Boss Energy (ASX: BOE) Surges 10% on Record Production and Lower Costs: Time to Buy This Uranium Stock?

Boss Energy Delivers Record Quarter

Boss Energy (ASX: BOE) surged 10 per cent on Wednesday after proving the doubters wrong with its best quarter ever. The uranium producer delivered record output from its Honeymoon project in South Australia while cutting costs far more than anyone expected. For a stock that crashed 50 per cent earlier this year when resource concerns spooked investors, this result sends a clear message: management knows how to run a mine.

But here is the tension. Despite this strong performance, the shares still sit 55 per cent below their highs. The market wants to see what the new feasibility study reveals about long-term potential before piling back in.

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Boss Energy Proves It Can Operate Efficiently

The standout number from this quarter is not production. It is costs. Boss Energy brought its cash costs down to just US$20 per pound, which is 12 per cent lower than last quarter. The company was guiding for US$27-29 per pound, so coming in at US$20 is a meaningful beat. Management achieved this through smarter chemical use and better plant operations.

Why does this matter? Lower costs mean fatter margins. When you sell uranium at around US$74 per pound and produce it for US$20, you make good money on every pound. This is exactly what investors want from a newly ramping producer.

Management has slashed its full-year C1 cash cost guidance to A$36-40 per pound (approx. US$24-26/lb), down from the previous range of A$41-45 per pound.
On the production side, Boss Energy’s flagship Honeymoon project drummed a record 455,791 pounds of uranium during the quarter. Combined with its 30% stake in the Alta Mesa project in Texas, which contributed 68,000 pounds (attributable), the company’s production profile is diversifying. The company remains on track for its 1.6 million pound full-year target. With A$208 million in cash and no debt, Boss has the financial firepower to fund growth without asking shareholders for more money.

The Big Question Mark Hanging Over Honeymoon

So if everything looks good, why is the stock still beaten down?

Late last year, Boss Energy had to withdraw its original feasibility study after drilling revealed the ore body was not as consistent as expected. In simple terms, the rocks underground did not behave the way models predicted. This raised serious doubts about whether the mine can produce at full capacity for years to come.

The company is now working on a new feasibility study, with initial results expected around mid-2026 and the full picture by the third quarter. Until then, investors are essentially flying blind on the asset’s long-term value. Management warned that the March quarter will be softer as they connect new wellfields and upgrade infrastructure. But production should pick back up in June as those new areas come online.

The Investor’s Takeaway for Boss Energy

This is a classic turnaround setup with genuine uncertainty attached. Bulls can point to improving operations, healthy margins, a strong balance sheet, and rising uranium demand as nuclear power expands globally. Bears will say the stock is cheap for a reason, and the resource risk is real.

We believe the December quarter tips the scales slightly towards the bulls. Execution is no longer in question. The feasibility study will answer whether the mine has legs beyond the next few years.

For investors comfortable with resource risk and a 12- to 18-month horizon, current levels look interesting. Conservative investors should probably wait for feasibility clarity before jumping in. Either way, Boss Energy has earned back some credibility this quarter.