Boss Energy Limited has announced its FY26 guidance for the Honeymoon Uranium Operation in South Australia. The company reported a production target of 1.6 million pounds of U3O8, with C1 cash cost guidance estimated at A$41-45 per pound (US$27-29 per pound) and an all-in sustaining cost expected to range between A$64-70 per pound (US$41-45 per pound). The guidance is based on operating nine wellfields by June 2026 across the Honeymoon and East Kalkaroo domains. While production is expected to decline in tenor due to the depletion of higher-grade wellfields and the onboarding of lower-grade ones, Boss Energy anticipates generating positive free cash flow in FY26 and achieving overall cash flow positivity for the company. In addition to production and cost targets, the announcement details capital expenditure plans. Sustaining capital expenditure is forecast at A$29-32 million, primarily allocated to developing approximately four to five wellfields, which will help support an additional 900,000 pounds of production in FY27. Project and supporting infrastructure capital expenditures are expected to be A$27-30 million; about half of this amount is earmarked for the completion of key columns, with the remainder allocated to wellfield support and plant improvements. The adjustments in cash costs are partly driven by an optimized lixiviant chemistry, reducing pH from 1.4 to 1.3, which, while improving recovery and head grade, is expected to result in higher specific consumption and overall C1 costs. Analysts see both bullish and bearish elements in the news. On the bullish side, Boss Energy’s ability to exceed first-year production and provide clear guidance for FY26 supports a positive near-term outlook, underpinned by anticipated cash flow generation and progressive ramp up of new wellfields. The company’s proactive capital expenditure plans and strategic adjustments in processing chemistry also suggest management is actively addressing operational challenges. However, concerns remain from a bearish perspective. The expected decline in average tenor due to the transition to lower-grade wellfields, coupled with recent drilling results at East Kalkaroo that indicate less mineralization continuity than previously assumed, may necessitate additional wells and higher capital inputs per pound of production. These factors underscore the operational and cost uncertainties that could impact future performance, warranting careful consideration by investors.