Laramide’s Westmoreland Study Shows $741M Value and 33% Returns on Major Uranium Project
Laramide’s updated Westmoreland PEA delivers US$741M post-tax NPV and 33% IRR
Laramide Resources (TSX/ASX: LAM) has released an updated Preliminary Economic Assessment for its 100%-owned Westmoreland Uranium Project in Queensland, replacing the 2016 study. The assessment confirms Westmoreland as one of Australia’s largest undeveloped uranium projects, delivering a post-tax Net Present Value of US$741.1 million at a 7.5% discount rate, an Internal Rate of Return of 33%, and an estimated payback period of approximately 2.5 years. The Company is now prepared to lodge a Mining Lease Application as soon as permitted by the Queensland Government.
When big ASX news breaks, our subscribers know first
A decade of technical advancement drives standout economics
The updated PEA replaces Laramide’s previous 2016 study, incorporating a decade of technical refinement including updated engineering, mine planning, metallurgical process design, environmental planning, and revised capital and operating cost estimates. The assessment reflects current market assumptions and positions the project for its next development phase.
The study contemplates a conventional open-pit mining operation with processing at up to 8,000 tonnes per day over an 11-year mine life, with peak production of 6.2 million pounds U₃O₈ scheduled for Year 2.
| Financial Metric | Pre-tax | Post-tax |
|---|---|---|
| NPV (7.5% discount rate) | US$1,126.3M | US$741.1M |
| NPV (A$ equivalent) | A$1,605.9M | A$1,058.7M |
| Internal Rate of Return (IRR) | 43% | 33% |
| Payback Period | — | ~2.5 years |
Key capital and operating metrics underpinning the assessment include:
- Initial capital cost: ~US$456 million (plus US$84 million contingency, representing 18%)
- Sustaining capital expenditure (life-of-mine, including contingency): US$84 million
- Average C1 cash operating cost: US$32.40 per pound U₃O₈
- Uranium price assumption: US$90 per pound U₃O₈
- USD:AUD exchange rate: 0.70
The economics reflect a substantial operating margin, with the US$32.40/lb C1 cash cost providing a healthy buffer against the US$90/lb price assumption.
A large-scale, long-life production profile
The PEA outlines a substantial production profile averaging approximately 4.9 million pounds U₃O₈ annually from Years 2 through 10, excluding the ramp-up in Year 1 and ramp-down in Year 11. Total life-of-mine production is forecast at approximately 47.9 million pounds U₃O₈.
Key production and mining parameters include:
- Total life-of-mine production: ~47.9 million pounds U₃O₈
- Initial mine life: 11 years
- Processing throughput: 2.9 million tonnes per annum from conventional open-pit mining (up to 8,000 tonnes per day)
- Overall uranium recovery: 95%
- Average diluted feed grade: 788 ppm U₃O₈
- Life-of-mine strip ratio: 4.2:1
Modern, low-footprint project design
The updated design incorporates a filtered tailings strategy with progressive backfilling of the Redtree pit, eliminating the final mining void and reducing the project’s environmental footprint. This approach aligns with the Global Industry Standard on Tailings Management and represents Best Available Technology for tailings disposal.
The processing route comprises milling followed by conventional agitated tank leaching with sulphuric acid and pyrolusite. Following filtration and washing of the leach residue, uranium is recovered from the leach liquor using Continuous Ion Exchange. The recovered uranium then undergoes neutralisation, precipitation and refining to produce a saleable uranium oxide concentrate.
Multiple power supply options have been evaluated, including hybrid diesel, solar and battery storage configurations. The design emphasises integrated closure planning to minimise long-term environmental liabilities.
Why uranium supply matters right now
Uranium fuels nuclear power plants, which provide reliable, low-carbon baseload electricity. Global nuclear power generation is expanding as governments prioritise energy security, decarbonisation and stable electricity supply alongside the electrification of transport and industry.
More than 30 countries are expanding, extending or restarting nuclear generation capacity. Long-term uranium demand is supported by nuclear fleet expansion, reactor life extensions, and growing electricity requirements from AI data centres and industrial electrification. Nuclear reactors require annual fuel reloads over operating lives that typically extend for several decades, creating durable, predictable demand.
Despite rising consumption, the uranium market faces a structural supply deficit. Years of low prices following the Fukushima disaster significantly reduced investment in new mines, leaving few advanced greenfield projects ready for development. Primary mine production currently remains below annual reactor consumption, with the shortfall covered by inventories, government stockpiles and recycled material. These secondary sources are declining and are expected to contribute less to future requirements.
Global uranium production is heavily concentrated in Kazakhstan, raising concerns around geopolitical risk, transportation and supply-chain resilience. Australia, Canada and the United States are increasingly valued as secure, stable jurisdictions for uranium supply.
During 2026, published long-term uranium price indicators reached approximately US$94 per pound (UxC) and US$97 per pound (TradeTech), above the PEA’s US$90 per pound assumption. Recent industry disclosures suggest negotiated utility contracts may exceed published long-term price indicators. Uranium is primarily sold under long-term utility contracts, typically lasting five to ten years, rather than through the spot market. Significant utility requirements remain uncontracted into the 2030s, supporting continued contracting activity.
Industry forecasts indicate that substantial new primary production will be needed, supported by uranium prices high enough to justify project development. Westmoreland is positioned as a potential supplier of choice in a favourable jurisdiction with low technical risk attributes.
Management outlines the path to development
The Company’s leadership has emphasised the strategic importance of developing new uranium supply in a market characterised by limited medium and longer-term visibility.
Marc Henderson, President & CEO
“This PEA confirms that Westmoreland remains a compelling development proposition in a sector with limited supply visibility, particularly in the medium and longer term. Identifying and supporting new mine development is becoming an increasingly urgent priority, especially given the rapidly increasing demand requirements of a global nuclear energy industry that is once again growing strongly.”
Mr Henderson referenced the recent State visit of Indian Prime Minister Shri Narendra Modi to Australia, during which the two nations signed a long-stalled uranium supply agreement. Prime Minister Modi stated that Australia’s uranium reserves are directly connected to India’s nuclear journey.
Mr Henderson noted that while Australia’s uranium endowment is substantial, the country’s relevance as a consequential and reliable uranium supplier is diminishing and will require proactive actions from national and state political leaders if Australia intends to reverse its shrinking share of an expanding global uranium market.
Rhys Davies, Vice President Exploration & Qualified Person
“This updated PEA reflects a decade of technical advancement since the Company’s previous study. The Project has benefited from updated Mineral Resources, optimised mine planning, enhanced process design, revised capital and operating cost estimates, and a modernised closure strategy incorporating filtered tailings and progressive rehabilitation. The study confirms that Westmoreland is a large-scale, technically robust uranium development opportunity. With an average annual production profile approaching five million pounds of U₃O₈, excellent metallurgical recovery and considerable scope for future optimization, we believe the Project provides a strong foundation for the next phase of engineering and project development. Significantly, this Study positions Westmoreland for the next stage of development. The Company is prepared to lodge a Mining Lease Application as soon as permitted by the Queensland Government.”
The timing of the Mining Lease Application remains subject to Queensland Government policy. A Labour Party moratorium on uranium mining currently remains in place, though the Liberal National Party overturned this policy during its previous period of leadership from 2013 to 2016, establishing a precedent for future policy changes.
The next major ASX story will hit our subscribers first
Growth upside and the road ahead
The PEA is based on currently reported Mineral Resources only, relating to the Redtree, Huarabagoo, Junnagunna and Long Pocket deposits. The Company continues to investigate exploration upside beyond the current resource base, including the Link Zone between Huarabagoo and Junnagunna, as well as the Amphitheatre, Moogooma and U-Valley targets in Queensland, plus the Mageera project in the Northern Territory.
The PEA does not consider potential gold or rare earth by-product credits, which are in early-stage assessment.
Resource base underpinning the study
The January 2025 Mineral Resource estimate forms the foundation of the production profile:
- Indicated Resources: 27.8 million tonnes at 770 ppm U₃O₈ for 48.1 million pounds U₃O₈
- Inferred Resources: 11.8 million tonnes at 680 ppm U₃O₈ for 17.7 million pounds U₃O₈
| Deposit | Category | Tonnes (Mt) | Grade (ppm U₃O₈) | Contained U₃O₈ (Mlbs) |
|---|---|---|---|---|
| Redtree | Indicated | 14.0 | 880 | 27.0 |
| Huarabagoo | Indicated | 2.5 | 890 | 4.9 |
| Junnagunna | Indicated | 10.0 | 640 | 15.0 |
| Long Pocket | Indicated | 1.3 | 420 | 1.2 |
| Total Indicated | — | 27.8 | 770 | 48.1 |
| Redtree | Inferred | 3.0 | 800 | 5.2 |
| Huarabagoo | Inferred | 3.1 | 870 | 6.0 |
| Junnagunna | Inferred | 3.0 | 620 | 4.2 |
| Long Pocket | Inferred | 2.7 | 380 | 2.3 |
| Total Inferred | — | 11.8 | 680 | 17.7 |
Over the life-of-mine, the production target is based on approximately 79% Indicated Resources and 21% Inferred Resources. The Inferred Resources are predominantly scheduled in the latter stages of the mine life and have had mining factors applied. There is a low level of geological confidence associated with Inferred Resources, and there is no certainty that further exploration work will result in the determination of Indicated Resources or that the production target itself will be realised.
Next steps
The development pathway for Westmoreland includes:
- NI 43-101 Technical Report to be filed on SEDAR+ within 45 days of this announcement.
- Mining Lease Application to be lodged once permitted by the Queensland Government.
- Advancement toward Pre-Feasibility Study, incorporating further engineering and optimisation.
- Continued exploration on satellite targets and resource extensions.
The PEA is preliminary in nature and includes Inferred Resources that are considered too speculative geologically to have economic considerations applied that would enable them to be categorised as Mineral Reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. No Ore Reserves have been declared, and the Queensland uranium mining moratorium remains a key policy variable for the project’s development timeline.
Want the Next Energy Breakthrough in Your Inbox?
Join 20,000+ investors getting FREE breaking ASX news delivered within minutes of release, complete with in-depth analysis. Click the “Free Alerts” button at Big News Blast to receive real-time alerts the moment market-moving energy announcements break—before the market reacts.