An updated preliminary economic assessment for Laramide Resources’ (TSX, ASX: LAM; US-OTC: LMRXF) proposed Westmoreland uranium mine in Australia estimates the project’s value at about $741 million (C$1.04 billion), nearly double the value calculated a decade earlier under different assumptions.

Laramide said Wednesday in a statement that Westmoreland would generate a 33% internal rate of return and repay capital in about 2.5 years, based on a 7.5% discount rate and a long-term uranium price of $90 per lb. U₃O₈. Initial capital costs are estimated at $456 million, with an additional $84-million contingency. Sustaining capital over the mine life is projected at $84 million.

The Westmoreland project is in Queensland, about 2,000 km northwest of Brisbane.

The new study replaces a 2016 preliminary economic assessment (PEA) and reflects updated engineering, environmental work, mine planning, metallurgical design, operating costs and revised uranium market assumptions, according to Laramide. The 2016 assessment, which used a 10% discount rate and a uranium price of $65 per lb., estimated Westmoreland’s after-tax value at about $400 million. The change in both the uranium price assumption and discount rate means the two valuations are not directly comparable on a like-for-like basis.

A PEA is an early-stage technical and economic study and is less definitive than a prefeasibility or feasibility study. For Westmoreland, the updated assessment remains a planning document rather than a mine construction decision, particularly because no mineral reserves have been declared.

“This PEA confirms that Westmoreland remains a compelling development proposition in a sector with limited supply visibility, particularly in the medium and longer term,” Laramide CEO Marc Henderson said in the statement.

“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.”

Queensland uranium ban

Laramide said it is ready to submit a mining lease application “as soon as permitted by the Queensland government,” but the proposed development still faces a longstanding state ban on uranium mining.

Most Australian states either prohibit uranium mine development or effectively prevent it. South Australia and the Northern Territory host Australia’s operating uranium mines, while nuclear energy is prohibited nationally. In New South Wales, a bill is before the Legislative Assembly that seeks to overturn the ban on uranium mining.

The permitting issue is central to Westmoreland’s development path because a positive PEA does not override state-level policy restrictions on uranium mining. Any change in Queensland’s position would be a prerequisite before Laramide could advance the project through the formal mine approval process.

“Permitting remains the key hurdle, as Queensland maintains a uranium mining moratorium, but we think western policy momentum towards uranium and nuclear power is a tailwind, albeit a difficult one to time,” SCP Resource Finance mining analyst Justin Chan said in a note. Chan described Westmoreland as “a significant uranium asset.”

Laramide’s plans could also be affected by expanded efforts from India to secure uranium supplies. Two weeks ago, Australia signed the final administrative arrangements for an agreement to supply uranium to India, the world’s most populous country, for civilian nuclear use. Australia’s uranium reserves could support India’s target of reaching 100 gigawatts of nuclear energy capacity by 2047.

“While we concur that Australia’s uranium endowment is substantial and applaud the mutual intent that often emerges from these types of high-level political meetings, the reality is that Australia’s relevance as a consequential and reliable uranium supplier is diminishing quickly and will require pro-active actions on the part of national and state political leaders in Australia if the country intends to reverse its shrinking share of what is now an expanding global uranium market,” Henderson added.

Open-pit plan

The updated PEA outlines Westmoreland as an 11-year open-pit operation that would process 2.9 million tonnes of ore a year through a conventional mill and leach circuit. Average annual production is estimated at about 4.9 million lb. U₃O₈, while total life-of-mine production is forecast at 47.9 million lb.

Projected uranium recovery is 95%, and average cash operating costs are estimated at $32.40 per pound. Laramide said the power options assessed for the project include hybrid diesel generation, solar energy and battery storage.

According to a January 2025 resource estimate, the property contains 27.8 million indicated tonnes grading 770 parts per million (ppm) uranium for 48.1 million contained lb. uranium oxide (U₃O₈). Inferred resources total 11.8 million tonnes grading 680 ppm uranium for 17.7 million contained lb. U₃O₈. No mineral reserves have been declared.

Laramide said the updated PEA includes only the defined uranium resources and does not account for exploration upside from nearby satellite targets. The assessment also excludes potential gold or rare earth mineralization identified in the broader district.

Laramide shares fell 5.7% to 50¢ Thursday morning in Toronto, reducing the company’s market value to about C$142 million ($101 million). The stock has traded between 46¢ and 91¢ over the past year.