Citi has downgraded Boss Energy following the withdrawal of its 2021 Enhanced Feasibility Study (EFS) for the Honeymoon uranium project. The decision was influenced by significant discrepancies identified in resource continuity, leachability, and mineralisation overlap at the site. Boss Energy is an Australian uranium company focused on the development of the Honeymoon Uranium Project. The company aims to become a globally significant uranium producer.
In response to these geological challenges, management is now planning a revised well field design with wider spacing, ranging from 75 to 100 metres, compared to the initially planned 40-metre spacing. Citi noted that during a conference call, management was unable to provide clear operating precedents utilising such significantly wider well spacing, raising concerns about the project’s viability.
The primary uncertainty, according to Citi, revolves around the Honeymoon aquifer’s permeability and lateral connectivity. The broker questions whether the aquifer can facilitate effective fluid migration over these extended distances. An updated EFS, expected in the third quarter of calendar year 2026, will test this critical aspect.
While the FY26 production guidance of 1.6 million pounds remains unchanged, Citi has reduced its projections for FY27 and subsequent years. Citing a more constrained medium-term operating outlook, Citi has lowered its target share price for Boss Energy to $1.25 from $2.20 and downgraded the stock to “neutral” until greater clarity emerges from the revised feasibility study.
