Boss Energy (ASX:BOE) lowered its FY26 production guidance for the Honeymoon Operation in South Australia, citing persistent operational hurdles caused by extreme weather.
The company now expects to drum between 1.40M lbs and 1.45M lbs of U₃O₈, a notable decrease from the previous target of 1.6M lbs.
The revision follows a challenging third quarter where production totalled just 203k lbs, falling short of the internal 240k–270k lbs estimate.
The primary catalyst for the downgrade was unseasonal heavy rainfall throughout March.
While initial assessments in early March suggested site access would recover, subsequent deluges further degraded access roads.
The restricted the delivery of critical reagents and hampered the ramp-up of plant infrastructure.
Beyond weather constraints, Boss reported technical delays in commissioning key assets, including the NIMCIX column 4 and primary pumps, alongside the completion of the B6 wellfield.
Despite the production setback, the company maintains its C1 cost guidance of $36–40/lb and an all-in sustaining cost of $60–64/lb, though costs are now anticipated to hit the upper end of these ranges due to rising fuel and transport overheads.
Boss CEO Matthew Dusci expressed disappointment over the downgrade but remains optimistic about the future, noting that the completion of columns 1–5 by the end of the financial year will solidify the infrastructure needed for long-term growth.