Dasa Uranium Project Remains on Schedule to Produce Yellowcake in Q1 2026
- On
March 5, 2024 , the Company published itsDasa Project 2024 Feasibility Study ("FS") as an update to its 2021 Phase 1 Feasibility Study which confirmed an extension of the Mine Plan from 12 years to 23.75 years (2026-2049), 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
US$75 /lb U3O8, the FS shows an after-tax NPV8 ofUS$917 million , an after-tax IRR of 57% and a payback period of 2.2 years.
- Ramp development has been underway since the beginning of 2023, with over 1,000 meters completed as of the date hereof. Mine development is continuing down dip in the footwall of the orebody.
- As of the date hereof, the
Dasa Mine , operated by SOMIDA, and overseen byGlobal Atomic Corporation , achieved 642 days without a Lost Time Injury ("LTI"), a testament to management's dedication to create a safe work environment and the team's success in implementing effective safety measures.
- Global Atomic formalized its third Definitive Agreement with North American customers for the sale of uranium from the
Company's Dasa Project in theRepublic of Niger , bringing the Company's contracted volume to approximately 1.5 million pounds U3O8 per annum overDasa's initial five years of operation. With this Agreement Global Atomic satisfied the "pre-sales" requirement of its banking syndicate - Global Atomic also finalized a Letter of Intent ("LOI") for the supply of 260,000 pounds U3O8 per annum for three years beginning in 2026 to a strategic
Europe -based nuclear power utility. This fourth agreement brings the Company's total committed volume up to 9.5 million pounds U3O8, representing revenue of approximatelyUS$770 million at current market levels ofUS$90 /lb U3O8.
Turkish Zinc Joint Venture
- In Q1 2024, the Turkish JV processed 19,990 tonnes EAFD.
- Zinc contained in concentrate shipments totalled 9.3 million pounds and the average monthly LME zinc price was
US$1.11 /lb. - The Company's share of the Turkish JV EBITDA was a gain of
$0.7 million in Q1 2024 (a loss of$0.4 million in Q1 2023). - The cash balance of the Turkish JV was
US$2.3 million at the end of Q1 2024.
Corporate
- Global Atomic received
$271,000 in quarterly management fees and monthly sales commissions from the Turkish JV ($131,000 in Q1 2023), helping to offset corporate overhead costs. - Cash balance as of
March 31, 2024 , was$18.6 million .
Global Atomic President and CEO,
The Government of
"Underground development has reached over 1,000 meters, as we extend the ramp to open five mining levels prior to production and develop drifts along the footwall of the deposit to access the planned stopes. As we undertake the earthworks and civil engineering to prepare for the construction of the processing plant, we currently employ over 300 people at the
"Project Financing for the
OUTLOOK
- Continue development of the underground ramp and site infrastructure to remain on schedule to supply uranium ore to the processing plant from the end of 2025.
- Addition of an in-country construction team, bringing the site complement from 275 to approximately 500.
- In Q2 2024, our Bank Syndicate is expected to approve the Debt Financing facility for the development of the
Dasa Project . - Complete final engineering, site development and civil works for the
Dasa processing plant and begin installation of equipment. - Continue marketing efforts to secure additional uranium off-take agreements.
Turkish Zinc Joint Venture
- The Company anticipates operations at its Turkish JV will be profitable in 2024 due to a return to usual local steel mill production levels, a recovery in zinc prices this past quarter and lower input prices.
COMPARATIVE RESULTS
The following table summarizes comparative results of operations of the Company:
Three months ended | |||
(all amounts in C$) | 2024 | 2023 | |
Revenues | $ 271,463 | $ 130,841 | |
General and administration | 2,199,221 | 2,832,831 | |
Share of equity (gain) loss | (333,686) | 1,388,274 | |
Finance income, net | (241,631) | (71,468) | |
Foreign exchange (gain) loss | (3,750,362) | 1,210,716 | |
Net income (loss) | $ 2,397,921 | $ (5,229,512) | |
Net income (loss) attributable to: | |||
Shareholders of the Company | 2,383,178 | (5,237,663) | |
Non-controlling interests | 14,743 | 8,151 | |
Other comprehensive income | $ 685,111 | $ 2,718,776 | |
Comprehensive income (loss) attributable to: | $ 3,083,032 | $ (2,510,736) | |
Comprehensive income (loss) attributable to: | |||
Shareholders of the Company | 3,047,947 | (2,518,218) | |
Non-controlling interests | 35,085 | 7,482 | |
Basic net income (loss) per share | ( | ||
Diluted net income (loss) per share | ( | ||
Basic weighted-average | 208,080,080 | 184,583,128 | |
Diluted weighted-average | 213,208,175 | 184,583,128 | |
2024 | 2023 | ||
Cash and cash equivalents | $ 18,572,407 | $ 24,857,915 | |
Property, plant and equipment | 145,905,549 | 129,986,343 | |
Exploration & evaluation assets | 1,536,432 | 1,370,358 | |
Investment in joint venture | 13,523,632 | 12,628,251 | |
Other assets | 11,650,460 | 8,755,878 | |
Total assets | $ 191,188,480 | $ 177,598,745 | |
Total liabilities | $ 19,543,999 | $ 19,412,976 | |
Total equity | $ 171,644,481 | $ 158,185,769 |
The condensed interim consolidated financial statements reflect the equity method of accounting for Global Atomic's interest in the Turkish JV. The Company's share of net earnings and net assets are disclosed in the notes to the financial statements.
Uranium Business
On
2024 Feasibility Study
Based on the mining inventory defined in the 2023 Mineral Resource Estimate, the economic analysis in the 2024 Feasibility Study is for a 23.75-year mine plan using a discounted cash flow ("DCF") model at a price of
Economic sensitivity with varying uranium prices (USD) | ||||
Uranium price (per pound) | ||||
Before-tax NPV @ 8% | ||||
After-tax NPV @ 8% | ||||
After-tax IRR | 38.2 % | 57.0 % | 74.8 % | 92.9 % |
The 2024 Feasibility Study is based on a plant throughput of 1,000 tonnes per day (t/d) or 365,000 tonnes per annum (t/a). The plant equipment has been designed for 1,200 t/d throughput but the 2024 Feasibility Study assumes plant availability of 86% (1,200 t/d x 86% = 1,032 t/d).
The Arlit processing plants achieve 92% availability, by comparison. If SOMIDA has a similar experience, throughput would increase to about 1,104 t/d (1,200 t/d x 92% = 1,104 t/d). The plant layout has been optimised to enable the addition of more processing lines in the future. Much of the equipment has been over-sized by 20%, so minimal capital costs would be required to achieve throughput of 1,325 t/d (1,200 t/d x 1.2 x .92 = 1,325 t/d). Fixed mining, processing and site costs are significant, so increases in throughput would have a significant impact on reducing unit costs.
Ore processed will vary in grade and impact cash cost in the various periods in the table below. Further drilling to convert high grade Inferred Resources to the Indicated category is expected to increase the grade profile and project economics in the later years of the Mine Plan.
2026-32 | 2033-40 | 2041-49 | 2026-49 | |
Years | 7 | 8 | 8.75 | 23.75 |
Ore processed (MT) | 2.5 | 2.9 | 2.7 | 8.0 |
Grade (ppm) | 5,538 | 4,274 | 2,668 | 4,113 |
U3O8 produced (Lbs M) | 27.6 | 25.4 | 15.2 | 68.1 |
Average Annual (Lbs M) | 3.9 | 3.2 | 1.7 | 2.9 |
Mining cost per pound | ||||
Processing cost per pound | ||||
G&A cost per pound | ||||
Total cash cost per pound before royalties |
Project Development Schedule
Mine development activities at the
Global Atomic holds a 49% interest in
The following table summarizes comparative results for Q1 2024 and 2023 of the Turkish Zinc JV at 100%.
Three months ended | |||
2024 | 2023 | ||
100 % | 100 % | ||
Net sales revenues | $ 9,508,298 | $ 5,836,394 | |
Cost of sales | 8,415,706 | 6,671,321 | |
Foreign exchange gain | 240,854 | 76,065 | |
EBITDA(1) | $ 1,333,446 | $ (758,862) | |
Management fees & sales commissions | 767,865 | 384,014 | |
Depreciation | 552,362 | 968,502 | |
Interest expense | 564,683 | 550,124 | |
Foreign exchange loss on debt and cash | 1,143,712 | 322,358 | |
Monetary gain | (1,373,721) | (1,095,707) | |
Tax (recovery) expense | (1,002,446) | 945,059 | |
Net income (loss) | $ 680,991 | $ (2,833,212) | |
Global Atomic's equity share | $ 333,686 | $ (1,388,274) | |
Global Atomic's share of EBITDA | $ 653,389 | $ (371,842) |
(1) | EBITDA is a non-IFRS measure, does not have a standardized meaning prescribed by IFRS and may not be comparable to similar terms and measures presented by other issuers. EBITDA comprises earnings before income taxes, interest expense (income), foreign exchange loss (gain) on debt and bank, depreciation, management fees, sales commissions, losses (gains) on sale of property, plant, and equipment. |
The Turkish JV realized significant growth in revenues during Q1 2024 compared to 2023. Operations in Q1 2023 were adversely affected by significant earthquakes in Türkiye. In Q1 2024, the Turkish JV sold 9.3 million pounds of zinc concentrate, increase from the 3.7 million pounds sold in the corresponding period last year. Despite a decline in the average monthly LME zinc price, which decreased to
The cash balance of the Turkish Zinc JV was
The following table summarizes comparative operational metrics of the Iskenderun facility.
Three months ended | |||
2024 | 2023 | ||
100 % | 100 % | ||
Exchange rate (C$/TL, average) | 22.95 | 13.96 | |
Exchange rate (US$/C$, average) | 1.35 | 1.35 | |
Exchange rate (C$/TL, period-end) | 23.87 | 14.18 | |
Exchange rate (US$/C$, period-end) | 1.36 | 1.35 | |
Average monthly LME zinc price (US$/lb) | 1.11 | 1.42 | |
EAFD processed (DMT) | 19,990 | 6,125 | |
Production (DMT) | 6,251 | 1,812 | |
Sales (DMT) | 6,477 | 2,479 | |
Sales (zinc content '000 lbs) | 9,271 | 3,656 |
QP Statement
The scientific and technical disclosures in this Management's Discussion and Analysis have been extracted from the 2024 Feasibility Study, which was reviewed and approved by
Advance Notice By-law
The Company has adopted By-law No. 4 of the Company (the "Advance Notice By-law"), a by-law that requires advance notice be given to the Company when director nominations are made by shareholders other than through a requisition for a meeting or through a shareholder proposal, in each case in accordance with the Business Corporations Act (
The Advance Notice By-law provides a clear and fair process enabling shareholders to nominate directors for election to the Company's Board of Directors within a reasonable timeframe while ensuring that all shareholders receive such notice and information about director nominees necessary to exercise their voting rights in an informed manner. The Advance Notice By-law is similar to advance notice by-laws adopted by other Canadian public companies.
The Advance Notice By-law is effective immediately and will be presented to be approved, ratified and confirmed by a majority of the votes cast by shareholders at the Company's upcoming annual and special meeting of shareholders to be held on
About Global Atomic
The Company's Uranium Division is currently developing the fully permitted, large, high grade Dasa Deposit, discovered in 2010 by Global Atomic geologists through grassroots field exploration. The "First Blast Ceremony" occurred on
Global Atomic's Base Metals Division holds a 49% interest in the
The information in this release may contain forward-looking information under applicable securities laws. Forward-looking information includes, but is not limited to, statements with respect to completion of any financings; Global Atomics' development potential and timetable of its operations, development and exploration assets; Global Atomics' ability to raise additional funds necessary; the future price of uranium; the estimation of mineral reserves and resources; conclusions of economic evaluation; the realization of mineral reserve estimates; the timing and amount of estimated future production, development and exploration; cost of future activities; capital and operating expenditures; success of exploration activities; mining or processing issues; currency exchange rates; government regulation of mining operations; and environmental and permitting risks. Generally, forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "is expected", "estimates", variations of such words and phrases or statements that certain actions, events or results "could", "would", "might", "will be taken", "will begin", "will include", "are expected", "occur" or "be achieved". All information contained in this news release, other than statements of current or historical fact, is forward-looking information. Statements of forward-looking information are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Global Atomic to be materially different from those expressed or implied by such forward-looking statements, including but not limited to those risks described in the annual information form of Global Atomic and in its public documents filed on SEDAR from time to time.
Forward-looking statements are based on the opinions and estimates of management at the date such statements are made. Although management of Global Atomic has attempted to identify important factors that could cause actual results to be materially different from those forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance upon forward-looking statements. Global Atomic does not undertake to update any forward-looking statements, except in accordance with applicable securities law. Readers should also review the risks and uncertainties sections of Global Atomics' annual and interim MD&As.
SOURCE
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