Reported accounts consolidate financials from 100% of Honeymoon and 30% of the Alta Mesa operation. BOE’s first half FY25 revenues of $48m with sale of 400,000 lbs of U3O8. Direct visibility on actual Honeymoon cost of production remains obscured this quarter as operating costs stated in BOE’s P&L relate to the value of inventory pounds sold down. Commercial production was declared on the first of January, subsequently second half reporting is expected to be reflect actual Honeymoon operating costs. A net comprehensive loss of $6.8m is lower than our anticipated $0.8m profit. BOE’s strategic uranium inventory has now been reclassified to finished goods. With three NIMCIX columns and both calcining kilns now commissioned, BOE is well placed to accelerate production into the second half, enabling achievement of FY25 850,000lbs guidance. Completion and commissioning of NIMCIX columns 4,5 & 6 are expected during CY25. In our view, Honeymoon’s restart has progressed exceptionally well with desalination and ion-exchange technology plant enhancements delivering production ahead of study expectations. Weakening in spot uranium pricing may impact future period revenues depending on configuration of BOE’s contract book. We maintain our Buy recommendation with a price target of $3.40.
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