Interview with Bruce Lane, Executive Director of GTI Energy Ltd.
Our previous interview: https://www.cruxinvestor.com/posts/gti-energy-asxgtr-targets-to-expand-multi-million-resource-in-lo-herma-isr-uranium-project-5042
Recording date: 18th November 2024
GTI Energy (GTI) is an emerging uranium developer focused on advancing the Lo Herma in-situ recovery (ISR) project in Wyoming's Powder River Basin. Lo Herma currently hosts an Inferred resource of 5.71M lbs U3O8 at a production-grade of over 600 ppm.
GTI expects to update the resource to 7-8M lbs by year-end, matching the size of nearby economic projects like Ur-Energy's Shirley Basin and enCore's Gas Hills. Recent studies on these peers demonstrated robust economics at $80/lb uranium prices, with costs around $40/lb.
CEO Bruce Lane highlighted Lo Herma's potential: "Based on that, around that 7 or 8 million pounds mark with an exploration upside potential is a very attractive investment proposition." GTI's studies assume conservative long-term prices of $80-82/lb.
Following the resource update, GTI plans to swiftly complete a scoping study in H1 2025. Lane noted, "There's a point there of inflection, a catalyst if you like, around an understanding of what the value of the project is."
While GTI could advance Lo Herma independently, strategic alternatives like a project sale or partnership are being considered to maximize value and minimize dilution. Significant exploration upside remains at Lo Herma, with Lane commenting that additional drilling could "delineate further resource fairly confidently." GTI also holds prospective uranium projects in Utah and Wyoming, providing a pipeline for future growth.
The outlook for US uranium is robust, driven by growing nuclear power demand and supply deficits. The US currently imports over 90% of its uranium needs, highlighting the strategic importance of domestic production.
Government support is increasing, with funding for the nuclear sector in the recent infrastructure bill and efforts to establish a national uranium reserve. GTI is well-positioned to benefit from this favorable macro backdrop.
With a resource update and scoping study expected in the near-term, GTI offers investors exposure to an economic ISR project in a Tier-1 jurisdiction. Exploration upside, a portfolio of growth assets, and strategic optionality further enhance the investment case. As the US uranium sector gains momentum, GTI is a compelling opportunity for risk-tolerant investors to participate in the nuclear fuel cycle.
View GTI Energy's company profile: https://www.cruxinvestor.com/companies/gti-energy
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