Dasa Uranium Project Remains on Schedule to
Produce Yellowcake in Q1 2026
TORONTO, Aug. 12,
2024 /CNW/ - Global Atomic Corporation ("Global
Atomic" or the "Company"), (TSX: GLO) (OTCQX: GLATF)
(FRANKFURT: G12) announced today its operating and financial
results for the quarter ended June
30, 2024. For more detail, please refer to the
Condensed Interim Consolidated Financial Statements and
Management's Discussion and Analysis for the three and six months
ended June 30, 2024, on the Company's
website at www.globalatomiccorp.com.
Q2 2024 HIGHLIGHTS
Dasa Uranium Project – Mine Development
- Ramp development has been underway since the Opening Blast
Ceremony, November 5th, 2022, with
over 1,235 meters completed as of the date hereof; and 7,000 tonnes
of development ore now hauled to surface. Mine development is
continuing with level development in the footwall and decline
development.
- Raise Boring is now underway for the Fresh Air Raise and Return
Air Raise which will act as the main components of the mine's
ventilation infrastructure.
- As of the date hereof, the Dasa Mine, operated by SOMIDA and
overseen by Global Atomic Corporation, has achieved 732 days
without a Lost Time Injury ("LTI"), a testament to management's
dedication to create a safe work environment and the team's success
in implementing effective safety measures.
Dasa Uranium Project – Plant Construction
- The Company began extensive earthworks in Q2 2024 to prepare
the site for construction of the Dasa processing plant as well as
expansion of the Daiy Camp to house employees and construction
crews.
- A 250-person housing facility has arrived on site. Civil works
are underway for cement pads, water and sanitary facilities.
- The Dasa Project Acid Plant fabrication has been completed and
the plant is now being shipped to site. This will be the first
major construction that will get underway once the shipment arrives
at Dasa.
- Our EPCM contractors have made significant progress to complete
final engineering and order long lead items.
- The procurement team is working to advance product
specifications and select vendors for plant parts and
equipment.
Turkish Zinc Joint Venture
- In Q2 2024, the Turkish JV processed 19,162 tonnes of Electric
Arc Furnace Dust ("EAFD").
- Zinc contained in concentrate shipments totalled 7.4 million
pounds and the average monthly LME zinc price was US$1.31/lb in Q2 2024.
- The Company's share of the Turkish JV EBITDA was a gain of
$2.8 million in Q2 2024 (a loss of
$1.4 million in Q2 2023).
- The cash balance of the Turkish JV was US$5.1 million at the end of Q2 2024.
Corporate: Financing – Private Placement
- On July 23, 2024, Global Atomic
announced a non-brokered private placement (the "Offering") for
gross proceeds of up to C$15 million
from the sale of up to 11,111,111 units of the Company (each, a
"Unit") at a price of C$1.35 per
Unit.
- On July 24, 2024, the Company
increased the maximum gross proceeds of the Offering from
C$15 million to C$20 million. Under the revised Offering, the
Company sold 14,814,815 Units at a price of C$1.35 per Unit.
- Each Unit consists of one common share of the Company (each, a
"Common Share") and one Common share purchase warrant (a
"Warrant"). Each Warrant entitles the holder to purchase one Common
Share at a price of C$1.80 for a
period of 24 months following the issue date.
- The Warrants are subject to an acceleration clause whereby if
(i) the 10-day volume weighted average price of the Common Shares
is above C$2.50 and, (ii) within a
period of 5 trading days following the date the Company provides a
notice via widely disseminated press release, the expiry date of
the Warrants shall be accelerated to the date that is 30 days from
the date of the aforementioned press release.
- The Company intends to use the net proceeds from the Offering
for the advancement of the Company's Dasa Project and for general
working capital purposes.
- The Offering closed on July 31,
2024.
Corporate
- Global Atomic received $305,000
in quarterly management fees and monthly sales commissions from the
Turkish JV ($202,000 in Q2 2023),
helping to offset corporate overhead costs.
- The cash balance as of June 30,
2024, was $1.9 million.
Subsequent to the end of the quarter, the Company raised
C$20 million of gross proceeds under
a private placement.
Global Atomic President and CEO, Stephen
G. Roman commented, "We continue to make significant
progress at our Dasa Uranium Project, currently employing over 450
people at site and expecting to increase that number to 900 once
plant construction is in full swing. We have an excellent
relationship with the government and have the support of their
entire cabinet, as they appreciate the jobs and economic benefit
that Dasa will create for Niger."
"As for project financing, the recent C$20 million private placement has allowed
continued advancement of the project while the U.S. development
bank moves our debt financing facility through its approval
process. Although the bank postponed their July
presentation of our Project to their credit committee, we remain
confident that the bank will eventually approve our Project.
Should the bank further delay their approval, we will move to
finalize other financing discussions, which include minority JV
partners and pre-payments tied to uranium offtake."
"The Dasa Project is unique as the highest-grade uranium
project in Africa and the only
greenfield uranium project being actively developed today.
With an IRR of 57% at a uranium price of $75 per pound, this project is compelling, and
the economic returns will only improve as we move closer to
production in 2026. This project will get funded and will get
built."
OUTLOOK
Dasa Uranium Project
- Continue development of the underground ore access drifts and
ramp to lower levels to remain on schedule to supply uranium ore to
the processing plant from the end of 2025.
- Scheduled additions to the in-country construction team will
increase the site complement from 450 to approximately 900
workers.
- In Q3 2024, our Bank Syndicate is expected to approve the Debt
Financing facility for the construction of the Dasa Project. In the
event of potential further delays in the approval of this facility,
the Company is actively considering funding options and advancing
several options in parallel to determine the preferred funding
structure.
- Complete final engineering, site development and civil works
for the Dasa processing plant and begin installation of
equipment.
- Continue marketing efforts to secure additional uranium
off-take agreements.
Turkish Zinc Joint Venture
- The Company anticipates operations at its Turkish JV will be
profitable in 2024 due to a return to usual local steel mill
production levels, a recovery in zinc prices this past quarter and
lower input prices.
COMPARATIVE RESULTS
The following table summarizes comparative results of operations
of the Company:
|
Three months ended
June 30,
|
|
Six months ended
June 30,
|
(all amounts in
C$)
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
Revenues
|
$
304,552
|
|
$
202,273
|
|
$
576,015
|
|
$
333,114
|
|
|
|
|
|
|
|
|
General and
administration
|
1,785,746
|
|
1,806,321
|
|
3,984,967
|
|
4,639,152
|
Share of equity (gain)
loss
|
(835,770)
|
|
3,547,248
|
|
(1,169,456)
|
|
4,935,522
|
Finance income,
net
|
(98,114)
|
|
(533,660)
|
|
(339,745)
|
|
(605,128)
|
Foreign exchange (gain)
loss
|
(1,589,942)
|
|
1,603,390
|
|
(5,340,304)
|
|
2,814,106
|
Net income
(loss)
|
$
1,042,632
|
|
$
(6,221,026)
|
|
$
3,440,553
|
|
$
(11,450,538)
|
Net income (loss)
attributable to:
|
|
|
|
|
|
|
Shareholders of the
Company
|
1,037,691
|
|
(6,238,148)
|
|
3,420,869
|
|
(11,475,811)
|
Non-controlling
interests
|
4,941
|
|
17,122
|
|
19,684
|
|
25,273
|
Other comprehensive
income (loss)
|
1,660,233
|
|
$ (5,517,775)
|
|
$
2,345,344
|
|
$ (2,798,999)
|
Comprehensive income
(loss)
|
$
2,702,865
|
|
$
(11,738,801)
|
|
$
5,785,897
|
|
$
(14,249,537)
|
Comprehensive income
(loss) attributable to:
|
|
|
|
|
Shareholders of the
Company
|
2,689,275
|
|
(11,737,518)
|
|
5,737,222
|
|
(14,255,736)
|
Non-controlling
interests
|
13,590
|
|
(1,283)
|
|
48,675
|
|
6,199
|
|
|
|
|
|
|
|
|
Basic and diluted net
loss per share
|
$0.01
|
|
($0.03)
|
|
$0.02
|
|
($0.06)
|
Diluted net income per
share
|
$0.01
|
|
($0.03)
|
|
$0.02
|
|
($0.06)
|
|
|
|
|
|
|
|
|
Basic
weighted-average
number of shares outstanding
|
210,309,098
|
|
202,128,857
|
|
209,194,589
|
|
193,404,462
|
Diluted
weighted-average
number of shares outstanding
|
211,542,626
|
|
202,128,857
|
|
210,874,240
|
|
193,404,462
|
|
June
30,
|
|
December
31,
|
|
2024
|
|
2023
|
|
|
|
|
Cash
|
$
1,862,292
|
|
$ 24,857,915
|
Property, plant and
equipment
|
174,800,983
|
|
129,986,343
|
Exploration &
evaluation assets
|
1,570,820
|
|
1,370,358
|
Investment in joint
venture
|
15,877,764
|
|
12,628,251
|
Other assets
|
4,875,179
|
|
8,755,878
|
Total
assets
|
$
198,987,038
|
|
$
177,598,745
|
|
|
|
|
Total
liabilities
|
$
20,952,167
|
|
$
19,412,976
|
|
|
|
|
Total
equity
|
$
178,034,871
|
|
$
158,185,769
|
The condensed interim consolidated financial statements reflect
the equity method of accounting for Global Atomic's interest in the
Turkish JV. The Company's share of net earnings and net assets are
disclosed in the notes to the financial statements.
Uranium Business
Niger Mining Company
On December 23, 2020, GAFC was
granted a Mining Permit for the Dasa Project on behalf of a
Niger mining company to be
incorporated. The Mining Permit is valid for an initial term of 10
years and is renewable for successive five-year terms until the
resource is depleted. The Company's Niger mining subsidiary, Société Minière de
DASA S.A. ("SOMIDA") was incorporated on August 11, 2022. In accordance with the mining
agreement signed by GAFC and the Republic of Niger on September 25,
2007, the latter received a 10% free carried interest in the
mining subsidiary and exercised its right to subscribe for an
additional 10%, resulting in a total ownership of 20% of the shares
of SOMIDA. Under the terms of the Company's Mining Agreement, the
Republic of Niger commits to fund
its proportionate share of capital costs and operating deficits for
the additional 10% interest. The Republic of Niger has no further option to increase its
ownership.
Niger Political Situation
With the exception of logistics delays, project development has
not been affected by the political developments since July 2023. The government is very supportive and
at a recent site visit, the Mines Minister; Commissaire Colonel
Ousmane Abarchi stated "We came
here, we visited the mine, and we launched the earth breaking
operations for the mill construction. Dasa is a reality everyone
can see. We thank you all. We are supportive of the SOMIDA
team and Global Atomic. This project is very important for us; as a
government and as a shareholder. We want Dasa to be the start of
new Niger mining practice with
expectations on State Income, Employment and Environment
management."
Project Development Schedule
Mine development activities at the Dasa Project have been
underway since November 2022. The
current mine plan has been developed to coincide with the start-up
of the processing plant at the beginning of 2026, with a target
surface stockpile of 2 to 3 months production available for the
processing plant at any time. Long lead equipment purchases have
been made and detailed engineering is well advanced. Although some
earthworks projects have been undertaken by SOMIDA and its staff
over the past year, full-scale earthworks have been contracted out
and commenced in May. Civils works will follow, and processing
plant equipment will begin arriving at site in Q4 2024. Erection of
the processing plant and site infrastructure will take place from
Q4 2024 through Q4 2025, with hot commissioning completed by
January 2026. Processing of ore
through the plant is expected to begin in January 2026.
Project Financing
The Company has been advancing Project Financing. On
October 10, 2023, the Company
announced that because of the Coup d'Etat designation of the
situation in Niger by the U.S.
Government, the U.S. development bank would temporarily put the
project financing on hold. The Company was subsequently advised
that the U.S. Government expressed support for the Dasa Project,
and the U.S. development bank was authorized to re-engage with the
Company. The review and finalization of credit committee
documentation is on-going with target credit committee approval and
final Board approval in Q4 2024 and documentation thereafter. It is
expected that the project financing will provide 60% of the total
project costs plus 50% of the cost overrun facility.
The Company is also in discussions with alternative financing
sources that are available. Such parallel discussions will continue
so that alternative financing is available in case the banks
further delay their approval process or choose not to proceed.
Turkish Zinc JV EAFD Operations
Global Atomic holds a 49% interest in Befesa Silvermet
Turkey, S.L. ("BST" or the "Turkish JV") which owns and operates an
EAFD processing plant in Iskenderun, Türkiye. The plant processes
EAFD containing 25% to 30% zinc that is obtained from electric arc
steel mills, and produces a zinc concentrate grading 65% to 68%
zinc that is then sold to zinc smelters. The Company's investment
is accounted for using the equity basis of accounting. Under
this basis of accounting, the Company's share of the BST's earnings
is shown as a single line in its Consolidated Statements of Income
(Loss).
The following table summarizes comparative results for three and
six months ended June 30, 2024 and
2023 of the Turkish JV at 100%:
|
Three months ended
June 30,
|
|
Six months ended
June 30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
100 %
|
|
100 %
|
|
100 %
|
|
100 %
|
Net sales
revenues
|
$
13,515,534
|
|
$
6,179,649
|
|
$
23,023,832
|
|
$
12,016,043
|
Cost of
sales
|
$
7,886,295
|
|
9,957,890
|
|
16,302,001
|
|
16,629,211
|
Foreign exchange
gain
|
87,900
|
|
826,550
|
|
328,755
|
|
902,615
|
EBITDA(1)
|
$
5,717,139
|
|
$
(2,951,691)
|
|
$
7,050,586
|
|
$
(3,710,553)
|
|
|
|
|
|
|
|
|
Management fees &
sales commissions
|
467,869
|
|
343,456
|
|
1,235,734
|
|
727,470
|
Depreciation
|
832,100
|
|
511,779
|
|
1,384,462
|
|
1,480,281
|
Interest
expense
|
428,671
|
|
241,998
|
|
993,354
|
|
792,122
|
Foreign exchange
loss
|
240,173
|
|
3,350,450
|
|
1,383,886
|
|
3,672,808
|
Monetary gain
(loss)
|
1,023,865
|
|
5,317
|
|
(349,856)
|
|
1,101,021
|
Tax expense
(recovery)
|
319,095
|
|
(154,778)
|
|
(683,351)
|
|
790,281
|
Net income
(loss)
|
$
1,705,654
|
|
$
(7,239,279)
|
|
$
2,386,645
|
|
$
(10,072,494)
|
Global Atomic's equity
share
|
$
835,770
|
|
$
(3,547,247)
|
|
$
1,169,456
|
|
$
(4,935,522)
|
|
|
|
|
|
|
|
|
Global Atomic's share
of EBITDA
|
$
2,801,398
|
|
$
(1,446,329)
|
|
$
3,454,787
|
|
$
(1,818,171)
|
|
|
(1)
|
EBITDA is a non-IFRS
measure, does not have a standardized meaning prescribed by IFRS
and may not be comparable to similar terms and measures presented
by other issuers. EBITDA comprises earnings before income taxes,
interest expense (income), foreign exchange loss (gain) on debt and
bank, depreciation, management fees, sales commissions, losses
(gains) on sale of property, plant and equipment.
|
The Turkish JV realized significant growth in revenues during
three and six months ended June 2024
compared to 2023. Operations in H1 2023 were adversely affected by
significant earthquakes in Türkiye. In H1 2024, the Turkish
JV sold 16.6 million pounds of zinc concentrate, increase from the
13.7 million pounds sold in the corresponding period last year.
Despite a decline in the average monthly LME zinc price, which
decreased to US$1.21 per pound in H1
2024 from US$1.29 per pound in H1
2023, the profit margin experienced a positive impact primarily
attributed to reduced unit costs in EAFD and coking coal, resulting
in a favorable EBITDA.
The cash balance of the Turkish Zinc JV was US$5.1 million at June 30,
2024.
The following table summarizes comparative operational metrics
of the Iskenderun facility.
|
Three months ended
June 30,
|
|
Six months ended
June 30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
100 %
|
|
100 %
|
|
100 %
|
|
100 %
|
|
|
|
|
|
|
|
|
Exchange rate (C$/TL,
average)
|
23.67
|
|
15.68
|
|
23.31
|
|
14.82
|
Exchange rate (US$/C$,
average)
|
1.37
|
|
1.34
|
|
1.36
|
|
1.35
|
|
|
|
|
|
|
|
|
Exchange rate (C$/TL,
period-end)
|
23.92
|
|
19.69
|
|
23.92
|
|
19.69
|
Exchange rate (US$/C$,
period-end)
|
1.37
|
|
1.32
|
|
1.37
|
|
1.32
|
|
|
|
|
|
|
|
|
Average monthly LME
zinc price (US$/lb)
|
1.31
|
|
1.15
|
|
1.21
|
|
1.29
|
|
|
|
|
|
|
|
|
EAFD processed
(DMT)
|
19,162
|
|
17,233
|
|
39,152
|
|
23,358
|
|
|
|
|
|
|
|
|
Production
(DMT)
|
6,506
|
|
5,167
|
|
12,757
|
|
6,978
|
Sales (DMT)
|
5,089
|
|
7,027
|
|
11,566
|
|
9,506
|
|
|
|
|
|
|
|
|
Sales (zinc content
'000 lbs)
|
7,352
|
|
10,088
|
|
16,623
|
|
13,744
|
Qualified Person
The scientific and technical disclosures in this Management's
Discussion and Analysis have been extracted from the 2024
Feasibility Study, which was reviewed and approved by Dmitry Pertel, M.Sc., MAIG, John Edwards, B.Sc. Hons., FSAIMM, Andrew Pooley, B. Eng
(Hons)., FSAIMM who are "qualified persons" under National
Instrument 43-101 – Standards of Disclosure for Mineral
Properties.
About Global Atomic
Global Atomic Corporation (www.globalatomiccorp.com) is a
publicly listed company that provides a unique combination of
high-grade uranium mine development and cash-flowing zinc
concentrate production.
The Company's Uranium Division is currently developing the fully
permitted, large, high grade Dasa Deposit, discovered in 2010 by
Global Atomic geologists through grassroots field exploration. The
"First Blast Ceremony" occurred on November
5, 2022, and commissioning of the processing plant is
scheduled for Q1, 2026. Global Atomic has also identified 3
additional uranium deposits in Niger that will be advanced with further
assessment work.
Global Atomic's Base Metals Division holds a 49% interest in the
Befesa Silvermet Turkey, S.L. (BST) Joint Venture, which operates a
modern zinc recycling plant, located in Iskenderun, Türkiye. The
plant recovers zinc from Electric Arc Furnace Dust (EAFD) to
produce a high-grade zinc oxide concentrate which is sold to zinc
smelters around the world. The Company's joint venture partner,
Befesa Zinc S.A.U. (Befesa) holds a 51% interest in and is the
operator of the BST Joint Venture. Befesa is a market leader in
EAFD recycling, with approximately 50% of the European EAFD market
and facilities located throughout Europe, Asia
and the United States of
America.
The information in this release may contain forward-looking
information under applicable securities laws. Forward-looking
information includes, but is not limited to, statements with
respect to completion of any financings; Global Atomics'
development potential and timetable of its operations, development
and exploration assets; Global Atomics' ability to raise additional
funds necessary; the future price of uranium; the estimation of
mineral reserves and resources; conclusions of economic evaluation;
the realization of mineral reserve estimates; the timing and amount
of estimated future production, development and exploration; cost
of future activities; capital and operating expenditures; success
of exploration activities; mining or processing issues; currency
exchange rates; government regulation of mining operations; and
environmental and permitting risks. Generally,
forward-looking statements can be identified by the use of
forward-looking terminology such as "plans", "is expected",
"estimates", variations of such words and phrases or
statements that certain actions, events or results "could",
"would", "might", "will be taken", "will begin", "will include",
"are expected", "occur" or "be achieved". All information
contained in this news release, other than statements of current or
historical fact, is forward-looking information.
Statements of forward-looking information are subject to known and
unknown risks, uncertainties and other factors that may cause the
actual results, level of activity, performance or achievements of
Global Atomic to be materially different from those expressed or
implied by such forward-looking statements, including but not
limited to those risks described in the annual information form of
Global Atomic and in its public documents filed on SEDAR from time
to time.
Forward-looking statements are based on the opinions and
estimates of management at the date such statements are made.
Although management of Global Atomic has attempted to identify
important factors that could cause actual results to be materially
different from those forward-looking statements, there may be other
factors that cause results not to be as anticipated, estimated or
intended. There can be no assurance that such statements will
prove to be accurate, as actual results and future events could
differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance upon
forward-looking statements. Global Atomic does not undertake
to update any forward-looking statements, except in accordance with
applicable securities law. Readers should also review the
risks and uncertainties sections of Global Atomics' annual and
interim MD&As.
The Toronto Stock Exchange has not reviewed and does not accept
responsibility for the adequacy and accuracy of this news
release.
SOURCE Global Atomic Corporation