Proactiveinvestors USA & Canada Global Atomic Corporation https://ca.proactiveinvestors.com Proactiveinvestors USA & Canada Global Atomic Corporation RSS feed en Fri, 24 May 2019 18:49:15 -0400 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - Global Atomic Corporation will support uranium exploration and development work with significant cash flow from Turkish zinc assets ]]> https://ca.proactiveinvestors.com/companies/news/220694/global-atomic-corporation-will-support-uranium-exploration-and-development-work-with-significant-cash-flow-from-turkish-zinc-assets-220694.html Global Atomic Corporation (TSE:GLO) is “two businesses in one company”, according to Executive Vice President Merlin Marr-Johnson.

There’s zinc recycling in Turkey, and uranium exploration and development in Niger.

If that doesn’t seem like a natural coupling in terms of commodity or jurisdiction, then consider it from a financial perspective.

It’s long been a truism that the most investable exploration companies are the ones that can generate their own cash flow, for the simple reason that they’re not diluting shareholders all the time.

Strategic Minerals (LON:SML) is an example of this, with its Cobre magnetite project in New Mexico funding all kinds of exploration in places as far flung as England and Australia.

Global Atomic is another.

The company’s zinc recycling operation Befesa Silvermet Turkey (BST), held in joint venture with Spanish giant BEFESA, generated earnings last year of C$13.5mln, of which C$7.4mln was dividended out to Global Atomic.

In this particular instance, Global Atomic chose to reinvest much of that into an expansion of the BST operation, but in 2018 the dividend from the recycling paid for the  very successful drilling campaign on the company’s  DASA uranium project in Niger.

Indeed, the two businesses were brought together 18 months ago precisely to allow this dynamic. Back then Global Atomic, a private vehicle containing the Niger uranium licences, was merged Venture-listed Silvermet, which held the Turkish assets.

Global Atomic chief executive Steven G. Roman was also chief executive of Silvermet at the time of the transaction, and boasts considerable uranium expertise through his time at, and connections with, Denison Mines (TSE:DML). As industry watchers will know, Denison Mines is one of the biggest names in North American uranium and it was catapulted to success and managed by Stephen’s father for decades. So Stephen knew what he was looking at when the transaction came along.

The rationale for the Global Atomic-Silvermet union was clear. The first was that the upside on the uranium assets in Niger looked to be considerable. And the second was that the benefit to shareholders of having cash flow generation from zinc in Turkey , in a weak equity market, looked compelling.

That assessment has since played out, as the projects have moved along significantly since the companies were combined, and the DASA project now boasts an indicated resource of 64.8mln pounds of uranium at grades of over 3,000 parts per million eU3O8. There’s also an inferred resource of 48mln pounds at slightly lower grades.

This resource was more than enough to support a preliminary economic assessment, which investigated two different mining and processing alternatives: a standalone underground operation, and an underground operation that would truck ore to an Orano facility and which therefore dispenses with the need for a new mill. As it happens though, subsequent ultra-high grade assays have made it clear that an open pit operation would be more optimal, so Global Atomic is now in the process of re-working its numbers.

Either way, the grades make it a compelling proposition and, as Marr-Johnson says, “probably the only hard rock uranium mine that works at US$30 per pound.”

As it happens, the forward curve shows uranium prices five dollars higher than the current price, at US$30 per pound in two years’ time, the earliest that Global Atomic is likely to make it into production.

What remains to be seen is the precise route to production and some hard numbers on margins.

A key stepping-stone to reaching those hard numbers will be the outcome of discussions with Orano, the new name for the old uranium and power giant Areva. Global Atomic has an MoU with Orano to cooperate in Niger, and has based its trucking option in the PEA on being able to use existing processing facilities near Arlit.

An interesting development is that the Minister of Mining just announced that  one of the nearby Orano operations is closing down, meaning that an entire plant will be free  some time soon.

The plant may be old, but Marr-Johnson believes this could open up an opportunity for Global Atomic and its stakeholders.

The best result would be for the government to be able to announce that a new mine is opening, for Orano and other owners of the mine to reduce decommissioning liabilities, and for Global Atomic to save time and money by using the old plant. But this is all new news and nothing’s been signed yet.

Meanwhile, a new resource is due within a couple of months and a new production plan will follow that.

In parallel upgrading of the Turkish operation from a capacity of 60,000 tonnes per year throughput to 110,000 tonnes will be proceeding apace.

Marr-Johnson reckons that when it’s complete later this year  it will put the company on a forward earnings multiple of just three to four times, making it highly attractive compared to the peer group average of six or seven times.

That implies a re-rating down the line, always assuming the market hasn’t cottoned onto the uranium potential by then.

Either way, Global Atomic has plenty to offer on both the zinc and uranium sides, is well supported by cash and looks set to deliver on some serious upside in the not too distant future. One to watch.

]]>
Tue, 21 May 2019 12:37:00 -0400 https://ca.proactiveinvestors.com/companies/news/220694/global-atomic-corporation-will-support-uranium-exploration-and-development-work-with-significant-cash-flow-from-turkish-zinc-assets-220694.html
<![CDATA[Media files - Global Atomic Corp begins trading on Toronto Stock Exchange ]]> https://ca.proactiveinvestors.com/companies/stocktube/13319/global-atomic-corp-begins-trading-on-toronto-stock-exchange-13319.html Mon, 13 May 2019 14:50:00 -0400 https://ca.proactiveinvestors.com/companies/stocktube/13319/global-atomic-corp-begins-trading-on-toronto-stock-exchange-13319.html <![CDATA[News - Global Atomic to begin trading on TSX ]]> https://ca.proactiveinvestors.com/companies/news/219795/global-atomic-to-begin-trading-on-tsx-219795.html Global Atomic Corporation (CVE:GLO) will begin trading on the Toronto Stock Exchange (TSX Wednesday, May 8, under the symbol "GLO."

Previously, the Toronto-based resource firm has been on Toronto's venture exchange and will de-list from there tomorrow. The group operates a uranium division and a base metals division.

READ: Global Atomic posts higher income and working capital thanks to Turkish zinc operations

Its uranium business holds six mining agreements and related exploration permits in Niger in West Africa that cover around 750 square kilometres (sq km), with the most significant deposit being the DASA deposit on the Adrar Emoles 3 permit.

The base metals division holds a 49% joint venture interest in Befesa Silvermet Turkey (BST), which operates a Waelz kiln facility in Turkey through Befesa Silvermet Iskenderun Celik Tozu Geri Donusumu(BSI).

BSI acquires electric arc furnace dust (EAFD) from steel mills and recycles it to produce a high-grade zinc oxide concentrate that is then sold to zinc smelters.

The company's joint venture partner, Befesa Zinc SAU, a wholly owned subsidiary of Frankfurt Stock Exchange-listed Befesa SA, holds a 51% in and is the operator of BST.

Global Atomic has never paid cash dividends on its shares and does not expect to do so in the foreseeable future. The firm will continue trading on the OTC under the symbol SYIFF and the FSE under the symbol G12.

According to the TSX, there will be around 142.6 million shares issued and outstanding.

Contact Giles at giles@proactiveinvestors.com

Follow him on Twitter@Gile74

]]>
Tue, 07 May 2019 07:30:00 -0400 https://ca.proactiveinvestors.com/companies/news/219795/global-atomic-to-begin-trading-on-tsx-219795.html
<![CDATA[Media files - Global Atomic on track with zinc plant expansion as it advances flagship uranium asset ]]> https://ca.proactiveinvestors.com/companies/stocktube/13224/global-atomic-on-track-with-zinc-plant-expansion-as-it-advances-flagship-uranium-asset-13224.html Fri, 03 May 2019 14:36:00 -0400 https://ca.proactiveinvestors.com/companies/stocktube/13224/global-atomic-on-track-with-zinc-plant-expansion-as-it-advances-flagship-uranium-asset-13224.html <![CDATA[News - Global Atomic posts higher income and working capital thanks to Turkish zinc operations ]]> https://ca.proactiveinvestors.com/companies/news/219399/global-atomic-posts-higher-income-and-working-capital-thanks-to-turkish-zinc-operations-219399.html Global Atomic Corporation (CVE:GLO) reported higher income and working capital from its Turkish zinc operations as part of its 2018 financials released Monday.

The Toronto-based company has a 49% interest in the Befesa Silvermet zinc concentrate production facility in Turkey and is advancing the DASA uranium deposit in Niger.

WATCH: Global Atomic Corporation sees supply as a key to improving uranium prices

The BST joint venture owns and operates an electric arc furnace dust (EAFD) processing plant in Iskenderun, Turkey. The plant processes EAFD containing 25% to 30% zinc that is obtained from electric arc steel producers and produces a zinc concentrate of around 70% zinc that is then sold to zinc smelters.

Consolidated net income for the company was C$7.4 million in 2018, up from $5.1 million a year prior, while its working capital surplus as $7.3 million, a turnaround from a deficit of $1 million during 2017.

The Turkish operations shipped nearly 21,000 tons of zinc concentrate in 2018, around 500 tons less than 2017 levels, but the difference was offset by higher zinc prices in the first half of 2018.

The plant is currently undergoing a modernization and expansion program that is on track to be fully operational by September. Upgrades include increasing the plant’s throughput from 60,000 tons to 110,000 tons, which should result in a 10% increase in zinc recovery rates.

Progress at DASA project

At the company’s DASA project in Niger, the company completed a preliminary economic assessment that outlined a resource of 69 million pounds uranium at an average grade of 2,380 parts per million for a 15-year mine life.

According to Global Atomic, an updated resource statement is in progress and expected to be released by 2Q 2019.

On the financing front, the company raised $8.9 million in November 2018 and a further $1.3 million in January 2019.

Shares of Global Atomic eased 4.7% in Canada to C$0.41 on Tuesday morning.

Contact Angela at angela@proactiveinvestors.com

Follow her on Twitter @AHarmantas

]]>
Tue, 30 Apr 2019 11:39:00 -0400 https://ca.proactiveinvestors.com/companies/news/219399/global-atomic-posts-higher-income-and-working-capital-thanks-to-turkish-zinc-operations-219399.html
<![CDATA[Media files - Global Atomic Corporation sees supply as a key to improving uranium prices ]]> https://ca.proactiveinvestors.com/companies/stocktube/12446/global-atomic-corporation-sees-supply-as-a-key-to-improving-uranium-prices-12446.html Mon, 04 Mar 2019 15:32:00 -0500 https://ca.proactiveinvestors.com/companies/stocktube/12446/global-atomic-corporation-sees-supply-as-a-key-to-improving-uranium-prices-12446.html