Dasa Uranium Project On Schedule to Produce
Yellowcake in Q1 2025
TORONTO, March 31,
2023 /CNW/ - Global Atomic Corporation ("Global
Atomic" or the "Company"), (TSX: GLO) (OTCQX: GLATF) (FRANKFURT:
G12) announced today its operating and financial results for the
year ended December 31, 2022.
HIGHLIGHTS
Dasa Uranium Project
- On April 19, 2022, the foundation
for the debt portion of the financing for the Dasa Project was laid
when the Company received a Letter of Interest from Export
Development Canada ("EDC"), confirming their interest in working
with the Company in regard to the financing of the Dasa Uranium
Project in the Republic of Niger.
- On June 15, 2022, the Company
received a Letter of Intent from a major North American utility for
the procurement of Dasa's uranium, representing the supply of 2.1
million pounds U3O8 over a six-year period commencing in 2025,
representing approximately 7 percent of Dasa's production over the
period with a revenue potential of US$110
million in real terms.
- On June 20, 2022, the Company
received Letters of Intent from a banking syndicate to finance the
Dasa Uranium Project in Niger. The
syndicate is comprised of North American financial institutions and
includes the previously announced indication from EDC.
- On July 21, 2022, the Company
announced that it had reached an agreement with Enernet Global Inc.
("Enernet"), a leading hybrid independent power producer, to
commence early engineering for a hybrid power plant for the Dasa
Project.
- On August 11, 2022, Global Atomic
announced the incorporation of the Company's Niger mining subsidiary, Société Minière DASA
S.A. or "SOMIDA", which is owned 80% by Global Atomic and 20% by
the Government of Niger, including
their 10% carried interest provided under the Niger Mining
Code.
- On September 28, 2022, Global
Atomic announced the signing of Development Consultants Private
Limited ("DCPL") of Kolkata,
India, and Lycopodium Minerals Canada Ltd. ("Lycopodium") to
commence the basic and detailed engineering, procurement and
project management of the Dasa Mine processing plant in the
Republic of Niger.
- On October 5, 2022, the Company
received Letter of Intent from a second major western utility for
the procurement of uranium from the Company's Dasa Project,
representing the supply of up to 2.4 million pounds
U3O8 within a multi-year delivery window
beginning in 2025, representing about 7% of Dasa's annual Phase 1
production over the period with a revenue potential valued at
US$140 million in real terms.
- On November 5, 2022, Global
Atomic hosted over 800 people for the Opening Blast Ceremony at the
Dasa Mine which officially commenced the underground development of
the Dasa Mine
- On November 24, 2022, the fourth
update of drill intercepts were reported from the infill drill
program initiated at the Dasa project in 2021, including a
1,000-meter extension to the program as well as interim results of
chemical assays completed to date, which indicated higher grades
than reported in the probe results from the original drill
holes.
Turkish Zinc Joint Venture
- The Turkish Zinc Joint Venture ("BST" or the "Turkish JV")
plant processed over 76,000 tonnes EAFD in 2022.
- The Company's share of the Turkish JV EBITDA was $4.2 million in 2022 ($11.3 million in 2021).
- The zinc contained in concentrate shipments in 2022 was 35.2
million pounds and the average price was US$1.58/lb.
- Available funds were used to secure adequate supplies of
critical materials in case of unforeseen supply disruptions.
- The revolving credit facility of the Turkish JV was
US$8.3 million at the end of 2022
(Global Atomic share – US4.1 million)
- The cash balance of the Turkish JV was US$3.1 million at the end of 2022.
Corporate
- Global Atomic continues to receive approximately $1.2 million in management fees and sales
commissions annually from the Turkish JV, helping to offset
corporate overhead costs.
- Cash balance at December 31,
2022, was $8.4 million.
Subsequent events
- The Company revised its Dasa Project, Phase 1, Feasibility
Study ("Feasibility Study"), which was revised primarily to apply
"zero grade" to Inferred Resources included in certain stopes of
the Phase 1 Mine Plan.
- The Feasibility Study confirmed a reserve for the Dasa Project
of 4.1 million tonnes grading 5,267 ppm for a total of 47.2 million
pounds U3O8.
- The Feasibility Study resulted in an initial, Phase 1, 12-year
mine schedule at a production throughput of 1,000 tonnes per day to
produce 44.1 million pounds U3O8.
- The Study estimates cash costs, including royalties and all
Niger off-site costs, of
US$19.02/lb
U3O8 and an all-in sustaining cost of
US$22.13/lb U3O8.
- Initial capital expenditures are estimated to be US$208 million.
- Based on a U3O8 price of US$35/lb, the after-tax NPV discounted at 8%, is
US$147 million for an after-tax IRR
of 22.3%. The Feasibility Study sensitivity analysis shows that at
a U3O8 price of US$50/lb the after-tax IRR rises to 44.4% and at
US$60 the after-tax IRR would be
56.9% for Phase 1 only.
- The Company completed a bought deal private placement of
18,666,667 Units on March 17, 2023,
at a price of $3.00 per Unit for
gross proceeds of approximately $56,002,501. Each Unit comprised one common share
and one-half warrant exercisable at $4.00 per common share over an 18-month
period.
Global Atomic President and CEO, Stephen
G. Roman commented, "In 2022, we made significant strides
in advancing the Dasa Project in Niger, most notably opening up the portal,
building the surface infrastructure and hiring a local experienced
mining executive and workforce to begin underground development of
the mine. We are on schedule to produce yellowcake in
2025 and are advancing the project on all fronts thanks to the
confidence of investors who participated in our recent equity
raise. Bank financing is also progressing well with the terms
approval process nearing completion and an announcement of final
debt facility approval at the end of Q2, as previously
stated."
"To address any other further funding needs we are currently
discussing potential offtake agreements with pre-payments
from international electric utilities and we are evaluating other
funding proposals received as alternatives to equity.
Meanwhile in the near term, for the Dasa processing plant we expect
to complete detailed engineering, order long-lead equipment and
begin earthworks in advance of construction. We also
plan to issue a revised Mineral Resource Estimate, which will lead
to a revised mine plan and updated Phase 1 Feasibility Study for
Dasa."
OUTLOOK
Dasa Uranium Project
- In Q2 2023, a banking syndicate is expected to approve the debt
portion of the project financing to complete the Dasa Project.
- Additional uranium sales contracts with international electric
utilities are expected to be signed once the project financing
package is completed.
- In Q2 2023, the Company expects to complete a revised Mineral
Resource Estimate ("MRE") for the Dasa Project based on the
16,000-meter drill program initiated at the end of 2021.
- The Company plans to use the revised MRE to complete a revised
mine plan for the Dasa Project, followed by a revised Feasibility
Study in Q4 2023
- In Q2 2023, the Company expects to complete the basic
engineering for the plant at the Dasa site, place orders for
long-lead items and begin site preparation.
- The Company continues discussions with Orano Mining relating to
the direct shipment of development ore to their Somaïr processing
facility located 150 kilometers north of Dasa.
Turkish Zinc Joint Venture
- In early March 2023, the
recycling plant resumed operation following a thorough inspection
and assessment of the facility after earthquake on February 6, 2023.
- Continued supply interruptions for the availability of Electric
Arc Furnace Dust ("EAFD") are expected until Turkish steel mills
increase their productivity that has been hampered by the effects
of COVID during the past few years and more recently by the 2023
earthquake.
COMPARATIVE RESULTS
The following table summarizes comparative results of operations
of the Company:
|
Year ended December
31,
|
(all amounts in
C$)
|
2022
|
|
2021
|
|
|
|
|
Revenues
|
$
1,149,494
|
|
$
957,723
|
|
|
|
|
General and
administration
|
10,265,688
|
|
9,156,217
|
Share of equity loss
(earnings)
|
287,779
|
|
(4,112,819)
|
Other (income)
expense
|
583,246
|
|
(68,001)
|
Finance (income)
expense
|
(155,142)
|
|
19,882
|
Foreign exchange
loss
|
2,666,330
|
|
108,197
|
Net income
(loss)
|
$
(12,498,407)
|
|
$
(4,145,753)
|
Net gain (loss)
attributable to:
|
|
|
|
Shareholders of the
Company
|
(12,475,109)
|
|
(4,145,753)
|
Non-controlling
interests
|
(23,298)
|
|
-
|
Other comprehensive
income (loss)
|
$
901,107
|
|
$
(9,086,937)
|
Comprehensive income
(loss)
|
$
(11,597,300)
|
|
$
(13,232,690)
|
Comprehensive income
(loss) attributable to:
|
|
|
|
Shareholders of the
Company
|
(11,630,229)
|
|
(13,232,690)
|
Non-controlling
interests
|
32,929
|
|
-
|
|
|
|
|
Basic and diluted net
loss per share
|
($0.07)
|
|
($0.03)
|
|
|
|
|
Basic
weighted-average
number of shares outstanding
|
177,647,065
|
|
162,371,970
|
Diluted
weighted-average
number of shares outstanding
|
177,647,065
|
|
162,371,970
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
2022
|
|
2021
|
|
|
|
|
Cash
|
$
8,400,008
|
|
$
34,179,449
|
Property, plant and
equipment
|
82,234,716
|
|
46,175,097
|
Exploration &
evaluation assets
|
1,115,983
|
|
681,989
|
Investment in joint
venture
|
16,387,040
|
|
8,981,986
|
Other assets
|
2,118,258
|
|
3,581,512
|
Total
assets
|
$
110,256,005
|
|
$
93,600,033
|
|
|
|
|
Total
liabilities
|
$
8,746,681
|
|
$
2,895,756
|
|
|
|
|
Shareholders' equity
|
$
101,509,324
|
|
$
90,704,277
|
The 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.
Revenues include management fees and sales
commissions received from the joint venture. These are based on
joint venture revenues generated and zinc concentrate tonnes sold.
Revenues in 2021 have increased with the increased zinc prices and
higher sales in the Turkish Zinc JV.
General and administration costs at the
corporate level include general office and management expenses,
stock option awards, costs related to maintaining a public listing,
professional fees, audit, legal, accounting, tax and consultants'
costs, insurance, travel and other miscellaneous office expenses.
Stock option expenses, professional fees and salaries have
increased in 2022 compared with 2021 due to growth required to
support Dasa development.
Share of net earnings from joint
venture represents Global Atomic's equity share of net
earnings from the Turkish Zinc JV.
Net gain (loss) attributable to Non-controlling
interest represents 20% ownership of the Republic of
Niger in SOMIDA. $23 thousand loss is related to the exchange loss
of SOMIDA incurred during the period between the incorporation and
the reporting date.
Uranium Business
Mineral Resources and Reserves
As noted on the overall Dasa resource schematic above, there are
significant Inferred Resources located above Zone 3 and between
Zones 2 and 3. The Company completed a 15,000-meter drill program
at its Dasa Project that began in Q4 2021, which due to its success
was expanded to include another 1,000 meters. Drill results
indicate that Zones 2, 2a and 2b now
represent a contiguous zone that joins up with Zone 3 and is
estimated to be approximately three times larger than initially
defined (see the longitudinal depiction below). Recent drilling has
also targeted the extension of Zone 4.
On the strength of results from the overall drill program,
Global Atomic is updating the Dasa Mineral Resource Estimate
("MRE") and will in turn update its Mine
Plan which is expected to result in larger and
contiguous mining Zones, reduced underground development work
between the Zones, lower operating costs and an increase in
mineable reserves.
The updated MRE is expected to be completed in Q2 2023. The
Company plans to use the revised MRE to complete a revised mine
plan for the Dasa Project, followed by a revised Feasibility Study
in Q4 2023.
On January 9, 2023, the Company
revised its Dasa Project, Phase 1, Feasibility Study ("Feasibility
Study"), which was revised primarily to apply "zero grade" to
Inferred Resources included in certain stopes of the Phase 1 Mine
Plan.
The Zones vary in grades, with Zone 1 contributing the largest
portion of the U3O8 tonnes:
|
|
|
|
Feasibility Study
including
Inferred Resources
|
Revised Feasibility
Study
with "zero grade" Inferred
Resources
|
Zone
|
In-situ
Tonnes
|
U3O8 PPM
|
RoM
Tonnes
|
RoM
U3O8
PPM
|
RoM
U3O8
Tonnes
|
RoM
U3O8
PPM
|
RoM
U3O8
Tonnes
|
1
|
2,464,615
|
6,980
|
2,316,047
|
6,887
|
15,950
|
6,847
|
15,856
|
2
|
264,339
|
3,621
|
256,078
|
3,574
|
915
|
3,540
|
906
|
3
|
656,114
|
3,093
|
633,541
|
3,056
|
1,936
|
2,480
|
1,571
|
4
|
604,673
|
3,003
|
584,616
|
2,966
|
1,734
|
2,872
|
1,679
|
5
|
478,916
|
3,312
|
463,345
|
3,269
|
1,515
|
3,031
|
1,405
|
Total
|
4,468,657
|
5,279
|
4,253,626
|
5,184
|
22,050
|
5,035
|
21,417
|
The inferred resources, representing 4.4% of total mineral
resources to be mined in Phase I, was treated as zero grade waste
in the revised feasibility study. Impacts of this grade change are
summarized in the table below:
|
Original
Feasibility
Study
|
Revised
Feasibility
Study
|
Average mill feed grade
(ppm)
|
5,184
|
5,267
|
Total production over
12-year Phase 1 mine plan (Mlb)
|
45.4
|
44.1
|
Average cash
cost1 (US$/lb)
|
18.91
|
19.02
|
Average AISC
(US$/lb)
|
21.93
|
22.13
|
Internal After-tax Rate
of Return ("IRR") @ $US35/lb
|
22.7 %
|
22.3 %
|
After-tax Net Present
Value ("NPV8") (US$ millions) @ $US35/lb
|
157
|
147
|
Internal Rate of Return
("IRR") @ $US50/lb
|
44.6 %
|
44.4 %
|
After-tax Net Present
Value ("NPV8") (US$ millions) @ $US50/lb
|
468
|
456
|
Niger Mining Company
Under Niger's Mining Code, a
Niger mining company must be
incorporated to carry out mining activities. Société Minière de
Dasa S.A. ("SOMIDA") was incorporated on August 11, 2022. The Republic of Niger received its 10% free carried interest
in the shares of SOMIDA and elected to subscribe for an additional
10%, resulting in a total ownership of 20% of the shares. Under the
terms of the Company's Mining Agreement, the Republic of
Niger commits to fund its
proportionate share of capital costs and operating deficits for the
additional 10% interest. The Republic of Niger has no further option to increase its
ownership.
Dasa Mine Development and Construction
The Company has entered into an agreement with CMAC-Thyssen
International Inc. ("CMAC"), a contract miner based in Val d'Or, Quebec to provide contract mining
services in the development of the Dasa underground mine over the
first 24 months of mining. Following the March 2020 closure of the Cominak underground
uranium mine in Arlit, there is a pool of skilled miners available
to the Company in Niger. CMAC is
providing training, development and oversight of the Niger workforce with the new equipment that
will be used at site. Initial mining will comprise only ramp
development during the first 12 months, followed by access and
level development. Equipment and mining consumables have been
procured and shipped to site.
The Box-Cut has been completed and the First Blast of the portal
took place on November 5, 2022,
marking the start of the underground development. Surface
infrastructure to support CMAC has been completed. At the Dasa
Mine, operations are proceeding on schedule with over 200 meters of
underground development now completed on the decline ramp plus for
re-muck and safety bays.
The Company engaged DCPL and Lycopodium to commence the EPCM
process to build Dasa's ore processing plant. DCPL is focusing on
the Basic and Detailed Engineering required for the final design of
the Dasa Process Plant. Lycopodium is providing project
management, procurement, project controls and a project execution
plan services. Lycopodium's engagement may be extended to include
construction management in view of their extensive West African
experience.
Project Financing
Global Atomic has received a Letter of Interest ("LOI") from
Export Development Canada ("EDC") confirming their interest in
working with the Company on a project financing of the Dasa
Project. EDC expects to partner with other export credit agencies,
commercial banks and/or financial institutions as co-lenders and to
have a lead role in the structuring of the debt facility. EDC has
indicated a potential participation, at typical bank rates for a
greenfield mining project finance, of up to US$75 million to form the cornerstone of what is
expected to be a syndicate of banks. On June
15, 2022, Global Atomic also received additional Letters of
Intent such that a syndicate has been formed to finance the Dasa
Project. The syndicate is comprised of North American financial
institutions, including EDC.
The names of all members of the syndicate will be announced
following credit committee and board approvals by the financial
institutions involved. The Company expects to enter into term
sheets with the syndicate shortly and to receive final approvals in
Q2 2023.
Turkish Zinc JV EAFD Operations
The Company's Turkish EAFD business operates through a joint
venture with Befesa Zinc S.A.U. ("Befesa"), an industry leading
Spanish company that operates a number of Waelz kilns throughout
Europe, North America and Asia. On October 27,
2010, Global Atomic and Befesa established joint venture,
known as Befesa Silvermet Turkey, S.L. ("BST" or the "Turkish JV")
to operate an existing plant and develop the EAFD recycling
business in Türkiye. BST is held 51% by Befesa and 49% by Global
Atomic. A Shareholders Agreement governs the relationship between
the parties. Under the terms of the Shareholders Agreement,
management fees and sales commissions are distributed pro rata to
Befesa and Global Atomic. Net income earned each year in Türkiye,
less funds needed to fund operations, must be distributed to the
partners annually, following the BST annual meeting, which is
usually held in the second quarter of the following year.
BST owns and operates an EAFD processing plant in Iskenderun,
Türkiye. The plant processes EAFD containing 25% to 30% zinc that
is obtained from electric arc steel mills, and produces a zinc
concentrate grading 65% to 68% zinc that is then sold to zinc
smelters.
Global Atomic holds a 49% interest in the Turkish JV and, as
such, the investment is accounted for using the equity basis of
accounting. Under this basis of accounting, the Company's share of
the BST's earnings is shown as a single line in its Consolidated
Statements of Income (Loss).
The following table summarizes comparative operational metrics
of the Iskenderun facility.
|
Year ended December
31,
|
|
2022
|
|
2021
|
|
100 %
|
|
100 %
|
|
|
|
|
Exchange rate (C$/TL,
average)
|
12.71
|
|
6.90
|
Exchange rate (US$/C$,
average)
|
1.30
|
|
1.25
|
|
|
|
|
Exchange rate (C$/TL,
period-end)
|
13.81
|
|
10.54
|
Exchange rate (US$/C$,
period-end)
|
1.35
|
|
1.27
|
|
|
|
|
Average zinc price
(US$/lb)
|
1.58
|
|
1.36
|
|
|
|
|
EAFD processed
(DMT)
|
76,738
|
|
70,538
|
|
|
|
|
Production
(DMT)
|
23,486
|
|
23,973
|
Shipments
(DMT)
|
24,116
|
|
23,553
|
|
|
|
|
Shipments (zinc content
'000 lbs)
|
35,159
|
|
34,810
|
In October 2022, the World Steel
Association released an update of its short-term outlook for
demand, which projected 2.3% overall global demand contraction in
2022 and a recovery of 1.0% in 2023. The impact of the Ukrainian
conflict on global steel markets is uncertain. As exports from
Russia and Ukraine have historically accounted for 10% of
global steel exports, it is likely a material percentage of this
supply will be replaced by increased production in other
countries.
Global steel production decreased by 4.2% from 1,960 million
tonnes to 1,878 million tonnes in 2022. The global steel demand was
significantly impacted with high inflation along with Ukranian
conflict and China's
lockdowns. Similarly, Turkish steel production decreased by
12.9% in 2022 compared with 2021. Sharp decreases in construction
activities due to the Turkish Lira's devaluation and high inflation
lead a decrease in steel demand in 2022.
During 2022, in addition to the existing nine hyperinflationary
economies including Venezuela and
Argentina, the Turkish economy was
deemed to be hyperinflationary after the International Monetary
Fund World Economic Outlook ("IMF WEO") that was published in
April 2022 reported a 3-year
cumulative rate of inflation of 74% and an annual rate of inflation
of 36% as of December 2021. For 2022,
the IMF WEO forecasted an annual rate of inflation of 52% (2023:
30%) and a 3-year cumulative rate of inflation of 138% (2023:
169%). The Turkish Statistical Institute ("TURKSTAT") reported a
3-year and 12-month cumulative rate of inflation of 145% and 83%,
respectively, as of September 30,
2022. Therefore, the Turkish economy was considered
hyperinflationary, requiring the first-time application of IAS 29,
Financial Reporting in Hyperinflationary Economies. IAS 29 requires
the non-monetary assets and liabilities and income statements of
countries with hyperinflationary economies to be restated to
reflect the changes in the general purchasing power of their
functional currency, thereby generating a profit or loss on the net
monetary position which is recognized in net income as gain or loss
on net monetary position. In addition, the financial statements of
the subsidiaries in these countries are translated at the closing
exchange rate of the reporting period concerned, in accordance with
IAS 21, The Effects of Changes in Foreign Exchange Rates.
The comparative information is not restated, because it has
already been presented in Canadian dollars (CAD). The gain of
$7.9 million between the closing
balance of shareholders' equity of the Turkish JV at December 31, 2021 and the opening balance at
January 1, 2022 is recognized in
equity:
Opening net assets of
the Company's investments in joint venture at January 1,
2022
|
|
$
8,981,986
|
Gain on first time
application of IAS 29
|
|
|
|
7,971,722
|
Cormpany's share of net
loss of joint venture
|
|
|
|
(287,780)
|
Company's share of
other comprehensive loss of joint venture
|
|
|
|
(278,888)
|
Carrying value of the
Company's investment in joint venture at December 31,
2022
|
|
|
$
16,387,040
|
The following table summarizes comparative results for 2022 and
2021 of the Turkish Zinc JV at 100%.
|
Year ended December
31,
|
|
2022
|
|
2021
|
|
100 %
|
|
100 %
|
Net sales
revenues
|
$
59,692,797
|
|
$
43,579,784
|
Cost of
sales
|
53,305,420
|
|
21,815,111
|
Foreign exchange
gain
|
2,125,012
|
|
1,266,467
|
EBITDA(1)
|
$
8,512,389
|
|
$
23,031,140
|
|
|
|
|
Management fees &
sales commissions
|
2,351,031
|
|
1,930,846
|
Depreciation
|
3,542,154
|
|
2,744,568
|
Interest
expense
|
1,367,379
|
|
885,296
|
Foreign exchange loss
on debt and cash
|
3,790,623
|
|
4,966,353
|
Other income
|
-
|
|
13,845
|
Monetary
gain
|
398,798
|
|
-
|
Tax expense
(recovery)
|
(1,552,695)
|
|
4,124,413
|
Net income
(loss)
|
$
(587,305)
|
|
$
8,393,508
|
Global Atomic's equity
share
|
$
(287,779)
|
|
$
4,112,819
|
|
|
|
|
Global Atomic's share
of EBITDA
|
$
4,171,071
|
|
$
11,285,259
|
(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 Zinc JV realized significant growth in revenues in 2022
compared to 2021, benefiting from higher zinc prices and processing
more EAFD. EBITDA decreased from $23
million in 2021 (Global Atomic share - $11.3 million) to $8.5
million in 2022 (Global Atomic share - $4.2 million). The Ukrainian conflict, post-COVID
demand increases, raw material shortages and global logistics
challenges have in combination resulted in substantial inflationary
pressures on all costs.
The cash balance of the Turkish Zinc JV was US$3.1 million at December
31, 2022.
Total debt was reduced to US8.3 million in 2022 from
US$12.45 million at the end of 2021.
The local Turkish revolving credit facility balance was
US$8.3 million at December 31, 2022 (December 31, 2021 - US$7.8
million) and bears interest at 10%. The Turkish revolving
credit facility can be rolled forward. In Q2 2022, the Befesa loan
related to the 2019 plant expansion, was fully paid (December 31, 2021 – US$4.65 million). Now that the Befesa loan has
been repaid, Turkish JV dividend payments may resume.
The loans are denominated in US dollars but converted to Turkish
Lira for functional currency accounting purposes. For presentation
purposes, the equity interests are then converted to Canadian
dollars. The foreign exchange loss for the 12 months ended
December 31, 2022, related to the
Turkish JV debt and cash balances was $3.8
million (loss of $5 million in
2021).
The foreign exchange loss is an unrealized loss, and largely
relates to the devaluation of the TRY relative to the US$ from
13.36 on December 31, 2021, to 18.71
at December 31, 2022. In economic
terms, all revenues are received in US$ and these will be used to
pay down the US denominated debt, so no exchange gains/losses will
be realized in US$ terms. The accounting exchange losses relate to
the debt and cash balances are shown below EBITDA as a financing
related cost.
Overall, the Company's share of EBITDA was $4.2 million in 2022 ($8.5
million at 100%). After deduction of management fees, sales
commissions and interest expense, depreciation, foreign exchange
losses, other income and taxes, the Company's share of net loss was
$0.3 million for 2022 ($0.6 million at 100%).
QP Statement
This news release has been reviewed and approved by Mr. A.
Christophe Din, MSc, MAus, IMM,
Exploration Manager at Global Atomic's subsidiary, SOMIDA, in the
Republic of Niger, who is a
"qualified person" under National Instrument 43-101 – Standards of
Disclosure for Mineral Properties. Mr. Din holds a Diplôme de
Formation Spécialisée from École Nationale Supérieure des Mines de
Paris and is a member of the
Australian Institute of Geoscientists.
About Global Atomic
Global Atomic Corporation (www.globalatomiccorp.com) 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. The Phase 1 Feasibility
Study for Dasa was filed in December
2021 and estimates yellowcake delivery to utilities to
commence in 2025. Mine excavation began in Q1 2022.
Global Atomic's Base Metals Division holds a 49% interest in the
Befesa Silvermet Turkey, S.L. (BST) Joint Venture, which operates a
modern zinc production plant, located in Iskenderun, Türkiye. The
plant recovers zinc from Electric Arc Furnace Dust (EAFD) to
produce a high-grade zinc oxide concentrate which is sold to zinc
smelters around the world. The Company's joint venture partner,
Befesa Zinc S.A.U. (Befesa) holds a 51% interest in and is the
operator of the BST Joint Venture. Befesa is a market leader in
EAFD recycling, with approximately 50% of the European EAFD market
and facilities located throughout Europe, Asia
and the United States of
America.
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.
The Toronto Stock Exchange has not reviewed and does not accept
responsibility for the adequacy and accuracy of this news
release.
SOURCE Global Atomic Corporation