American Uranium [ASX:AMU]
Metals & Mining
Scalable and High-Margin U.S. Uranium Play
We initiate coverage on American Uranium Ltd (ASX: AMU), earlier named GTI Energy Ltd, with a 12-month target price of A$0.50, representing a ~126% upside from the current share price. AMU is a US-focused uranium developer advancing ISR projects in Wyoming, led by its flagship Lo Herma Project in the Powder River Basin. Lo Herma hosts a JORC MRE of 6.21Mt at 630 ppm eU₃O₈ for 8.57Mlbs, with 32% classified as Indicated and a substantial exploration target. A recent study confirms substantial ISR recoveries and robust economics. AMU also holds ISR uranium projects in the Great Divide Basin and Green Mountain, as well as conventional uranium-vanadium assets in Utah. With 10.23Mlbs of resource, AMU is well-positioned to supply the world’s largest uranium market (50Mlbs p.a.), at a time when the U.S. produces less than 2% of its current needs.
High-potential U.S. uranium assets underpinned by policy tailwinds
American Uranium provides direct exposure to a low-cost US domestic uranium supply through its ISR-focused projects in Wyoming, a premier uranium jurisdiction. The company’s flagship Lo Herma Project hosts 8.57Mlbs U₃O₈ with strong growth potential supported by a 6.16 to 10.95Mlbs Exploration Target. Additional upside comes from the Great Divide Basin (1.66Mlbs Inferred resource, 6.1–9.5Mlbs target), Green Mountain, and Utah’s uranium-vanadium-rich Henry Mountains. With ISR’s permitting and environmental advantages, and strong US policy support for domestic supply, AMU is well-positioned as a scalable, clean energy developer for a severely undersupplied domestic market in a geopolitically critical sector.
Strategic positioning underpins continued investor confidence
The Lo Herma Project is strategically located within ~60 miles of five permitted ISR uranium production facilities, including operations owned by Cameco, Ur-Energy, UEC, and Energy Fuels. Notably, the project area features favourable topography and hydrogeology for ISR development. This proximity positions Lo Herma as a compelling low-impact, low-cost development opportunity within the core of the U.S. nuclear fuel revival. Furthermore, the recent investment by NASDAQ-listed Snow Lake Energy, a U.S.-focused uranium and nuclear energy company, in acquiring a 9.9% stake in AMU further validates the quality and strategic potential of AMU’s assets.
Valuation range of A$0.424–0.570 per share
Using a resource-based peer-comparable-driven methodology, we have valued AMU at a midpoint target price of A$0.497/share. This implies a Price/NAV of 0.44x and offers significant upside potential of ~126%. We support this substantial upside given the project’s strategic location in the U.S.’s prolific and metallurgically superior Wyoming Uranium heartland. Our target price underscores the significant inherent value of the Lo Herma ISR Uranium Project. As AMU achieves its stated key milestones (drilling targets, MRE upgrade, etc.), additional value can be unlocked. Consistent high-grade step-out drilling is expected to enhance the existing resource base. Further, following the recent conclusion of share issuance to NASDAQ-listed strategic investor Snow Lake which now holds ~10% of AMU, we anticipate that market participants will re-examine AMU stock with renewed interest. Any potential M&A news is likely to re-rate the stock. Notable risks include commodity price volatility, resource development, and possible delays in project execution.