GTI Energy (ASX:GTR) is advancing its Lo Herma Uranium Project in Wyoming, US, positioning it as a competitive low-cost uranium operation. A recent Scoping Study projects a seven-year mine life, yielding 5.98 million pounds of triuranium octoxide, with an annual target of 800,000 pounds. The study, conducted by BRS Engineering, considered both a central processing plant (CPP) and a satellite operation. The CPP base case estimates a pre-tax net present value (NPV) of US$110 million and a 52% internal rate of return (IRR). The satellite operation shows an even more promising pre-tax NPV of US$118 million and a 66% IRR. These projections are based on a forecast of US$90 per pound of triuranium octoxide.
The Lo Herma project boasts a relatively low initial capital expenditure, estimated at US$67 million for a CPP and US$57 million for a satellite operation. The payback period is projected at two and a half years from the start of production, with an NPV breakeven uranium price of US$65 per pound. GTI aims to commence construction in 2028, with commissioning production in 2029. Further exploration drilling is planned to extend the mine life beyond seven years. These projects are spurred by increasing global demand for uranium and nuclear power generation.
