Boss Energy Ltd (ASX: BOE) shares are in the red today.
Shares in the S&P/ASX 200 Index (ASX: XJO) uranium miner closed yesterday trading for $2.07. In late afternoon trade today, shares are changing hands for $2.04 apiece, down 1.2%.
For some context, the ASX 200 is down 0.1%, having come under some pressure following the RBA's decision to keep interest rates on hold until at least November.
With today's slip factored in, Boss Energy shares are down 56% since notching 52-week closing highs on 18 June.
Despite that big retrace, Boss Energy shares remain the second most shorted on the ASX this week, with a short interest of 18%.
Baker Young's Toby Grimm also currently has a bearish outlook for the Aussie uranium miner (courtesy of The Bull).
Here's why.
Time to sell Boss Energy shares?
"This uranium producer owns 100% of the Honeymoon project in South Australia and 30% of the Alta Mesa project in the US," said Grimm.
"The company generated total revenue of $75.596 million in fiscal year 2025, its first full financial year of production," he added. "It reported a net loss after tax of $34.168 million, primarily driven by non-cash impacts."
As for his sell recommendation on Boss Energy shares, Grimm said:
A review on the Honeymoon project's resource base and development costs may weigh on the share price until results are released later this year.
The shares have fallen from $4.48 on July 1 to trade at $2.06 on September 25. We see more attractive risk/reward opportunities elsewhere in the sector.
What's happening with the ASX 200 uranium stock's Honeymoon project?
Boss Energy shares closed down 12.2% on 11 September after the company released an update on its Honeymoon Operational Review. That review commenced in late July.
The review is aimed at determining the potential for reduced continuity of mineralisation and leachability compared with the assumptions made in its Enhanced Feasibility Study (EFS) in June 2021.
The uranium miner had previously expected to produce 2.45 million pounds of uranium a year over the longer term at Honeymoon. But in July, Boss Energy shares got hammered after the company said it expected to produce only 1.6 million pounds of uranium in FY 2026. Production cost forecasts also came in higher than the market had expected.
"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," managing director Duncan Craib said in September.
Boss expects to complete the review in the December quarter of 2025.
