Aura Energy estimates US$500.3M Tiris value with funding uncommitted
The uranium study estimates US$349.8 million in development capital ahead of a targeted December investment decision.
Mara Quinlan
Aura Energy Limited ASXAEE LONAURA reported on Friday that its Tiris uranium study estimates US$500.3 million in after-tax net present value, a 28 per cent internal rate of return and US$349.8 million in development capital. The bankable feasibility study assumes US$400 million of financing, with no lender or investor committed and potential dilution for existing shareholders.
Aura shares rose 4.05 per cent to A$0.077 on the Australian Securities Exchange at 4:10 p.m. AEDT on Friday, according to the ASXAEE quote.
Friday's valuation uses an 8 per cent real discount rate and a uranium price of US$90 per pound of U3O8. Aura's attributable share of the after-tax net present value is US$425.3 million for the project in Mauritania.
Aura targets a final investment decision in December 2026 and first production by the end of 2028. Its quarterly report released on Friday says financing negotiations continue, including talks with an unnamed nuclear utility about potential equity investment, long-term offtake and technical collaboration.
"Funding is not secured, no lender or investor has committed to the Company, and the final funding mix has not been determined," Aura said in its study announcement.
The Friday study models US$220 million of senior and subordinated debt alongside US$180 million of equity, royalties or other instruments with equity-like features. Aura warns that equity or similar funding could dilute shareholders substantially and that financing may be unavailable on acceptable terms.
The quarterly report describes discussions with the U.S. International Development Finance Corporation concerning about US$150 million to US$170 million in senior project debt and strategic equity funding. Aura reported cash of A$10.6 million at Sept. 30.
The development capital estimate has an accuracy range of plus or minus 15 per cent, and power supply pricing remains unfinished. Actual construction and operating costs could differ materially from the estimates, the study cautions.
Inferred resources account for 32.3 per cent of the uranium underlying the production target. Aura plans further drilling to upgrade that material before mining it, but says there is no certainty the upgrades or production target will be achieved.
The reserve-only case in Friday's study estimates an after-tax net present value of about US$355.3 million and a 25 per cent internal rate of return over 18 years. That case uses the same uranium price and discount rate as the headline valuation.
The reserve case uses measured and indicated resources only. Inferred material contributes less than 12 per cent of ore mined in the production target's first five years.
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Aura expects pilot plant commissioning to start in November 2026, with testing due to finish in December.
