Global Atomic - Production On-Track for 2026 as Nuclear Demand Soars

• Global Atomic released a positive Feasibility Study (FS) showing a 23.75-year mine life, a 50% increase in Mineral Reserves to 73 million pounds U₃O₈ and an increase in total production by 55% to 68.1 million pounds U₃O₈ ‍
• Using an average uranium price of $75/lb U₃O₈ the FS shows an NPV8 of US$917 million, an IRR of 57% and a payback period of 2.2 years.
• Operations in Niger are progressing well with construction on track despite recent political events
• ‍‍The company has signed uranium supply contracts with western utilities starting in 2026
• Niger's government and local communities are fully supportive of the project
• The zinc plant in Türkiye is expected to be profitable this year as steel production recovers

Road to 2026 Production in Dasa Uranium Project

Global Atomic Corporation, a uranium development company with assets in Niger and Türkiye, recently released an updated feasibility study for its flagship Dasa Uranium Project. The study shows significantly improved project economics driven by a longer 23.75-year mine life and increased resources. Despite recent political uncertainty in Niger, Global Atomic reports that on-the-ground operations are progressing well with construction remaining on schedule. With supply contracts in place with western utilities and strong support from Niger's government and local communities, Global Atomic presents an attractive opportunity for investors to gain exposure to the improving fundamentals of the uranium market.

Positive Feasibility Study Results

The updated feasibility study incorporates a higher long-term uranium price assumption of $75 per pound, up from $35 previously, to better reflect the improving market dynamics. Global Atomic's President Stephen Roman noted,

"Our feasibility study is showing the growth that we predicted as we do more drilling." Based on the updated assumptions, the after-tax IRR increased to an impressive 57% using spot prices or 75% using a $90 price deck. These robust economics are underpinned by large, high-grade resources with over 50 million pounds of uranium in the inferred category at an average grade of 5,000ppm. Importantly, ongoing drilling is expected to continue growing the resource and further enhance project value.

"Clearly minable reserves are worth more in the ground than inferred resources, so as we continue to put money into drilling and moving inferred up to M&I that would then just move into a mineable category, the valuation goes up," explained Roman.

Interview with President & CEO Stephen G. Roman

Operations Proceeding on Track

Regarding on-the-ground realities in Niger, Roman emphasized that recent political events have not impacted the Dasa project.

"The reality on the ground is everything is business as usual. We're shipping materials to site to keep the mining operations going, we're now bringing in all the heavy machinery to start all of the real big earthwork program for the plant construction, everything's on schedule. We're still shooting to have the plant completed by the end of next year."

The company has seen several positive developments recently in Niger, including the dropping of sanctions, re-engagement of the World Bank, normalization of banking, and opening of new shipping routes. Employment at the project is ramping up significantly with over 300 local workers currently and expectations to reach over 500 in the next six months as a new 255-room camp is constructed.

Contracts in Place with Western Utilities

Importantly, Global Atomic has already signed supply contracts with western utilities for uranium deliveries beginning in 2026. This provides the company with the ability to repay the debt financing facility, while maintaining leverage to a tightening uranium market. "The utilities are expecting us to start delivering Q1 of 2026 and that's the schedule we're on right now," confirmed Roman.

He also highlighted Global Atomic's strategic value in the context of growing global nuclear power investments, especially in developing markets.

"One thing we have that everybody wants is uranium. Regardless of what's happening out there geopolitically, we have a very valuable asset and the fact that we are going to production here very soon is going to make it even more valuable."

Positive Outlook for Turkish Zinc Operation

Turning to the company's Turkish zinc operation, a return to profitability is expected this year as steel production recovers and smelter treatment charges decrease. After losing money last year due to earthquakes, Roman expects to make money in 2024 with further upside potential.

Funding Position & Catalysts

Regarding Global Atomic's funding position, Roman indicated the company currently has around $20 million in cash. Key upcoming financing catalysts include potential credit approval from its banking syndicate this month followed by possible final board approval in June. Roman expressed confidence in securing financing while noting other funding options as well. "If that all remains on track obviously I think that'll be a big boost for Global Atomic... if there's say some hiccup with the banks we have other alternatives. There's a number of groups that want to do a JV with us - they want to cover all of our costs."

Conclusion

The key takeaways for investors are that Global Atomic's Dasa project is significantly derisked and well-positioned to benefit from the strong fundamentals of the uranium market. The recent feasibility study confirms robust project economics while ongoing drilling continues to grow the resource. With the full support of Niger's government and local communities, and long-term contracts with western utilities in place, the project is proceeding on track with production expected to commence in 2026. Meanwhile, a return to profitability is anticipated this year for the Turkish zinc operation. Investors can look forward to key financing catalysts in the coming months which could significantly re-rate the stock.

"Generally speaking there's a whole bunch of good news here with borders reopening, banks re-engaging, Türkiye back on track, smelters lowering charges, people should look at the positive items."

The Investment Thesis for Global Atomic

• Exposure to strengthening uranium market fundamentals through strategic asset in Niger
• Significantly de-risked project with feasibility study complete, government support, and contracts in place
• Ongoing drilling expected to continue growing already large, high-grade resource
• Fully permitted and on track for production in Q1 2026, earlier than most peer projects
• Improving profitability outlook for Turkish zinc operation provides additional upside
• Near-term financing catalysts could drive substantial re-rating of undervalued shares
• Consider building a position ahead of likely re-rate on securing funding package

Macro Thematic Analysis

The conversation with CEO Stephen Roman highlights several key macro themes driving the outlook for the uranium sector. Firstly, the growth of nuclear power globally, especially in developing economies, is shifting the demand curve structurally higher. Major nuclear builds in places like China, India, Russia and the Middle East will require huge volumes of uranium for initial cores and reloads. Secondly, current uranium prices still remain below incentive levels for most new projects. While the uranium spot price has rallied significantly off the lows, term contract pricing needs to rise further to justify new developments. Thirdly, the uranium market faces a growing structural supply deficit with the depletion of secondary supplies and lack of sufficient new primary mine supply. Assets like Global Atomic's Dasa, which are well advanced and in jurisdictions supportive of uranium mining, are well positioned to help fill this impending supply gap.