Toro Energy’s Wiluna Uranium Project Posts A$907.9M NPV and 56% IRR

Project Overview and Resource Update

Toro Energy Limited (ASX – TOE) has delivered a significant update on its Wiluna Uranium Project in Western Australia, highlighting a positive re-optimisation of the Lake Maitland mining pit and an updated scoping study that reinforces the project's economic potential. The Wiluna Project, comprising the Lake Maitland, Lake Way, and Centipede-Millipede deposits, holds a combined uranium resource of 73.6 million pounds of U3O8 and a substantial vanadium resource of 89.3 million pounds of V2O5.

The recent resource estimation and integration of vanadium within the uranium block model have allowed Toro to refine its mining and processing plans, resulting in a more accurate and promising project outlook.

Financial Highlights and Operational Metrics

The updated scoping study, completed by SRK Consulting Australasia and Strategic Metallurgy, presents a pre-tax net present value (NPV) of approximately A$907.9 million at an 8% discount rate, a 9% increase from the previous estimate. The internal rate of return (IRR) stands at an impressive 56%, with a notably accelerated payback period of just 1.5 years, underscoring the project's strong financial viability.

Operationally, the project is designed for a mine life of 16.3 years, processing around 2 million tonnes of ore annually. This will yield an average annual production of approximately 1.3 million pounds of uranium oxide (U3O8) and 0.75 million pounds of vanadium pentoxide (V2O5). Total production over the life of the mine is projected at 22 million pounds of U3O8 and 12.3 million pounds of V2O5.

Capital and Operating Costs

The capital expenditure (CAPEX) is estimated at A$298.4 million, covering all necessary infrastructure including the beneficiation plant, processing facilities, mining and administration infrastructure, power generation, water supply, and access roads. Operating costs remain competitive, with a C1 cash operating cost of US$15.46 per pound of U3O8 in the first five years and an all-in sustaining cost (AISC) of US$20.68 per pound during the same period, providing robust margins given the assumed uranium price of US$85 per pound.

Strategic and Regulatory Context

Toro Energy continues to focus on advancing the Wiluna Project amid strengthening uranium market conditions. The company confirms that the environmental approvals remain valid despite the substantial commencement condition date passing, with plans to seek extensions or amendments as necessary. The project’s development strategy hinges on the Lake Maitland deposit, which represents a significant portion of the overall resource base and economic value.

While the scoping study provides a positive outlook, Toro cautions that it remains a preliminary assessment with a +/-30% accuracy range and includes inferred resources, which carry inherent uncertainties. Funding of approximately A$291 million will be required to progress the project, with potential dilution risks if capital is raised through equity.

Financial Position and Next Steps

During the quarter, Toro reported operating cash outflows of A$1.2 million and ended with a cash balance of A$6.24 million. The company’s exploration expenditure was modest at $826,000, reflecting a focus on advancing technical studies and project optimisation. Investors will be watching closely for developments on funding arrangements, definitive feasibility studies, and environmental approvals that will shape the project’s path to production.