Boss Energy Achieves Breakthrough with Positive Free Cashflow and Strong Production Growth at Honeymoon Mine

April 29, 2025 12:49 PM AEST | By Team Kalkine Media

Google News:

Boss Energy Achieves Breakthrough with Positive Free Cashflow and Strong Production Growth at Honeymoon Mine — Image source: shutterstock

Recent News

India reportedly suspending rare earth exports to Japan amid domestic...

Trump calls on Iran to agree to nuclear deal after Israeli airstrikes

Bega Cheese (ASX:BGA) Rises in Spotlight on All Ordinaries Today

ASX 200 Companies See Energy Surge While Tech Stocks Decline

Highlights

Boss Energy posts first positive free cashflow at Honeymoon uranium mine

Record quarterly uranium production achieved, ramp-up plan on track

Strong financial position maintained with zero debt and $229.2M in assets

Boss Energy (ASX:BOE) has reported a landmark quarter, delivering its first positive free cashflow from operations at the Honeymoon uranium mine in South Australia. The company showcased robust operational momentum for the three months ending March 2025, underscored by record-breaking production and a fortified financial position.

During the quarter, Honeymoon produced 246,869 pounds of ion exchange and drummed 295,819 pounds of uranium oxide. These figures mark quarter-on-quarter growth of 15% and 116% respectively. February proved a standout month, achieving a monthly record with 123,188 pounds of uranium oxide production. These results reflect steady progress in Honeymoon’s ramp-up plan and bolster confidence in its long-term production outlook.

Boss Energy's managing director noted that delivering free cashflow within a year of starting operations validates the team's operational strategy and efficiency. The project demonstrated robust margins even at current uranium market prices, reinforcing Honeymoon’s strategic value amid tightening uranium supply-demand dynamics.

Operational enhancements continued with the successful commissioning of Kiln 2 and NIMCIX Column 3, as well as the activation of well-field B3. While some challenges emerged during commissioning, these have not impacted the company’s production guidance of 850,000 pounds of uranium oxide for the financial year 2025.

Construction efforts ramped up as well, with steel erection, pipe spooling, and assembly for NIMCIX Columns 4 to 6. Commissioning of Column 4 is anticipated in the current quarter, followed by Columns 5 and 6 later in the year, aligned with new well-field production.

Exploration activities around Honeymoon added further excitement, with 23 high-priority uranium targets identified over an 80-kilometre corridor. Initial testing at the Sara Dam target, situated 10km east of Honeymoon and near Marmota’s (ASX:MEU) Saffron prospect, revealed areas of anomalous radioactivity, albeit not yet of economic grade.

At Cummins Dam, 32 rotary mud drill holes were completed, exploring a historically promising area with previous radioactive intersections. Further testing is planned to assess the permeability and potential for in-situ recovery. Additionally, low-impact exploration is set to begin at Lake Constance, southwest of the Gould’s Dam deposit.

Financially, Boss Energy remains in a strong position with zero debt and $229.2 million in liquid assets, despite a $22.4 million quarterly decrease. This was offset by the company’s first quarter of positive free cashflow and proceeds from the sale of 150,000 pounds of uranium oxide. Repayment of a 100,000-pound uranium loan to enCore Energy (NASDAQ:EU) further strengthened the balance sheet.

Boss Energy's latest achievements mark a transformative period for the company as it firmly establishes itself as a major player in the uranium market.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.