Transcription of Finance News Network Interview with Toro Energy Limited (ASX:TOE) Managing Director, Dr Vanessa Guthrie Lelde Smits: Toro Energy Limited
(ASX:TOE) is a uranium developer and explorer aiming to be a mid-tier global uranium company focused on its flagship Wiluna uranium project in Western Australia.
I’m Lelde Smits and joining me at ASX Investor Series in Perth is the company’s Managing Director, Dr Vanessa Guthrie. Vanessa, welcome.
Dr Vanessa Guthrie: Thank you Lelde, it’s a pleasure to be here.
Lelde Smits: Toro has just started drilling at its Wiluna uranium project. What is planned for the drilling program and when are the results due?
Dr Vanessa Guthrie: This year’s drill program at Wiluna is a very exciting one for us. The aim of the program is to drill out core deposits of Lake Maitland, Millipede and Centipede, as well for the first time, drilling at Nowthanna. And the reason that we’re taking up this particular drill program, is because we’ve found that our gamma measurements for uranium, on which our resource is based, we think may be underestimating the grade. Particularly in the higher-grade zones of uranium that’s in the ground, so we’re testing with geochemistry to determine if this is the case.
Lelde Smits: When do you think the results are due?
Dr Vanessa Guthrie: We’re expecting to be able to analyse the results and announce them, in about September this year.
Lelde Smits: How important is exploration for Toro Energy?
Dr Vanessa Guthrie: Exploration and growth of the company is very important for Toro. Toro aims to be the go-to Australian uranium company in the mid-tier class, in the next five years. And to do that, we need to fill the pipeline of assets behind our flagship, Wiluna project. We intend to that, by both acquiring and growing through exploration activity.
Lelde Smits: Private equity investment firm The Sentient Group invested $17.5 million in Toro at the end of last year. How have the funds been deployed?
Dr Vanessa Guthrie: Last year we were delighted to bring Sentient into Toro, as a major shareholder. They’re now a 14 per cent shareholder of Toro. And the funds that they invested have been used in two ways. Firstly, $10 million of it is working capital set aside for us to be able to work our way through that current downturn, in uranium prices. And secondly, another $10 million has been dedicated to the Wiluna project itself, particularly around project optimisation studies. For example, the Wiluna drilling that we’ve just talked about is an example of how we’re using these funds to improve the project economics for Wiluna.
Lelde Smits: What are the biggest factors currently impacting the uranium price and where do you see the uranium price trending over the medium term?
Dr Vanessa Guthrie: There’s no doubt that the effects of the events in Japan, have had on the uranium market. And in particular, the inventory that’s built up since the Japanese reactor shut down, over the past four years. However, we’re seeing strong demand growth in countries like China, coming into India and of course, in the Middle East. And while the Japanese restarts are imminent, we think these two factors are really driving an increase in demand for nuclear power, in particular in those countries.
On the supply side, we’re not seeing development of supplies around the world. And this means that we anticipate a shortfall in the next part of this decade. That will bring us into real growth into the nuclear market, as it’s used to combat climate change in those growing economies.
Lelde Smits: Vanessa, thank you so much for the update from Toro Energy today.
Dr Vanessa Guthrie: It’s been a pleasure, thank you Lelde.
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