BOE -24.6%: Had its worst session since July, as the company withdrew its 2021 Enhanced Feasibility Study (EFS) for the Honeymoon project following the completion of its long-awaited operational review. The update confirmed the market’s worst fears: material deviations from the original assumptions underpinning production rates, costs, and mine life beyond FY26.
FY26 guidance remains intact, however management now expects these issues to negatively impact life-of-mine, annual output, and unit costs from FY27 onwards, prompting a full reset of project expectations. A preliminary update is due in 1Q CY26, followed by a scoping study in 2Q CY26 and a new feasibility study in 3Q CY26.
- While near-term production is protected, the investment case beyond FY26 is now highly uncertain, with costs rising and long-term economics reset pending further studies.
The stock may look cheap after today’s sell-off, but confidence has been damaged, and investors are unlikely to re-engage until clarity is restored via the new feasibility work. For now, BOE remains high risk, even against a supportive uranium price backdrop. Instead of a simple leverage-to-uranium story, this is now a clouded geology and execution question that will take time to answer.
MM is neutral toward BOE
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