Global Atomic: Near Term Producer & Leveraged Play on Rising Uranium Prices

• Global Atomic is advancing its Dasa uranium mining project in Niger, with underground development and exploration ongoing and construction planned to start soon.
• The company has a large, uranium deposit and existing contracts with utilities at favorable prices.
• Financing is in place, with loans from the US and Canada covering 60% of the estimated $400 million capital costs.
• Production is slated to begin in early 2026, with a nameplate capacity of over 4 million pounds of uranium per year.
• As the only new primary uranium mine under development globally, Dasa is strategically positioned to help supply rising uranium demand as existing mines cut back.

The Global Uranium Supply Squeeze

Uranium prices have soared in recent years due to growing demand and constrained supply. With few new mines coming online, existing operations cutting back, and utilities burning through inventories, the market is ripe for investments in companies bringing new production capacity like Global Atomic.

Ramping Up in the Face of Industry Shortages

As Steven Roman, President and CEO of Global Atomic stated:

"We are the only green fields uranium project right now in the world...The others are restarts typically, which is fine but even they have problems."

He highlights how the long bear market for uranium disincentivized new supply while existing operations cut back, leaving the industry unprepared to meet renewed demand. With substantial barriers to quickly ramping up output and a shortage of talent, Global Atomic's Dasa project stands out as the most credible source of large-scale new supply.

Dasa Advances Amid Stable Niger Environment

Despite recent political turmoil, Niger's long history of uranium production helps sustain operations there. As Roman discussed:

"It's business as usual for us there...it's a huge employer and business as usual."

He outlined how most goods transport routes have already been re-established after border closures. With extensive local staff and government support, Global Atomic’s operations continue advancing.

Targeting Production in Early 2026

The company's phased development plan has underground exploration advancing well, with plant construction contracts underway and equipment deliveries expected by 2024. Roman emphasized:

"We have first shipments of yellowcake scheduled to go out in Q1 2026...the utilities are onside and we're supposed to start shipping early '26."

Once the mines and mills are built, Global Atomic can rapidly scale up production. And as the only new large-scale uranium project globally, Dasa is primed to help feed rising nuclear energy demand.

De-Risked Financing in Place

Instead of excessive dilution from equity raises, Global Atomic has secured debt financing covering 60% of Dasa’s $400 million capital costs. And with long-term sales contracts signed, banks view their uranium revenue streams as relatively de-risked.

Roman also highlighted that they have already funded about half the costs through existing cash flows, meaning the external capital required has dropped to a manageable $50-75 million. This reduced financing requirement results in less potential equity dilution.

Major Catalysts Coming in 2024

Beyond the stable ramp-up of construction and operations, Global Atomic has some key catalysts this year that could draw investor attention:

• Updated feasibility study with larger reserves
• Securing additional prepayment contracts
• Advancing debt financing package to credit approval

With more favorable uranium pricing assumptions, the refreshed feasibility study should underscore Dasa’s fundamental quality as one of the global uranium industry’s premier assets.

The Outlook for Nuclear Power and Uranium

Roman's amusing example of an electric vehicle charging station powered by a diesel generator epitomizes the irony around poorly planned energy transitions. While the long-term shift towards low-emissions electricity from solar, wind and nuclear seems inevitable, the context matters. As he stated:

"It's great that we're going that way to have clean reliable power. But at the end of the day, you need fuel and everybody forgot about the fuel side."

This captures the bull case for uranium investments perfectly. Renewables have intermittent generation issues, while fossil fuels face rising societal opposition. That leaves nuclear energy, requiring uranium fuel, as the ideal transition baseload power solution.

With Japan reactivating reactors, China building aggressively, and smaller modular reactors gaining traction globally, uranium demand looks poised for continued growth. Hence, as the market transitions into a supply deficit, Global Atomic's Dasa mine offers a prime avenue to gain exposure to this positive trend.

The Investment Thesis for Global Atomic

Global Atomic offers investors several compelling attributes as a uranium investment vehicle:

• Exposure to the Dasa mine, set to become one of the world's top-tier uranium facilities once in production
• A seasoned management team with over 20 years of operations experience specifically in Niger
• Steady construction and permitting progress de-risking the execution timeline
• 60% debt financing covering most capital costs and reducing dilution
• Initial 4+ million lb. production providing outsized exposure to rising uranium prices

For investors looking to capitalize on the coming uranium supply squeeze, Global Atomic presents a focused, leveraged play on bringing much-needed new production capacity to this high-growth market.

With uranium demand strengthening and supply challenged, the market dynamics over the next several years likely favor investments in near-term production stories like Global Atomic. Its Dasa project in Niger represents the world's only major new primary uranium mine under development.

Combined with its experienced team and capital funding advantages, Global Atomic offers a targeted way to gain upside exposure as the uranium price strengthens further. The company has several share-price catalysts approaching. So for investors intrigued by the uranium investment thesis, it may represent an ideal vehicle to ride the bull market.