-- Boss Energy (ASX:BOE) is expected to report weaker March quarter production due to weather disruptions and a planned shutdown at the Honeymoon uranium project, with output seen rebounding strongly in the June quarter, Euroz Hartleys said in a note on Thursday.
Euroz Hartleys has lowered its March quarter uranium oxide production forecast to 260,000 pounds, a 35% reduction from its previous estimate, citing temporary, timing-related operational disruptions rather than structural issues at the operation.
The firm anticipates stronger June quarter production, approaching the lower end of its 490,000-pound record drummed output guidance, as operations normalize after March quarter disruptions.
The firm forecasts March quarter uranium oxide sales of 338,000 pounds, broadly in line with production, at an average realized price of $77 per pound, including about 125,000 pounds under legacy contracts, with a similar volume expected in the June quarter.
The firm expects consolidated revenue of about AU$38 million and earnings before interest, taxes, depreciation, and amortization of AU$16 million for the quarter, with a closing cash forecast of AU$49 million.
The firm highlighted that updated resource estimates at the company's Gould's Dam and Jason's deposits show higher contained uranium but lower grades, while retaining long-term upside ahead of the second quarter scoping study.
Euroz Hartleys maintained its hold rating on Boss Energy and decreased its price target to AU$1.80 from AU$1.95.