Boss Energy Ltd’s shares dropped 14.33% to AUD 1.555 on Tuesday after the uranium producer detailed its H2 2026 operational update and FY 2027 guidance, despite posting a significant improvement in financial performance for the year ended June 30.
The company reported a 61% increase in uranium production to 1.41 million pounds in FY 2026, up from 872,000 pounds a year earlier, alongside a 98.6% rise in revenue to AUD 151.1 million. Net profit after tax improved to AUD 2.5 million from a loss of AUD 34 million in FY 2025, while operating cash flow surged to AUD 73.6 million from AUD 17 million. Free cash flow turned positive for the first time, and the company ended the year with AUD 207.3 million in cash and liquid assets, maintaining zero debt.
Boss Energy’s Honeymoon uranium project in South Australia drove the production increase, with C1 costs of AUD 39 per pound and all-in sustaining costs (AISC) of AUD 61 per pound, both within revised guidance. The average realized uranium price was AUD 111 per pound, including a AUD 15.5 million loan repayment. The company held 1.58 million pounds of drummed uranium inventory, with a book value of AUD 116 million and an estimated market value of AUD 195 million at the June 30 spot price.
For FY 2027, Boss Energy guided for lower production of 1.25 million to 1.3 million pounds, citing a shift to a wide-spaced well-field design to reduce costs. C1 costs are expected to rise to AUD 51–56 per pound, while AISC is projected at AUD 83–92 per pound. Capital spending is set at AUD 58–64 million, including AUD 25–28 million for processing facility upgrades and AUD 33–37 million for sustaining capital. A two-stage water treatment plant is scheduled for completion in Q1 FY 2027 (Stage 1) and Q3 FY 2028 (Stage 2).
The updated life-of-mine plan supports production through at least FY 2034, with a total of 13.8 million pounds of drummed production planned over a nine-year period. The wide-spaced well-field design is expected to reduce AISC by approximately AUD 30 per pound. The company also reported an updated mineral resource estimate of 21.4 million tons at 440 parts per million, totaling 20.8 million pounds of U3O8, with 66% classified as indicated and 34% as inferred. The broader Honeymoon district now holds a combined 65.9 million pounds, including 45 million pounds at Gould’s Dam and adjacent deposits.
Managing Director Matt Dusci described the year as strengthening the company’s operational foundations, while Chief Financial Officer Justin Laird noted that Boss Energy remains “deliberately under-contracted” to retain inventory flexibility and benefit from higher uranium prices.
