ASP Isotopes Inc. (ASPI) research, news, and more from GeoInvesting

Company description

Tue, 19 Mar 2024 14:28:31 GMT

ASP Isotopes Inc., a pre-commercial stage advanced materials company, focuses on the production, distribution, marketing, and sale of isotopes. It develops Molybdenum-100, a non-radioactive isotope for the medical industry; Carbon-14; and Silicon-28. The company also Uranium-235, an isotope of uranium for carbon-free energy industry. ASP Isotopes Inc. was incorporated in 2021 and is based in Boca Raton, Florida.

Research

Thu, 11 Apr 2024 17:02:53 GMT

Asp Isotopes Inc. (NASDAQ:ASPI) ($3.86; $188.8M market cap) today issued a letter to shareholders to relay an update on current initiatives. Recall that contributor Matt S. submitted a bullish thesis on the company, and during our latest April 2024 Open Forum engaged in a conversation with Maj about the company’s initiatives. Today’s company letter covered the following:

Filing of the 2023 Annual Report, showcasing its financial results and balance sheet.
Commencement of operations at the company's first commercial isotopes plant, marking a significant milestone.
Signing of purchase agreements for the supply of enriched isotopes, particularly silicon-28, for advanced semiconductor technologies.
Collaboration with a U.S.-based SMR company for the development of enrichment facilities for next-generation nuclear reactors.
Progress in the construction of new enrichment facilities, including the focus on producing Ytterbium-176 for medical applications.
Strategic partnerships and acquisitions, such as the acquisition of PET Labs, demonstrating growth and diversification.
Outlook on future growth prospects, including plans for additional isotope enrichment facilities and expansion into new markets.
The company's role in addressing critical supply chain challenges in the isotopes market, particularly in the context of global energy and healthcare needs.

We also plan to reach out to Matt, via the comment section in the research he published on the company, to determine if some of the specific language in the letter was touched upon in past company communications, specifically:

“The Company believes the Si-28 it may develop using the ASP technology may be used to develop advanced semiconductors and in quantum computing.”

Given our increased focus on AI, we are obviously interested to see exactly how significant this could become.

We encourage you to visit the comment section in the research report to follow the conversation.

Contributor Articles

Sun, 03 Mar 2024 05:00:00 GMT

ASP Isotopes Inc. (ASPI) Notes from GeoContributor Matt S.

So I plan to provide an introduction to a number of stocks I follow as I have time and provide a place to update the thesis over time.

One I would like to highlight first is ASP Isotopes ASPI due to a few catalysts.

The business is a little complicated to explain to those without some background in Uranium or medical isotope enrichment. Plus this is a recent listing and has limited Revenues, but will actually be profitable from 2024 based on initial contracts announced and having two small plants running. To fully understand this business, someone would have to do a very deep dive like I have, but starting with reading all the PRs, Prospectus or 10-K will get you a long way there. Note the initial products announced Carbon-14 and Molybdenum-100 have specialist uses. Paul Mann the CEO is a clear communicator and has interviews on Youtube with Redchip and others for a background on the company and plans. Redchip IR Link

There is an existing company Silex systems that has similar (but more limited) technology that has similar plans in conjunction with 50% partner Cameco. Silex trades in Australia for just over A$1b for comparison and I have owned this for several years also. It also has catalysts upcoming this year in relation to its plans, but that is a separate story.

Catalysts

Two week ago, the company formally announced it would later this year spin out a new business Quantum Leap Energy (PR linked here) and raise a convertible in this subsidiary ahead of the spin out (to allow it to gear up for an initial uranium HALEU enrichment facility). Currently Russia is the only substantial supplier of HALEU and the West is keen to change that. HALEU is important to the US and UK plans for Small Modular Reactors (SMRs). The main limiting feature is currently the fuel source. The cost of one plant is estimated around $100m, with the cost likely to be fully financed with customer funding in exchange for preferential supply and project debt. Location is likely Iceland due to cheap energy supply. Insiders own over half the shares (only 22.6m free float) and have been clear they do not want to dilute if at all possible. The completion of the convertible financing has also been announced last week. There will be a webinar on March 21 to update investors on these plans more formally.

On Thursday 29 February, HC Wainwright (sole analyst coverage) updated its price target from $3.25 to $5.25. I have not seen this report, but someone in the community might be able to post it.

Importantly, the company has a market cap of just under $200m and so has potential to be included in the R2000 if the price can continue to outperform IWM a little over the next few months.

As part of this catalyst, this is a relatively specialist / unknown company floated in a small IPO 2022 and at December 31 had just 3% Institutional ownership. Oceanwall, a UK based uranium fund took a position last November via a private placement as it couldn't acquire stock on market in any volume. There was a prior small placement done via Wainwright in March 2023 and some selling shareholders exited. Since stabilizing the trend has been clearly up as new (uranium) investors have discovered ASPI.

So just purely with the Russell inclusion catalyst, I expect this could continue to re-rate significantly. Recent examples of companies hitting a threshold close to inclusion with tight floats include INMB, LFMD (100% over 5 months last year) and ML (170% move over 3 months last year).