The Toro Energy (ASX:TOE) share price is surging 23%. Here's why

Shares in the uranium company are climbing higher today. Here are the details

| More on:
Man jumps for joy in front of a background of a rising stocks graphic.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Toro Energy Limited (ASX: TOE) share price is shooting higher this morning after a couple of key updates impacting the ASX uranium development and exploration company.

The Western Australia-focused group's shares have surged 23.8% to 5.2 cents on Thursday morning.

We take a closer look at what could be driving today's moves.

Why the Toro Energy share price is rocketing today

Investors might be wondering why this ASX small-cap share is climbing higher in early trade. There are a couple of factors at play. One is company-specific and the other is more of a macro consideration.

Toro this morning provided an update on its Lake Maitland Uranium Deposit study. The first phase of the re-engineering study at its key deposit has progressed.

Toro said the vanadium resource is currently "being integrated into the uranium resource block model ready for optimisation".

Toro said the re-engineering "follows on from the success of research into beneficiation of the potential Lake Maitland uranium ore and the subsequent redesign of the processing flowsheet for a stand-alone Lake Maitland mining and processing operation".

Investors might be thinking this seems like good news, but may not be enough to spark a 23.8% Toro Energy share price surge. That's because the other factor, affecting ASX uranium shares more broadly, could be at play.

US President Joe Biden joined Australian and UK Prime Ministers Scott Morrison and Boris Johnson this morning. The trio announced a new, trilateral security partnership between their nations called "AUKUS".

The deal will see Australia acquire a fleet of nuclear-powered submarines in the future. That represents a pivot away from the existing $90 billion deal with Naval Group to build an Australian submarine fleet.

This morning's update has helped boost ASX uranium shares across the board as investors speculate on the news. There have been no indications of individual companies' involvement at this stage.

The Toro Energy share price has rocketed 23.8% on the back of the twin updates. It is up 155% this year to date, and 410% over the past 12 months.

The company currently boasts a market capitalisation approaching $200 million.

Motley Fool contributor Ken Hall 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 Bruce Jackson.

More on Energy Shares

A bearded man holds both arms up diagonally and points with his index fingers to the sky with a thrilled look on his face over these rising Tassal share price
Energy Shares

Why is the Beach Energy share price racing higher on Thursday?

This energy producer delivered some big news this afternoon.

Read more »

A person is weighed down by a huge stack of coins, they have received a big dividend payout.
Energy Shares

Own Ampol shares? Get ready for your monster dividend payment

Ampol investors are about to enjoy their largest-ever dividend.

Read more »

A man sees some good news on his phone and gives a little cheer.
Energy Shares

Buy Woodside shares for a 20% gain and 4.5% dividend yield

Morgans thinks investors could get big returns from this energy giant.

Read more »

Woman holding $50 notes and smiling.
Dividend Investing

A 36% yield from this ASX dividend share? Here's how these forward-looking investors made it happen

Some savvy passive income investors are earning a 36% yield from this ASX dividend star.

Read more »

A Paladin Energy miner wearing a hard hat and protective gear stands in front of a large mining truck and smiles to the camera.
Energy Shares

Uranium is set to boom, and this is the 'premium' ASX stock to buy

Shaw and Partners' Jed Richards reckons these are the shares to buy for the nuclear energy theme.

Read more »

Happy coal miner.
Energy Shares

How these ASX 200 energy shares could unexpectedly burn brighter

ASX 200 energy shares are facing rising global demand for their products.

Read more »

Worker inspecting oil and gas pipeline.
Energy Shares

ASX energy shares losing charge amid fresh warnings of gas supply shortfalls

Many energy commodity prices fell overnight and this is hitting ASX energy shares today.

Read more »

A miner stands in front oh an excavator at a mine site
Energy Shares

'We have reached a bottom': 5 ASX uranium shares leaping higher this week

ASX uranium stocks have enjoyed explosive share price growth over the past year.

Read more »