Global Atomic Announces Q3 2021 Results

Canada NewsWire

TORONTO, Nov. 11, 2021

Dasa Uranium Project Feasibility Study Nears Completion

-

Stronger Uranium and Zinc Prices Improve Outlook

All monetary amounts are in Canadian dollars unless otherwise indicated.

TORONTO, Nov. 11, 2021 /CNW/ - Global Atomic Corporation ("Global Atomic" or the "Company") (TSX: GLO) (OTCQX: GLATF) (FRANKFURT: G12) announced today its operating and financial results for the three and nine months ended September 30, 2021.

HIGHLIGHTS

Dasa Phase 1 Uranium Project in the Republic of Niger

   -- The Company's Feasibility Study is near completion and will be released 
      in November. 
   -- The Company's financial adviser has received initial interest from 
      project finance institutions and negotiations are expected to escalate 
      upon the release of the Feasibility Study. 
   -- The Company and Fuel Link Ltd., have initiated Yellowcake offtake 
      discussions with Utliities and presented the Dasa Project's expected 
      development timelines and production schedule. 
   -- In August, the Republic of Niger confirmed it will limit its interest in 
      the Dasa Project to the statutory 10% minimum through the Company's Niger 
      mining subsidiary. 
   -- The Company is advancing negotiations with Orano Mining ("Orano") 
      relating to Direct Shipping Ore ("DSO"). 
   -- The Company began the 15,000 meter Dasa drill program in September 2021 
      as planned, with a focus on upgrading mineral resources located on strike 
      of the Phase 1 Flank Zone mining area to the Measured and Indicated 
      categories and, extending mineralization on strike. 
   -- The Company also began a drill program at the Isakanan deposit on the 
      Adrar Emoles 4 permit to recover core for In-Situ leach testing. 

Turkish Zinc Joint Venture

   -- The Company's share of Turkish Zinc Joint Venture ("Turkish Zinc JV") 
      EBITDA was $3.1 million in Q3 2021 compared with $1.2 million in Q3 2020, 
      reflecting higher zinc prices and production levels in 2021. 
   -- Through Q3 2021 the Company's share of Turkish Zinc JV EBITDA was $8.9 
      million compared to $2.9 million in 2020. 
   -- The Company's share of Turkish Zinc JV Net Income for Q3 2021 was $2.1 
      million compared to a loss of $1.4 million in Q3 2020. For the 9 months 
      ended September 30, 2021, the Company's share of Turkish Zinc JV Net 
      Income was $3.9 million compared to a loss of $3.0 million in 2020. 
   -- For the 9 months ended September 30, 2021, the Turkish Zinc JV processed 
      53,012 tonnes EAFD (2020 -- 51,295 tonnes) and shipped 28.1 million 
      pounds zinc contained in concentrates (2020 -- 30.6 million pounds). 
   -- Shipments of zinc concentrate from the Turkish Zinc JV to smelters 
      continued unabated in Q3 2021 despite energy-related shutdowns at some 
      smelters. 
   -- Cash balance for the Turkish Zinc JV at September 30, 2021 was US $4.0 
      million. 
   -- The non-recourse Turkish Zinc JV debt owing to Befesa was reduced to US 
      $5.65 million at September 30, 2021 (Global Atomic share -- US $2.77 
      million) and on schedule to be fully repaid by year end. 

Corporate

   -- Cash balance at September 30, 2021 was $7.6 million. 

Stephen G. Roman, President and CEO commented, "We are entering a new era of clean, sustainable electric energy where uranium will play an important role in meeting the world's carbon emissions targets. We are fortunate to have advanced our Dasa Project to completion of the Feasibility Study through some difficult years and are now rewarding our shareholders with a world class project fully permitted and ready to build. The Uranium market fundamentals have improved substantially and many nations are now adopting the benefits of baseload nuclear power with China leading the charge with the recent announcement of 150 new reactor builds over the next 15 years."

"The zinc price rise over the past year has also been impressive and contributed to a rapid payback of development capital at our Iskenderun Project which remains on track for the year end payout of the Befesa loan."

"The Dasa Project is progressing on several fronts. As we complete the Feasibility Study to build the mine and processing plant, we have also initiated activity at the Dasa Project site. A local Niger contractor has been engaged to begin Box-Cut excavation in January. Once completed, CMAC-Thyssen, a Canadian mine contractor based in Val d'Or, Quebec, will collar the portal and begin underground mine development. Equipment for these work programs has been secured."

"Our in-fill drilling program is currently underway to upgrade on strike resources and add additional potential to the Phase 1, Flank Zone mining area. At our Isakanan deposit, core samples are now being recovered through additional drilling in order to test the deposit's porosity and permeability for In-Situ leaching."

"Global Atomic has been very active over Q3, and our pace will continue as we remain on track for deliveries of first Yellowcake by January, 2025."

OUTLOOK

Dasa Uranium Project

   -- The Feasibility Study results will be announced in November. 
   -- The Company will complete the incorporation of the Niger mining company 
      and issue 10% of the common shares to the Government of the Republic of 
      Niger. 
   -- The Company has engaged a Niger contractor to begin the mine Box-Cut 
      excavation in January 2022. 
   -- CMAC-Thyssen International ("CMAC") has been selected as the contract 
      miner for the Dasa mine development. Contract discussions are being 
      finalised. 
   -- CMAC is planning to mobilize to site in March 2022 and begin ramp 
      development in April, 2022. CMAC will provide contract mining services 
      for the first 2 years, after which the Company plans to transition to 
      owner-operated mining. 
   -- The Dasa mineral resource will be updated in 2022 to include results from 
      the current drill program, enabling design of the Dasa Phase 2 Mining 
      Area with economics that are expected to increase the current Dasa 
      Project NPV/IRR. The Phase 1, Flank Zone area encompasses only 20% of the 
      current Dasa resource. 
   -- The Company is continuing discussions with Orano Mining for the 
      processing of DSO at the Somaïr facility and could begin shipments 
      in 2023. 
   -- Upon completion of the Feasibility Study, the Company will enter 
      discussions to select an Engineering, Procurement, Construction and 
      Management ("EPCM") contractor. 
   -- Initial project debt financing discussions have begun and financing for 
      the mill construction is expected to be in place H2 2022. 
   -- The Company will advance ramping and underground development in 2022 with 
      plant construction beginning Q1 2023. 
   -- The Dasa Uranium Plant is expected to commence commercial production in 
      Q4 2024. 

Turkish Zinc Joint Venture

   -- The Turkish Zinc JV plant is expected to process approximately 70,000 
      tonnes EAFD in 2021. 
   -- Zinc prices staged a strong recovery in 2021, averaging US $1.36/pound in 
      Q3 2021, and are expected to remain strong through the balance of the 
      year and into 2022. 
   -- Turkish steel production is expected to strengthen through the remainder 
      of 2021 and into 2022. 
   -- Full repayment of the Befesa plant modernization loan is anticipated by 
      the end of 2021. 
   -- Turkish Zinc JV dividend payments will resume following repayment of the 
      non-recourse loan from Befesa. 
   -- Global Atomic continues to receive monthly management fees and sales 
      commissions helping to offset corporate costs. 

COMPARATIVE RESULTS

The following table summarizes comparative results of operations of the Company:

                   Three months ended           Nine months ended 
                   September 30,                September 30, 
(all amounts in    2021           2020          2021          2020 
C$) 
Revenues             $   223,645  $    146,225  $    833,435  $    595,878 
General and 
 administration        1,839,403       676,197     5,555,109     2,177,485 
Share of equity 
 loss (earnings)     (2,134,265)     1,384,333   (3,943,846)     2,988,607 
Other income             (1,000)      (33,044)      (68,000)      (93,044) 
Finance expense            7,709         3,870        18,310        12,726 
Foreign exchange 
 loss (gain)               7,481       (2,659)        60,854      (20,788) 
Net income (loss)    $   504,317  $(1,882,472)  $  (788,992)  $(4,469,108) 
Other 
 comprehensive 
 income (loss)       $   148,130  $  (924,400)  $(3,738,763)  $(1,023,689) 
Comprehensive 
 income (loss)       $   652,447  $(2,806,872)  $(4,527,755)  $(5,492,797) 
Basic net income 
 per share                $0.003      ($0.012)  $    (0.005)  $    (0.030) 
Diluted net 
 income per share         $0.003      ($0.012)  $    (0.005)  $    (0.030) 
Basic 
 weighted-average 
 number of 
 shares 
 outstanding         162,330,717   150,695,797   160,449,845   149,402,735 
Diluted 
 weighted-average 
 number of 
 shares 
 outstanding         172,921,252   157,871,978   160,449,845   157,541,571 
                                  As at 
                                  30-Sep       31-Dec 
                                  2021         2020 
Cash                              $ 7,559,938  $ 2,448,235 
Exploration & evaluation assets    43,264,573   37,812,477 
Investment in joint venture        13,288,281   11,497,351 
Other assets                        1,976,907    1,283,024 
Total assets                      $66,089,699  $53,041,087 
Total liabilities                 $ 1,087,648  $ 1,231,149 
Shareholders' equity              $65,002,051  $51,809,938