Aura Energy

Overview

With a mission to responsibly produce low-cost uranium to meet the growing demand for decarbonized energy, Aura Energy (ASX:AEE, AIM:AURA) is focused on rapidly advancing its Tiris Uranium Project in Mauritania, as it continues to transition from explorer to producer.

Uranium is the essential fuel for nuclear power, a sustainable, low-carbon alternative to fossil fuels. Nuclear Power is one of the only scalable providers of baseload electrical supply as the world moves toward decarbonization, and will be vital in the future. In fact, growing support for nuclear power and diminishing uranium supply prompted the Bank of America to forecast spot prices to rise to US$70 per pound by 2023, adding that a loss of Russian supplies would make its forecast even more bullish. Additionally, the European Union has stated that nuclear power now qualifies as a green investment.

Aura Energy’s flagship Tiris Uranium Project in Mauritania is well-positioned to achieve near-term production and has continued to meet development milestones. Supported by a stable jurisdiction and a mining-friendly government, the company recently released an updated enhanced feasibility study (EFS). The EFS confirmed that increased steady-state production to 2.0 million pounds (Mlbs) per annum U3O8 is possible based on upgraded mineral resource estimates. This increased production strengthens the financial metrics and demonstrates robust returns for shareholders over the life of the project. The exceptional economics of the Tiris Project deliver a post-tax NPV of US$226 million and a post-tax IRR of 28 percent.

The updated mineral resource estimate includes 113.0 Mt @ 236 ppm containing 58.9 Mlbs U3O8. The asset’s shallow, flat-lying surface mineralization and simple extraction method allow for low capital and operational costs.

In Europe, the company’s 100-per cent-owned Häggån Vanadium Project aims to support Sweden’s and Europe’s green energy transition. The asset has an inferred resource estimate of 15.1 billion lbs of vanadium and 800 Mlbs of uranium. Vanadium is primarily used in the steel industry, as an additive to make steel stronger and wear-resistant, and also plays a key role in an emerging new energy storage technology called vanadium redox flow batteries (VRFB), which are typically used in grid-scale storage systems.

An experienced management team leads Aura Energy with expertise throughout the natural resources sector, including uranium project development, business development, international corporate finance and metallurgy. The team’s expertise supports the company’s near-term production and long-term growth goals.

Company Highlights

• Aura Energy aims to be a responsible global producer of commodities supporting a clean, decarbonised energy future.
• The flagship Tiris Uranium Project in Mauritania is poised for near-term production, with a recently released enhanced feasibility study (EFS) outlining low capital and operating costs, supported by a stable and mining-friendly jurisdiction.
• The EFS confirms an increase in forecast steady-state production to 2.0 million pounds (Mlbs) per annum U3O8 and strong financial metrics and robust returns for shareholders over the life of the project.
• The exceptional economics of the Tiris Project deliver post-tax net present value (NPV) of US$226 million and post-tax internal rate of return (IRR) of 28 percent
• Tiris mineralization occurs at surface, can be accessed with free-digging open pit mining and simple beneficiation feed grade upgrades the ore to greater than 2,000 ppm U3O8 prior to leaching. All these characteristics contribute to the low capital and operating costs.
• The Company has a strong relationship with the Government of Mauritania who hold a 15 percent shareholding) and has been granted a 30-year mining convention to operate.
• Management plans have been submitted to the Mauritanian authorities as an important step towards the production and export of uranium oxide concentrates from Mauritania.
• Updated mineral resource estimate of 113 Mt @ 236 parts per million (ppm) containing 58.9 Mlbs U3O8
• This mineral resource estimate supports an initial 16-year project life
• Initial capital cost of US$87.9 million, and cost-efficient scalability for additional capital of US$90.3 million can deliver a 150-percent increase in production to 2.0 Mlbs per annum U3O8.
• Aura Energy’s 100-percent-owned Häggån Vanadium Project contains significant vanadium deposits, an essential mineral for the steel industry as well as for the development of vanadium redox flow battery (VRFB) to support renewable energy technologies.
• An experienced management team with expertise throughout the mining industry is leading Aura toward its goals.