Boss Energy (ASX: BOE) Doubles Revenue but Flags Higher FY2027 Costs

Boss Energy doubled annual revenue and returned to profit in FY2026, supported by increased uranium sales from its Honeymoon operation.

However, the uranium producer expects higher unit costs during FY2027. Honeymoon is transitioning from legacy wellfields to a new wide-spaced design.

Boss also preserved a debt-free balance sheet while lifting cash and uranium inventory during a capital-intensive year.

Revenue Growth Restores Profit

Revenue rose to $151.1 million from $75.6 million, reflecting sales of 1.4 million pounds of uranium oxide. The average realised price was $111 per pound, or US$74.40.

Net profit after tax reached $2.5 million. That represented a $36.7 million improvement from the previous year’s $34.2 million loss.

The result covered the first full year when sales were predominantly sourced from Honeymoon production. Boss also receives production through its 30%-owned Alta Mesa joint venture in South Texas.

Sales of one million pounds of produced uranium delivered a $31.9 million operating margin. By contrast, sales of the remaining 400,000 pounds of purchased uranium generated a $400,000 operating loss.

FY2026 C1 costs were $39 per pound, while all-in sustaining costs were $61 per pound. Both measures were within revised guidance, alongside $66.6 million of Honeymoon capital expenditure.

Cash and Inventory Provide Flexibility

Operating cash inflow climbed to $73.6 million from $17.4 million. Unrestricted cash increased by $13.1 million to $49.7 million despite $66.8 million of mine-development payments.

Boss ended June with $207.3 million in cash and liquid assets at book value. Net cash and liquid assets were $171.9 million after working capital, with no debt.

Uranium inventory increased by 172,000 pounds to 1.581 million pounds. Its year-end spot-price value was approximately $195 million, compared with a $116.3 million carrying value.

The inventory and Boss’s under-contracted position retain exposure to uranium pricing. They also provide flexibility over the timing and structure of future sales.

Transition Year Brings Cost Pressure

Boss guided FY2027 production to between 1.25 million and 1.30 million pounds. C1 cash costs are forecast at $51 to $56 per pound.

All-in sustaining costs are expected between $83 and $92 per pound. Total capital expenditure is forecast at $58 million to $65 million.

The higher cost profile primarily reflects lower uranium grades from maturing Honeymoon wellfields. New East Kalkaroo wellfields are scheduled to start during the second and fourth quarters of FY2027.

Boss expects eight wellfields to be operating by June 2027. Higher solution flow rates from new wellfields are expected to partly offset lower grades.

Water-treatment capacity remains central to that schedule. About half of process and supporting infrastructure spending covers debottlenecking and expansion of the water-treatment plant.

Boss limited further capital investment in legacy wellfields because expected returns did not justify additional spending. That decision constrained near-term production while preserving capital for the wide-spaced design.