ASX-listed Toro Energy has posted an uplift in the economics of its proposed Lake Maitland uranium and vanadium project in Western Australia, sharpening its case for development as calls grow for state policy shifts on uranium mining.

In a scoping study update released Wednesday, the explorer reported a pre-tax net present value (NPV), using an 8% discount of A$907.9-million for a standalone mining and processing operation at Lake Maitland. This is an increase of A$75-million, or 9%, on its previous assessment in June last year.

The improved outcome follows a revised resource estimate and re-optimised mine plan for the project, located about 105 km south-east of Wiluna.

Toro executive chairperson Richard Homsany said in a statement that the results demonstrated the strength of the project’s underlying economics, particularly at a time of growing global demand for uranium to support decarbonisation.

“This is an exciting development for Toro and its shareholders and the board is very pleased to report the new scoping study results for the proposed standalone Lake Maitland mining and processing operation,” Homsany said.

“The result is a more accurate study that clearly demonstrates just how robust the potential economics of the proposed project are, with an uplift of A$75-million, or 9%, to a base case of A$908-million in pre-tax NPV and a significant reduction in the payback period to a very swift 18 months from the commencement of mining and processing.”

The study estimates a total life-of-mine earnings before interest, taxes, depreciation and amortisation of A$2.33-billion, with pre-tax cashflow of nearly A$2-billion over the 16.3-year operation. Capital expenditure is forecast at A$216.2-million, plus contingency and engineering costs. 

The project will produce 22-million pounds of uranium oxide (U₃O₈) and 12.3-million pounds of vanadium pentoxide.

Operating costs in the first five years, when high-grade uranium ore is being processed, are expected to average $15.46/lb U₃O₈ on a C1 basis and $20.68/lb on an all-in sustaining cost basis, placing the operation among the more competitive globally.

“Importantly Lake Maitland’s upside and quality continue to improve with each evaluation Toro undertakes, further strengthening the case that Wiluna is an asset of global significance,” Homsany added. 

“Policy changes at the WA state government level to facilitate Toro’s project development and unlock the considerable value in WA’s uranium industry are warranted and, in the context of assisting many countries with nuclear power in their energy mix to achieve decarbonisation, are more than well overdue," he stated.

The state government does not support uranium mining in Western Australia and since 2017, has implemented a 'no uranium' condition on future mining leases. It is the Western Australian government's policy that no new uranium mining proposals will be approved.

However, public sentiment towards uranium mining appears to be shifting. A February 2025 poll by the Association of Mining and Exploration Companies, conducted by Painted Dog Research, found that 57% of 806 Western Australian respondents supported lifting the uranium mining ban, up from 49% in a 2023 industry poll.

Toro's Wiluna uranium project comprises three deposits – Lake Maitland, Centipede-Millipede, and Lake Way. The company said integrating these assets could further enhance the economics and scale of the development.

“With continuing work streams, Toro remains confident about the further scope to improve these scoping study outcomes resulting from Lake Maitland’s close proximity to Toro’s 100%-owned Centipede-Millipede and Lake Way uranium deposits within the Wiluna uranium project,” said Homsany.