GTI Energy Ltd (ASX:GTR) Updates Scoping Study for Lo Herma Uranium Project
Updated Financial Metrics
GTI Energy Ltd (ASX:GTR) has released an updated scoping study for its Lo Herma Uranium Project in Wyoming. The revision lowers the NPV breakeven uranium price from approximately US$65 per pound to around US$60 per pound over the economic evaluation period. The study projects a pre-tax NPV of approximately US$110 million with an internal rate of return (IRR) of 52% under the Central Processing Plant (CPP) scenario.
Production Targets and Project Economics
The Lo Herma Project aims for a life-of-mine production target of 5.98 million pounds of U₃O₈ over seven years, with an annual production rate of 800,000 pounds. Operating costs are estimated at US$32 per pound with all-in sustaining costs (AISC) of US$41 per pound. The project benefits from low initial capital expenditures of approximately US$67 million and demonstrates a payback period of about 2.5 years from the start of production.
Executive Comments
Bruce Lane, Executive Director & CEO of GTI Energy Ltd, stated, “We are very pleased to present the results of the Lo Herma Project Scoping Study. This Study represents an initial estimate for a project based on the Lo Herma deposit, producing 800,000lbs p.a. U₃O₈ for supply into the increasing uranium demand supporting the US nuclear power industry. The Project’s ‘base case’ contemplates a central processing facility with an estimated initial 7-year mine life with potential to increase the mine life and grow the project’s value through further drilling.”
Future Outlook and Next Steps
GTI Energy plans to commence construction in 2028, with commissioning of production slated for 2029. Further exploration and evaluation work, including groundwater pumping tests and additional metallurgical studies, are scheduled to enhance project viability and resource estimates. The company also considers the option of a Satellite Operation to further reduce capital and operating costs.
Motley Fool contributor Lianne Eastty has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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