Azzet reports on three ASX stocks with price-moving updates today.
Boss Energy falls after setting deadline for Honeymoon mine review
Shares in Boss Energy (ASX: BOE) were trading around 10.4% lower by 1:35 pm AEST (3:35 am GMT) after the mid-cap uranium producer told the market to expect a December quarter deadline to complete the latest review into the future of its flagship Honeymoon mine in South Australia.
Given that the stock’s share price fell late July after the miner warned it was unlikely to hit the production target for the Honeymoon project - citing concerns about the quality of its uranium – the market clearly got the jitters today ahead of another review of production assumptions from a 2021 enhanced feasibility study.
Today’s update further diminishes Boss Energy in the eyes of investors who were attracted to the stock’s planned development of its Honeymoon uranium mine, on which the miner aimed to become a globally competitive uranium producer.
Having already wound back FY26 guidance to produce 2.45 million pounds of uranium annually from Honeymoon, Boss Energy previously told the market this was unlikely, with the output target for this financial year now set at 1.6 million pounds.
What prompted Boss Energy to reassess the targets outlined in the feasibility study were updates to research and drilling results, which implied “less continuity of mineralisation and leachability” at Honeymoon.
In light of this setback, the company is likely to increase production costs, and as such, concluded it had little choice but to launch a comprehensive review of the mine’s future.
“We have moved quickly to appoint leading experts in their fields with the aim of establishing an accurate and independent assessment of our resources and optimum production rates,” said Boss managing director Duncan Craib today.
“The review is on track for completion in the December quarter.”
Output from the review is expected to include an assessment of the mineral resource and wellfield design at Honeymoon.
Boss Energy noted that it is also accelerating resource drilling to support the wellfield planning schedule.
The accelerated drilling program is expected to start in mid-September and is expected to take around seven to nine months to complete.
While today’s share price fall is unwelcome news for long-suffering shareholders, it gives short sellers who are betting against the stock something to smile about.
At 19.11%, Boss Energy is the most shorted stock on the ASX, although in the last week this has fallen by 1.76%.
Since 30 June, the stock’s share price has fallen 60% to the $1.86 it was trading at heading into lunch today.
Boss Energy has a market cap of $819 million; the share price is up around 6% in the last month.
The stock shares appear to be in a long-term bearish trend, confirmed by multiple indicators.
Consensus is Moderate Buy.
Perenti rises after announcing Ramelius contract win
Shares in Perenti (ASX: PRN) were up around 4.8% after the large-cap mining services company revealed that its subsidiary Barminco has won a four-year contract to deliver underground mining services at Ramelius Resources’ Dalgaranga (ASX: RMS) gold project in WA.
Building on previously completed work by Barminco at Dalgaranga with Spartan Resources before it was acquired by Ramelius, the contract is worth about $300 million and initially runs over 48 months, with the option to extend for an additional 12 months.
It’s understood that the contract will require around $16 million of growth capital in FY26, which was included in recent guidance.
“Several recent regional contract wins have built scale for the Barminco Australia business, which ultimately delivers benefits for both our clients and shareholders,” said Perenti CEO Mark Norwell.
“The Dalgaranga project will further support our Australian earnings and sustainable cash generation.”
Recent infill drilling at the Dalgaranga project – 475km northeast of Perth and 80km northwest of Mount Magnet – delivered assays including 25.4 million at 11.4 grams per tonne (g/t) of gold (Au) from 22.5m, 43.5m at 11.7g/t Au from 207m and 29.7m at 2.94g/t from 225m across the Never Never and Pepper deposits.
Perenti recently announced its FY25 earnings, which were highlighted by increased sales to $3.49 billion, higher basic earnings per share from continuing operations, new revenue guidance for 2026, and an increased interim dividend.
Based on contract momentum, combined with a strong gold price environment, the share price is up 142% in one year and up 75% year to date.
Trading on a 9.7x forward P/E ratio, Perenti is one of the cheapest stocks in the mining services sector.
Citi analysts highlight four upcoming contract renewals that could drive further growth:
- Cowal: Underground development and production works under a $520 million, 4-year contract with renewal negotiations underway
- Dalgaranga: 10-month underground exploration drill drive construction contract commencing in 1Q25
- Ernest Henry: Underground development work with procurement for additional work expected in FY26
- Geita: Underground development and production services with renewal process expected mid-FY26
Perenti has a market cap of $2.2 billion.
The stock appears to be in a strong bullish trend confirmed by multiple indicators.
Consensus is Moderate Buy.
Service Stream rockets after announcing $1.6bn defence deal
Shares in Service Stream (ASX: SSM) were up 16.5% after the services provider told the market at 11:47 am AEST (1:47 am GMT) that it had won a new deal with the Australian Defence Department to provide property and asset works at 113 sites in SA and the NT.
Covering eight major bases for an initial six-year period, the combined value for both regions is around $1.6 billion, and there’s potential to extend the contract out to 10 years.
The business will perform and support estate upkeep, land management, aerodrome operations, and training area and range management services.
Commenting on today’s update, managing director Leigh Mackender told the market that this contract marks an exciting new chapter for Service Stream as the business continues to execute against its strategy, expand service offerings and enter new and growing markets.
“As an Australian owned and operated company, we are honoured to earn the trust of Defence and believe this is an ideal strategic fit for Service Stream and its ongoing support of critical essential infrastructure throughout Australia,” he said.
“Service Stream is committed to working closely with Defence and other industry partners under a ‘team of teams’ environment, to collectively deliver high-quality services to support Defence operations.”
Operations are expected to commence 1 February 2026, with around 350 new employees and a range of specialist contractors to be engaged to support the Base Services operations.
The business is anticipating minimal earnings contribution in FY2026 due to the commencement timing and the mobilisation program.
At FY25, the company delivered total revenue of $2.420 billion, up 1.2% on the previous year, while underlying earnings were up 13.1% at $146.1 million.
The company paid a final dividend of 3.0 cents per share (cps) (fully-franked), taking full-year dividends for FY25 to 5.5 cps (fully-franked), an increase of 22.2% on the previous year.
With a strong work-in-hand position and 85% of FY26 revenue secured, the group expects to achieve further growth in FY26.
Service Stream has a market cap of $1.4 billion; the share price is up 605% on one year and up 10% on the last week.
The stock’s share price appears to be in a long-term uptrend, confirmed by multiple indicators.
Consensus is Moderate Buy.
This article does not constitute financial or product advice. You should consider independent advice before making financial decisions.
