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GTI Energy


Last Price:


Our Investment Summary

Date of Initial Coverage


Initial Entry Price


Returns from Initial Entry


Our Big Bet for GTR

To see GTR prove out a large resource base in the “uranium capital” of the USA, and generate offtake or acquisition interest as the USA moves to secure local uranium supply.

Investment Memo:

GTI Energy (ASX:GTR)


Opened: 14-Mar-2022

Shares Held at Open: 16,662,000

What does GTR do?

GTR is an exploration company targeting Uranium discoveries in Wyoming, USA & Utah, USA.

What is the macro theme?

Transition away from 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 rates of all renewable energy technologies. Uranium being the primary fuel source for Nuclear makes it a critical mineral for a green future.

Why did we invest in 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 to need a lot more of it.

What do we expect GTR to deliver?

Objective #1: Drilling at the company’s Wyoming uranium projects.

  • Emphasis for the drilling results is on the "GT Measure" (Grade x Thickness).
    • 10 foot intercepts grading >0.02% uranium (GT > 0.2).
      • I.e. 3m @0.02% Uranium.
  • Drilling with the ultimate aim of putting together an initial maiden resource estimate or at the very least an achievable exploration target.
    • Bull case = Uranium intercepts lead to a maiden JORC resource. [Achieved ✅]
    • Base case = Enough uranium is intercepted to put together an achievable exploration target.
    • Bear case = No uranium is intercepted, and projects are considered stranded.

[Expectations added on 18th July 2022]


Drilling targets identified

Drilling permitting

Drilling commencement

Drilling results

Forward exploration plan

Objective #2: Drilling at the company's uranium projects in Utah.

Target generation works to commence in November 2021. No results are anticipated from this until at least late Q1-2022. Target generation will form the basis for a drilling program in late 2022.


Drilling targets identified

Drilling permitting

Drill rig contracting

Drilling commencement

Drilling results

Objective #3: Maiden resource estimate at newly acquired (Lo Herma) project.

We want to see GTR utilise its newly acquired US$15M drilling data and convert it into a maiden resource estimate [NEW - 14-Mar-2023]


Maiden resource estimate

What could go wrong?

Exploration Risk

GTR is currently drilling for Uranium. The drilling program may not return any uranium mineralisation. Failed exploration programs may lead to the assets becoming stranded.

Commodity Risk

Uranium is often shunned by governments because of the issues related to spent-uranium cells needing to be disposed of even though they remain radio-active. A lot of countries have abandoned commitments to Nuclear due to the risks of accidents like Chernobyl & Fukushima. This may slow the adoption of Nuclear power globally.

Funding Risk

GTR is a junior explorer with no revenues to fall back on. This means the company is reliant on fresh funding for future exploration programs. GTR will need to come back to the market and raise more capital from investors to finance major exploration programs.

[New 21-Mar-2023]

Market Risk

If the broader market sells off there is a chance that investors shy away from high risk investment opportunities such as early stage junior explorers. During market downturns, investors will generally look to pull capital away from the highest risk investments. GTR is an early stage explorer and may be impacted by these market wide sell offs.

[New 21-Mar-2023]

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.

[Minor wording edits made on 18th July 2022]

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.

Investment Milestones for GTR

✅ Initial Investment: @ 1.8c
✅ Top Slice
✅ Free Carry

✅ Increase Investment: @ 3.3c
✅ Free Carry

✅ Increase Investment: @ 1.5c
🔲 Free Carry
🔲 Take Profit
✅ Price increases 300% from initial entry
🔲 Price increases 500% from initial entry
🔲 Price increases 1000% from initial entry
12 Month Capital Gain Discount
🔲 Hold remaining Position for next 2+ years

Our Past Commentary on GTI Energy

Date Title
21-Mar-2023 $ Uranium in the USA - GTR Entitlement Offer about to go live
19-Oct-2022 $ GTR’s regional neighbour buying up USA uranium projects
15-Sep-2022 $ The US is desperately seeking more domestic uranium supplies - GTR drilling now
28-Jul-2022 $ GTR launching USA uranium drilling campaign
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
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-Christmas 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
15-Jul-2020 $ 0.026 GTR to Drill WA Gold Project – Its Larger Neighbour Soared 250% on Success
15-Jul-2020 $ GTR Raises Capital, Acquisition Doubles Jeffery Project
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%
15-May-2020 $ Developing High Grade Uranium in Utah
29-Apr-2020 $ 0.010 $5M ASX Micro Cap Launches Uranium Exploration - Near the Only US Processing Facility