Aurora Energy Metals (1AE) Q4 2024 TU earnings summary

Executive summary

• Released Scoping Study for flagship uranium project in Oregon/Nevada, highlighting potential as a cost-competitive, long-term domestic uranium supplier to the US nuclear industry.

• Project targets 11-year mine life, producing 1.15Mlbs U3O8 annually, with a 2Mtpa run-of-mine rate and a strip ratio of 2.1:1.

• Focus on high-grade, near-surface resource with 91% of contained metal in the Measured category.

• Appointed Oregon-based Project Manager to oversee US activities and permitting.

• Cash position at 30 June 2024 was $1.6m, with no debt.

Financial highlights

• Pre-tax NPV8 (Base Case, contract resin treatment): US$151m; IRR: 25.2%; payback: 4.25 years.

• Start-up capital: US$161m; sustaining capital: US$30m.

• Cash operating cost: US$46.1/lb U3O8; all-in sustaining cost: US$48.6/lb.

• LOM EBITDA (at US$90/lb uranium): US$516m; pre-tax free cash flow: US$326m.

• Sensitivity analysis shows project most sensitive to uranium price and recovery rates.

Outlook and guidance

• Further metallurgical testwork underway to improve recovery rates above current 69%.

• Optimised Scoping Study expected by late 2024; Pre-Feasibility Study targeted for early 2025.

• September quarter focus: metallurgical program to optimise processing methods.