Boss Energy shares tumble on guidance downgrade

This uranium producer has downgraded its production guidance for FY 2026.

Boss Energy Ltd (ASX: BOE) shares are under pressure on Thursday.

In morning trade, the uranium producer's shares are down 3% to $1.49.

A man sitting at his desktop computer leans forward onto his elbows and yawns while he rubs his eyes as though he is very tired.

Image source: Getty Images

Why are Boss Energy shares falling?

Investors have been selling the company's shares today following the release of its quarterly update.

According to the release, Boss Energy's Honeymoon operation reported third-quarter production of 203,000 pounds of U3O8 drummed, which is down 56% quarter on quarter.

This was achieved with a C1 cost of $60 per pound (US$41 per pound), which is double what it recorded in the last quarter.

Management advised that this reflects adverse weather conditions and expected declines in tenor.

One thing that remained flat was its average realised price, which was US$74 per pound.

Sales volumes fell 7% to 325,000 pounds, and its cash and liquid assets balance improved 2% to A$211 million.

Guidance downgraded

In light of its tough quarter, Boss Energy has downgraded its FY 2026 production guidance.

It now expects production of 1.40 Mlbs to 1.45 Mlbs U3O8 drummed, from its previous guidance of 1.6 Mlbs U3O8 drummed.

The company's FY 2026 C1 cost guidance of $36-$40 per pound (US$24-US$26 per pound) and AISC guidance of $60-$64 per pound (US$40-US$42 per pound) have been reconfirmed but towards the upper end of their guidance ranges.

Boss Energy's CEO and managing director, Matthew Dusci, acknowledged that it was a tough quarter. He said:

Operationally, this was a difficult quarter for the business. Production at Honeymoon of 203 klbs U3O8 was below our expectations. As a result, we have revised our FY26 production guidance to 1.40 Mlbs to 1.45 Mlbs U3O8. The primary driver was the impact of heavy and repeated rainfall events during March, which restricted access to site and limited the delivery of key reagents required to maintain stable leaching conditions. This was compounded by the knock-on effect of delays in commissioning critical infrastructure.

Costs increased during the quarter, mainly reflecting lower uranium production. We remain on track to meet full-year cost guidance, albeit towards the upper end of the guidance range.

Following today's move, Boss Energy shares are now down over 50% since this time last year.

It is also worth noting that its shares are among the most shorted on the Australian share market. At the last count, it had 11.3% of its shares held short.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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