Guess which ASX uranium stock just leapt 18% on ‘significant’ project upside potential

The All Ordinaries Index (ASX: XAO) is down 1.1% today, but that’s not holding back this rocketing ASX uranium stock.

The ASX uranium share closed yesterday trading for 55 cents. In earlier trade today, shares were swapping hands for 65 cents apiece, up 18.2%.

After some likely profit-taking, shares are currently trading for 63.5 cents, leaving this ASX uranium stock up 15.5% in intraday trade.

Any guesses?

If you said Toro Energy Ltd (ASX: TOE) give yourself a virtual gold star.

Here’s what’s happening.

Broader tailwinds for ASX uranium stocks

Toro Energy looks to be getting a big lift on two fronts.

First, the uranium price hit 16-year highs yesterday, with yellowcake trading above US$100 per pound.

The uranium price has been marching steadily higher over the past six months amid renewed global ambitions for nuclear energy.

The outlook for the uranium price, and ASX uranium stocks like Toro Energy, got another boost over the weekend when National Atomic Company Kazatomprom Joint Stock Company (FRA: 0ZQ) announced a significant reduction to its 2024 production guidance.

Kazatomprom, the world’s largest uranium producer, cited a shortage of sulphuric acid for the downgraded forecast.

The Toro Energy share price closed up 4.8% following that news yesterday.

As for some of the biggest ASX uranium stocks, Paladin Energy Ltd (ASX: PDN) shares gained 7.5% on Monday while Bannerman Energy Ltd (ASX: BMN) shares closed the day up 6.2%.

However, both Paladin and Bannerman shares are in the red today, while Toro Energy is surging.

Toro Energy share price boosted on project update

The Toro Energy share price is leaping higher again today after the ASX uranium stock announced it has made significant advancements in its Lake Maitland extension study.

Toro Energy’s Lake Maitland uranium-vanadium project is located in Western Australia.

The extensions study is evaluating incorporating material from Toro Energy’s Lake Way and Centipede-Millipede uranium deposits into a proposed processing operation at Lake Maitland.

According to the release, “Strong potential exists to increase production at Lake Maitland with additional uranium resources from Lake Way and Centipede-Millipede.”

The company noted the potential to extend processing of its high-grade uranium resource “well beyond” the seven years it expects from a standalone Lake Maitland operation.

Commenting on the progress sending the ASX uranium stock soaring today, executive chairman Richard Homsany said, “We are pleased that strengthening uranium market conditions continue as we develop and seek to maximise the value of the Wiluna Uranium Project, especially our evaluation of extending our Lake Maitland uranium vanadium processing operation.”

Homsany added:

The uranium resources at Lake Way and Centipede-Millipede are strategically located and considerable and need to be thoroughly evaluated for viability. The inclusion of additional material into the Lake Maitland uranium vanadium processing operation has the strong potential to add significant value to the Wiluna Uranium Project.

As for the Toro Energy share price, this small-cap ASX uranium stock has already gained a whopping 35% in 2024.

The post Guess which ASX uranium stock just leapt 18% on ‘significant’ project upside potential appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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