Rising Costs and Regulatory Hurdles Test Toro Energy’s Wiluna Uranium Ambitions

Wiluna Uranium Project Update

Toro Energy Limited (ASX: TOE) has provided its quarterly activities report for the period ending 31 March 2025, highlighting significant progress on its 100%-owned Wiluna Uranium Project in Western Australia. The project encompasses the Lake Maitland, Lake Way, and Centipede-Millipede deposits, collectively containing an estimated 73.6 million pounds of uranium oxide (U3O8) at a 100ppm cut-off, alongside a substantial vanadium resource of 89.3 million pounds (V2O5) within the uranium envelope.

During the quarter, Toro completed a re-optimisation of the proposed mining pit at Lake Maitland. This update incorporated the latest resource estimations finalized in late 2024, integrating both uranium and vanadium block models. Importantly, the re-optimisation also factored in updated financial assumptions, including an increase in cost inputs aligned with the Consumer Price Index (CPI), reflecting inflationary pressures impacting mining operations.

Scoping Study and Development Strategy

The company has engaged SRK Engineers to undertake a comprehensive scoping study update for a stand-alone Lake Maitland mining and processing operation. This study, which includes the newly optimised mining pit design, is expected to be completed in the upcoming quarter. The results will be pivotal in refining the project's economic outlook and guiding development decisions.

Toro remains focused on the long-term feasibility of uranium production from Wiluna, encouraged by strengthening uranium market conditions that align with recent technical advancements. Given Lake Maitland's significant share of the project's uranium and vanadium resources, improvements here are seen as key to enhancing overall project economics.

Regulatory and Community Engagement

On the regulatory front, Toro has addressed the expiry of the substantial commencement condition under the State environmental approval (Ministerial Statement 1051). The company has sought and received advice confirming the approval remains valid despite the missed commencement date, with provisions to apply for extensions under the Environmental Protection Act 1986 (WA) as needed. This regulatory clarity is crucial for maintaining project momentum.

Community engagement continues with meetings held during the quarter involving native title groups associated with Lake Way, Centipede-Millipede, and Lake Maitland. These discussions focus on planned drilling activities linked to a proposed research pilot plant, aiming to enhance geological and geo-metallurgical models across the deposits. Such collaboration is essential for advancing exploration and development while respecting indigenous interests.

Financial Position and Outlook

Financially, Toro reported a net operating cash outflow of $1.183 million for the quarter, primarily driven by exploration and evaluation expenditures totaling just over $1 million. The company ended the period with $7.455 million in cash and cash equivalents, maintaining a solid liquidity position without raising new capital during the quarter. Payments to directors and related parties amounted to $192,000, reflecting ongoing governance costs.

Looking ahead, the market will be watching closely for the completion of the scoping study update and any subsequent amendments to environmental approvals, which could materially influence project timelines and investment decisions. Toro’s ability to navigate rising costs while capitalising on favourable uranium market dynamics will be critical to its next phase of development.