GTI Energy (ASX:GTR) Research Update

Highlights:

• Arrowhead is updating its coverage on GTI Energy Ltd. (“GTI” or “the Company”) with a fair value bracket of AUD 0.023 – AUD 0.028 (Share Price on November 29, 2022: AUD 0.012) based on Comparable Company Valuation.
• GTI is an early-stage mining company that engages in exploring, defining, and developing Insitu Recovery (“ISR”) amenable uranium resources in Wyoming, USA. GTI has transitioned from a company with a primary focus on gold exploration to a company with an exclusive focus on uranium exploration. In pursuit of its decision to narrow its focus on uranium exploration, GTI sold the majority stake in the Kookynie Gold Project in Western Australia to Regener8 Resources in June 2022.
• The Company’s most advanced project to date is the Thor Project, holding potentially economically viable mineralization based on widths, grades, and depth of mineralization encountered thus far from drilling. The Company commenced follow-up drilling at its GDB ISR uranium project on September 15, 2022, which is expected to be complete in the coming weeks. GTI completed the follow-up drilling on the Thor project on November 8, 2022, drilling 70 holes for a total of 34,010 feet. The rigs have now moved to Odin claims for further drilling. In addition, the Company currently has uranium & vanadium exploration projects in the Henry Mountains, Utah.
• GTI’s flagship Wyoming assets lie in the vicinity of major uranium assets of other companies like Ur- Energy’s Lost Creek & Lost Soldier, Rio Tinto’s Jackpot, and UEC’s Antelope deposits, increasing the company’s prospects of discovering economically viable mineralization and starting production in a few years. Wyoming has advanced mining support infrastructure and a historically strong uranium mining ecosystem, including exploration, construction, milling, and logistical support to assist GTI’s exploration activities.
• The ISR uranium mining technology is a very mature technology that has become the industry standard in uranium mining hotbeds, such as Wyoming, Kazakhstan, and South Australia as well as worldwide since its introduction. This technology is the lowest cost and least environmentally damaging form of uranium mining. The ISR technology is being used for mining at several major sites in Wyoming, where GTI’s flagship GDB and Green Mountain assets are located.
• GTI is banking on expectations of continued rapid growth in uranium demand and improving uranium term contract prices. The global power and energy crisis coupled with the climate response for zero emissions is driving the demand for alternative energy. Nuclear energy, which is produced using uranium, is a core component of the evolving alternative energy mix.