EXPLORATION & DEVELOPMENT

Aura adds shine to Tiris uranium numbers

Enhanced DFS delivers significant scale and upside to greenfields development

This article is 2 years old. Images might not display.

The enhanced numbers, following last month's resource update, show the junior will need A$176 million to cover the total development costs, up from $75 million due to the addition of $90 million in ramp-up costs to deliver a much larger development that can produce more at lower costs for longer.
 
The enhanced DFS, based on a uranium price averaging $64 per pound, suggests the mine will produce 22.5Mlb over 16 years at all-in sustaining costs of $28.70/lb.
 
That compares to the 2021 estimate of 12.1Mlb produced over 15 years at $29.80/lb based on a $60/lb price.
 
Financials show post-tax net present value and internal rate of return have increased from $80 million and 22% respectively to $226 million and 28%.
 
Free cashflow has more than doubled from $265 million to $554 million.
 
Aura ran upside numbers based on a $79/lb price that increases the NPV to $347 million and the IRR to 35% and adds about $20 million per annum in earnings.
 
The big change in cost comes from the additional capital investment needed to increase production by 150%, from 800,000lbpa to 2Mlbpa, with plans to add additional beneficiation and leaching in the ramp-up phase from 2025.
 
Initial capex is $88 million, a rise of about 10%.
 
Despite the extra spending, payback as increased less than a year to 4.5 years.
 
Managing director Dave Woodall said the results showed Tiris had a "low capital intensity, low operating costs (and) competitive all-in-sustaining cost", and was primed for a rapid start with key regulatory approvals in place.
 
Tiris is fairly unique as it allows free-dig shallow open pit mining.
 
Aura is hoping to take a final investment decision as early as September, allowing commissioning in late 2024, and steady state production at 4.2Mtpa by 2027 after its ramp-up investment. 
 
Life of mine production has increased 110% to 25.5Mlb with Aura keen to add to resources with further exploration work and resource definition drilling given the total resource is 59Mlb.
 
Front-end engineering and design work has started. 
 
Aura, which has been working on Tiris since 2008, has A$6 million in cash remaining.
 
Shares in the company were last traded at 31c, valuing it at $173 million.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining News Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining News Intelligence team.

MiningNews.net Research Report 2025

The MNN Research Report 2025 provides insights into critical mining themes in Australia/Oceania, including top projects, C-suite priorities, risk, ESG performance and investor sentiment.

editions

Mining Journal Intelligence: Investor Sentiment Report 2025

Exclusive insights into the plans, priorities and preferences of 130+ mining investors and top factors influencing investment decisions in 2025.

editions

Mining Journal Intelligence World Risk Report 2024 (feat. MineHutte ratings)

A detailed analysis of mining investment risks across 117 jurisdictions globally, assessed across six risk categories and an industrywide survey.

editions

Mining Company ESG Index: Benchmarking the Future of Sustainable Mining

The Mining Company ESG Index report provides an in-depth evaluation of ESG performance of 61 of the world's largest mining companies. Using a robust framework, it assesses each company across 9 meticulously weighted indicators within 6 essential pillars.