Boss Energy Ltd (ASX: BOE) shares are back from their trading half and crashing deep into the red.
In morning trade, the uranium producer's shares are down 22% to a multi-year low of $1.22.
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Why are Boss Energy shares crashing 22%?
Investors have been rushing to the exits today after the company released its eagerly anticipated Honeymoon project review.
Short sellers have been loading up on Boss Energy's shares this year on the belief that this review would disappoint. And it seems that they were spot on.
According to the release, the Honeymoon review has indicated an expected material and significant deviation from the assumptions underpinning its 2021 Enhanced Feasibility Study (EFS).
This deviation is expected to impact life of mine production and costs from FY 2027 onwards, primarily due to less continuity of higher-grade mineralisation, mineralisation not overlapping, less leachability, and smaller wellfields.
In light of this, the company has now formally withdrawn the EFS and confirms that it should no longer be relied upon as a guide to future operational performance.
What now?
One small positive is that Boss Energy has identified a potential pathway forward based on its updated understanding of the resource, deposit characteristics, and an alternative wide-space wellfield design that could be suitable to Honeymoon.
The company has initiated a series of accelerated work programs to assess the potential economic benefits of the wide-spaced wellfield design.
An initial update will be provided in first quarter of 2026, with completion of a scoping study targeted for the second quarter and completion of a new feasibility study in the third quarter.
Management believes that a wide-spaced wellfield design could potentially deliver lower costs and improved lixiviant grades compared to the current wellfield design. This is by increasing leaching time, lowering reagent use, and utilising wellfield infrastructure over a larger surface area and more uranium under leach.
With $212 million of cash and liquid assets (as of 30 September 2025), it believes it is positioned to self-fund the key work programs associated with the new feasibility study, a potential change to wellfield design, and the potential early development of Gould's Dam and Jason's Deposit.
Boss Energy's managing director, Matthew Dusci, said:
Although Boss acknowledges this disappointing outcome, the Honeymoon Review and delineation drilling programs have enabled the identification of a potential pathway forward through a new wide-spaced wellfield design. While additional work is necessary to finalise a New Feasibility Study, this development presents an opportunity for Boss to potentially lower operating costs, optimise production profiles, and extend mine life compared to the current wellfield design.
We acknowledge there is a significant amount of work required for Boss to restore shareholder value. The team is committed to delivering on this important measure through optimising what we see as a robust uranium production asset, if a new wide-spaced wellfield design can be successfully implemented.
