Activities report for the December quarter 2024
ASX RELEASE 28 January 2025
Activities report for the December quarter 2024
Aura Energy Limited (ASX:AEE, AIM:AURA) (Aura or the Company) is pleased to provide its quarterly activities report for the period ended 31 December 2024 to accompany the Company's Appendix 5B.
Aura has continued to make significant progress on the development of the Company's flagship Tiris Uranium Project (Tiris) in Mauritania, West Africa, as its progresses towards a Final Investment Decision (FID) in early 2025 while advancing the licensing of the Häggån Polymetallic Project (Häggån) in Sweden.
Important milestones achieved during the quarter include:
1. The Tiris Uranium Project's Ore Reserve estimate increased by 49% to 33.6Mlb of U3O8[1]
§ The updated Ore Reserve estimate has been completed based on the June 2024 Mineral Resource[2], as well as pit optimisation and mine schedules that were reported as part of the September 2024 Production Target update[3]
§ High Mineral Resource to Ore Reserve conversion driven by low cost, shallow, free-digging mineralisation that is upgraded 600% to 800% through a simple wet screening beneficiation process prior to further processing
§ Ongoing Ore Reserve growth anticipated with future drilling and enhanced Mineral Resource confidence. The 2024 drilling campaign achieved Mineral Resources definition at an exceptionally low cost of US$0.14/lb U3O8
2. Alternative production targets provide growth opportunities for Aura[4]
§ Aura undertook an assessment of the opportunities for future capacity expansion at Tiris utilising inputs from the September 2024 Production Target Update3 by expanding the production capacity commencing in the third year of operations from the initial development plan production rate of ~2Mlbspa U3O8 per year
§ The ~3Mlbspa U3O8 production rate (6.25Mtpa mining rate) case returned the highest NPV and improved economics with results including:
§ NPV8 of approximately US$544M (A$836M) an increase of 9% on the base case3
§ IRR of ~45% post tax and payback in the order of 2.5 years
§ High margin average annual post-tax cash flows over the life of mine of ~US$86M, an increase of 37% and average ~US$116M over the first five years of operations
§ Additional development capital fundable from cashflow
§ Importantly, the analysis was restricted to only 27% of the total defined Tiris East Inferred Mineral Resources. Further work aimed at increasing the resource confidence and additional exploration success will have a materially positive impact on this analysis
3. Activities and milestones at Tiris
Numerous activities have commenced or have been completed during the quarter supporting Aura's objective of finalising a mine development decision by Q1 CY2025, including:
§ Project development funding process well advanced with both debt and strategic equity engagement well advanced including site visits and commencing due diligence. Independent Technical Experts (ITE) RPM Global have also completed site visits with due diligence reporting expected to be completed during Q1 CY2025
§ Water drilling and pump testing has defined very significant quantities of water in the Taoudeni Basin and C22 borefield with aquifer modelling underway
§ John Wood Group plc (Wood), a highly credentialled engineering contractor has commenced a basic engineering and early works definition program in preparation for the FID
§ Agreement with Wood also for the Engineering, Procurement and Construction Management (EPCM) of the Tiris Uranium Project development
§ Project development team strengthened with the appointment of Mr Mohamed El Moctar Mohamed El Hacene to the newly established role of Country Manager Mauritania. Mr. Hacene is a highly qualified Mauritanian national with extensive experience in mining and international affairs. Mr. Hacene previously served as Mauritania's Minister of Petroleum and Mines from 2007 to 2008, during which time uranium was first discovered at Tiris by Aura
4. Swedish Government inquiry recommends lifting uranium mining ban
In announcing the results of its inquiry into uranium mining on 20 December 2024, the Government of Sweden has taken an important step towards lifting the ban on uranium mining which has been in place since 2018.
The Government inquiry has recommended that uranium be regulated as a concession mineral within the Minerals Act. This would allow deposits containing economic quantities of uranium to be exploited like other natural resources in the country.
This aligns Sweden's mining legislation with its energy policy that calls for a substantial expansion of nuclear power. Sweden already generates one third of the country's electricity from nuclear power but currently relies completely on imported raw material for nuclear fuel.
The next step in the legislative process is for the results of the inquiry to be referred for wider consultation (of which Aura has been included) before it is converted into a legislative proposal and brought to Parliament for consideration in early 2026.
The assessment of the processing concession for Aura's Häggån K1 by the Swedish Mining Inspectorate has commenced.
5. Balance sheet
On 17 December 2024, Aura announced a A$9 million (gross) private placement to professional and sophisticated investors, including the introduction of a significant new shareholder, Sachem Cove Partners LLC (Sachem Cove), a leading international uranium investment group, who committed A$6.5 million to the placement and now holds approximately 5.1% of Aura Energy's issued share capital.
Net funds will be used to advance development of the low-cost, high-value Tiris Uranium Project including funding of an early works program.
As of 31 December 2024, the Company had cash of A$20.6 million.
Aura Energy Managing Director and Chief Executive Officer, Andrew Grove said:
"The significant upgrade to Tiris' Ore Reserves, increased by 49% to 33.6Mlb of U3O8, on the back of the revised Production Target and the option analysis clearly demonstrates the significant value, robust and scalable opportunity at Tiris.
2025 will be a pivotal year for Aura and Tiris. The work completed during the quarter and throughout 2024 included significantly increasing the scale, size and value at Tiris, derisking the Project including water supply, establishing the team to execute on the development and advancing the development funding provides a solid platform for the commencement of development at Tiris during 2025.
We appreciate the continued support from our existing shareholders and welcome Sachem Cove as a significant new shareholder in the recent A$9 million raise that further supports the continued advancement of Tiris and gives us the capacity to commence early works, ensuring the development timeline of late 2026 early 2027 is maintained.
We look forward to keeping shareholders updated as we progress through 2025."
Tiris uranium project, Mauritania
The Tiris Uranium Project located in Mauritania is a potential near-term, low-cost, long-life uranium mine producing 2Mlbspa U3O8 over the currently defined 25-year mine life[5] with production expected to commence in 2026/27.
During the December quarter, important activities continued to progress Tiris towards FID in early 2025 and, ultimately, the development of Mauritania's first uranium mine, including:
§ Tiris Uranium Project's Ore Reserves increased by 49% to 33.6Mlb of U3O8[6]
§ Alternative production target analysis demonstrated growth opportunities at Tiris5
§ Water drilling completed with significant water identified
§ Project funding activities well advanced
§ Wood commenced basic engineering and selected for EPCM contractor
§ Country manager commenced in Mauritania
§ Numerous other pre-development activities progressed
Tiris uranium project's Ore Reserve estimate increased by 49% to 33.6Mlb of U3O86
The Tiris Uranium Project Ore Reserve estimate increased 49% to 62.8Mt at 243ppm U3O8, containing an estimated 33.6Mlb U3O8 (previously 40.4Mt at 254ppm U3O8, containing an estimated 22.6Mlb U3O8)6. The updated Ore Reserve estimate was completed on the June 2024 Mineral Resource Estimate (MRE), which included growth of Measured and Indicated Mineral Resources of 35% to 91.3Mlb U3O8[7]. The Ore Reserve estimate update has been completed based on pit optimisation and mine schedules reported as part of the September 2024 Production Target update5.
The key mining areas and process infrastructure remain unchanged from those reported within the September 2024 Production Target Update. The upgrade has seen incremental growth in the Ore Reserve estimate in the Lazare North, Lazare South, Sadi and Hippolyte resource areas, mainly due to increased classification of resources as Measured and Indicated in the June 2024 MRE update.
The updated Ore Reserve estimate, with comparison to the previously reported Ore Reserve estimate has been summarised in Table 1. The Ore Reserves are estimated from their respective Mineral Resources after consideration of the level of confidence in the Mineral Resource and taking account of material and relevant modifying factors. No Inferred Mineral Resources have been included in the Ore Reserve.
|
Deposit |
|
Proved Ore Reserve |
Probable Ore Reserve |
Total Ore Reserve |
||||||
|
Tonnes (Mt) |
U3O8 (ppm) |
U3O8 (Mlb) |
Tonnes (Mt) |
U3O8 (ppm) |
U3O8 (Mlb) |
Tonnes (Mt) |
U3O8 (ppm) |
U3O8 (Mlb) |
||
|
Lazare North |
Dec-24 |
3.6 |
297 |
2.4 |
8.3 |
262 |
4.8 |
12.0 |
273 |
7.2 |
|
|
Mar-23 |
0.9 |
298 |
0.6 |
8.0 |
251 |
4.4 |
8.9 |
256 |
5.0 |
|
|
Diff |
2.7 |
-1 |
1.8 |
0.4 |
11 |
0.4 |
3.1 |
17 |
2.2 |
|
|
% Diff |
286% |
0% |
287% |
5% |
4% |
9% |
35% |
7% |
44% |
|
Lazare South |
Dec-24 |
7.5 |
245 |
4.1 |
4.8 |
243 |
2.5 |
12.3 |
244 |
6.6 |
|
|
Mar-23 |
6.5 |
264 |
3.8 |
2.7 |
291 |
1.7 |
9.2 |
271 |
5.5 |
|
|
Diff |
1.0 |
-19 |
0.3 |
2.1 |
-48 |
0.8 |
3.1 |
-27 |
1.1 |
|
|
% Diff |
15% |
-7% |
8% |
80% |
-16% |
47% |
34% |
-10% |
20% |
|
Hippolyte |
Dec-24 |
7.6 |
274 |
4.6 |
7.5 |
266 |
4.4 |
15.0 |
270 |
8.9 |
|
|
Mar-23 |
5.7 |
270 |
3.4 |
7.1 |
231 |
3.2 |
12.8 |
248 |
7.0 |
|
|
Diff |
1.9 |
4 |
1.2 |
0.4 |
35 |
0.8 |
2.2 |
22 |
1.9 |
|
|
% Diff |
32% |
1% |
36% |
5% |
15% |
22% |
17% |
9% |
27% |
|
Sadi |
Dec-24 |
9.1 |
213 |
4.3 |
14.5 |
207 |
6.6 |
23.6 |
209 |
10.9 |
|
|
Mar-23 |
6.1 |
232 |
3.1 |
3.3 |
261 |
1.9 |
9.5 |
242 |
5.1 |
|
|
Diff |
3.0 |
-19 |
1.2 |
11.1 |
-54 |
4.7 |
14.1 |
-33 |
5.9 |
|
|
% Diff |
49% |
-8% |
37% |
336% |
-21% |
246% |
149% |
-14% |
116% |
|
Total |
Dec-24 |
27.8 |
249 |
15.3 |
35.0 |
238 |
18.4 |
62.8 |
243 |
33.6 |
|
|
Mar-23 |
19.3 |
257 |
11.0 |
21.0 |
251 |
11.6 |
40.4 |
254 |
22.6 |
|
|
Diff |
8.5 |
-8 |
4.34 |
14.0 |
-13 |
6. 8 |
22.5 |
-11 |
11.0 |
|
|
% Diff |
44% |
-3% |
40% |
66% |
-5% |
58% |
56% |
-4% |
49% |
Table 1 - Updated Ore Reserve Estimate showing key changes at deposits
Notes:
Ore Reserves are a subset of Mineral Resources.
Ore Reserves conform with and use the JORC Code 2012 definitions.
Ore Reserves are calculated using a uranium price of US$80/lb.
Ore Reserves are calculated using a cut-off grade of 100ppm U3O8.
Tonnages are reported including mining dilution.
All figures are rounded to reflect appropriate levels of confidence which may result in apparent errors of summation.
Alternative production targets provide growth opportunities for Tiris[8]
Aura undertook an assessment of the opportunities for future capacity expansion at the Tiris Uranium Project in Mauritania utilising inputs from the September 2024 Production Target Update[9] and the recently expanded 91.3Mlbs U3O8 Mineral Resource[10].
The Production Target Update9 presented an increase in mine life from 17 to 25 years. The alternative production targets (Production Targets) are based on an analysis of opportunities to accelerate production from year three of operation onwards, without any other material changes to the underlying assumptions or levels of confidence.
Options have been analysed to expand the production capacity commencing in the third year of operations from the initial development plan of 4.1Mtpa mine rate to produce ~2Mlbspa U3O8 per year by accelerating the mining rate and increasing production capacity. Production scenarios have been assessed for mining rates of 6.25Mtpa, producing ~3Mlbspa U3O8 and 8.2Mtpa, producing ~4Mlbspa U3O8. The options presented will not replace the Base Case presented in the September 2024 Production Target Update9, rather they demonstrate optionality for the Tiris Uranium Project once in operation.
Key points:
§ The ~3Mlbspa U3O8 production rate (6.25Mtpa mining rate) case (Option 1) returned the highest NPV and improved economics with results including:
§ NPV8% of approximately US$544M (A$836M) an increase of 9% on the base case9
§ IRR of ~45% post tax and payback in the order of 2.5 years
§ High margin average annual post-tax cash flows over the life of mine of ~US$86M, an increase of 37% and average ~US$116M over the first five years of operations
§ Additional development capital fundable from cashflow
§ Analysis used only 27% (21Mt) of the total defined Tiris East Inferred Mineral Resources (79Mt at 210ppm U3O8 for 36.7Mlbs U3O8)[11], increasing the confidence that any future increases in Inferred Mineral Resources and exploration success will have a materially positive impact on this analysis
Information on the future capacity expansion options is summarised in Table 2 below.
|
|
Units |
4.1Mtpa mining (~2Mlbspa U3O8) Sept 24[12] |
Option 1 6.25Mtpa mining (~3Mlbspa U3O8) |
Option 2 8.2Mtpa mining (~4Mlbspa U3O8) |
|
Uranium Price |
US$/lb U3O8 |
$80 |
$80 |
$80 |
|
Valuations and Returns |
||||
|
Post-tax NPV8 |
US$M |
499 |
544 |
521 |
|
Post-tax IRR |
% |
39% |
45% |
41% |
|
Payback period |
Years |
2.25 |
2.5 |
3.25 |
|
Cashflow Summary |
||||
|
Initial Life of Mine |
Years |
25 |
18 |
16 |
|
LOM Production |
Mlbspa U3O8 |
43.5 |
37.9 |
37.9 |
|
Annual Production |
Mlbspa U3O8 |
1.8 |
2.3 |
2.9 |
|
Gross Revenue (LOM) |
US$M |
3,467 |
2,898 |
2,898 |
|
Free Cashflow pre-tax (LOM) |
US$M |
1,922 |
1,817 |
1,813 |
|
Free Cashflow post tax (LOM) |
US$M |
1,509 |
1,457 |
1,484 |
|
Unit Operating Costs |
||||
|
All in Cost |
US$/lb U3O8 |
41.0 |
40.2 |
43.7 |
|
All-in Sustaining Costs |
US$/lb U3O8 |
35.7 |
31.8 |
31.9 |
|
C1 Cash Cost |
US$/lb U3O8 |
31.4 |
27.7 |
27.9 |
|
Operating Margin |
US$/lb U3O8 |
44.3 |
48.8 |
48.1 |
|
Operating Margin |
% |
55% |
60% |
60% |
|
Capital Cost |
||||
|
Development Capital |
US$M |
230 |
317 |
445 |
Table 2 - Summary of the future capacity expansion options results with comparison of the September 2024 Production Target update
The assessment of the capacity expansion opportunities identifies revenue can be moved forward by accelerating the mining schedule with the following observations for the cases analysed:
§ The open pit mining is a simple, low-risk, shallow, flexible, free digging operation without the need for crushing and grinding
§ Initial development plan provides for a high margin long life business. Future expansion plans can further enhance the Project value and can be potentially funded from cash flows
§ Operating costs, AISC, decrease in the expansion cases analysed and are largely due to spreading the fixed costs over a larger annual production base
§ The analysis only used approximately 27% of Inferred Mineral Resources currently defined in the Tiris Uranium Project area amounting in aggregate to 21Mt of the total 79Mt at 210ppm U3O8 for 36.7Mlbs U3O811. Drilling to increase the confidence of the Inferred Resources is anticipated to have a materially positive impact on this economic analysis
§ The significant exploration potential at Tiris also presents an opportunity to add significant additional value to the future operations and support a future expansion of the operations
§ The construction and operation of the Tiris Uranium Project is anticipated to deliver significant and ongoing benefits to Aura shareholders and the people of Mauritania
Water drilling update
Hydrogeological drilling and long-term pump testing of the Taoudeni Basin (~100km south of the Tiris uranium project) and the C22 borefield (~30km from the Tiris uranium project), has been completed.
The program included 26 holes for 2,755 metres in the Taoudeni Basin, an additional 17 holes for 1,763 metres at the C22 borefield and six holes for 700m confirming groundwater conditions at the Project site. Results have been highly successful with summary results and initial observations from Knight Piésold detailed below.
Taoudeni Basin: Water reported in 61% of holes with significant water flows (up to 55m3 per hour in air lift testing). The water column averaged 14m thick with a flow rate of 20m3 per hour. The exploration drill and test programme undertaken at the Taoudeni Basin region yielded good to very good quality water, with several high yielding targets intersected. Additionally, the bores installed in this area are spaced far apart, therefore increasing long-term potential use, and scope for expanding this target region as a borefield.
There is significant scope for additional exploration and expansion of the groundwater resource in this region, particularly around high yielding zones as well as along regional scale fault zones for long term use, with the targeted aquifer systems extending significantly to the northeast and southwest of the exploration programme area. Due to this scale (including the same lithologies and most likely, hydrogeological conditions), there is potential for several additional borefields in the Taoudeni Basin with similar prospectivity to that of the 2024 program.
The potential for establishing future Project scale borefields in the Taoudeni, around the high yielding zones as well as along large fault zoned for long term use, is significant.
C22 borefield: Drilling was completed in 2021 to define an initial water resource[13]. Drilling in this program to extend the aquifer returned 41% of holes that were productive, with water flows up to 40m3 per hour in air lift testing. The existing groundwater resource at the C22 borefield area has been expanded, the initial results of which show significant potential for success. There exists a large scope for further exploration at prospective targets in the area with similar hydrogeological characteristics such as intersecting large scale geological structures and areas of deeper weathering, both of which have been shown in the 2024 investigation to be highly prospective for groundwater supply.
Knight Piésold, internationally recognised hydrological consultants, have been supporting the program and will undertake aquifer modelling early in Q1 CY2025.
Water drilling has been very successful at both locations with air lift testing defining a cumulative 344m3/hr of water flow rates. The Project's water demand has been estimated at between 120m3/hr to 160m3/hr.
In addition, six holes were drilled under the proposed plant site intersecting no water. With no water table in the plant area this significantly limits the possibility of potential contamination from the processing activities.
Tiris Project funding update
In June 2024, Aura appointed Orimco to arrange debt funding for Tiris. Orimco has vast experience supporting projects throughout Africa and at the same time, Macquarie Capital was appointed in Australia to identify and engage with strategic investors for a potential equity investment in Tiris and/or Aura.
We have received confidential, non-binding proposals from a number of investors and debt providers and other parties continue to contact us expressing willingness to co-invest.
Both funding processes are ongoing, with advisors actively advancing discussions with multiple parties interested in debt financing and strategic investment opportunities.
At this time, discussions in respect of the proposals have not sufficiently progressed to be announced to the market and there is no binding agreement in place with respect to any funding arrangement. Aura confirms that no assurance can be given that the ongoing confidential discussions will result in any binding agreement between the parties, and Aura will continue to maintain its policy of keeping the market fully informed with its continuous disclosure obligations.
The Independent Technical Engineers, RPM Global, are well advanced in their due diligence analysis on all aspects of the project on behalf of the lenders and investors which included undertaking site visits to Tiris in late October 2024. Additional site visits have been scheduled for January and February 2025.
Other Tiris activities
Key Project development activities during the quarter included:
§ Wood, a highly credentialled engineering contractor has commenced a basic engineering and early works definition program
§ Agreement with Wood also for the subsequent Engineering, Procurement and Construction Management (EPCM) of the Tiris Uranium Project development
§ ECG Engineering has been appointed and commenced work on defining the optimal power generation solution for Tiris
§ Team strengthened with the appointment of Mr Mohamed El Moctar Mohamed El Hacene to the newly established role of Country Manager Mauritania. Mr. Hacene is a highly qualified Mauritanian national with extensive experience in mining and international affairs. Mr. Hacene previously served as Mauritania's Minister of Petroleum and Mines from 2007 to 2008, during which time uranium was first discovered at Tiris by Aura
§ Continued strong engagement with Mauritanian government
§ Continued engagement with multiple nuclear utilities with respect to securing offtake contracts for the future Tiris uranium production
Häggån Project update
The Häggån Polymetallic Project, located in the municipality of Berg in the county of Jämtland, hosts a globally significant two billion tonne polymetallic Mineral Resource[14] which also includes an Inferred uranium Mineral Resources of 800Mlbs of U3O8, 2.35 billion tonnes at a grade of 155ppm U3O8 (reported at a cut-off grade of 100ppm U3O8)[15]. The primary metals and minerals are vanadium, sulphate of potash and uranium, with nickel, molybdenum and zinc also present.
The 2023 Häggån Scoping Study[16] results reported that the inclusion of uranium by-product credits in project economic estimates contributed approximately 13% of overall project revenues and increased the Project NPV8 by 37% at a uranium price of US$65/lb U3O8, from the Project NPV8 range excluding uranium by-product credits, of between US$456 million to US$1,307 million.
There is a low level of geological confidence associated with the Inferred uranium Mineral Resources and there is no certainty that further exploration work will result in the determination of Indicated Mineral Resources or that the production target itself will be realised.
On the 20 December 2024 the Swedish government announced the results of its inquiry into uranium mining. The Government inquiry into uranium mining has recommended that the current uranium mining ban be lifted and that uranium be regulated as a concession mineral within the Minerals Act. This would allow deposits containing economic quantities of uranium to be exploited like other natural resources in the country.
This aligns Sweden's mining legislation with its energy policy that calls for a substantial expansion of nuclear power. Sweden already generates one third of the country's electricity from nuclear power but currently relies completely on imported raw material for nuclear fuel.
Extracting uranium from its substantial endowment of geology which hosts uranium as a by-product would greatly increase Sweden's energy security. The Häggån deposit alone could fuel Sweden's existing nuclear reactor fleet for over three centuries. It would also bring investment, create jobs and generate exports for the economy.
All parties in the governing coalition have expressed their support to overturn the current uranium mining ban. The next step in the legislative process is for the results of the inquiry to be referred for wider consultation before it is converted into a legislative proposal and brought to Parliament for consideration. The governing coalition holds a majority of the seats in Parliament.
Following the inquiry and the referral process, the Government can proceed with a legislative proposal to Parliament to enact the proposed changes. The proposed date for legislative changes to come into effect by 1 January 2026.
Aura is included in the list of consultation parties for the uranium inquiry.
The Swedish Mining Inspectorate have commenced evaluation of the processing concession ('Exploitation Permit Application') for Häggån K no 1 submitted in August 2024[17].
Corporate activities:
Private placement
On 17 December 2024, the Company announced a placement to professional and sophisticated investors to raise approximately A$9 million before costs through the issue of 64,285,714 fully paid ordinary shares at A$0.14 per share. The placement was completed on the 24 December 2024.
Sachem Cove Partners LLC (Sachem Cove), a leading international uranium investment group, committed A$6.5 million to the placement and now holds approximately 5.1% of Aura Energy's issued stock.
The placement was also well supported by existing shareholders and attracted several new high-quality investors.
Net funds will be used to advance development of the low-cost, high-value Tiris Uranium Project, including an early works program beyond the FID.
Cash and cash forecast
The Company's cash position as of 31 December 2024 was A$20.6 million. The Company's major cashflow movements for the quarter included:
§ Investments in the Company's exploration and evaluation assets of A$2.6 million
§ Proceeds from placement A$8.4 million
§ Administration and corporate costs of A$0.9 million
§ Staff costs of A$0.4 million
The forecasted net operating cashflow and investment in the Company's exploration and evaluation assets for the coming quarter is A$3.8 million. With a closing cash balance of A$20.6 million, the company has enough cash for 5.4 quarters.
March 2025 quarter planned activities
At Tiris, the next steps in progressing towards the construction and development of the Project during the March quarter include:
§ Project development funding
§ Offtake contract negotiations
§ Complete reservoir modelling to confirm water infrastructure sufficient to support future operations
§ Finalise EPMC contract with Wood to develop Tiris
§ Continue basic engineering, project execution and early works development planning
§ Commence early works programs
§ Geometallurgy, engineering and design work to support development activities
§ Baseline environmental and radiation monitoring
§ Implementation of ESG framework
At Häggån the planned activities include:
§ Work to support the exploitation permit application
§ Aura's submission to the uranium mining inquiry
December 2024 quarter ASX announcements
This Quarterly Activities Report contains information extracted from ASX market announcements reported in accordance with the 2012 edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" (2012 JORC Code). Further details (including 2012 JORC Code reporting tables where applicable) of 2012 JORC Code related disclosures referred to in this Quarterly Activities Report can be found in the relevant announcements lodged on the ASX and in the section titled "ASX JORC Related Disclosures" set out in this report. Following is a list of all market sensitive announcements lodged by the Company during the December Quarter:
§ Appointment of Country Manager - Mauritania 11 November 2024
§ Results of Meeting and Chair's Address to Shareholders 27 November 2024
§ Tiris Uranium Project Alternative Production Targets 13 December 2024
§Substantial increase in Tiris Uranium Project Ore Reserves 16 December 2024
§ A$9 million placement to accelerate Tiris Uranium Project 17 December 2024
§ Amendment - Tiris Ore Reserve Update 20 December 2024
§ Swedish government recommendation - lifting uranium ban 23 December 2024
These announcements are available for viewing on the Company's website auraenergy.com.au. Aura confirms that it is not aware of any new information or data that materially affects the information, or key assumptions, included in any of these original ASX announcements.
Tenement Summary
The Company holds the following interest in mining tenements, farm-in and farm-out agreements at the end of the quarter:
|
Tenement No. |
Name |
Grant Date |
Expiry |
Km2 |
Holder |
Equity |
|
|
|
|
|
|
|
|
|
Mauritania |
||||||
|
2491C4 |
Ain Sder |
8/02/2019 |
7/02/2049 |
207 |
Tiris Ressources SA |
85% |
|
2492C4 |
Oued El Foule |
8/02/2019 |
7/02/2049 |
190 |
Tiris Ressources SA |
85% |
|
2490C4 (formerly 561) |
Oum Ferkik |
19/05/2017 |
Pending approval of application for Exploitation License |
60 |
Aura Energy Limited |
100% |
|
2365B4 |
Oued El Foule Sud |
04/12/2023 |
03/08/2026 |
166 |
Aura Energy Limited |
100% |
|
2457B2 |
Hadeibet Belaa |
08/12/2023 |
07/08/2026 |
41 |
Tiris International Mining Co. |
100% |
|
2458B2 |
Touerig Taet |
08/12/2023 |
07/8/2026 |
134 |
Tiris International Mining Co. |
100% |
|
Sweden |
||||||
|
2007-243 |
Häggån nr 1 |
28/08/2007 |
Pending determination of exploitation permit application |
18 |
Vanadis Battery Metals AB |
100% |
|
2016:9 |
Möckelåsen nr 1 |
21/01/2016 |
21/01/202 |
18 |
Vanadis Battery Metals AB |
100% |
|
2016:7 |
Skallböle nr 1 |
20/01/2016 |
20/01/2028 |
8 |
Vanadis Battery Metals AB |
100% |
Table 4 - Tenement summary
Farm-in agreement with Nomads Mining Company sarl, Mauritania, Aura, through subsidiary Archean Greenstone Gold has earned a 70% interest in Nomads 100%-owned exploration permit in Mauritania (refer to ASX announcement 11 June 2019).
ENDS
The Board of Aura Energy Ltd has approved this announcement.
This Announcement contains inside information for the purposes of the UK version of the market abuse regulation (EU No. 596/2014) as it forms part of United Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018 (UK MAR).
For further information, please contact:
|
Andrew Grove Managing Director and CEO Aura Energy Limited agrove@auraee.com +61 414 011 383
|
|
About Aura Energy (ASX: AEE, AIM: AURA)
Aura Energy is an Australian-based mineral company with major uranium and polymetallic projects in Africa and Europe.
The Company is focused on developing a uranium mine at the Tiris Uranium Project, a major greenfield uranium discovery in Mauritania. The 2024 FEED Study[18] and Production Target Update[19] demonstrates Tiris to be a near-term low-cost uranium mine producing 2Mlbspa U3O8 over a 25-year mine life with excellent economics and optionality to expand and to accommodate future exploration success.
Aura plans to transition from a uranium explorer to a uranium producer to capitalise on the rapidly growing demand for nuclear power as the world shifts towards a decarbonised energy sector.
Beyond the Tiris Project, Aura owns 100% of the Häggån Project in Sweden. Häggån contains a global-scale 2.0Bt vanadium, sulphate of potash (SOP)[20] and uranium[21] resource. Utilising only 3% of the resource, a 2023 Scoping Study[22] outlined a 17-year mine life based on a 3.6Mtpa production rate.
Disclaimer Regarding Forward-Looking Statements
This ASX announcement (Announcement) contains various forward-looking statements. All statements other than statements of historical fact are forward-looking statements. Forward-looking statements are inherently subject to uncertainties in that they may be affected by a variety of known and unknown risks, variables and factors which could cause actual values or results, performance or achievements to differ materially from the expectations described in such forward-looking statements. The Company does not give any assurance or guarantee that the anticipated results, performance or achievements expressed or implied in those forward-looking statements will be achieved.
The Company has concluded that it has a reasonable basis for providing the forward-looking statements and production targets included in this announcement and that material assumptions remain unchanged. The detailed reasons for this conclusion are outlined throughout this announcement, and in the ASX and AIM announcements:
1. 29 March 2023 - Tiris Uranium Project Enhanced Definitive Feasibility Study
2. 28 Feb 2024 - Aura's Tiris FEED Study returns Excellent Economics
3. 11 Sep 2024 - Updated Production Target Improves Economics at Tiris
4. 13 Dec 2024 - Tiris Uranium Project Alternative Production Targets
5. 5 Sept 2023 - Scoping Study Confirms Scale and Optionality of Häggån
The Company confirms that it is not aware of any new information materially affecting the information included in the ASX and AIM announcements:
1. 12 June 2024 - Aura increases Tiris Mineral Resources by 55% to 91.3Mlbs U3O8
2. 20 Dec 2024 - Amendment - Tiris Ore Reserve Update
3. 16 Dec 2024 - Substantial increase in Tiris Uranium Project Ore Reserves
4. 22 Aug 2012 - Outstanding Häggån Uranium Resource expands to 800 million pounds
5. 10 Oct 2019 - Häggån Battery Metal Project Resource Upgrade Estimate
All material assumptions and technical parameters underpinning the Tiris and Häggån Project Mineral Resources Estimates continue to apply. The Company confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcements.
ASX and JORC Related Disclosures
Mineral Resources
The information on Mineral Resources for the Tiris Uranium Project in this report is extracted from the ASX release on 12 June 2024 titled "Aura increases Tiris Mineral Resources by 55% to 91.3Mlbs".
The information on Mineral Resources for the Häggån Project in this report is extracted from the ASX releases on 10 October 2019 titled "Häggån Battery Metal Project Resource Upgrade Estimate Successfully Completed" and 22 August 2012 titled "Outstanding Häggån Uranium Resource expands to 800 million pounds". These reports can be viewed at https://auraenergy.com.au/investor-centre/asx-announcements.
The company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and, in the case of estimates of Mineral Resources that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The company confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcement.
Ore Reserves
The information on Ore Reserves for the Tiris Uranium Project in this report is extracted from the ASX release on 20 December 2024 titled "Amendment - Substantial increase in Tiris Uranium Project Ore Reserves".
The company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and, in the case of estimates of Ore Reserves, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The company confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcement.
Production Targets
The information on Production Targets for the Tiris Uranium Project in this report is extracted from the ASX releases on 11 September 2024 titled "Updated Production Target Improves Economics at Tiris" and 12 December 2024 titled "Tiris Uranium Project Alternative Production Targets". These reports can be viewed at https://auraenergy.com.au/investor-centre/asx-announcements.
The company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed.
Scoping Study
The information on Häggån Scoping Study in this report is extracted from the ASX release on 5 September 2023 titled "Scoping Study Confirms Scale and Optionality of Häggån". This report can be viewed at https://auraenergy.com.au/investor-centre/asx-announcements.
The company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed.
Appendix 5B
Mining exploration entity or oil and gas exploration entity
quarterly cash flow report
|
Name of entity |
||
|
Aura Energy Limited |
||
|
ABN |
|
Quarter ended ("current quarter") |
|
62 115 927 681 |
|
31 December 2024 |
|
Consolidated statement of cash flows |
Current quarter |
Year to date (6 months) |
|
|
1. |
Cash flows from operating activities |
- |
- |
|
1.1 |
Receipts from customers |
||
|
1.2 |
Payments for |
- |
(120) |
|
|
(a) exploration & evaluation |
||
|
|
(b) development |
- |
- |
|
|
(c) production |
- |
- |
|
|
(d) staff costs |
(437) |
(884) |
|
|
(e) administration and corporate costs |
(926) |
(2,021) |
|
1.3 |
Dividends received (see note 3) |
- |
- |
|
1.4 |
Interest received |
185 |
365 |
|
1.5 |
Interest and other costs of finance paid |
- |
- |
|
1.6 |
Income taxes paid |
- |
- |
|
1.7 |
Government grants and tax incentives |
- |
- |
|
1.8 |
Other |
|
- |
|
1.9 |
Net cash from / (used in) operating activities |
(1,179) |
(2,659) |
|
|
|||
|
2. |
Cash flows from investing activities |
- |
- |
|
2.1 |
Payments to acquire or for: |
||
|
|
(a) entities |
||
|
|
(b) tenements |
- |
- |
|
|
(c) property, plant and equipment |
(12) |
(18) |
|
|
(d) exploration & evaluation |
(2,634) |
(5,553) |
|
|
(e) investments |
- |
- |
|
|
(f) other non-current assets |
- |
- |
|
2.2 |
Proceeds from the disposal of: |
- |
- |
|
|
(a) entities |
||
|
|
(b) tenements |
- |
- |
|
|
(c) property, plant and equipment |
- |
- |
|
|
(d) investments |
- |
- |
|
|
(e) other non-current assets |
- |
- |
|
2.3 |
Cash flows from loans to other entities |
- |
- |
|
2.4 |
Dividends received (see note 3) |
- |
- |
|
2.5 |
Other (provide details if material) |
- |
- |
|
2.6 |
Net cash from / (used in) investing activities |
(2,646) |
(5,571) |
|
|
|||
|
3. |
Cash flows from financing activities |
9,000 |
14,385 |
|
3.1 |
Proceeds from issues of equity securities (excluding convertible debt securities) |
||
|
3.2 |
Proceeds from issue of convertible debt securities |
- |
- |
|
3.3 |
Proceeds from exercise of options |
- |
- |
|
3.4 |
Transaction costs related to issues of equity securities or convertible debt securities |
(611) |
(724) |
|
3.5 |
Proceeds from borrowings |
- |
- |
|
3.6 |
Repayment of borrowings |
- |
(1,222) |
|
3.7 |
Transaction costs related to loans and borrowings |
- |
- |
|
3.8 |
Dividends paid |
- |
- |
|
3.9 |
Other (payments of Lease Liabilities) |
(25) |
(58) |
|
3.10 |
Net cash from / (used in) financing activities |
8,363 |
12,381 |
|
|
|||
|
4. |
Net increase / (decrease) in cash and cash equivalents for the period |
|
|
|
4.1 |
Cash and cash equivalents at beginning of period |
15,768 |
16,471 |
|
4.2 |
Net cash from / (used in) operating activities (item 1.9 above) |
(1,179) |
(2,659) |
|
4.3 |
Net cash from / (used in) investing activities (item 2.6 above) |
(2,646) |
(5,571) |
|
4.4 |
Net cash from / (used in) financing activities (item 3.10 above) |
8,363 |
12,381 |
|
4.5 |
Effect of movement in exchange rates on cash held |
287 |
(29) |
|
4.6 |
Cash and cash equivalents at end of period |
20,593 |
20,593 |
|
5. |
Reconciliation of cash and cash equivalents |
Current quarter |
Previous quarter |
|
5.1 |
Bank balances |
12,093 |
2,881 |
|
5.2 |
Call deposits |
8,500 |
12,887 |
|
5.3 |
Bank overdrafts |
- |
- |
|
5.4 |
Other (provide details) |
- |
- |
|
5.5 |
Cash and cash equivalents at end of quarter (should equal item 4.6 above) |
20,593 |
15,768 |
|
6. |
Payments to related parties of the entity and their associates |
Current quarter |
|
6.1 |
Aggregate amount of payments to related parties and their associates included in item 1 |
203 |
|
6.2 |
Aggregate amount of payments to related parties and their associates included in item 2 |
- |
|
Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an explanation for, such payments. |
||
Item 6.1 - Payments for director fees to non-executive and executive directors in the normal course of business at commercial rates, including statutory superannuation and income tax paid on their behalf, and excluding reimbursements of out-of-pocket expenses. Also includes $22,478 paid to Liesl Kemp under an arm's length, casual employment contract for investor relations support services. Liesl is a related party of Managing Director Andrew Grove.
|
7. |
Financing facilities Add notes as necessary for an understanding of the sources of finance available to the entity. |
Total facility amount at quarter end |
Amount drawn at quarter end |
|
7.1 |
Loan facilities |
- |
- |
|
7.2 |
Credit standby arrangements |
- |
- |
|
7.3 |
Other (please specify) |
- |
- |
|
7.4 |
Total financing facilities |
- |
- |
|
|
|
|
|
|
7.5 |
Unused financing facilities available at quarter end |
- |
|
|
7.6 |
Include in the box below a description of each facility above, including the lender, interest rate, maturity date and whether it is secured or unsecured. If any additional financing facilities have been entered into or are proposed to be entered into after quarter end, include a note providing details of those facilities as well. |
||
|
|
|||
|
8. |
Estimated cash available for future operating activities |
$A'000 |
|
8.1 |
Net cash from / (used in) operating activities (item 1.9) |
(1,179) |
|
8.2 |
(Payments for exploration & evaluation classified as investing activities) (item 2.1(d)) |
(2,646) |
|
8.3 |
Total relevant outgoings (item 8.1 + item 8.2) |
(3,825) |
|
8.4 |
Cash and cash equivalents at quarter end (item 4.6) |
20,593 |
|
8.5 |
Unused finance facilities available at quarter end (item 7.5) |
- |
|
8.6 |
Total available funding (item 8.4 + item 8.5) |
20,593 |
|
8.7 |
Estimated quarters of funding available (item 8.6 divided by item 8.3) |
5.38 |
|
Note: if the entity has reported positive relevant outgoings (ie a net cash inflow) in item 8.3, answer item 8.7 as "N/A". Otherwise, a figure for the estimated quarters of funding available must be included in item 8.7. |
||
|
8.8 |
If item 8.7 is less than 2 quarters, please provide answers to the following questions: |
|
|
|
8.8.1 Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not? |
|
|
|
Answer: N/A
|
|
|
|
8.8.2 Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful? |
|
|
|
Answer: N/A
|
|
|
|
8.8.3 Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis? |
|
|
|
Answer: N/A
|
|
|
|
Note: where item 8.7 is less than 2 quarters, all of questions 8.8.1, 8.8.2 and 8.8.3 above must be answered. |
|
Compliance statement
1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.
2 This statement gives a true and fair view of the matters disclosed.
Date: 28 January 2025
Authorised by: The Board
Notes
1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity's activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.
2. If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.
3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.
4. If this report has been authorised for release to the market by your board of directors, you can insert here: "By the board". If it has been authorised for release to the market by a committee of your board of directors, you can insert here: "By the [name of board committee - eg Audit and Risk Committee]". If it has been authorised for release to the market by a disclosure committee, you can insert here: "By the Disclosure Committee".
5. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council's Corporate Governance Principles and Recommendations, the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.
[1] ASX and AIM Release: 20 Dec 2024 - Amendment - Substantial growth in Ore Reserves and strategic progress at Tiris Uranium Project
[2] ASX and AIM Release: 12 June 2024 - Aura increases Tiris' Mineral Resources by 55% to 91.3 Mlbs U3O8
[3] ASX and AIM Release: 11 Sept 2024 - Updated Production Target Improves Economics at Tiris
[4] ASX and AIM Release: 13 Dec 2024 - Tiris Uranium Project Alternative Production Targets
[5] ASX and AIM Release: 11 Sept 2024 - Updated Production Target Improves Economics at Tiris
[6] ASX and AIM Release: 20 Dec 2024 - Substantial increase in Tiris Uranium Project Ore Reserves
[7] ASX and AIM Release: 12 June 2024 - Aura Increases Tiris Mineral Resources by 55% to 91.3Mlbs
[8] ASX and AIM Release: 13 Dec 2024 - Tiris Uranium Project Alternative Production Targets
[9] ASX and AIM Release: 11 Sept 2024 - Updated Production Target Improves Economics at Tiris
[10] ASX and AIM Release: 12 June 2024- Aura Increases Tiris Mineral Resources by 55% to 91.3Mlbs
[11] ASX and AIM Release: 12 June 2024- Aura Increases Tiris Mineral Resources by 55% to 91.3Mlbs
[12] ASX and AIM Release: 11 Sept 2024 - Updated Production Target Improves Economics at Tiris
[13] ASX and AIM Release: 13 Dec 2021 - Liquid gold in the Sahara - Substantial water at Tiris
[14] ASX Release: 10 Oct 2019 - "Häggån Battery Metal Project Resource Upgrade Estimate Successfully Completed"
[15] ASX Release: 22 Aug 2012 - Outstanding Häggån Uranium Resource Expands to 800 Million Pounds. This information was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported
[16] ASX Release: 5 Sept 2023 - Scoping Study Confirms Scale and Optionality of Häggån
[17] ASX and AIM Release: 5 Sept 2024 - Haggan Project Exploitation Permit application submitted
[18] ASX and AIM Release: 28 Feb 2024 - FEED study confirms excellent economics for the Tiris Uranium Project
[19] ASX and AIM Release: 11 Sept 2024 - Updated Production Target Improves Economics at Tiris
[20] ASX and AIM Release: 10 Oct 2019 - Häggån Battery Metal Project Resource Upgrade Estimate
[21] ASX and AIM Release: 22 Aug 2012 - Outstanding Häggån Uranium Resource expands to 800 million pounds
[22] ASX and AIM Release: 5 Sept 2023 - Scoping Study Confirms Scale and Optionality of Häggån
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