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GTi Resources Limited

(ASX:GTR)

Current Price:

$0.015

Our Investment Summary

Date of
Initial Coverage

29-Apr-20

Initial
Entry Price

$0.012

Returns from
Initial Entry

25%


What does GTR do?

GTR is an exploration company targeting Uranium discoveries in Wyoming, USA & Utah, USA. GTR also have some gold assets in WA but these are non-core.

What is the macro theme behind GTR?

Transition away from current highly pollutive base-load energy generation using Coal & Oil to Nuclear power which provides a more Green alternative.

Nuclear power has one of the lowest carbon-footprints & highest utility rate of all renewable energy technologies, uranium being the primary fuel source for Nuclear makes it a critical mineral for a green future.


Investment Memo: GTi Resources (ASX:GTR)

14-Mar-2022


Why do we continue to hold GTR?

The uranium projects are in Wyoming: Wyoming is the capital for uranium production in the US accounting for 80% of domestic production. GTR also has an experienced US team with plenty of ISR uranium experience (Doug Beahm & James Buaghman). Wyoming also attracting Nuclear investment from Warren Buffet + Bill Gates.

Uranium price at 9 year highs: Uranium prices have moved from ~US$32/lb at the start of the calendar year to now trade at ~US$46/lb.

Uranium is becoming a critical strategic metal in the US: The shift towards cleaner sources of energy generation as well as Uranium increasingly becoming a strategic mineral will mean the US need a lot more of it

Click to see the top reasons for our investment in GTR

What we expect the company to deliver before their next capital raise?

Objective #1: Drilling results from the ISR uranium project in Wyoming

Ultimate aim is to put together an initial maiden ISR uranium resource, or an estimate of an achievable exploration target.

Emphasis for the drilling program is on "GT Measure" (Grade x Thickness):

  • Grade Greater than 0.02% Uranium, GT> 0.2 (I.e. 3m @0.02% Uranium).
  • Mineralisation above cut-off of 15m + Nominal GT of 0.4.

Objective #2: Geological mapping + Downhole logging at the Utah Uranium Projects.

Recon-program to commence in November-2021, No results anticipated from this until at least MID/Late Q1-2022.

What could go wrong?

A.) GTR is currently drilling for Uranium, the drilling program may not return any uranium mineralisation.

B.) There is a risk that whilst drilling GTR experiences rig issues and is unable to complete the drilling program.

C.) Uranium price could de-rate which would make financing exploration extremely difficult.

What is our investment plan?

Our strategy with early stage explorers is to achieve free carry prior to the initial drilling results, which we expect in early 2022. We plan to hold ~50% of the position to see the entire story play out over at least 2 to 3 years.


Disclosure: The authors of this article and owners of Next Investors, S3 Consortium Pty Ltd, and associated entities, own 16,662,000 GTR shares and 746,615 GTR Options at the time of publication. S3 Consortium Pty Ltd has been engaged by GTR to share our commentary and opinion on the progress of our investment in GTR over time.


GTR Investment Milestones

✅ Initial Investment: @ 1.2¢
✅ Increase Investment: @ 3.3¢
✅ Increase Investment: @ 1.5¢
🔲 Price increases 500% from initial entry
🔲 Price increases 1000% from initial entry
🔲 Price increases 2000% from initial entry
✅ 12 Month Capital Gain Discount
🔲 Free Carry
🔲 Take Some Profit
🔲 Hold remaining Position for next 2+ years


Our Past Commentary on GTi Resources

Date Title
21-May-2022 $ 0.016 Commodities super cycles
11-Apr-2022 $ 0.026 Why we invest in IPOs and our investment approach
04-Apr-2022 $ 0.000 Investing in Early Stage, High Risk Companies in 2022
31-Mar-2022 $ Drilling results are in as Uranium prices keep edging upwards
19-Mar-2022 $ 0.029 Scott Morisson's "Shopping List" of Critical Minerals
18-Mar-2022 $ Drilling completed on queue - Domestic supplies have never been more in demand
12-Mar-2022 $ 0.024 Nickel, the War and Under Investment in Exploration
05-Feb-2022 $ 0.021 The "Lesser Kown" Energy Transition Metals: Copper, Aluminium, Graphite, Helium, Rare Earths
31-Jan-2022 $ 0.021 Inflation, US Fed Reserve, Bond Yield, Cash Buffer Portoflio
18-Dec-2021 $ 0.025 Investing 101: Taking Stock of your Stocks and Diversification
14-Dec-2021 $ First batch of USA uranium drilling results beat expectations - more results due in coming weeks
11-Dec-2021 $ 0.026 ASX rests pre-Chrsitmas as the market trades on very low volumes
04-Dec-2021 $ 0.026 Omicron, Inflation and Investment Memos
30-Nov-2021 $ GTR uranium drilling now - to confirm previous mineralisation
12-Nov-2021 $ GTR are Ready to Drill for Uranium in the Coming Weeks
06-Nov-2021 $ 0.031 COP26, Battery Metals, Green Energy
25-Oct-2021 $ 0.033 Lockdown lifts, Two stocks to watch: MNB and ONE
20-Oct-2021 $ 0.033 Three stocks to watch for the next few weeks
18-Sep-2021 $ 0.040 Why uranium stocks are soaring, one good movie recommendation
16-Sep-2021 $ 0.037 Uranium is Back - and GTR is Finally Coming Good
04-Sep-2021 $ 0.027 Annual Reports, Uranium and a Welcome to New Subscribers
21-Aug-2021 $ 0.017 Market fluctuations and portfolio news and quick takes
24-Jul-2021 $ 0.018 Why stocks go into "Quiet Execution Mode", how to spot a cap raise, stock "Confession Season"
26-Jun-2021 $ 0.026 June tax loss selling is behind us, KNI IPO expected in August
12-Jun-2021 $ 0.024 What did our investments do this week? CPH, ONE, TMZ, 88E and more...
27-Apr-2021 $ 0.024 Our Portfolio Performance from January 1st to March 31st 2021
07-Jan-2021 $ 0.024 Our Stock Picks for 2021
13-Aug-2020 $ 0.029 GTR Primed for Maiden Drilling at Emerging WA Gold Hot Spot
25-Jun-2020 $ 0.026 The Early Mover in USA Uranium – GTR’s Drill Results Due in Days
18-May-2020 $ 0.041 GTi Resources (ASX: GTR) Up 380%
29-Apr-2020 $ 0.010 $5M ASX Micro Cap Launches Uranium Exploration - Near the Only US Processing Facility



Investor Presentation

100,000 foot Uranium drilling program detailed

ASX:GTR May 17, 2022 Announcement

Investment Memo: GTR 2022

Objective: N/A


This morning our uranium exploration Investment GTI Resources (ASX: GTR) confirmed that applications were underway for a ~100,000 foot exploration program across its key ISR uranium prospects in Utah, USA.

This program will follow up on the drilling done earlier in the year where GTR confirmed a maiden discovery over its project area. To check out our coverage of that exploration program see our previous note here: Drilling results are in as Uranium prices keep edging upwards.

This next round of drilling will first target extensions (~40,000 feet of drilling) to that discovery and then move to the north to test 4 other prospective areas with the remaining ~60,000 feet of drilling.

Permitting is currently underway with drilling expected to commence in July.


Acquisition of additional project area progressing

ASX:GTR May 17, 2022 Announcement

Investment Memo: GTR 2022

Objective: N/A


Our uranium exploration Investment GTI Resources (ASX: GTR) has provided an update on the acquisition of an additional ~13,800 acres of claims adjacent to its current landholding and bordering grounds held by Rio Tinto.

GTR confirmed that due diligence was ongoing as planned and that the company would be providing an update on the acquisition in due course. We covered the new acquisition in detail in a previous Quick Take which you can read here.

Once completed, the acquisition will increase GTR’s landholding in this part of Wyoming to ~35,000 acres and mean that the next round of drilling can be followed up by testing the new acreage to the north as well.

Effectively, GTR is bringing in even more exploration potential to an already prospect rich portfolio of landholdings.


US to invest US$6 billion to keep nuclear power plants open

ASX:GTR Apr 19, 2022

Overnight we read the following article on Bloomberg which mentioned the US Department Of Energy preparing to launch a US$6 billion program aimed at keeping uneconomical nuclear plants in service:

US nuclear power plants stand at ~93 reactors which combined provide ~1/5th of the country's electricity. More importantly though, the reactors supply more emission-free power than all other renewable energy sources combined.

The issue for these reactors is mostly centred around the reactors inability to compete with modern/cheaper sources of electricity generation mostly due to age. As a result, a lot of these were being considered for early shutdowns primarily related to the economics of keeping them open.

If the US government intervenes, these plants could stay in operation for longer and in turn ensure that there is more demand for the raw material which powers them being Uranium.

It’s long been our view that future electricity grids of countries all around the world will need to have some mix of nuclear energy, given it is one of the lowest carbon emission sources of baseload electricity generation.

As exposure to the sector, we hold uranium explorer GTI Resources (ASX: GTR) which is targeting Uranium discoveries in Wyoming, USA & Utah, USA. GTR’s projects in Wyoming specifically are strategically located with ~80% of domestic production coming out of this region.

Next: We are looking forward to GTR announcing its planned follow up drilling programs across its Wyoming projects and the completion of the recent acquisition which will almost double GTI’s project area in this part of the USA.

To see why we continue to hold GTR in our portfolio, check out our 2022 Investment Memo here.


GTR: $5M raised via placement @ 2.1c and new Uranium acquisition

ASX:GTR Apr 06, 2022 Announcement

This morning GTR announced that it had completed a placement raising $5M at 2.1c per share whilst at the same confirming that it has acquired another ~13,800 acres in grounds at its Wyoming Uranium project.

GTR now holds ~35,000 acres across the Great Divide Basin which is the capital for uranium production in the US accounting for ~80% of domestic uranium production. The new project area sits on the border of Rio Tinto’s project area and to the south of Energy Fuels’ 30mlb uranium resource.

The acquisition comes after the recent drilling results from GTR’s drilling program at the Thor project discovered a mineralised uranium system. We covered the drilling results in our last note for GTR which can be read here.

With an even bigger project area, GTR now has added even more exploration upside to follow up this drilling program with additional discoveries.

GTR has managed to pick these projects up for a total consideration of $750k in cash and 105 million shares in GTR, two thirds of which will be escrowed for ~6 months.

GTR will be funding the acquisition through the proceeds of the $5M capital raise @ 2.1c per share. The shares came with 1 free option for every 4 placement shares investors purchased, exercisable @ 3c per share with a October 2024 expiry.

With the Uranium price now trading above US$60/lb for the first time in ~11 years, GTR is starting to put together a project with some serious exploration upside strategically located in the US at just the right time.

This is one of the key reasons we continue to hold GTR in our portfolio. To see all of the reasons why we continue hold GTR and what we want to see the company achieve in 2022 check out our 2022 Investment Memo here.


Uranium drilling program on track for completion next week

ASX:GTR Mar 10, 2022

GTR today announced that its maiden drilling program at its ISR uranium project in Wyoming, USA is nearly complete.

GTR expects the final 9 holes of the ~100 hole maiden drilling program to be drilled in the week starting on 15 March. The full set of final results and interpretations are expected in the first half of April.

The ultimate aim of the current drill program is to identify the depth, grade and width of mineralisation over the project area with a target of announcing a maiden ISR uranium resource, or at the very least, an exploration target which will form the basis for follow up exploration.

In a previous note, we set some expectations for what we want GTR to achieve in this drilling program and we look forward to seeing the last batch of results before we can make an assessment of what GTR has on its hands.

This drilling program forms the basis for the first objective we set for GTR in our 2022 Investment Memo. To see what else we want to see GTR achieve this year check out our 2022 Investment Memo here.