GTI Energy (ASX:GTR) - Boosts Wyoming Uranium Resource by 50%, Advances Development Plans

Dec 13, 2024

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Interview with Bruce Lane, Executive Director of GTI Energy Ltd.

Our previous interview: https://www.cruxinvestor.com/posts/gti-energy-asxgtr-powering-up-lo-herma-isr-uranium-project-in-wyoming-6279

Recording date: 12th December 2024

GTI Energy has announced a significant milestone at its Luma ISR uranium project in Wyoming, with an updated resource of 8.57 million pounds U3O8, representing a 50% increase. Notably, 30% of the resource has been upgraded to the indicated category, strengthening the project's development potential.

The company believes this resource size is sufficient to support a central processing plant and satellite operation model, common in Wyoming's uranium sector. The project also holds additional exploration upside of 6-11 million pounds, while GTI's total Wyoming resource inventory exceeds 10 million pounds.

GTI is now advancing a scoping study, expected in the first half of 2025, to establish project economics and development options. The study will particularly examine the viability of a central processing plant and satellite facilities, following a model successfully employed by other operators in the region like Ur-Energy.

Wyoming's status as an established uranium mining jurisdiction, with seven permitted facilities and multiple advancing projects, provides GTI with significant advantages. The company's CEO Bruce Lane emphasizes that uranium projects are executable in Wyoming "as long as the price is there," noting current market conditions appear supportive.

The company occupies a strategic position in the uranium development lifecycle, more advanced than early-stage explorers but not yet at the level of fully permitted producers. This positioning offers investors exposure to uranium price upside while potentially carrying lower risk than pure exploration plays.

The broader uranium market context appears favorable, with growing supply deficits and increasing focus on domestic U.S. production. Recent geopolitical developments, particularly regarding Russian supply disruptions, have heightened the value of U.S.-based uranium projects. As Lane notes, "U.S. pounds are obviously looking more and more valuable as the U.S. tries to backfill that 50 million pound annual gap."

The investment case for GTI centers on several key factors: its meaningful resource base in an established mining jurisdiction, upcoming scoping study as a potential catalyst, exposure to uranium price upside, and the increasing attractiveness of U.S. projects to domestic utilities. The company currently trades at what it considers a discount to peers on a per-pound basis.

Looking ahead, the uranium industry faces a structural supply deficit as nuclear energy demand growth outpaces primary mine supply. This situation, combined with increasing focus on supply security and government support for domestic production, creates opportunities for projects in stable jurisdictions like the U.S. to advance and help fill the supply gap.

View GTI Energy's company profile: https://www.cruxinvestor.com/companies/gti-energy