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.
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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.
