Boss Energy’s Honeymoon Project Produces 295,819 lbs U3O8 at A$33/lb Cost, Beats Guidance

Operational Breakthrough at Honeymoon

Boss Energy Limited (ASX: BOE) has marked a pivotal moment in its development with the March 2025 quarter delivering the first positive free cash flow from its Honeymoon Uranium Project in South Australia. Production surged to 295,819 pounds of U3O8 drummed, a 116% increase from the previous quarter, while ion exchange (IX) production rose 15% to 246,869 pounds. This operational momentum underpinned a C1 cash cost of A$33 per pound, comfortably below the company’s second-half FY25 guidance of A$37-41 per pound.

These figures translate into a robust margin of 68% to 71% based on the term uranium price, which itself reached an all-time high of A$127 per pound during the quarter. The successful ramp-up, including commissioning of new wellfields and ion exchange columns, demonstrates Honeymoon’s operational resilience despite some commissioning challenges in the drying and packing stages.

Alta Mesa’s Steady Progress

Meanwhile, Boss’s 30% interest in the Alta Mesa Uranium Operation in South Texas also showed encouraging signs. Production totaled 98,000 pounds of U3O8, with the average daily capture rate in March hitting 1,900 pounds, the highest since the plant’s restart in June 2024. The recent startup of a second ion exchange circuit has effectively doubled processing capacity, setting the stage for further production growth as additional wellfields come online.

Financial Strength and Strategic Investments

Boss Energy’s balance sheet remains robust, with $229 million in cash and liquid assets and zero debt. The company’s inventory balance stands at 1.21 million pounds of U3O8, including loan receivables. Notably, Boss has increased its strategic investment in Laramide Resources to a 19.7% stake, securing exposure to the Westmoreland Uranium Project in Queensland, which holds a significant JORC resource base. This move signals Boss’s intent to diversify and strengthen its uranium portfolio amid a tightening market.

Exploration and Development Outlook

Exploration efforts continue to advance, with 23 high-priority targets identified around the Honeymoon operation. Drilling programs at prospects such as Sara Dam and Lake Constance are underway or planned, aiming to extend the resource base and potentially lengthen mine life beyond the current 11-year horizon. Meanwhile, construction activities for additional ion exchange columns and wellfields are progressing on schedule, supporting the company’s FY25 production target of 850,000 pounds of U3O8.

Market Context and Future Prospects

The uranium market remains dynamic, shaped by geopolitical uncertainties including sanctions on Russian uranium and potential US trade tariffs. Despite these challenges, demand forecasts for nuclear fuel remain robust, driven by reactors in operation and under construction globally. Boss Energy’s positioning in politically stable Australia and its operational progress at Honeymoon provide a competitive advantage as buyers increasingly prioritize supply security.

Looking ahead, Boss Energy’s ability to sustain cost discipline while scaling production will be critical. The company’s strategic investments and exploration pipeline offer upside potential, but market volatility and operational execution remain key variables to watch.