Global Atomic - Uranium Leader Navigates Political Uncertainty in Niger

About Global Atomic

Global Atomic Corporation (TSX: GLO) is a Canadian mining company with uranium mine development in West Africa and a zinc recycling facility in Türkiye.  Global Atomic is well-positioned to benefit from rising uranium prices amid growing demand for carbon-free baseload electricity.

Global Atomic's flagship asset is the Dasa uranium project in Niger, one of the world's largest undeveloped uranium deposits. Discovered in 2010, Dasa has rapidly advanced to construction in just over a decade, demonstrating Global Atomic's technical expertise and excellent community relations. At the same time, Global Atomic's base metals division has provided diversified cash flow from its stake in a modern zinc plant in Türkiye.

Despite recent political uncertainty in Niger, Global Atomic offers investors exposure to a premier uranium jurisdiction via a proven management team. With uranium fundamentals improving, Global Atomic's low-cost Dasa mine is poised to generate substantial value when production commences.

Niger Political Situation Creates Opportunity for Global Atomic

On October 10, 2023, the US State Department had officially designated that a coup d'etat occurred in Niger in July 2023. This blocks US financing to Niger via development banks pending the restoration of democratic elections.

However, Global Atomic has stressed that the Dasa project continues to have full support from the Niger government and requires no immediate financing. The US designation may create some uncertainty until Niger's political situation is resolved, but Global Atomic is not letting this slow them down.

Importantly, Global Atomic has contingency plans focused on securing non-dilutive financing for Dasa. The company also has sufficient cash for ongoing operations for the next 12 months without additional funding.

While the coup introduces some short-term uncertainty, Global Atomic's experienced leadership team appears to have the situation under control. Once democratic elections are restored in Niger, the project should rapidly proceed.

World-Class Dasa Uranium Project

Global Atomic's Dasa project is located in the Adrar Emoles III license area, 105km south of the established mining town of Arlit. Niger has a long history of uranium mining and expertise in the sector.

In 2021, Global Atomic completed a Phase 1 Feasibility Study based on only 20% of the known mineral resources in the Dasa deposit.  With an initial 12-year starter mine based on reserves of 4.1 million tonnes grading 5,257 ppm, totalling 47.2 million pounds of U3O8, Dasa will be one of the world's highest-grade uranium mines. Cash costs are forecast at just $19.02/lb U3O8, including royalties.

In May 2023, Global Atomic announced an increase in Dasa's mineral resource estimate to 160 million pounds of U3O8. The company is incorporating this updated resource into a revised mine plan and updated feasibility study.

The new mine plan has the potential to significantly improve Dasa's economics by increasing production levels over a longer period. With the project fully permitted and initial earthworks underway, Global Atomic is maximizing Dasa's value ahead of production in 2025.

Offtake Agreements Validate Dasa Economics

In recent months, Global Atomic has signed three uranium offtake agreements with major utilities at formula-based pricing. These long-term contracts provide guaranteed buyers once Dasa enters production.

In addition to securing future revenue, the offtake deals validate Dasa's low production costs. Utilities are willing to commit to the project because Global Atomic can profitably deliver uranium even at today's depressed spot prices.

As the uranium market strengthens, these agreements will become even more lucrative for Global Atomic. With idle mines unlikely to restart soon, the supply gap bodes well for uncontracted volumes from Dasa.

Diversified Cash Flow from Turkish Zinc Plant

While focused on uranium, Global Atomic has smartly diversified into zinc concentrate production in Turkey. The company holds a 49% stake in the Befesa Silvermet zinc production joint venture.

Befesa Silvermet uses a modern solvent extraction electrowinning process to produce zinc from electric arc furnace dust. This niche capability has created a stable stream of cash flow independent of uranium prices.   Once the impact of the 2023 earthquakes on local steel mills subsides, this operation is expected to resume its cash flow stream.

Cash from zinc helps fund Dasa's development, reducing financing risks. The joint venture also provides technical expertise from operator Befesa that benefits Global Atomic's projects.

Strong Leadership to Navigate Niger Politics

Global Atomic benefits from an accomplished leadership team capable of navigating Niger's political changes and delivering shareholder returns.

President and CEO Stephen Roman founded Global Atomic after a successful career developing mines in North America and across Africa. His decades of experience in the region provide invaluable insight into mining safely and profitably.

The rest of the management team also brings extensive uranium, nuclear, and ESG experience.

Supported by capable leadership, Global Atomic's strategic foresight leaves it well-positioned despite the coup. The company has contingency plans to maintain momentum at Dasa and sufficient liquidity for ongoing operations.

Global Atomic: Leveraged to Rising Uranium Price

Global Atomic gives investors exposure to the strengthening uranium market via one of the world's top undeveloped deposits. Dasa is the only greenfield uranium mine currently under development.  Starting production in 2025, the flagship Dasa project will generate substantial cash flow for decades due to its extensive resources, high grades and low costs.

While the recent coup introduces some short-term uncertainty in Niger, Global Atomic has enacted contingency plans to keep Dasa progressing. The company has sufficient liquidity and a proven team that understands operating in Africa.

Patient investors could see substantial gains as Global Atomic advances Dasa towards production amid rising uranium prices. The pending updated feasibility study update should underline the project's improved value proposition.

With demand for nuclear power surging, Global Atomic's vast uranium resources are poised to create value for shareholders in the years ahead.