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Global Atomic Corporation generating cash flow from its unique project portfolio

Snapshot

The mining company is generating cash flow from its Turkish zinc operations to advance a high grade uranium project in Niger

Global Atomic Corporation -

Quick facts: Global Atomic Corporation

Price: 0.34 CAD

TSX:GLO
Market: TSX
Market Cap: $49.44 m
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  • Base metals company with a unique set of assets designed to drive cash flow
  • Large, high-grade uranium project in Niger and zinc concentrate plant in Turkey
  • Prefeasibity study underway at uranium asset and blue-chip partners at Turkish zinc plant

What Global Atomic does:

Global Atomic Corporation (TSE:GLO) (OTCMKTS:GLATF) is a mining company with a unique combination of assets in Niger and Turkey to drive cash flow.

The company’s uranium division includes six exploration permits in the Republic of Niger covering an area of approximately 750 square kilometres.

Uranium mineralization has been identified on each of the permits, with the most significant discovery being the DASA deposit, which was a grassroots discovery in 2010 by Global Atomic’s geologists.

The firm signed an agreement with Orano Mines Ltd (formerly AREVA Mines Ltd) in 2017 to supply uranium ore from DASA to its milling facility in Arlit, Niger, located 80 kilometres to the north. Global Atomic plans to begin shipping ore to Orano in 2021 and is currently undergoing a feasibility study at DASA to support the plan of arrangement.

The company’s base metals division holds a 49% interest in the Befesa Silvermet Turkey SL (BST) joint venture, which operates a processing facility that converts Electric Arc Furnace Dust (EAFD) into a high-grade zinc oxide concentrate which is sold to zinc smelters around the world.

Befesa Zinc SAU holds a 51% interest in and is the operator of the BST joint venture. Befesa is a market leader in EAFD recycling, capturing approximately 50% of the European EAFD market with facilities located throughout Europe and Korea.

How is it doing:

Global Atomic’s most recent financial results highlight its cash flow-focused business model. For the three months ended September 30, Global Atomic saw net revenue of nearly C$800,000. 

It was the first quarterly update since the completed expansion of its electric arc furnace dust zinc processing plant in Turkey.  The plant, located in the southern city of İskenderun, is up and running at its design capacity of 15 tons per hour after opening on November 6.

The Toronto-based company also listed on the OTCQX market in the US under the ticker symbol GLATF in October.

Meanwhile, an updated mineral resource estimate was completed by CSA Global Pty Ltd for Global Atomic’s DASA uranium project in Niger, which showed an increase of 56% increase in indicated uranium to 101.6 million pounds at 1,752 parts per million and an 81% increase in inferred uranium to 87.6 million pounds at 1,781 parts per million.

Looking ahead, the Turkish processing plant is expected to operate at between 80% and 100% of throughput capacity in 2020. Feasibility work is underway on the DASA deposit, and the company hopes to apply for a mining permit by the fourth quarter of 2020.

On a corporate level, the firm added former Kinross veteran Ronald Halas to its executive team. Halas will serve alongside CEO Stephen Roman as the firm’s chief executive officer.

Inflection points:

  • Publication of a pre-feasibility study and environmental impact assessment ahead of the mining permit
  • DASA Mining Permit application to commence in mid-2020 with permits expected to be issued in 4Q 2020
  • Continued discussions with Orano Mining about the potential for early delivery of ore from DASA

What the boss says:

In a recent interview with Proactive, Global Atomic’s CEO Stephen Roman expounded the Dasa project’s potential.

“We’ve found an elephant – there hasn’t been anything found like this in Africa for decades,” Roman said.

“Right now our zinc operation is running at capacity. As we move the feasibility ahead for Dasa, we expect to have all of our technical work done by mid-2020 and then go into an application phase for a mining permit.”

Contact Angela at [email protected]

Follow her on Twitter @AHarmantas

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Global Atomic progresses with feasibility study at uranium project in Niger

Global Atomic Corporation (TSE:GLO) chief executive Stephen Roman met Proactive's Andrew Scott at Mines & Money London 2019.     The company has two assets: a zinc concentrate plant in Turkey and a high-grade uranium project in Niger. The latter is still undergoing a...

on 26/11/19

4 min read