Global Atomic’s flagship asset is the high-grade DASA uranium deposit in Niger and the Company is working on fast-tracking development the mine to deliver first ore in 2022. Global Atomic has an MOU with Orano Mining, that operates two mines near DASA. The initial mining plan is to start open pit mining and deliver ore to Orano for processing. A updated mineral resource is due in Q2 2019, which will be used as the basis for the feasibility study due in 2020.
A PEA published in October 2018 envisaged a two-phase development strategy, with a capital investment of US$35m to start underground mining with no mill required and a targeted production of 2.8Mlbpa U3O8 at 3,698ppm. Recent drill results have returned grades so high that the mine will now be open pit, not underground. In Phase 2 development, the company would have an option of building a standalone processing facility and could reach an annual production of 4–7Mlb U3O8 at an AISC of US$28.51/lb.
In addition Global Atomic owns a non-operated stake in a cash-flow generating zinc recycling operation in Turkey. The 49% interest in Befesa Silvermet Turkey is a joint venture with Befesa S.A, a €1.4 billion market leader in metals recycling. The plant produces high-grade zinc-oxide concentrate that is sold to zinc smelters around the world and is currently undergoing a significant expansion. The expansion of the processing plant will double annual production from 30Mlb to 60Mlb of zinc and be completed in H2 2019.
Global Atomic recently raised C$10.1m, which will be used to progress development of the DASA Uranium Project. The Befesa Silvermet expansion is ring-fenced and funded through cash flow from operations and project-level credit lines.
Ticker: TSX-V: GLO OTC:SYIFF FRA:G12
Countries of operation: Niger | Turkey
Commodity: Development | Production
Project Status: Development | Production
Board of Directors:
- Stephen G. Roman | Chairman, President, CEO
- Merlin Marr-Johnson | Executive Vice President
- George A. Flach | Director, VP Exploration
- Richard Faucher | Non-executive Director
- Paul Cronin | Non-executive Director
- Derek C. Rance | Non-executive Director
- Asier Zarraonandia Ayo | Non-executive Director
Plans and Latest Developments:
An updated Resource for DASA is expected in Q2 2019, anticipating an improvement from the June 2018 report of 6.0 million tonnes at 4,552ppm eU3O8 (60.0 million pounds) at a cut-off of 1,200 ppm. A feasibility is currently underway and is due to be completed in 2020. The company is targeting early production in 2022.
In Turkey, the plan is to complete the zinc expansion to 60Mlbspa capacity in Q3 2019. Material is being stockpiled throughout the year, and will be processed at 2018 rates (30Mlbspa) in Q4 2019, as part of commissioning.
Why should investors invest in you?
Global Atomic is two businesses within a single company. The cash flow from the zinc operation is an asset worth more than US$100m on current market cash flow multiples that will allow the company to unlock value in the DASA uranium project. With a market capitalisation of US$42m, the Tier 1 uranium asset is in for ‘free’. DASA is high grade and large, it can be permitted very quickly, and with minimal Capital requirements as it does not need to build a process plant. Global Atomic recently raised US$7.5m, and is well funded.
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