Boss Energy Ltd (ASX: BOE) shares are falling today.
Shares in the S&P/ASX 200 Index (ASX: XJO) uranium miner closed yesterday trading for $1.975. In morning trade on Thursday, shares are changing hands for $1.920 apiece, down 2.8%.
For some context, the ASX 200 is down 0.3% at this same time.
Today's slide will be unwelcome news to faithful shareholders but cheered by the cadre of short sellers betting against the stock. Boss Energy shares are again the most shorted on the ASX this week, with short interest slipping slightly from last week to 20.0%.
Today's selling pressure follows the release of an update on the miner's Honeymoon Uranium Project, located in South Australia.
Here's what's happening.
Boss Energy shares sink on progress report
Investors are bidding down the ASX 200 uranium stock after management provided a progress report on the Honeymoon Operational Review, which kicked off in late July.
Boss Energy shares came under heavy pressure that month amid concerns over the potential decline in long-term uranium production levels, as flagged by the miner's reduced FY 2026 guidance.
Boss was aiming to produce 2.45 million pounds of uranium each year longer term at Honeymoon, which is referred to as the nameplate capacity of the project.
But in July, the miner shocked investors by forecasting that it was targeting just 1.6 million pounds of uranium production in FY 2026, and at a higher cost than the market had expected.
Hence, the operational review.
Management said the review is intended to determine the potential for reduced continuity of mineralisation and leachability compared with the assumptions made in its Enhanced Feasibility Study (EFS) in June 2021. The miner then aims to assess any impacts this could have on Boss Energy shares amid its ability to achieve the production nameplate capacity.
The company reported that as part of the review, it has already established a technical team, program of work, and timeline to complete the process, likely in the December quarter.
The ASX 200 uranium miner also expects the output from the review to include an assessment of the mineral resource and wellfield design at Honeymoon.
Boss noted that it is also accelerating resource drilling to support the wellfield planning schedule. The accelerated drilling program is expected to start in mid-September. Management expects it will take around seven to nine months to complete.
Commenting on the review that's failed to lift Boss Energy shares today, managing director Duncan Craib said:
We have moved quickly to appoint leading experts in their fields with the aim of establishing an accurate and independent assessment of our resources and optimum production rates. The review is on track for completion in the December quarter of 2025.
With today's intraday slide factored in, Boss Energy shares are down 26.4% since this time last year.
