Why several fund managers exited Boss Energy after its Honeymoon Mine setbacks
Boss Energy's Honeymoon Uranium Mine has faced mineralisation and leaching difficulties, prompting weaker guidance and a wave of fund manager exits.
30 Sep 2025 · 4 min read
In short
Boss Energy's Honeymoon Uranium Mine faced difficulties reaching nameplate capacity due to lower mineralisation continuity and leaching challenges than expected.
The company's Managing Director announced his retirement, followed a week later by disclosure of further operational issues with a new wellfield.
Several fund managers, including Cadence Capital, Clime Investment Management and Acorn Capital, exited their positions following the successive setbacks.
Uranium producer Boss Energy saw its share price fall sharply in mid-2025 after disclosing difficulties reaching nameplate capacity at its flagship Honeymoon Uranium Mine. Cadence Capital's July 2025 Monthly Report attributed the shortfall primarily to lower-than-expected continuity of uranium mineralisation compared with the feasibility study, alongside greater-than-anticipated difficulty leaching uranium from the ore body, prompting the company to commence an independent review.
A wellfield setback compounds earlier guidance concerns
Clime Investment Management's own July 2025 report detailed a further disappointing update, including weaker FY26 guidance that raised investor concerns over the project's long-term asset quality, with several critical questions left unanswered even after a direct meeting with management, prompting the fund to exit its position. Acorn Capital's September 2025 Quarterly Report detailed a further deterioration, with the stock down 61.5% after the Managing Director announced his retirement, followed a week later by disclosure of operational issues with a new wellfield.
Although Boss Energy is in a strong financial position, there is a strong risk of a major downgrade so we exited the stock.
— Acorn Capital, Quarterly Report, September 2025
What managers are watching next
Acorn Capital's report noted that while production was unlikely to be materially impacted over the following 12 months, there was potential for a major reduction in mine life and an increase in production costs at Honeymoon, prompting the fund to exit despite acknowledging the company's underlying financial strength. With multiple managers, including Cadence Capital and Clime Investment Management, having sold out following the successive setbacks, the independent review into the wellfield and leaching issues remains the key document managers are waiting on before reassessing the stock.
Questions
Why did Boss Energy's share price fall sharply in 2025?
Boss Energy's share price fell after disclosing difficulties reaching nameplate capacity at its Honeymoon Uranium Mine, caused by lower-than-expected continuity of uranium mineralisation and greater difficulty leaching uranium from the ore body than assumed in its feasibility study.
Why did fund managers exit Boss Energy?
Fund managers including Cadence Capital, Clime Investment Management and Acorn Capital exited their positions in Boss Energy following weaker FY26 guidance, the retirement of the Managing Director, and further disclosed operational issues with a new wellfield at Honeymoon.
Is Boss Energy financially stable despite the mine issues?
Acorn Capital notes Boss Energy remains in a strong financial position, but exited its position anyway due to the risk of a major downgrade to mine life and an increase in production costs at Honeymoon.
9 managers, 16 comments, with each manager's latest recorded position.
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