Boss Energy Lowers Honeymoon Production Guidance for FY26
Boss Energy Limited (ASX: BOE; OTCQX: BQSSF) has revised its full-year FY26 production guidance at its Honeymoon Operation in South Australia.
Honeymoon uranium operation in South Australia, where Boss Energy has revised FY26 production guidance. [ABC News]
The Company now expects to produce between 1.40 million pounds and 1.45 million pounds of U3O8 drummed for the full year. This is down from the previous guidance of 1.6 million pounds U3O8 drummed.
The revision follows a series of unexpected weather events and infrastructure commissioning delays. Both factors combined to restrict output at the Honeymoon uranium mine through the third quarter of FY26.
Heavy Rain Disrupts Site Access and Reagent Deliveries
Boss Energy first flagged production challenges in March 2026, when heavy rainfall restricted access to the Honeymoon site. The rain limited the delivery of reagents and other materials needed to support production and plant infrastructure ramp-up.
Heavy rainfall disrupted site access and delayed reagent deliveries at the Honeymoon project. [Mining.com]
At the time, the Company expected road conditions to recover during March. That recovery would have supported reagent deliveries and a stronger fourth quarter, allowing the company to maintain its full-year production guidance.
However, further unexpected rainfall arrived later in March 2026. This came on top of already degraded access roads, which extended the disruption well beyond what site assessments had anticipated.
Q3 FY26 Output Falls Short of Previous Guidance Range
Production for Q3 FY26 reached 203,000 pounds of U3O8 drummed. That result fell below the previous guidance range of 240,000 to 270,000 pounds for the quarter. Boss Energy attributed the shortfall to lower tenors and the disruption caused by the extended rainfall events.
Production challenges in Q3 FY26 led to lower-than-expected uranium output. [Mining Weekly]
The combination of reduced ore grades and restricted site access prevented the company from achieving the production volumes it had projected earlier in the financial year.
The Q3 result now creates a larger burden on the fourth quarter to bring the full year in line with revised targets.
Q4 FY26 Production Target Set to Recover Ground
Boss Energy expects production of between 356,000 pounds and 406,000 pounds of U3O8 drummed in Q4 FY26.
Achieving that range is necessary to reach the revised full-year guidance of 1.40 to 1.45 million pounds.
The Q4 target sits below the previous guidance range of 490,000 to 520,000 pounds for the quarter. Despite this, the company says its immediate focus is restoring targeted lixiviant chemistry and completing the commissioning of additional capacity. Boss aims to exit FY26 with the operation better positioned heading into FY27.
Cost Guidance Remains Intact Despite Lower Output
Despite the production downgrade, Boss Energy confirmed it remains on track to meet its FY26 cost guidance. The Company maintained its C1 cost guidance of $36 to $40 per pound and its All In Sustaining Cost guidance of $60 to $64 per pound.
Both cost metrics were already lowered earlier in FY26 from $41 to $45 per pound and $64 to $70 per pound, respectively.
The Company did note that costs per pound are now expected to sit at the upper end of the guidance range, given fuel-related cost increases passed through by reagent transport and air charter providers.
Infrastructure Commissioning Delays Add to Challenges
Beyond the weather disruptions, Boss Energy also faced delays in commissioning key infrastructure during the quarter.
These included delays related to NIMCIX column 4 and associated primary pumps, as well as the completion of wellfield B6. The heavy rainfall compounded these delays by restricting site access through March 2026.
The completion of NIMCIX columns 1 through 5, which the company expects to achieve by the end of FY26, represents a significant milestone. Boss Energy says this infrastructure is central to supporting future production growth at Honeymoon.
CEO Matthew Dusci Addresses the Guidance Downgrade
Boss Energy CEO and Managing Director Matthew Dusci addressed the revision directly. He said:
Boss Energy CEO Matthew Dusci addressed the revised production outlook and operational challenges. [The West Australian]
“We recognise this downgrade is disappointing, particularly after maintaining guidance as recently as March. At that time, our expectation was that site access and reagent deliveries would normalise during the month. Subsequent unexpected rainfall, combined with the degraded baseline condition of access roads, extended disruption materially beyond that assumption.
“This has impacted both production and the timing of commissioning critical infrastructure during ramp-up. While weather-related access constraints were a key factor, delays to certain infrastructure, mainly associated with the commissioning of the additional PLS and BLS pumps, have also contributed to the revised production outcome and guidance for FY26.
“These events have impacted performance in the short-term, however, we anticipate rebounding to a normalised FY26 production run rate over the course of Q4 FY26. Our immediate focus is restoring targeted lixiviant chemistry, completing commissioning of additional capacity, and exiting FY26 with the operation better positioned for FY27.”
Market Reaction
Boss Energy’s share price declined following the guidance downgrade, reflecting investor concerns over production delays. The stock closed at $1.565, marking a 9.27% drop on the day. Trading activity remained elevated, with over 18 million shares exchanged. The Company holds a market capitalisation of roughly $716 million.
Boss Energy share price [ASX]
Outlook: Honeymoon Positioned for FY27 Recovery
Boss Energy’s revised guidance reflects a challenging second half of FY26 at Honeymoon. However, the Company remains focused on completing key infrastructure before the financial year ends.
The completion of NIMCIX columns and wellfield work during Q4 FY26 is expected to lay the groundwork for stronger output in FY27.
The company confirmed that this announcement received approval and authorisation from the Board of Boss Energy Limited.
Further updates on production and commissioning progress are expected as the company works through the final quarter of FY26.
FAQS
Q1: Why did Boss Energy lower its FY26 production guidance?
A: Boss Energy reduced its FY26 uranium production guidance due to repeated heavy rainfall and delays in commissioning key infrastructure at the Honeymoon operation.
Q2: What is the revised production target for FY26?
A: The company now expects to produce between 1.40 million and 1.45 million pounds of U3O8, down from the previous 1.6 million pounds.
Q3: How did the weather impact operations at Honeymoon?
A: Heavy rainfall restricted site access, delayed reagent deliveries, and slowed infrastructure development, all of which reduced production output.
Q4: Did Boss Energy change its cost guidance?
A: No, the company maintained its FY26 cost guidance, although costs are expected to be at the higher end of the projected range.
Q5: What was Boss Energy’s Q3 FY26 production?
A: Boss Energy produced 203,000 pounds of U3O8 in Q3 FY26, below its earlier guidance range of 240,000 to 270,000 pounds.
Q6: How did the market react to the announcement?
A: Boss Energy shares fell by over 9%, reflecting investor concerns about production delays and revised output expectations.
Q7: What is the outlook for FY27?
A: The company aims to stabilise operations, complete infrastructure upgrades, and improve production performance heading into FY27.
Disclaimer:
This article is published by Colitco for informational purposes only and does not constitute financial, investment, or trading advice. The information is based on publicly available sources and company disclosures believed to be reliable at the time of writing. Readers should conduct their own research or consult a licensed financial advisor before making any investment decisions. Colitco does not hold any position in Boss Energy Ltd and is not responsible for any losses arising from the use of this information.
Last modified: April 15, 2026
