The Toro Energy Limited (ASX: TOE) share price is sliding lower on Friday.
Shares in the Aussie uranium exploration and production company are down 8.16% to 4.5 cents this morning having surged 19.5% higher on Thursday.
Why the Toro Energy share price is sliding 8% on Friday
Toro Energy is one ASX resources company that may not be on every investor’s radar. The Aussie small-cap boasts a market capitalisation of $171 million and largely focuses on uranium deposits in Western Australia.
Shares in the ASX uranium share surged higher yesterday after two key updates. One was a deposit reserve update, the other was Australia’s new nuclear-powered submarine deal. That announcement from US President Joe Biden came as part of the AUKUS trilateral security agreement.
The Toro Energy share price closed 19.5% higher on Thursday afternoon following the updates. Toro’s Lake Maitland Uranium Deposit Study update noted the vanadium resource is “currently being integrated into the uranium resource block model ready for optimisation”.
The big news pushing ASX uranium shares higher on Thursday, however, was arguably the AUKUS deal. Shares in Aussie uranium companies jumped higher following the 7am AEST announcement of the historic agreement.
The Toro Energy share price was no exception, leaping 23.8% higher at the market open as investors looked to speculate on uranium shares. That’s despite no indication of individual companies being involved in any submarine-building deals.
However, Friday morning has seen the ASX uranium share fall in a hangover of sorts from yesterday. There have been no new announcements from the company but that hasn’t stopped Toro Energy shares from correcting more than 8% to end the week.
However, Toro shares are still up 125% so far this year, and 350% over the past 12 months.