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ASX:PR1

Pure Resources Ltd

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ASX:PR1
- Pure Resources Ltd
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$0.380

Last Price

Investment Memo:

Pure Resources Ltd (ASX:PR1)

- LIVE

Opened: 31-Mar-2026

Shares Held at Open: 3,100,000

What does PR1 do?

Pure Resources (ASX:PR1) has partnered with Rice University to develop carbon nanotube fibre thermal management materials for AI data centres and defence applications.

What is the macro theme?

We think AI and robotics will be as big a macro thematic across markets as the introduction of the internet was in the late 1990’s and early 2000’s.

AI data centres and AI humanoid robots are already pushing the boundaries of materials science technology.

(like the materials being used to make chips and data centre infrastructure)

Every single AI data centre and AI humanoid robot will need lightweight thermal management to stop motors, batteries, and chips from overheating.

We think carbon nanotube fibres have a role to play across both thematics as a lighter, higher conductivity and stronger material - and naturally, anything that utilises them as parts for advanced chips/robotics.

AI infrastructure buildouts from the likes of Alphabet, Meta, Amazon and more of the hyperscalers - all creates massive demand for better thermal management materials.

Our Big Bet for PR1

"PR1 re-rates to a +$200M market cap by securing a pathway into the carbon nanotube fibre thermal management supply chain, attracting strategic partnerships with major data centre or defence customers, and/or being acquired at a multiple of our Initial Entry Price."

NOTE: our “Big Bet” is what we HOPE the ultimate success scenario looks like for this particular Investment over the long term (3+ years). There is no guarantee that our Big Bet will ever come true. There is a lot of work to be done, many risks involved, including development risk, country risk and commodity price risk - just some of which we list in our PR1 Investment Memo.

Success will require a significant amount of luck. Past performance is not an indicator of future performance.

Why did we invest in PR1?

Our three favourite macro thematics - AI, Robotics and Defence

We have been looking for ways to get exposure to the "AI infrastructure buildout", "robotics" and “defence” thematic on the ASX for a while now.

PR1’s focus will be on a problem that combines a mix between materials science, AI and robotics - where the blue sky upside could be anything really...

(We literally don't know, it could also never eventuate into anything commercial).

PR1 is going after thermal management - a critical problem for two of our favourite macro thematics - AI data centres, autonomous robots/vehicles.

We think the two macro thematics are going to be the main character for the markets over the next decade at least.

First micro-cap on the ASX going after thermal management

We like first movers on the ASX - especially when it comes to advanced technologies across AI and robotics.

PR1 is working with Rice Uni to develop thermal management tech based on the work of Professor Matteo Pasquali - who leads Rice University's Carbon Hub.

Pasquali developed “carbon nanotube fibres” a material that is 17% more thermally conductive than copper, nearly double the thermal conductivity of aluminium, 50x stronger than copper by weight, 5.6x lighter than copper, and fully recyclable (unlike carbon fibre, which cannot be recycled at all).

Carbon nanotube fibres showed that for the first time you could get metal-level conductivity and carbon fibre-level strength in the same material.

Under the R&D collaboration agreement, PR1 is applying that material to thermal management.

Collaboration deal with Rice University who were involved in multiple ASX tech success stories.

PR1 is not the first ASX company to partner with Rice University.

Rice University has been associated with some of the most successful industrial materials projects on the ASX in the last few years.

Rice University is the same university that developed the:

  • ~$757M capped Weebit Nano (ASX: WBT) ReRAM semiconductor technology and
  • ~$413M capped Metallium (ASX: MTM) Flash Joule Heating technology.
  • ~$34M capped Environmental Clean Technologies (ASX: ECT) Flash Joule Heating technology for PFAS.
  • One of our best performers of 2025 - Locksley Resources (ASX: LKY) signed a collaboration with Rice Uni - on that day alone LKY’s share price was up over 40%.

The past performance of the above companies is not an indicator of future performance of PR1. Caution should be exercised in assessing past performance.

Proven technology that’s been funded by the US DoE and DoW

The tech that underpins PR1’s thermal management research isn't just a lab experiment.

Rice's carbon nanotube fibre technology that is being commercialised by a company called DexMat and has received funding from the US Department Of Energy, NASA and the US Air Force.

The DoE grant from 2024 was specifically targeting further improvements to thermal conductivity so there is a demand signal in the market too.

The US Department of War is also funding carbon nanotube fibre research.

(Team members of Dexmat are also part of the collaboration deal with PR1)

PR1 is collaborating with experts in carbon nanotube fibres and thermal management

PR1 will now be doing its R&D programs alongside:

  • Prof. Matteo Pasquali - the inventor of Rice Uni’s carbon nanotube fibres technology. He's the reason the material exists and how to optimise it for any specific application.
  • Prof. Daniel Preston - At Rice, he explicitly works on "thermal management for high-powered electronics, both military and civilian applications." He's the one who can take a carbon nanotube fibre heat exchanger and make it perform at its absolute physical maximum.
  • Prof. Vanessa Sanchez - She knows how to take advanced fibres and weave, knit, and integrate them into functional structures. She's the bridge between "we have a great fibre" and "we have a product that fits on an actual platform."
  • Prof. Geoff Wehmeyer - the thermal switch guy. He builds devices that can turn heat flow on and off, like a light switch, but for thermal energy.

Put them together and you have the full chain - from carbon nanotube fibres chemistry all the way to thermal management systems.

Tiny market cap and tight capital structure

PR1 has a market cap of just ~$17.5M and ~70 million shares on issue (after today’s capital raise).

The last annual report also showed that the top 20 held ~83% of the company's stock (source) - so we think the company could re-rate to multiples of where it is today IF the company can develop, license and commercialise its tech partnerships.

No guarantees this will eventuate of course. Commercialising technology is hard to do, and an investment in PR1 carries risk.

What do we expect PR1 to deliver?

Objective #1: Formalise the Rice University research partnership

We want to see initial results from PR1’s R&D collaboration agreement with Rice University.

Then we want to see the collaboration agreement convert into licensing agreements for any tech developed through the partnership OR outside of the partnership - whether that is carbon nanotube fibre thermal prototypes, or co-development of tech through Rice’s Carbon Hub.

Here are the milestones we will be tracking:

Milestones

not done Announce licensing agreement OR formal research agreement with Rice University

not done Deliver first research milestone / progress update

not done Announce co-development or pilot-scale testwork results for thermal management materials (or any other products developed through the relationship).

Objective #2: Demonstrate technology validation

We want to see PR1's involvement in the CNTF thermal management space validated through testing results, prototypes, or third-party endorsements.

Milestones

not done Testing/prototype results from Rice collaboration

not done Pathway to qualification for data centre or defence applications

Objective #3: Secure US market entry - data centre or defence supply chain partnerships

We want to see PR1 take any tech it develops with Rice and sign partnerships or MoU’s with industrial users.

Here are the milestones we are tracking:

Milestones

not done Announce partnership or MoU with a US data centre thermal management company

not done Announce partnership or MoU with a US defence contractor

not done Strategic partnership or co-development agreement signed

Objective #4: (Bonus): Attract strategic investment or JV partner

This one is probably more likely to happen a lot later but we think some sort of third party validation of any tech PR1 develops could be a major catalyst for the stock.

Similar to how an MTM signed a deal with US based Indium corp in August 2024 - that started the rally from 8c to a high of above $1.10 per share.

(past performance of MTM is not an indicator of future performance of PR1)

We think it is possible that PR1 could attract a strategic investor or joint venture partner from the data centre, defence, or advanced materials space.

Milestones

not done Secure strategic cornerstone investor

not done Announce JV with a major data centre or defence counterparty

not done Secure Department Of Energy, Department Of War or US Air Force funding

What could go wrong?

Technology / R&D risk

PR1's research agreement with Rice University is early-stage R&D.

There is no guarantee that the collaboration leads to a commercial product.

Many research partnerships do not result in commercially viable outcomes.

Carbon nanotube fibre thermal management products are mostly in the “lab-demonstrated” but not yet commercially ready stage for PR1’s specific use case.

The gap between laboratory-scale and commercial-scale is real and has killed many promising technologies.

Funding risk / dilution risk

PR1 is a micro cap, pre revenue company meaning it will need to raise funds in the future for R&D work.

PR1 will likely need to raise capital multiples times, each of which may dilute existing shareholders.

There is no guarantee PR1 can access capital on favourable terms.

Long lead times to revenue

Even if PR1 formalises a research agreement with Rice University, commercial revenue from carbon nanotube fibre is likely years away.

Product qualification of new thermal materials can take 5-15 years under industry standard frameworks.

Investors need to be comfortable with a long runway before any revenue materialises.

Competition risk

The thermal management space is crowded with large, well-funded players.

There are companies with commercialised tech in the market already and the end users (Google, Meta, Amazon) all have internal R&D programs.

PR1 could face competition from larger, better-resourced players on multiple fronts.

Market risk

Broader market sentiment could deteriorate, particularly for micro-cap technology plays.

If the ASX small-cap market enters a period of weakness, PR1 could struggle to attract the capital and attention needed to advance its strategy.

Other risks

Like any early-stage technology and R&D company, PR1 carries significant risk, here we aim to identify a few more risks.

A major specific risk for PR1 lies in the Intellectual Property (IP) structure of its collaboration with Rice University.

The agreement states that IP will be jointly owned where there are co-inventors, which can create complex legal and commercial hurdles when attempting to exclusively license, sell, or protect the technology globally.

Even if the R&D successfully produces a highly conductive carbon nanotube fibre for thermal management, scaling the manufacturing process is incredibly difficult.

Moving from creating small batches of advanced materials in a university laboratory to producing commercial quantities cost-effectively has historically been a tough task for advanced materials companies.

PR1 also faces significant industry adoption risk.

Hyperscale data center operators like Amazon, Google, and Microsoft are highly risk-averse regarding their multi-billion dollar infrastructure. Convincing these tech giants to replace proven copper or liquid cooling systems with a novel carbon nanomaterial will require years of rigorous, expensive product qualification and testing.

The company is also reliant on its partnership with Rice University and key personnel like Professor Pasquali and his team. As an ASX-listed junior, PR1 lacks the internal scientific capacity to advance this highly specialised technology on its own if the university collaboration breaks down or key researchers depart.

Investors should consider these risks carefully and seek professional advice tailored to their personal circumstances before investing.

What is our investment plan?

Our plan is to hold the majority of our position in PR1 for 3 to 5 years which we hope is enough time to see PR1 to move towards development (see “our long term bet” above).

After 12 months, we will apply our standard de-risking strategy.

We may also look to sell up to 20% of our holding if the company delivers on one or more of our Investment Memo objectives and/or the share price materially re-rates.

Any sell downs will be in accordance with our trading and hold policy disclosure.

Disclosure: Disclosure: S3 Consortium Pty Ltd (the Company) and Associated Entities own 3,100,000 PR1 Shares at the time of publishing this Investment Memo. The Company has been engaged by PR1 to share our commentary on the progress of our Investment in PR1 over time. This information is general in nature about a speculative investment and does not constitute personal advice. It does not consider your objectives, financial situation, or needs. Any forward-looking statements are uncertain and not a guaranteed outcome.

Our Investment Summary

Date of Initial Coverage

31-Mar-26

Inital Entry Price

$0.250

Returns from Initial Entry

52%

High Point

80%