Boss Energy Limited

Thank you for standing by and welcome to the Boss Energy Investor Conference Call, December quarter 2025. All participants are in a listen-only mode. There will be a presentation followed by a 30-minute question and answer session. If you wish to ask a question, you will need to press the star key followed by the number one on your telephone keypad. In the interest of time, participants are requested to limit the number of questions to two per turn. If you have additional questions, you are welcome to rejoin the queue and we'll be able to ask further questions if time permits. If we run out of time and do not have time for your question, we ask that you please call our office on 0862634494 or email boss at bossenergy.com and speak to our team. I would now like to hand the conference over to Mr. Matt Ducey, Managing Director and Chief Executive Officer. Please go ahead.

Thank you, Ashley. Good morning, everyone. Thank you for dialing in to the Boss Energy December quarterly conference call. Joining me on the call this morning is Justin Laird, our CFO. We will be both happy to take questions at the end of this call. Turning to slide two, there's been another significant quarter for the company, which I'll talk through during the call. Some of the key highlights include we delivered record quarterly production of 456,000 pounds of uranium drummed, up 18% from the prior quarter. C1 cash costs for the quarter were $30 per pound, down 12% from the prior quarter, with all-in sustaining costs of $49 per pound, down 3%. Average price of $112 per pound, or US$74 per pound, was realised with sales of $39.3 million. Ultramisa produced 143,000 pounds of uranium drummed, of which BOSS received 68,000 pounds during the quarter. We continue to build drummed inventory to 1.62 million pounds, up 175,000 pounds, or 12% on the prior quarter. The balance sheet remains strong with $208 million of cash and liquid assets, including $53 million of cash. We remain on track to deliver FY26 production guidance of 1.6 million pounds, and are pleased to announce downward revision of guidance of c1 and all in sustaining cost on the 18th of december we announced the conclusion of the honeymoon review and outlined a clear pathway forward for honeymoon asset with a new feasibility study initiated this fundamental change to our wellfield design will enable an increase in residence time of exhibient reduce our cost structure, unlock lower-grade mineralisation, improve the production profile and extend the life of mine. Now turning to slide 3. As noted, this was a quarter of record drum production at honeymoon, with production of 456,000 pounds of uranium drummed. This is up 18% from the prior quarter, reflecting a continued run on quarter-on-quarter growth since BOSS commenced production in April 2024. IEX production was up 8% from the prior quarter, with £406,000 produced, with increased flow achieved from four wellfields, B1 to B4, being online for the whole quarter. Key activities for the upcoming quarter will include the completion of the commissioning of NIM6, COMS4 and 5. Flushing for Wellfields B5 is underway and expected to begin production in the coming few days. We're expecting production of third quarter to be softer than in the current quarter before lifting again in quarter four to deliver the £1.6 million production guidance for the full financial year. The pullback in the coming quarter is due to phasing of wellfields with an expected decline in average tenner. This quarter will also have a major shut associated with the tie-ins of columns 4 and 5 along with power upgrades. In quarter 4, we expect an increase in production as wellfield B5 will be running for the full quarter and will also bring in wellfield B6 coming online at the very back end of the quarter. This wellfield B6 will be the first of the wellfields to operate for Far East Kalkaroo. Turning to slide 4. As noted earlier, C1 cash cost for the quarter was $30 per pound. This was lower than both the original guidance of $41 to $45 per pound and the prior quarter of $34 per pound. This was a great achievement as we continue to see positive results from lixivian optimisation programs, reagent optimisation in the plant and other cost reduction programs driving cost savings and productivity improvements. The all-in sustaining cost for the quarter was $49 per pound, below original guidance of $64 to $70 per pound. The main variance relates to lower C1 cash cost and the phasing of new well-filled sustaining capital spend. Where there is an opportunity to delay well-filled capital expenditure under the existing plan, we are taking this decision while we execute the new feasibility study. We do not want to be spending capital under non-optimal plan. Project and supporting infrastructure capital cost increased in the quarter to $11 million from $9 million in the prior quarter. Of the $11 million spent in the current quarter, $4.5 million of this related to ongoing completion of the NIM6 columns, $6.5 million of the $11 million related to wellfield supporting infrastructure for East Kalkaroo, with $4 million spent on the trunkline, monitoring wells and high-voltage power upgrades, and $2 million spent on delineation and drilling. In terms of guidance for the minder of FI26, we continue to reconcile production guidance of 1.6 million pounds of drum uranium We are also pleased to revise downwards our C1 cash costs and all-in sustaining costs guidance. Our new C1 cash costs guidance is $36 to $40 per pound, down from the previous guidance of $41 to $45 per pound. All in sustaining cost guidance has also been reduced from $64 to $70 per pound to a new revised guidance for FY26 of $60 to $64 per pound. This is largely driven by the team's efforts to increase productivity and efficiencies while reducing costs for the business. This is an area that we'll continue to focus on. Sustaining costs remains mostly consistent as we balance this potential transition from existing plan to a new wide space wellfield design. Where possible, we do not want to spend capital on executing a sub-optimal plan. It is in the shareholder's interest that we defer as much of this capital as possible in parallel to the execution of the new feasibility study. Project and supporting infrastructure capital has been increased by $3 million from $27 million to $30 million to new guidance of $30 to $33 million for the full financial year. This increase is primarily due to the inclusion of the honeymoon delineation drill program. Turning to slide five. The company is in a strong financial position and I continue to reinforce that we are very well positioned to fund what we need to do as a business to drive value. We closed the quarter with no debt and $208 million of cash and liquid assets. Cash increased from $47.8 million to $52.9 million at the end of the quarter. There has been a slight decline in the total cash and liquid assets quarter on quarter due to mark-to-market declines in fair value for our strategic equity shareholdings. Drummed uranium inventory increased during the quarter from 1.44 million pounds to 1.62 million pounds. We continue to view this inventory as strategic for the company as we continue to see tightening of the uranium market Sales during the quarter consisted of £350,000 at an average realised price of US$74 per pound or Australian$112 per pound. First delivery into a legacy contract will occur in Q3 and will continue in Q4. This contract is linked to the honeymoon mining licence from when Boss originally acquired the asset. The contract is for a maximum of £1.7 million linked to either 20% of the previous calendar year's production or a maximum quantity of £250,000 per year. This contractual material, £250,000, will reflect a realised price of approximately 65% to 70% of the spot price for those pounds. Moving to slide 6. In terms of our 30% stake in Ultimisa, a joint venture with Encore, production for the quarter totalled £143,000 on a 100% basis during the quarter. VOS received £68,000 of drum production during the quarter. The production decline was associated with the timing of bringing new Wellfields online. Additional modules are currently being installed at Wellfield 7 and Wellfield 3. Drilling at Alta Mesa East continue to confirm the potential extensions of mineralisation from Alta Mesa West. Turning to slide seven. As noted on the 18th of December, we released the findings of the Honeymean review and have identified a clear pathway forward. A pathway that we are generally excited about. It's a pathway that has a potential to unlock significant value for the company. We have commenced work on the new feasibility studies centred around the alternative wellfield design, which has the potential to reduce operating costs and sustaining costs, unlock lower grade mineralisation, improve our production profile and extend the life of mine plan. Successful delivery of this new wellfield design at Honeymoon would also have a positive impact on our satellite deposits. This significant program of work has been initiated as we work toward delivery of the new feasibility study, including continuation of the resource delineation, additional sample collection to improve geology, geometology and hydrological characterisation has commenced. Additional reactive transport simulations have also been completed. We continue to advance the updated mineral resource model, and we have completed planning for trial test work patterns, with drilling also commenced on establishing these trial wide-space patterns. Turning to slide 8. Work progressed during the quarter on advancing the technical and baseline studies at Gould's and Jason's satellite deposit. An updated mineral resource statement and timeline of work required to provide the permitting pathway will be provided in this coming quarter. It is worth noting that the wide space welfare design that is being developed as part of the new feasibility study could potentially significantly improve the recoverable uranium metal and reduce capital intensity and C1 costs both at Jason's and Gould's Dam. Turning to slide 9. To provide a quick summary of the quarter and our priorities, we delivered record quarter production at honeymoon, which is a credit to the team. Production was our highest ever quarter with 456,000 pounds of uranium produced. This was at a C1 cost of $30 per pound and an all-in sustaining cost of $49 per pound. Given the results of optimisation, productivity and cost reductions, we have revised our guidance downward for both C1 and all in sustaining cost, while maintaining our production guidance of £1.6 million for FY26. The company's financial position continues to strengthen in the quarter, with cash of $53 million and total cash and liquid assets of $208 million. as we continue to build inventory, which is now at 1.62 million pounds of uranium. Work has commenced on the new feasibility study, which defines a clear pathway forward to unlock significant value, both to the honeymoon deposit, but also to Gould's and Jason's. Before moving to Q&A, I'd also note that during the quarter, Wyatt Buck, our chairman, has informed the board of his intentions to step down a chair. Upon appointing her as the new chair, Wyatt will continue to apply his extensive uranium operational and technical expertise as a non-executive director on the board. I'm grateful to Wyatt, who has supported me and stepped into the CEO and MD role, and him wanting to continue to assist the company as a non-executive director. With that, I'll hand back to Ashley, the operator, for questions and answers.

Thank you. If you wish to ask a question, please press star 1 on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star 2. If you're on a speakerphone, please pick up the handset to ask your question. As a reminder, in the interest of time, participants are requested to limit the number of questions to two per turn, after which you may then rejoin the queue. Your first question today comes from Alastair Rankin with RBC Capital Markets. Please go ahead.