Toro Energy (TOE) Q4 2024 TU earnings summary

Executive summary

• Updated Scoping Study for Lake Maitland Uranium Project shows a pre-tax NPV of A$832.8M (+37%) and pre-tax IRR of 48% (+7%), with a payback period of 2.1 years (0.4 years less).

• Total EBITDA estimated at A$2,303.3M (+30%), with average annual EBITDA of A$131.6M and average annual undiscounted cash flow of A$110.3M.

• Mine life projected at 17.5 years, processing 1.95Mt of ore per annum, with annual average production of 1.3Mlbs U3O8 and 0.7Mlbs V2O5.

• Intention to demerge non-core assets (nickel, gold, base metals) to focus on uranium, subject to approvals.

Financial highlights

• Pre-tax NPV: A$832.8M at 8% discount rate (+A$223.2M from prior study).

• Pre-tax IRR: 48% (+7%), payback period: 2.1 years.

• Total EBITDA: A$2,303.3M (+A$534.4M), total undiscounted cash flow: A$1,930M (+A$507.3M).

• Cash and liquid financial assets at quarter end: A$12.75M.

Outlook and guidance

• Robust operating margins expected with C1 cash cost of US$17.28/lb U3O8 (first 7 years) and AISC of US$22.58/lb U3O8.

• Project economics based on US$85/lb U3O8 and US$5.67/lb V2O5 price assumptions.

• Pilot plant design phase nearing completion, with drilling programs approved for all three Wiluna deposits.