Uranium

Lithium-uranium hopeful Aurora Energy rallies 25% on ASX debut

Wed 18 May 22, 3:35pm (AEST)
Outback Australia - Pilbara, Australia - March 18, 2011 Geologists sampling rocks in iron ore exploration in the Outback
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Key Points

  • Aurora Energy rallies 50% upon its ASX debut at 11 am
  • The Aurora Energy Metals Project has a defined uranium resource
  • Nearby are two large lithium deposits operated by Jindalee Resources and Lithium Americas

Lithium and uranium hopeful Aurora Energy (ASX: 1AE) rallied 50% to 30 cents as it debuted on the ASX on Wednesday at 11 am.

Aurora successfully raised $8m at 20 cents per share to fund exploration and development activities at its Aurora Energy Metals Project in Oregon, USA.

The company's stock is currently trading at 25.5 cents towards market close.

Double the hype

There is a strong market interest in both lithium and uranium as the world moves towards a net-zero emissions future.

  • Lithium spot prices have rallied more than 500% in the past 12-months amid an electric vehicle (EV) boom and tight supply

  • Uranium spot prices recently climbed out of a decade long bear market where prices fell to lows of US$20/lb, now trading around US$50/lb

The Aurora Project is located within close proximity of two well-known lithium explorers, Jindalee Resources’ (ASX: JRL) McDermitt Project and Lithium Americas’ Thacker Pass Project - both of which happen to be sitting on some of the largest lithium deposits in the US. 

2022-05-16 11 09 58-Cover
Source: Aurora Prospectus

Lithium isn’t exactly the company’s focal point, as the project has an already a defined uranium resource of 69.3m tonnes, which includes a high-grade portion of 18.4m tonnes.

Though, the success of Jindalee and Lithium Americas supports a potential lithium discovery at Aurora.

Near term catalysts

In the second-half of 2022, Aurora is targeting:

  • Drill program to generate core for metallurgical testwork and confirm lithium-bearing sediments

  • Define lithium exploration targets

In 2023:

  • Uranium pre-feasibility study

  • Announce maiden lithium mineral resource

  • Convert uranium resource to measured status

Tough crowd

Aurora has managed to outperform amid a tough market for new listings.

There were 7 IPOs in the week ended May 8 - all of which are currently trading at or below their offer prices.

Aurora is the only recent lithium and uranium-related listing, which goes to show that investors might still be keen for green metal plays.

Written By

Kerry Sun

Finance Writer & Social Media

Kerry holds a Bachelor of Commerce from Monash University and was Vice President of the University Network for Investing and Trading (UNIT). He is an avid swing trader, and drawn to breakouts and technical set ups. Outside of writing and trading, Kerry is a huge UFC fan, loves poker and bouldering.

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