Global Atomic Announces 2024 Results

TORONTO, March 27, 2025 /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, 2024.  For more detail, please refer to the Consolidated Financial Statements and Management's Discussion and Analysis for the year ended December 31, 2024, on the Company's website at www.globalatomiccorp.com.

Global Atomic President and CEO, Stephen G. Roman commented, "Until a financing commitment is signed, the Company will manage its spending in the near term. By managing the current cash position, we will have additional time to finalize terms with an option best suited to the Company and its shareholders, without coming back to the equity market in the near term.  We appreciate the patience of our shareholders during this process."

"The development of Dasa has progressed significantly since our mine opening in November 2022.  The team has done extraordinary work to advance the project on schedule for a Q1 2026 production startup and I'm proud of what the team has accomplished.   With financing still not finalized it is necessary to be flexible with our plant commissioning and, for now, are adjusting that production date to H1 2026.  Once financing is secured, we will implement strategies to accelerate the development."

"The Niger Government continues to offer strong support for Global Atomic and the Dasa Project.  Our high level of local employment and high level of engagement with local suppliers are aligned with key priorities of the Niger Government.  Dasa is already delivering significant employment and social benefits to the residents of the Agadez region and once financed and developed, Dasa will make a strong financial contribution to the Republic of Niger."

OUTLOOK

Dasa Uranium Project Financing

The Company is actively engaged with a U.S. Development Bank to establish a debt facility to finance 60% of Dasa's development costs.  Following a pause before and after the 2024 U.S. presidential election, the development bank has re-engaged with the Company and senior management of the Bank have confirmed their strong interest in supporting the development of the Dasa Project.

Management has been advised that the Bank is targeting credit committee review of the loan by the end of April and that the Dasa Project aligns with US Administration foreign policy and investment goals.

While working toward completion of the debt facility, the Company is also involved in discussions with a potential joint venture ("JV") partner as an alternative to financing the project.  This potential JV transaction concerns the acquisition of a minority interest in the Dasa project.

Two additional parties have recently expressed interest to invest at the project level and another has expressed interest in an offtake financing structure.

Dasa Uranium Project: Capital Costs

Capital costs, before working capital, corporate and financing costs, were estimated to be US$375.6 million in the 2024 Feasibility Study ("FS"), including US$67.2 million spent to the end of 2023.

Despite higher logistics costs and related delays, currently estimated capital costs have only increased by 4.6% to US$392.8 million.

The Company had incurred US$124.7 million in capital costs by the end of 2024, leaving US$268.1 million to fund. Since year end, the Company has continued to fund the project, further reducing remaining capital requirements.

Either the debt financing or JV alternative currently under discussion, are expected to cover the remaining project costs.

Current expenditures are being managed to defer any interim financing solutions until the Company completes or has visibility on one of the larger financings.

If either the debt financing or JV funding are delayed, the Project schedule may be delayed.

Uranium Prices

Over the course of 2024, spot Uranium prices traded between $120/pound U3O8 and $65/pound U3O8.

Long-term contract prices increased to and remained steady at $80 per pound U3O8 by year end.

The fundamentals and dynamics that affect the spot and long-term prices are different. In the spot market, current price is the result of several factors including utilities waiting to assess the ramifications of U.S. imposed tariffs, financial players stepping out of the spot market for the near term and traders manipulating prices on small volumes. 

The long-term price is the basis of pricing for multi-year utility off-take agreements and features less volatility than the thinner, more speculative spot market.

Globally, the uranium industry continues to experience greater acceptance and expansion as a critical element in the global, carbon free, energy supply.

The longer-term outlook for both the spot and long-term market is expected to be robust as demand outstrips supply due to unprecedented growth in the number of nuclear reactors.

Turkish Zinc Joint-Venture

Higher zinc prices and lower input costs contributed to a return to profitable operations.

The Company anticipates its Turkish JV will perform strongly in 2025 as area steel mill activity has returned to pre Covid levels and the JV has built up a substantial inventory of electric arc furnace dust ("EAFD") that will ensure continuous operations.

2024 HIGHLIGHTS

Dasa Uranium Project, Feasibility Study

On March 5, 2024, the Company announced the results of an updated feasibility study. The FS increased Mineral Reserves by 50% to 73 million pounds U3O8, increased uranium production by 55% to 68.1 million pounds U3O8 and extended the mine life from 12 to 23 years. Using an average uranium price of $75/lb U3O8, the FS shows an NPV8 of US$917 million, an IRR of 57% and a payback period of 2.2 years.

Dasa Uranium Project, Off-take Agreements

On December 19, 2024, the Company formalized a fourth off-take agreement with a European nuclear power utility representing 260,000 pounds U3O8 each year for three years. 

The Company has currently contracted 43% of projected uranium production through the first five years of operations. These contracts represent a small percentage (11.5%) of the 68.1 million pounds of U3O8 production in Dasa's current 23-year mine plan.

The contracted volume provides the bank with the revenue coverage to support debt service and re-payment of the project loan.

The Company retains significant exposure to a uranium market that is expected to feature structural supply/demand imbalances due to unprecedented growth in the number of nuclear reactors to meet exponential low-carbon energy demand growth across the globe.

Dasa Uranium Project, Mine Development

Underground development, underway since November 2022, has now reached the ore zone with development waste being hauled to surface.

Waste development tonnes brought to surface include 967 tonnes medium grade (3,000 to 5,000 ppm), 11,378 tonnes low grade (1,300 to 3,000 ppm) and 18,050 tonnes mineralized waste (240 to 1,300 ppm).

Recently, paving the underground ramp was completed to ensure durability as this ramp will be the primary access by the mining team and the haul route for ore delivery to surface for stockpiling and processing.

Ramping and underground level development will continue to facilitate stope access (mining) on five levels in time for commissioning of the processing plant.

Underground electrical services and water management infrastructure upgrades are also underway.

The Fresh Air Raise and Return Air Raise have been completed and fans installed to provide greater ventilation required as mine development is extended.

As of the date hereof, the Dasa Mine, operated by SOMIDA and overseen by Global Atomic Corporation, has achieved 960 days with no Lost Time Injury ("LTI").

Dasa Uranium Project, Plant Construction

Procurement of long-lead equipment is complete. Manufacturing of these components has been completed and have been delivered to the Dasa site.

Our Engineering, Procurement and Contract Management ("EPCM") contractors are nearing completion of final detailed engineering and ordering the remaining components for the Processing Plant.

The Company continued earthworks in 2024 to prepare the site for construction of the Processing Plant as well as preparing the mine camp for additional housing for employees and construction crews.

Earthworks for the acid plant is complete and has been handed over to the civil works contractors to prepare the foundations.

Construction of an additional 260-person housing facility is nearing completion.

Dasa Uranium Project, Niger Government Support

On May 3, 2024, during a site visit, the Mines Minister; Commissaire Colonel Ousmane Abarchi stated "We came here, we visited the mine, and we launched the earth breaking operations for the mill construction. Dasa is a reality everyone can see.  We thank you all. We are supportive of the SOMIDA team and Global Atomic. This project is very important for us as a Government and as a shareholder. We want Dasa to be the start of a new Niger mining practice with expectations on State Income, Employment and Environment management."

On August 15, 2024, Global Atomic received a letter in which the Conseil National pour la Sauvegarde de la Patrie Chairman, Head of State, His Excellency Brigadier General Abdourahamani Tiani, instructed his Cabinet, the Minister of Mines and all stakeholders in the sector to facilitate the implementation of the Dasa Project, going on to state that the Dasa Project "is expected to play an important role as a cornerstone for socio-economic development. As such, Niger's highest authorities support it totally."

Turkish Zinc Joint Venture

The Turkish JV processed over 63,700 tonnes EAFD in 2024 to produce 31 million pounds of zinc in concentrate. The average monthly LME zinc price in 2024 was US$1.26/pound compared to US$1.20/pound in 2023.

The Company's share of EBITDA was $6.3 million in 2024 (negative $2.4 million in 2023), and the Company's equity share of net income was $1.3 million (loss of $4.1 million in 2023).

The cash balance of the Turkish JV was US$4.4 million at the end of 2024 (2023 - US$1.9 million).

The revolving credit facility of the Turkish JV was US$6.5 million at the end of 2024 (Global Atomic share, US$3.2 million) down from US$12 million at the end of 2023 (Global Atomic share, US$5.9 million).

Corporate

In January 2024, the Company announced the accelerated expiry provisions of common share purchase warrants issued in connection with the December 2023 Unit private placement had been activated such that the expiry date was   brought forward to February 26, 2024. All warrants were exercised for proceeds to the Company of $9 million.

On July 31, 2024, Global Atomic closed a Unit private placement to raise gross proceeds of $20.0 million at a price of C$1.35 per Unit consisting of one common share and one common share purchase warrant that entitles the holder thereof to purchase one common share at a price of C$1.80 at any time on or before July 31, 2026.

On October 16, 2024, Global Atomic closed a Unit public offering (the "Offering") to raise gross proceeds of $40.25 million, at a price of C$1.20 per Unit consisting of one common share and one common Share purchase warrant, each warrant exercisable for one common share at a price of C$1.50 at any time on or before October 16, 2027.

The net proceeds of these equity raises were used for development of its Dasa Project and general working capital purposes.

Global Atomic continues to receive quarterly management fees and monthly sales commissions from the Turkish JV ($860,000 in 2024 compared to $690,000 in 2023).

The Company's cash balance as of December 31, 2024, was $18.7 million.

Subsequent Events

On January 31, 2025, Global Atomic closed a Unit private placement for gross proceeds of $35.6 million at a price of $0.80 per Unit consisting of one common share and one common share warrant that entitles the holder thereof ...