Global Atomic Advances Low-Cost Dasa Project Towards 2025 Production

• Global Atomic is advancing its Dasa uranium project in Niger, with production expected to start in Q4 2025 at an initial rate of 4.5 million pounds per year.
• The company sees significant potential to expand resources and production from Dasa over time through additional drilling and mine plan updates.
• Its zinc recycling business in Turkey provides important cash flow, although it was impacted by earthquakes in 2023. It is expected to return to profitability in 2024.
• Global Atomic weathered some challenges in Niger and Turkey in 2023 but appears to have stabilized now with operations resuming at Dasa.
• With high and rising uranium prices, Dasa promises very strong profit margins given the $35/lb feasibility study costs. Global Atomic expects to benefit greatly from the hot uranium market.

About Global Atomic

Global Atomic is a Canadian development and exploration company focused on bringing its flagship Dasa uranium project into production in the next couple years as the uranium market strengthens. The company also owns a cash-flow generating zinc recycling business in Turkey. After facing some setbacks in 2023, Global Atomic has stabilized and resumed key work at Dasa, with the uranium market presenting significant upside for the low-cost project. Investors have an intriguing speculation on a potential emerging producer in a bullish uranium environment.

Interview with President & CEO, Stephen Roman

Dasa Uranium Project Progress in Niger

Global Atomic's main focus is on developing its Dasa uranium deposit in Niger into a low-cost uranium mine with first production targeted in Q4 2025 based on its 2021 feasibility study. The company discovered Dasa back in 2010 and has advanced it steadily since, working through a challenging uranium pricing environment most of that time.

Operations at Dasa restarted in December after being briefly suspended following a coup in Niger in mid-2023. Supply lines and borders were reopened in the ensuing months enabling the company to resume key underground development and preparation work at site. 2024 will involve advancing underground tunnels, establishing key ventilation infrastructure, and commencing early earthworks for the processing plant and surface operations.

The company is also working on an updated mining plan for Dasa incorporating recent drilling results which expanded the deposit. This updated plan expected in Q1 2024 should increase overall reserves and mine life, further boosting already attractive economics for the project. Ongoing drilling aimed at upgrading more resources into reserves will similarly continue expanding the potential scale of the mine.

The feasibility study outlined strong project economics at just $35/lb uranium, reflecting the high grades and low costs planned for the operation. With uranium currently around $90/lb and projected to rise further in a supply-constrained market, profit margins for Global Atomic at Dasa look extremely compelling.

Zinc Recycling Operations in Turkey

In additional to advancing Dasa as its flagship growth asset, Global Atomic owns a cash flowing zinc recycling business in Turkey. This operation purchases electric arc furnace dust from steel mills, extracts zinc that it then resells, and generates an important revenue stream helping to fund Dasa's development.

The zinc plant was impacted by major earthquakes that hit Turkey in early 2023, forcing temporary shutdowns at steel mills that supply raw material. This will result in a loss-making year for the plant in 2023 as production and sales fall. However, with rebuilding efforts ramping up and steel production returning to normal, management expects the plant to return to profitability in 2024.

The zinc recycling business and resulting cash flows provide Global Atomic with diversification and downside protection while it focuses predominantly on bringing Dasa online. As the largest undeveloped uranium project around, Dasa promises to drive huge growth for Global Atomic if executed successfully to plan. The cash flowing zinc operation gives investors some reassurance in the company's ability to fund this large construction project.

Stabilizing After Coup Impact

Global Atomic endured some challenges in 2023 that impacted its operations and share price. Most significantly, a coup in Niger during the summer led the company to suspend work at Dasa briefly given border closures and supply line disruptions. However, stability has returned to the region following the coup, borders have reopened, and Global Atomic has regained site access and restarted development activities.

The coup introduces some political uncertainty and risk around subsequent elections expected in 2024 in Niger. However, Global Atomic notes broad international support for the current transitional government. Moreover, the company emphasizes that it receives strong backing for the Dasa project as an important development for Niger. So while the political situation requires monitoring, operations appear to be normalizing again to advance Dasa.

Between the coups impact and earlier earthquakes hitting its Turkish plant, 2023 marked a difficult year operationally and financially for Global Atomic. But activity is clearly resuming on key fronts. And with uranium prices remaining elevated on positive supply/demand fundamentals, the company looks well positioned to capture substantial upside if it can continue executing on bringing Dasa into production on schedule.

Conclusion

Global Atomic provides investors with exposure to an emerging uranium producer preparing to enter the market just as prices are projected to rise meaningfully. Despite some challenges faced in 2023, the company has stabilized and regained momentum developing its flagship Dasa asset. The low-projected costs for Dasa combined with robust and improving uranium market conditions signal very significant profit potential lies ahead if Global Atomic can meet its major milestone of first uranium production targeted in just over 2 years. The company's cash flowing zinc business also provides some financial backup and downside protections for investors. For those bullish on the uranium sector and looking for leveraged upside to rising prices, Global Atomic offers a compelling speculative investment opportunity.