ASX:GTR
Last Price:
$0.008
Date of Initial Coverage
29-Apr-20
Initial Entry Price
$0.018
Returns from Initial Entry
-56%
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.
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.
[Expectations added on 18th July 2022]
Milestones
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.
Milestones
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]
Milestones
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.
✅ 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
General updates from GTR
GTR presentation to US based investors. [09-Nov-2022]
GTR targeting maiden resource, geophysics in Wyoming [16-Feb-2023]
GTR - Updated investor presentation [06-Apr-2023]