study annual forecast production rate of 2.45Mlb of uranium oxide.

Alta Mesa progress

In October, Boss reported the re-opening of the historic Alta Mesa uranium plant at the high-grade Alta Mesa ISR operation in South Texas.

The project continues to ramp up to full operational capacity of 1.5Mlbpa of uranium oxide, with Boss taking a 30% share of production.

Alta Mesa also recorded increased well-field recoveries as the ramp-up continues, with solution head grades peaking at approximately 140 milligrams per litre of uranium oxide and averaging approximately 65mg/l.

Joint venture project

The Alta Mesa project comprises over 809 square kilometres of acreage plus the central processing plant and well-fields and is managed by experienced uranium producer and Boss joint venture partner enCore Energy Corp.

The enCore team previously operated the project before it was placed on care and maintenance in 2013 due to unfavourable market conditions.

Boss acquired its Alta Mesa stake from enCore in 2024 for $92m.

Financial metrics

At the end of December, Boss had no debt and $251.6m in liquid assets, including cash and cash equivalents of $65.2m, uranium inventory of $117.3m, a loan receivable of $34.8m and investments and other assets of $34.4m.

Cash and cash equivalents decreased during the period by $1.9m, with $48.7m revenue from uranium oxide sales offset by $30.1m in pre-production, administration, and corporate costs, as well as $19.1m in Honeymoon and Alta Mesa development costs.

The company’s working capital (current assets minus current liabilities) increased to $206.7m from $120.1m in the previous year after $103.6m of inventory was reclassified from non-current assets to current.