Aura Energy Limited (ASX:AEE) Reports Significant Progress at Tiris Uranium Project
Key Operational Achievements
Aura Energy Limited (ASX:AEE) has announced substantial progress in its quarterly activities report. The company revealed that the Ore Reserve estimate for its flagship Tiris Uranium Project in Mauritania has increased by 49%, now totalling 33.6 million pounds of U3O8. This growth stems from revised mineral resource data and enhanced mine scheduling.
The company expects further Ore Reserve growth, driven by its low-cost, shallow free-digging mineralisation. Aura successfully completed its 2024 drilling campaign with an exceptionally low cost of US$0.14 per pound of U3O8. The advancements signify increasing confidence in the project’s potential as it steers towards a Final Investment Decision (FID) scheduled for early 2025.
Future Production Targets and Financial Outlook
Aura Energy has conducted assessments for future production capacity expansions at Tiris. The analysis showed that boosting production capacity to approximately 3 million pounds per annum could enhance the project’s net present value (NPV) to approximately US$544 million and increase average post-tax cash flows.
Water Drilling and Project Development Updates
Recent activities concerning water drilling have confirmed significant quantities of water within the Taoudeni Basin, assisting in confirming the project’s water supply needs. The appointed engineering contractor, John Wood Group plc, has commenced early works definition in preparation for the final investment decision.
Furthermore, Aura’s balance sheet remains robust, with cash at A$20.6 million, following a recent A$9 million private placement that has introduced esteemed new shareholders such as Sachem Cove Partners LLC.
Regulatory Developments in Sweden
In a noteworthy regulatory update, the Swedish government has recommended lifting the existing ban on uranium mining. This potential legislative shift could open pathways for the Häggån Polymetallic Project, where significant Inferred uranium resources are present. An increased ability to exploit these resources aligns with Sweden’s energy policy aimed at expanding nuclear energy capacity.
Aura Energy anticipates further consultations regarding this legislative proposal, slated for consideration in early 2026.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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