Global Atomic Announces Q2 2024 Results Dasa Uranium Project Remains on Schedule to Produce Yellowcake in Q1 2026
NEWS RELEASE
Global Atomic Announces Q2 2024 Results
Dasa Uranium Project Remains on Schedule to Produce Yellowcake in Q1 2026
Toronto, ON, August 12, 2024: 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 Da jy 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”).
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➢ 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 consist s of one common share of the Company (each, a "Common Share") and
one Common share purchase warrant (a "Warrant"). Each Warrant entitle s 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.
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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 $75
per pound, this project is compelling, and the economic returns will only improve as we move
closer to production in 2026. This project will get funded and will get built.”
OUTLOOK
Dasa Uranium Project
➢ Continue development of the underground ore access drifts and ramp to lower levels to remain
on schedule to supply uranium ore to the processing plant from the end of 2025.
➢ Scheduled additions to the in-country construction team will increase the site complement
from 450 to approximately 900 workers.
➢ In Q3 2024, our Bank Syndicate is expected to approve the Debt Financing facility for the
construction of the Dasa Project. In the event of potential further delays in the approval of this
facility, the Company is actively considering funding options and advancing several options in
parallel to determine the preferred funding structure.
➢ Complete final engineering, site development and civil works for the Dasa processing plant
and begin installation of equipment.
➢ Continue marketing efforts to secure additional uranium off-take agreements.
Turkish Zinc Joint Venture
➢ The Company anticipates operations at its Turkish JV will be profitable in 2024 due to a return
to usual local steel mill production levels, a recovery in zinc prices this past quarter and lower
input prices.
COMPARATIVE RESULTS
The following table summarizes comparative results of operations of the Company:
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The condensed interim consolidated financial statements reflect the equity method of accounting
for Global Atomic’s interest in the Turkish JV . The Company’s share of net earnings and net
assets are disclosed in the notes to the financial statements.
Uranium Business
Niger Mining Company
On December 23, 2020, GAFC was granted a Mining Permit for the Dasa Project on behalf of a
Niger mining company to be incorporated. The Mining Permit is valid for an initial term of 10 years
(all amounts in C$) 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$
Three months ended June 30, Six months ended June 30,
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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 t he 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 month s 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 2 025, 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.
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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 6 5% 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%:
(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$1.29 per pound in H1 2023, the profit margin experienced a positive impact primarily
attributed to reduced unit costs in EAFD and coking coal, resulting in a favorable EBITDA.
2024 2023 2024 2023
100% 100% 100% 100%
Net sales revenues 13,515,534$ 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)$
Three months ended June 30, Six months ended June 30,
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The cash balance of the Turkish Zinc JV was US$5.1 million at June 30, 2024.
The following table summarizes comparative operational metrics of the Iskenderun facility.
Qualified Person
The scientific and technical disclosures in this Management’s Discussion and Analysis have been
extracted from the 2024 Feasibility Study, which was reviewed and approved by Dmitry Pertel,
M.Sc., MAIG, John Edwards, B.Sc. Hons., FSAIMM, Andrew Pooley, B. Eng (Hons)., FSAIMM
who are “qualified persons” under National Instrument 43 -101 – Standards of Disclosure for
Mineral Properties.
About Global Atomic
Global Atomic Corporation ( www.globalatomiccorp.com) is a publicly listed company that
provides a unique combination of high -grade uranium mine development and cash -flowing zinc
concentrate production.
The Company’s Uranium Division is currently developing the fully permitted, large, high grade
Dasa Deposit, discovered in 2010 by Global Atomic geologists through grassroots field
exploration. The “First Blast Ceremony” occurred on November 5, 2022, and commissioning of
the processing plant is scheduled for Q1, 2026 . Global Atomic has also identified 3 additional
uranium deposits in Niger that will be advanced with further assessment work.
Global Atomic’s Base Metals Division holds a 49% interest in the Befesa Silvermet Turkey, S.L.
(BST) Joint Venture, which operates a modern zinc recycling plant, located in Iskenderun,
Türkiye. The plant recovers zinc from Electric Arc Furnace Dust (EAFD) to produce a high-grade
zinc oxide concentrate which is sold to zinc smelters around the world. The Company's joint
venture partner, Befesa Zinc S.A.U. (Befesa) holds a 51% interest in and is the operator of the
BST Joint Venture. Befesa is a market leader in EAFD recycling, with approximately 50% of the
2024 2023 2024 2023
100% 100% 100% 100%
Exchange rate (C$/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
Three months ended June 30, Six months ended June 30,
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European EAFD market and facilities located throughout Europe, Asia and the United States of
America.
Key contacts:
Stephen G. Roman
Chairman, President and CEO
Tel: +1 (416) 368-3949
Email: [email protected]
Bob Tait
VP Investor Relations
Tel: +1 (416) 558-3858
Email: [email protected]
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 pot ential 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 expendit ures; 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 diff erent 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 d iffer 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 applica ble 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.