Boss Energy has issued its 2025–26 financial year (FY26) guidance for the Honeymoon uranium operation in South Australia, projecting continued operational ramp-up following a strong first year of production.
The company has set a production target of 1.6 million pounds of uranium oxide (U₃O₈) for FY26, after exceeding both its initial production and cost guidance in FY25. C1 cash cost guidance has been set at $41–45/lb, while the all-in sustaining cost (AISC) is forecast at $64–70/lb.
Boss expects Honeymoon to continue generating positive free cash flow during FY26, with the broader company also forecast to become cash flow positive during the financial year.
Production for FY26 will rely on the operation of nine wellfields by June 2026, including the Honeymoon and East Kalkaroo domains. As expected, the uranium tenor will decline compared to FY25, due to the depletion of existing wellfields at Honeymoon and the ramp-up of lower-grade zones at East Kalkaroo.
The expected increase in cash costs compared to FY25 is primarily attributed to a forecast reduction in average tenor and an optimised lixiviant chemistry, which involves lowering the pH from 1.4 to 1.3. While this chemical adjustment is anticipated to enhance overall wellfield recovery and head-grade, it will result in higher reagent consumption and associated C1 costs.
Sustaining capital expenditure for FY26 is estimated at $29–32 million, predominantly for the construction of four to five new wellfields. These developments are not only expected to support FY26 production, but also an additional 900,000 pounds of output in FY27.
Delineation drilling at East Kalkaroo has revealed less continuity in mineralised horizons than assumed in the 2020 feasibility study and 2021 enhanced feasibility study. This may require the installation of additional wells and lead to increased sustaining capital costs per pound. An independent review will soon assess the implications for future production targets.
