Dual-listed uranium exploration company Aura Energy Ltd (ASX:AEE, AIM:AURA) is taking advantage of a number of tailwinds for its resources, chief of which is the rising global demand for clean energy.
Aura’s two flagship projects – the Tiris Uranium Project in Mauritania and the Häggån Polymetallic Project in Sweden – are set to capitalise on the appetite for metals and minerals that contribute to the high-tech, low-carbon economy of the future.
Stability, infrastructure, favourable regulations
The company’s strategic positioning and development of both projects provide excellent leverage of the rising uranium price in two Tier-1 jurisdictions that offer stability, abundant infrastructure and a favourable regulatory environment.
Aura is confident of nuclear energy's place in the global clean energy mix, positing that it's essential for global economic decarbonisation.
Furthermore, there is a structural supply deficit of uranium of 119 to 242 million pounds per annum predicted in the years leading up to 2040, according to the World Nuclear Association.
Moreover, TradeTech estimated a supply deficit of around 30 million pounds in 2023. Indeed, the spot uranium price has risen 90% in the past 12 months.
Tiris Uranium Project
Aura’s near-term production focus is on the Tiris Uranium Project, a cost-effective operation expected to deliver value in a high-demand market.
Tiris has a post-tax net present value (NPV) of US$499 million, an internal rate of return (IRR) of 39% and an all-in sustaining cost (AISC) of US$35.7 per pound.
The project’s mineral resource stands at 91.3 million pounds of uranium oxide (U₃O₈), reflecting a 55% increase following a 15,500-metre drill program that added 32 million pounds of U₃O₈ to its resources.
Aura expects to reach final investment decision (FID) by Q1 2025, with first production slated for 2026–2027.
Mauritania is a politically stable mining jurisdiction with established infrastructure and a growing commitment to sustainable resource development.
Northern Mauritania in particular is proving to be a promising new uranium province.
In addition to Tiris’ updated mineral resources, which include 91.3 million pounds of U₃O₈ and ore reserves of 22.6 million pounds, which are currently being updated, Aura has demonstrated a low discovery cost of US$0.20 per pound of U₃O₈.
The project has significant resource growth potential both within its existing leases and through 13,000 square kilometres of new tenement applications — 28 times the current tenure.
Numerous untested radiometric anomalies and targets for other mineralisation styles, such as unconformity-related uranium like that found in Canada’s Athabasca Basin, point to the district’s further potential.
Häggån Polymetallic Project
Aura’s Häggån Polymetallic Project in Sweden holds a globally significant deposit of 2.5 billion tonnes, containing vanadium, sulphate of potash (K₂SO₄), molybdenum, nickel, zinc and uranium.
The project boasts a resource of 800 million pounds of U₃O₈, adding substantial value to the operation, with uranium contributing 14% to overall revenue and increasing the NPV by 37% based on a uranium price of US$65 per pound.
Notably, Sweden's recent move to lift the ban on uranium mining, driven by its Climate Minister Romina Pourmokhtari, has created new opportunities for Häggån.
The project’s life-of-mine ore production is estimated at 59 million tonnes, with an initial capital cost of US$592 million and a mine life of 17 years.