Shares in Boss Energy experienced a significant downturn, plummeting 37 per cent in early trading. This drop follows the company’s announcement of potential difficulties in achieving nameplate capacity at its Honeymoon uranium project in South Australia. Boss Energy is focused on developing its flagship Honeymoon Uranium Project. It also aims to become a multi-asset uranium producer.
The company indicated that recent wellfield design work and drill results have revealed potentially reduced continuity of mineralisation and leachability. These factors could impact future production targets as outlined in the company’s enhanced feasibility study. This announcement overshadowed what was otherwise a strong finish to the fiscal year.
For the quarter, Boss Energy reported uranium production of 349,188 pounds of U₃O₈, exceeding company guidance. The company also managed to maintain cost control, with production costs at $US36 per pound. Boss Energy ended the quarter in a solid financial position, holding $224 million in cash and inventory.
Despite the strong production figures, sales remained low at 100,000 pounds. However, output from ion exchange saw a substantial increase of 60 per cent. The company’s US-based Alta Mesa project also demonstrated improved production volumes during the period. Boss Energy shares have since recovered slightly.
