Boss Energy Ltd (ASX: BOE) shares are on the slide on Monday.
In morning trade, the ASX 200 uranium stock is down a massive 40% to $2.03.
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Why are Boss Energy shares crashing?
Investors have been selling the company's shares this morning following the release of two announcements.
One of those was an update on its performance during the fourth quarter of FY 2025.
For the three months ended 30 June, the ASX 200 uranium stock reported 349,188 pounds of U3O8 drummed (up 18% from the March quarter).
Boss Energy revealed that its average realised price was A$109/lb (US$71/lb), with cash received for just 100,000 lbs. This was achieved with a quarterly C1 cost from drummed uranium of A$36/lb (US$23/lb), which is below its second half FY 2025 guidance of A$37 to A$41/lb (US$23-25/lb).
In light of this strong finish to the year, the ASX 200 uranium stock's FY 2025 production totalled 872,607 lbs U3O8, with second half C1 costs of A$35/lb (US$23/lb).
Commenting on the company's performance, Boss Energy's managing director, Duncan Craib, said:
To beat our first year of production and cost guidance and then hit the 1M lbs milestone are huge achievements and reflect the skills and dedication of our team. On behalf of the Board, I would like to thank them for their commitment and hard work. Our margins are strong, our balance is extremely robust and we are perfectly positioned to capitalise on an upturn in the uranium market, which we believe is inevitable as demand rises on the back of the nuclear power resurgence.
FY 2026 guidance
Possibly the main drag on Boss Energy's shares has been the release of its FY 2026 guidance for the Honeymoon Project.
It revealed that it is targeting production of 1.6Mlbs U3O8 with a C1 cash cost of A$41 to A$45/lb (US$27-29/lb) and all in sustaining cost (AISC) cost of A$64 to A$70/lb (US$41-45/lb). This appears to have been much greater than the market was expecting.
Management notes that its cash costs are expected to increase primarily due to an expected decline in average tenor and an optimised lixiviant chemistry.
Commenting on its outlook, Craib said:
With production on track to ramp up significantly over FY26, we will see the financial strengths of Honeymoon come to the fore with cashflow set to increase substantially. In parallel with the ongoing ramp-up, we are driving our exploration program forward with the aim of creating value by establishing new resources. This will see updated resource estimates for Gould's Dam and Jason's this quarter. There will also be more work done to continue growing Gould's Dam and progressing greenfield targets.
