HIGHLIGHTS
Excellent financial outcomes
Modest CAPEX
Low operating cost estimates
Mining and Production
The Study was completed by mining engineers at SRK Consulting Australasia (SRK) and metallurgical and processing engineers at Strategic Metallurgy and highlights the project’s potential to deliver robust financial returns. On 17 January 2024 Toro announced that the Company would refresh the Study given the improved U3O8 commodity price.
Management Commentary
Commenting on the impressive outcomes of the refreshed Lake Maitland Scoping Study Toro’s Executive Chairman, Richard Homsany, said
“The Board is delighted to report these improved Scoping Study results for the Lake Maitland deposit which substantiate the quality and global significance of Toro’s uranium assets. These strong financial estimates and outcomes are headlined by an approximate 37% uplift in NPV pre-tax to a base case of A$832.8M, with a very short 2.1 year payback period and strong free cash-flow projections.
Lake Maitland comprises a significant amount of the Wiluna Uranium Project’s resources, and these revised outcomes further demonstrate Lake Maitland’s stand-alone viability and transformational effect on the potential economics of the entire Wiluna Uranium Project. Despite allowing for an increase in costs of 8% since the previous October 2022 study, Lake Maitland’s potential viability remains very impressive at current uranium prices.
The Scoping Study demonstrates Lake Maitland’s potential to be brought into production and capacity to generate significant returns when regulatory settings align. Given the global supply chain issues surrounding uranium, the strong global mandate for decarbonisation and the large potential investment returns for uranium projects here in WA, especially at Toro’s Lake Maitland, policy changes at the State government level that will facilitate project development and unlock the considerable inherent value in WA’s uranium industry are indubitably warranted.
Our vision for the future development of Lake Maitland and Wiluna continues to be supported by a strengthening global uranium market, and these latest outcomes further position Lake Maitland as an asset of global significance, underpinned by:
With project optimisation work streams continuing, Toro remains confident that further improvements to economics will be realised – largely driven by Lake Maitland’s close proximity to Toro’s 100% owned Centipede-Millipede and Lake Way uranium deposits within Wiluna. The potential integration of additional resources from these deposits will likely increase the production at Lake Maitland. This evaluation work is presently ongoing and we look forward to reporting updates in due course.”
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