Global Atomic Announces Q3 2024 Results
NEWS RELEASE
Global Atomic Announces Q3 2024 Results
Toronto, ON, November 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 September 30, 2024. For more detail, please refer to the
Condensed Interim Consolidated Financial Statements and Management’s Discussion and
Analysis for the three and nine months ended September 30, 2024, on the Company’s website at
www.globalatomiccorp.com.
Q3 2024 HIGHLIGHTS
Dasa Uranium Project – Mine Development
Underground development, underway since November 2022, has now reached the ore zone
with development ore now being hauled to surface. Recently, the ramp paving was completed
and with the major ventilation infrastructure being completed, the ramping and lev el
development will continue. Underground electrical services and pumping infrastructure are
also underway.
Development tonnes brought to surface include 950 tonnes medium grade ore (3,000 to 5,000
ppm), 6,850 tonnes low grade ore (1,300 to 3,000 ppm) and 10,200 tonnes mineralized waste
(240 to 1,300 ppm).
Raise Boring of the main Fresh Air Raise and Return Air Raise is now complete. Fans will now
be installed and the system commissioned.
As of the date hereof, the Dasa Mine, operated by SOMIDA and overseen by Global Atomic
Corporation, has achieved 825 days with no Lost Time Injury (“LTI”).
Dasa Uranium Project – Plant Construction
The Company continued earthworks in Q3 2024 to prepare the site for construction of the
Dasa processing plant as well as preparing the mine camp for additional housing for
employees and construction crews.
A 250-person housing facility has arrived on site. Civil works are underway and include cement
pads, water and sanitary services. Construction is scheduled for completion January 2026.
Fabrication of one of the major processing plant components; the Acid Plant, has been
completed and is now being shipped to site.
Procurement of most long -lead equipment is complete, with many items at or near
manufacturing completion. Certain critical items like the SAG Mill and Acid Plant are now being
shipped to the Dasa site.
Our EPCM contractors are nearing completion of detailed engineering and ordering the
remaining components for the Process Plant.
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Turkish Zinc Joint Venture
In Q3 2024, limited Electric Arc Furnace Dust (“EAFD”) was processed due to a planned
maintenance shutdown and work stoppage pending a new employee contract, which has now
been negotiated. The Iskenderun Plant is now running at capacity with good EAFD inventory.
Zinc contained in concentrate shipments totalled 4.0 million pounds and the average monthly
LME zinc price was US$1.26 /lb. in Q3 2024.
The Company’s share of the Turkish JV EBITDA was $0.9 million in Q3 2024 (a loss of $1.9
million in Q3 2023).
The cash balance of the Turkish JV was US$3.3 million at the end of Q3 2024, and local working
capital debt has been reduced to US$8.4 million from US$12 million as at Q4 2023.
Corporate: Financing – Private Placement
On July 31, 2024, Global Atomic closed a non -brokered private placement (the “Placement”)
for gross proceeds of $19.9 million from the sale of 14,764,815 units at a price of $1.35 per
unit.
Each unit consisted of one common share of the Company and one Common share purchase
warrant. Each warrant entitles the holder to purchase one Common Share at a price of $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 $2.50 and, (ii) within a period of 5 trading days
following the 10 day period the Company provides a notice via widely disseminated news
release, the expiry date of the Warrants shall be accelerated to the date that is 30 days from
the date of such news release.
The Company used the net proceeds from the Placement for the advancement of the
Company's Dasa Project and for general working capital purposes.
Corporate: Financing – At the money (ATM) offering
During Q3 the Company issued 2,063,200 common shares at an average price of $1.50 for
gross proceeds of $3,097,596.
Corporate: Financing – Stock option exercise
During Q3 2024 the Company issued 1,425,546 common shares at an exercise price of $0.50
for gross proceeds of $712,773.
Corporate: Financing – Warrant Extension
On September 13, 2024, the company extended the expiry date of common share purchase
warrants issued pursuant to the March 2023 financing from September 17, 2024, to December
31, 2024. The extension has since been approved by the TSX.
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Niger Government Support
On May 3, 2024, during a 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 y ou 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 a new Niger mining
practice with expectations on State Income, Employment and Environment management.”
On August 15, 2024, Global Atomic received a letter in which the Conseil National pour la
Sauvegarde de la Patrie Chairman, Head of State, His Excellency Brigadier General
Abdourahamani Tiani instructed his Cabinet, the Minister of Mines and all stakeholders in the
sector to facilitate the implementation of the Dasa Project, going on to state that the Dasa
Project “is expected to play an important role as a cornerstone for socio -economic
development. As such, Niger’s highest authorities support it totally.”
Corporate
Global Atomic received $2,306 in quarterly management fees and monthly sales commissions
from the Turkish JV ($166,000 in Q3 2023), the significant decrease is attributable to the
planned maintenance and work stoppage in Iskenderun which ended in September 2024.
Cash balance as of September 30, 2024, was $4.2 million.
Subsequent to the end of Q3 2024, the Company raised $40.25 million of gross proceeds under
a public offering at $1.20 per unit.
Subsequent Event: Financing – Public Offering
On October 16, 2024, Global Atomic closed a public offering (the “Offering”) for gross
proceeds, including the full exercise of an over -allotment option, of $40.25 million from the
sale of up to 33,542,050 units of the Company at a price of $1.20 per unit.
Each unit consisted of one Common share of the Company and one Common share purchase
warrant. Each warrant entitles the holder to purchase one Common share at a price of $1.50
for a period of 36 months following the issue date.
The Company intends to use the net proceeds from the Offering for development of its Dasa
Project in Niger, working capital and general corporate purposes.
Subsequent Event: Financing – Bank Facility
On October 29, 2024, the Company announced that a U.S. development bank, with whom the
Company is engaged in project finance discussions, provided an updated schedule for the
approval of a debt facility to fund the development of Dasa.
The bank confirmed its support for Dasa and its intention to approve a debt facility for US$295
million, which will cover 60% of the planned project costs (includes an interest reserve,
working capital and contingency amounts). By early Q1 2025, the bank intends to conclude
its approval process, including Committee and Board level approvals.
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Global Atomic President and CEO, Stephen G. Roman commented, “Global Atomic is a unique
investment opportunity. The Company’s Dasa Project is the highest-grade uranium project under
development in Africa or anywhere else in the world outside of Canada’s Athabasca Basin. Dasa
is also the only greenfield uranium proj ect being actively developed today, with commissioning
and production on track to take advantage of the anticipated uranium supply shortfall.
Financially attractive with an IRR of 57% at a urani um price of US$75 per pound, Dasa is fully
permitted and in the final stages of obtaining approval for the major component of its
construction financing.”
“The financing by a U.S. development bank has taken longer than anticipated. We have, however,
answered all geo-political concerns raised by the bank and provided the bank with support letters
from the Niger government and U.S. customers who have signed off-take agreements with us for
yellowcake delivery starting in 2026. We have developed a strong relationship with the bank over
the last few years as they conducted their site visits and completed their due diligence from a
technical and ESG perspective. The bank has told us they intend to complete their internal
approval process by early Q1 2025.”
“Once we have the bank financing approved, we believe that there will be many more options
available to fulfill any residual capital needs, including pre -payments related to off -take
agreements. To date, we have in place off -take agreements for approximat ely one third of our
production in each of the first five years of our current 23 -year mine plan. We plan to layer in
new contracts over time to take advantage of the anticipated ascent in the price of uranium.”
OUTLOOK
Dasa Uranium Project
The Dasa Project schedule remains on track to achieve commissioning in Q1 2026.
Project financing for the Dasa Project is expected to be completed in Q1 2025.
In parallel, alternate funding discussion continue.
Dasa Mine main ventilation raises are complete with fan installation underway. This will
enable continued ramp and level development.
Increase the size of the in- country construction team, which will increase the overall site
complement from 450 to approximately 900 workers during the 2025 construction period.
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
Significant quantities of EAFD were accumulated during Q3 which supports continuous plant
operations during Q4.
The Company anticipates operations at its Turkish JV will be profitable in Q4 2024 due to high
EAFD inventories and stronger zinc prices.
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COMPARATIVE RESULTS
The following table summarizes comparative results of operations of the Company:
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.
(all amounts in C$) 2024 2023 2024 2023
Revenues 2,306$ 165,669$ 578,321$ 498,783$
General and administration 1,706,619 1,539,895 5,691,586 6,179,047
Share of equity loss (gain) 312,629 3,215,405 (856,827) 8,150,927
Finance income, net (45,946) (353,635) (385,691) (958,763)
Foreign exchange loss (gain) 4,541,102 (3,435,995) (799,202) (621,889)
Net loss (6,512,098)$ (800,001)$ (3,071,545)$ (12,250,539)$
Net income (loss) attributable to:
Shareholders of the Company (6,453,203) (804,775) (3,032,334) (12,280,586)
Non-controlling interests (58,895) 4,774 (39,211) 30,047
Other comprehensive income (loss) 1,907,930 2,524,768$ 4,253,274$ (274,231)$
Comprehensive (loss) income (4,604,168)$ 1,724,767$ 1,181,729$ (12,524,770)$
Comprehensive income (loss) attributable to:
Shareholders of the Company (4,533,221) 1,732,294 1,204,001 (12,523,442)
Non-controlling interests (70,947) (7,527) (22,272) (1,328)
Basic and diluted net loss per share ($0.02) $0.00 ($0.01) ($0.06)
Basic weighted-average
number of shares outstanding 222,971,204 202,191,445 213,820,468 196,386,501
Diluted weighted-average
number of shares outstanding 222,971,204 202,191,445 213,820,468 196,386,501
September 30, December 31,
2024 2023
Cash 4,201,669$ 24,857,915$
Property, plant and equipment 192,555,446 129,986,343
Exploration & evaluation assets 1,637,782 1,370,358
Investment in joint venture 15,987,445 12,628,251
Other assets 3,471,915 8,755,878
Total assets 217,854,257$ 177,598,745$
Total liabilities 21,534,421$ 19,412,976$
Total equity 196,319,836$ 158,185,769$
Three months ended September 30, Nine months ended September 30,
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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 resourc e 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.
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 in Q1
2026, with a target surface stockpile of 2 to 3 months production a vailable 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 have begun and processing plant equipment will begin arriving at site in Q4 2024.
Erection of the processing plant and site infrastructure will take place from Q1 2025 through Q1
2026, with commissioning beginning in Q1 2026. Processing of ore through the plant is expected
to begin in Q1 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 bank provided an updated schedule that the bank intends to concl ude its approval process
by Q1 2025, including Committee and Board level approvals. 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.
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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 nine months ended September
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 the nine months ended September
2024 compared to 2023. Operations for the nine months ended 2023 were adversely affected by
significant earthquakes in Türkiye. In the nine months ended September 2024, the Turkish JV sold
20.6 million pounds of zinc concentrate, increase from the 17.8 million pounds sold in the
corresponding period last year. Despite the LME zinc price remaining stable year over year, the
profit margin experienced a positive impac t primarily attributed to reduced unit costs in EAFD
and coking coal, resulting in a favorable EBITDA.
Sales recorded in Q3 2024 reflect EAFD processed in June 2024 which was subsequently delivered
to the smelters in July 2024. In Q3 2024, limited EAFD was processed due to a planned
maintenance shutdown and work stoppage pending a new employee contract, whi ch has now
2024 2023 2024 2023
100% 100% 100% 100%
Net sales revenues 5,874,044$ 6,913,357$ 28,897,876$ 18,929,400$
Cost of sales 4,026,866 10,758,575 20,328,867 27,387,786
Foreign exchange gain 22,375 6,236 351,129 908,851
EBITDA(1)
1,869,553$ (3,838,982)$ 8,920,138$ (7,549,535)$
Management fees & sales commissions 18,516 377,112 1,254,250 1,104,582
Depreciation 1,836,208 1,209,775 3,220,670 2,690,056
Interest expense 470,285 715,927 1,463,639 1,508,049
Foreign exchange loss 250,728 1,819,919 1,305,859 4,590,112
Monetary (loss) gain (965,160) 3,278,789 (1,315,016) 4,379,811
Tax (recovery) expense (1,055,700) 1,872,890 (1,739,051) 2,663,171
Net (loss) income (638,019)$ (6,562,052)$ 1,748,626$ (16,634,545)$
Global Atomic's equity share (312,629)$ (3,215,405)$ 856,827$ (8,150,927)$
Global Atomic's share of EBITDA 916,081$ (1,881,101)$ 4,370,868$ (3,699,272)$
Three months ended September 30, Nine months ended September 30,
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been negotiated. During this time the company accumulated EAFD inventory and anticipates
achieving full operational capacity by Q4 2024.
The cash balance of the Turkish Zinc JV was US$3.3 million at September 30, 2024.
The following table summarizes comparative operational metrics of the Iskenderun facility.
Qualified Person
The scientific and technical disclosures in this Management’s Discussion and Analysis have been
extracted from the 2024 Feasibility Study, which was reviewed and approved by Dmitry Pertel,
M.Sc., MAIG, John Edwards, B.Sc. Hons., FSAIMM, Andrew Pooley, B. Eng (Hons)., FSAIMM who
are “qualified persons” under National Instrument 43 -101 – Standards of Disclosure for Mineral
Properties.
About Global Atomic
Global Atomic Corporation ( www.globalatomiccorp.com) is a publicly listed company that
provides a unique combination of high- grade uranium mine development and cash-flowing zinc
concentrate production.
The Company’s Uranium Division is currently developing the fully permitted, large, high grade
Dasa Deposit, discovered in 2010 by Global Atomic geologists through grassroots field
exploration. The “First Blast Ceremony” occurred on November 5, 2022, and commissioning of
the processing plant is scheduled for Q1, 2026. Global Atomic has also identified 3 additional
uranium deposits in Niger that will be advanced with further assessment work.
Global Atomic’s Base Metals Division holds a 49% interest in the Befesa Silvermet Turkey, S.L.
(BST) Joint Venture, which operates a modern zinc recycling plant, located in Iskenderun, Türkiye.
2024 2023 2024 2023
100% 100% 100% 100%
Exchange rate (C$/TL, average) 24.58 19.99 23.73 16.53
Exchange rate (US$/C$, average) 1.36 1.34 1.36 1.35
Exchange rate (C$/TL, period-end) 25.32 20.28 25.32 20.28
Exchange rate (US$/C$, period-end) 1.35 1.35 1.35 1.35
Average monthly LME zinc price (US$/lb) 1.26 1.10 1.22 1.22
EAFD processed (DMT) 54 21,197 39,206 44,556
Production (DMT) - 5,887 12,757 12,866
Sales (DMT) 2,749 2,881 14,315 12,387
Sales (zinc content '000 lbs) 3,969 4,109 20,593 17,853
Three months ended September 30, Nine months ended September 30,