Boss Energy has revised its cost guidance downward following a robust December quarter at its Honeymoon uranium operation. The improved performance was driven by increased production, which led to higher inventory levels and a strengthened cash position for the company. Boss Energy is focused on developing a portfolio of uranium projects, including the Honeymoon Mine in South Australia. They aim to be a globally competitive uranium producer.
The uranium producer reported record drummed production at Honeymoon, reaching 456,000 pounds of U3O8. This represents an 18 per cent increase compared to the September quarter, attributed to enhanced flow rates from newly developed wellfields. Ion exchange production also saw an 8 per cent rise, totalling 406,000 pounds. The company remains on track to meet its full-year production guidance of 1.6 million pounds.
Honeymoon’s C1 cash cost decreased to $US20 a pound, a 12 per cent reduction from the previous quarter, due to lower reagent consumption and optimisation efforts. As a result, Boss Energy has updated its full-year C1 cost guidance to $US24-26 a pound, down from the previous estimate of $US27-29. The company also lowered its all-in sustaining cost guidance to $US40-42 a pound. Production at Alta Mesa fell 31 per cent to 143,000 pounds. However, Boss’ attributable share increased 51 per cent to 68,000 pounds.
Boss Energy noted that permits for the Brooks Dam North, Jason’s Deposit, and Gould’s Dam projects are still in progress. A review of the Honeymoon operation has identified potential avenues for further cost reductions and extending the mine’s lifespan through an updated wellfield design. The company has initiated a new feasibility study to explore these opportunities.
