bringing the dasa uranium project to market · orano (ex-areva) cominak closing march 2021 cominak...
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Bringing the Dasa uranium project to market
GLOBAL ATOMIC CORPORATION
Predaba / Indaba
February 2020
This presentation has been prepared by the Global Atomic Corporation (“Global Atomic” or the “Company”) and includes information from sources believed by management to be reliable. No representation or warranty, expressed or implied, is made as to the accuracy of the information set forth herein. The information contained herein is as of the date hereof and is subject to change, completion or amendment without notice.
This presentation contains forward-looking statements, estimates and projections with respect to the anticipated future performance of the company that may be deemed to be “forward-looking statements.” These statements, estimates and projections reflect various assumptions made by the Company concerning anticipated results, which may or may not prove to be correct.
All statements contained in the presentation that address operating performance, future direction, management and control of the Company, events or developments that are expected to occur in the future (including statements related to earnings, expectations, sales of assets, capital expenditures, or statements expressing general optimism about future operating results) are forward-looking statements. Actual results could differ materially from those reflected in the forward-looking statements contained herein as a result of a variety of factors, many of which are beyond the Company’s control.
Figures as of 22 January 2020
Disclaimer
1Corporate Presentation Q1 2020
Uranium development underpinned by cash flow from zinc production
Overview
2
Uranium
development,
Niger
(100% GLO)
Dasa Uranium, Niger
High grade, high margin, underground
operation planned, Flank Zone in Phase 1
2020
Apply for
Mine
Permit
Leveraged
upside, protected
downside
C$70 M
Market Cap
Bringing
Uranium to
market
Cash-flow from
recycling,
Turkey
(49% GLO)
BST, Iskenderun, Turkey
New kiln commissioned to produce zinc oxide
from EAFD (110,000tpa capacity)
2020
Est. Attrib.
$15 M
EBITDA
Corporate Presentation Q1 2020
Tight shareholder structure, dilution protected by cash flow
TSX: GLO | OTCQX: GLATF | FRA: G12
Capital Structure
3
Shares Issued (m) 144.2
Options $0.28 5.1
Options $0.25 5.6
Warrants $0.64 2.5
Warrants $2.88 0.3
Warrants $1.92 2.6
Fully Diluted 160.2
Major Shareholders
C$70 M
Market Capitalisation
C$5.2 M
Cash end Q3
48c
Share Price
144.2 M
Shares issued
Stephen G. Roman
(8.2%)
Frame Group (6.9%)
Befesa (4.1%)
H&H (3.5%)
Sachem Cove (3.0%)
Deutsche Rostoff
(2.8%)
Others (71.5%)
52 week High
56c
52 week Low
28c
Corporate Presentation Q1 2020
Experienced team of mine development and uranium veterans
Stephen G. Roman -- Chairman, President and CEO
Ex director of Denison Mines. Founded, managed and sold Gold Eagle Mines to Goldcorp Inc for $1.5B. Won “Prospector of the Year”, “Bill Dennis Award” from the PDAC in 2016. Currently Chairman of Harte Gold Corp.
Board and Management
4
George Flach -- Vice Chairman, VP Exploration
P.Geo with track record of discovery (approximately 35moz gold, 250mlbs uranium) over 35 years of exploration history
Paul Cronin -- Non-executive Director
Co-founder of Adriatic Metals, CEO of Black Dragon Gold, ex-CEO of Anatolia Energy. 20 years banking experience, ex-Vice President of RMB Resources
Richard Faucher -- Non-executive Director
Metallurgical Engineer, ex President & GM of Falconbridge Dominicana, ex COO of Princeton Mining, ex VP Brunswick Mining and Smelting for Noranda Inc
Derek Rance -- Non-executive Director
Professional Engineer and principal of Behre Dolbear & Company Inc. Ex President and COO of Iron Ore Company of Canada, ex Mine Manager of Dickenson Mine, ex President and CEO of Cape Breton Development Corp.
Asier Zarraonandia Ayo -- Non-executive Director
CEO of Befesa Zinc S.A.U. a world leader in electric arc furnace dust recycling since 2006. Ex CFO Befesa Aluminium, previously senior manager, auditor and consultant, with Arthur Andersen
Merlin Marr-Johnson, BSc, MSc, DIC – Exec. Vice President
25 years’ experience in the minerals sector, ex exploration geologist for Rio Tinto, analyst for HSBC and portfolio manager for Blakeney Management. Ex CEO of Palladex plc and Erris Resources plc. Director of Salazar Resources Ltd
Rein Lehari, CPA -- CFO
Accountant, previously CFO of Silvermet prior to its merger with Global Atomic in 2017. Ex partner at PricewaterhouseCoopers
Fergus Kerr, BSc, P Eng, ARSM – Mining Consultant
Registered Professional Engineer in the Province of Ontario with > 40 years experience in the mining industry mostly senior management in Canadian underground mines. Ex General Manager at Denison Mines, Elliot Lake and Area Manager of Mines for INCO Ltd. Ex Director, Mining Sector with the Workplace Safety and Insurance Board, Toronto, Ontario and Employer Co-Chair of the Mining Health, Safety and Prevention Review
Peter Wollenberg, BSc, MSc, PhD -- Director of Exploration and Resource Development
>38 years of experience in uranium exploration and mining. Ex VP Exploration for Urangesellschaft, and senior mine geologist at the Cluff Lake uranium mine (COGEMA), and as exploration manager both in Australia and Niger. Previously responsible for the quality management system at Areva Resources Canada Inc. and the Director Exploration North America
Tim Campbell -- Vice President and Corporate Secretary
>25 years’ experience in the mining sector focusing on corporate finance, regulatory compliance, government relations and permitting, local community and aboriginal consulting.
Corporate Presentation Q1 2020
Corporate Presentation Q1 2020 5
Uranium projects, Niger (100% GLO)
High grade underground mine planned at Dasa
Mine permit application H2 2020
A uranium country, a strategic country
6
Somair
opened
1971
Niger - Uranium Production since 1971
Orano (ex-Areva)
Cominak closing March 2021
Cominak
opened
1978
EU, French, US
military support
Sahel stability
Regional insecurity, a stable Niger is key
Elections in
April 2021
Oil Discoveries
Agadem Basin
Sirte Basin
Strategic Industry
Fourth largest global uranium producer
2006
New Mining
Code
Republic of Niger
Corporate Presentation Q1 2020
Dasa in the heart of a uranium district
Maps
7Corporate Presentation Q1 2020
13 years, 6 licences, 4 discoveries, 1 MOU
Active in Niger since 2005
Global Atomic in Niger
8
2007
2008
2009
2010-19
2020
Tin Negouran, 8.8 mlbs @ 170 ppm, (non-NI 43-101 compliant resource)
Dajy Prospect, 16.6 mlbs @ 689 ppm, (non-NI 43-101 compliant
resource)
Isakanan, 33 mlbs @ 896 ppm, (non-NI 43-101 compliant resource)
Dasa, >250mlbs, 1028 drill holes, 5 consecutive NI 43-101 compliant
mineral resource updates
Technical Report, EIA and Application for Exploitation Permit
MOU with Orano signed 2017
Corporate Presentation Q1 2020
Large, high grade, strategic asset
Dasa uranium project, Niger
9
Grade / Tonnage Report at Varying Cut-Off Grades
Cut-Off(eU3O8, ppm)
CategoryTonnes
(Mt)
eU3O8
(ppm)
Contained
eU3O8
(Mlb)
100Indicated 81.6 718 129.1
Inferred 96.1 606 128.4
320Indicated 32.0 1,530 108.0
Inferred 35.0 1,333 102.7
1,200Indicated 7.9 4,483 78.0
Inferred 8.4 3,783 69.9
2,500Indicated 3.6 7,849 61.9
Inferred 3.4 6,838 51.4
10,000Indicated 0.6 24,401 31.1
Inferred 0.8 14,598 25.3
Corporate Presentation Q1 2020
Phase 1 plan focused on ~10 year mine life at Flank Zone
Dasa, longitudinal section
10
Schematic long-section and hypothetical underground infrastructure
Corporate Presentation Q1 2020
3-4 Mlb production for 10 years, 1000tpd, sub-level retreat and fill
Flank Zone mine concept
11
Schematic mine development and underground infrastructure
August 2023 December 2025 September 2032
Corporate Presentation Q1 2020
Corporate Presentation Q1 2020 12
Befesa Silvermet Turkey (BST)(49% GLO)
110,000 tpa EAFD capacity
Cash flow from zinc production
Home of a robust steel industry
Turkey
13
World’s 8th
largest steel
producer
52
Mtpa
capacity
80% secondary
(scrap)
4 main steel
production
clusters
23Electric Arc
Furnaces
5 Induction
Furnaces3
Blast
Furnaces
Electric Arc
Furnace Dust
(EAFD)
Waste
Recycling
BST in
Mediterranean
Cluster
Sustainable
feedstock
Corporate Presentation Q1 2020
Map of Turkish steel production centres
Turkey
14Corporate Presentation Q1 2020
New efficient kiln doubles capacity
BST, Iskenderun, Turkey (49% Global Atomic)
15
(51% and operator) market leader in EAFD recycling
• BFSA.F, mkt cap US$1.3 Bn
• 14x cash flow, 10x EBITDA
2018 60,000 tpa
• 33 Mlbs zinc produced
• Attributable GLO EBITDA US$10.0 M
2019 Expansion Q1-Q3, commissioning Q4
• US$27 M rebuild funded out of cash flow
2020 110,000 tpa capacity
• Modern plant
• Forecast US$15 M attributable EBITDA
Corporate Presentation Q1 2020
Significant near-term value catalysts
Timeline
16
Da
sa
, N
ige
r (1
00
%)
BS
T, T
urk
ey
(49
%)
Q4 2019 H1 2020 H2 2020 2021
Mine Plan and EIAExploitation
Permit
Final Feasibility
Study
Hot commissioningSteady state operations
110,000tpa capacity
Up to 60 Mlb pa
zinc production
Trade-off Studies
Corporate Presentation Q1 2020
Strategic uranium assets backed by positive cash flow
Investment Case
17
Niger
pro-mining
• Uranium country
• Rapid permitting
• High grade u/g
development
• Feasibility Study in
2021
Tier 1 Dasa
Uranium
Tight equity
structure
• Mkt cap C$70 M
• 110,000 tpa capacity
• Cash flow from zinc
productionBST
(49% GLO)
Corporate Presentation Q1 2020
Supply / Demand deficit continues to grow
Depletion:
3 top--ten mines forecast to close before
2030 (Rossing, Cominak, Ranger)
Time:
Long lead-time for mine development or
re-start
Capacity:
50-100% expansion / infrastructure
requirement
Uranium Market
18
SUPPLY -12% since 2015
50 nuclear reactors under construction
in 15 countries
• Currently 450 operating reactors in 30 countries
• Installed capacity 400 Gigawatts
• >10% of world's electricty
Increasing to 25% of installed capacity
by 2040
DEMAND +49% by 2040
Corporate Presentation Q1 2020
8 King St E, Suite 1700
Toronto, ON M5C 1B5
Tel: +1 416 368 3949
Globalatomiccorp.com