• Stephen Roman, President and CEO of Global Atomic Corporation, discusses the current situation in Niger following the recent coup.
• There have been political developments in Niger, including a military junta, but negotiations are ongoing for a return to democratic elections.
• Algeria, the U.S., and other parties are involved in these negotiations due to their interests in Niger.
• Global Atomic is continuing its mining operations and has received support from the new Niger cabinet.
• Logistics for supplies remain a challenge due to border closures, but the company is exploring alternative routes and focusing on infrastructure improvements.

About Global Atomic

Global Atomic Corporation 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 includes four deposits with the flagship project being the large, high-grade Dasa Project, discovered in 2010 by Global Atomic geologists through grassroots field exploration. With the issuance of the Dasa Mining Permit and an Environmental Compliance Certificate by the Republic of Niger, the Dasa Project is fully permitted for commercial production. Global Atomic’s Base Metals Division holds a 49% interest in the Befesa Silvermet Turkey Joint Venture, which operates a modern zinc production plant in Iskenderun, Türkiye. This joint venture with Befesa Zinc S.A.U. recycles electric arc furnace dust from local steel mills to produce high-grade zinc oxide concentrate sold to zinc smelters globally.

Interview with President & CEO, Stephen Roman

Political Uncertainties Create Short-Term Headwinds

On July 26, 2023, Niger underwent some political changes and is now governed by a transitional government led by a military junta. This has led to some short-term disruptions, including border closures with Benin, which Global Atomic relies on for shipping uranium concentrate from its Dasa mine.

However, Roman assured investors that negotiations are well underway between the military leaders, the US, France, Algeria and other regional players to return Niger to democratic rule likely within 6-12 months. Niger has undergone similar government transitions in the past, with democratic elections typically held following periods of military rule.

The new transitional government has been supportive of Global Atomic's operations, appointing a former mining executive as Mines Minister. The company has direct communication with Niger officials, who have provided assurances and support for the Dasa project to continue development.

While final resolution of the political situation may take months, Global Atomic can continue value-adding work at the project site, including infrastructure upgrades, detailed engineering and ramp improvements. The company is focused on conservation of cash during this period of uncertainty.

Project Financing On Track

A key priority is finalizing project financing, which remains on track despite the political changes. Management is working to complete the term sheet with lending partners in the near-term. The banks have expressed continued support for the financing.

Once finalized, the financing will cover 60% of the Phase 1 capital costs, estimated at C$208M. Global Atomic is responsible for funding the remaining 40% prior to drawing down any debt, Global Atomic has a one-year current cash supply providing a cushion to get through current border issues.

Phase 1 Development Advancing

While uranium production is temporarily halted, development underground is progressing well at Dasa. The decline ramp is now complete down to the ore zone, well ahead of schedule. Surface infrastructure like the acid plant and mill components are also being fabricated on schedule.

Additionally, engineering designs are nearing completion. Orders have been placed for long lead time items. Procurement and development activities can largely continue through the political transition period.

Logistics Resolving

With the main border crossing to the port of Cotonou in Benin currently closed, logistics have been impacted in the short-term. However, alternate routes have been opened up, providing viable options to continue receiving supplies.

The border with Burkina Faso has reopened, allowing shipments to reroute through that country. Other ports in Togo and Ghana are also available. Meanwhile, the government has reopened Nigerien airspace, enabling air shipments.

While the Benin crossing remains closed, Global Atomic continues assessing alternative logistics pathways to sustain project development activities. The situation is temporary, with negotiations and international pressure mounting for Niger to resume normalized trade.

Uranium Market Tightening

Beyond Niger, the global uranium market continues to exhibit positive trends, with demand outpacing supply. Large consumers like China have already locked up significant volumes from limited existing production centers like Kazakhstan and parts of Africa.

With few new projects coming online in the face of rising demand, the market is anticipating a structural supply deficit by mid-decade. This should drive substantially higher uranium prices, providing a healthy environment for Dasa to enter production by 2025.

Many industry experts at recent nuclear conferences have echoed the looming supply concerns across the uranium sector. Utilities are beginning to demonstrate concern around procuring adequate fuel supplies from diversified sources in the future.

Long-Term Growth Plans Intact

Roman emphasized confidence in Niger returning to a normalized operating environment in a period of months rather than years. The company maintains strong relations with the interim government and is positioned to rapidly ramp up mining operations once logistical issues are fully resolved.

In the meantime, Global Atomic continues executing on critical project development activities. The short-term disruptions do not impact long-term plans to bring Dasa into production and expand output in phases. Initial Phase 1 plans for over 4Mlbs per year are intact, with permits in hand to ultimately grow this.

The Dasa deposit contains high-grade mineralization that can be extracted through simple and low cost mining methods. The asset has an estimated mine life of over 50 years, with exploration upside to further expand resources.

Attractive Entry Point for Investors

The recent share price decline offers investors an intriguing entry point into Global Atomic. The company maintains a healthy cash position and is fully financed to continue advancing Dasa to production.

As Niger works through its political transition and uranium markets tighten, Global Atomic expects sentiment to improve over the coming year. The current valuation around 0.4x NAV offers significant upside as Dasa comes online in a rising uranium price environment.

Global Atomic represents a compelling leverage play on the coming uranium bull market. The experienced management team is adept at navigating the unique aspects of developing projects in Africa.

While temporary logistics issues present short-term headwinds, Global Atomic retains strong local support to continue advancing Dasa on schedule. The project remains on track to deliver low-cost production by 2025, positioning the company to generate strong cash flows for decades to come.

Conclusion

Global Atomic offers a unique opportunity to gain exposure to the uranium market at an attractive valuation. Despite near-term uncertainty, Dasa retains world-class economics that should deliver substantial long-term investor returns. While the path forward may have some bumps, the destination has not changed. Patient investors able to look through temporary disruptions could be well rewarded for taking a position at current prices.