Boss Energy has defended its market disclosure practices after a significant downgrade in cost and production guidance at its Honeymoon uranium project triggered a sharp sell-off. Last week’s announcement resulted in the company’s value plummeting by over 40 per cent in a single day. Boss Energy focuses on the exploration and development of uranium projects. Its flagship project is the Honeymoon Uranium Project in South Australia.
In response to a price query from the ASX, Boss Energy stated that it considered the cost increases and production difficulties to be material. However, the company said the updated guidance was only finalised on July 27, a day before its release to the market. Shares experienced a 44 per cent drop on July 28, and have since fallen a further 12 per cent to trade at $1.68.
The company attributed the higher operating and capital costs to inconsistent mineralisation and weaker-than-expected well field performance. These factors have raised concerns about the original feasibility study’s assumptions. Boss Energy now faces an independent review to assess the long-term viability of its cost and production forecasts.
Despite earlier assurances that costs were under control, Boss Energy claims that the new data only became apparent during its FY26 budgeting process. The company maintains that it acted quickly once the impact of these factors was confirmed, addressing concerns about the timing of the disclosure.
