Global Atomic Announces 2024 Results

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 to purchase one common share at a price of C$1.00 at any time on or before January 31, 2028.   Net proceeds from this financing will be used for development of the Dasa Project and general working capital purposes.

COMPARATIVE RESULTS

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

The consolidated financial statements reflect the equity method of accounting for Global Atomic's interest in the Turkish JV. The Company's share of net earnings and net assets are disclosed in the notes to the financial statements.

Uranium Business

Mine Development

Underground development, underway since November 2022, has now reached the ore zone with waste development tonnes now being hauled to surface.  Recently, the ramp paving was completed and with the major ventilation infrastructure being completed, the ramping and level development will continue. Underground electrical services and pumping infrastructure are also underway. 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). 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").

Plant Construction

The Company continued earthworks in 2024 to prepare the site for construction of the Dasa processing plant as well as preparing the mine camp for additional housing for employees and construction crews. An additional 260-person housing facility is nearing completion. Fabrication of one of the major processing plant components; the Acid Plant, has been completed and delivered to site. Procurement of long-lead equipment is complete, with many items at manufacturing completion. Certain critical items like the SAG Mill, Crusher and Acid Plant are now at the Dasa site. Our EPCM contractors are nearing completion of detailed engineering and ordering the remaining components for the Processing Plant.  Substantial earthworks have been completed and the civils contractor has begun work. Plant erection is scheduled to begin in Q3 of this year.

Offtake Agreements

In 2023, the Company executed three uranium offtake agreements for sales to North American utilities. These agreements total between 6.9 and 8.4 million pounds U₃O₈ over 6 years beginning in 2026. The higher amount assumes the exercise of options available to the buyers. In 2024 the Company signed an offtake agreement with a Europe-based nuclear power utility to supply 260,000 pounds U₃O₈ per year for three years beginning in 2026. This is the fourth such agreement signed by Company. 

Niger Political Situation

The government is very supportive and at a site visit on May 3, 2024, the Mines Minister noted that the Dasa Project, is strongly supported by the Niger Government, and is progressing well with high morale and effective teamwork across all areas including mining, construction, and community engagement.

Further on August 15, 2024, President Tiani and the Council of Ministers confirmed their support for the Company and the Dasa Project. In November 2024, the Government of Niger reaffirmed its strong support for the Dasa Project through direct engagement and facilitation of key operational and logistical matters by forming a dedicated Government Committee, comprising of representatives from all relevant ministries to streamline decision-making related to operations, logistics, and taxation. Logistical constraints, such as border closures, are being actively addressed at the highest levels of government, with alternative shipping routes being secured via Algeria, Nigeria, and Togo/Burkina Faso.

This continued government support ensures that the project will not face regulatory hurdles or material operational delays, limiting the risks due to external geopolitical factors.

Turkish Zinc JV EAFD Operations

Global Atomic holds a 49% interest in Befesa Silvermet Turkey, S.L. ("BST" or the "Turkish JV") which owns and operates an EAFD processing plant in Iskenderun, Türkiye. The plant processes EAFD containing 25% to 30% zinc that is obtained from electric arc steel mills, and produces a zinc concentrate grading 65% to 68% zinc that is then sold to zinc smelters. The Company's investment is accounted for using the equity basis of accounting.  Under this basis of accounting, the Company's share of the BST's earnings is shown as a single line in its Consolidated Statements of Income (Loss).

The following table summarizes comparative results for 2024, 2023 and 2022 of the Turkish JV at 100%:

The Turkish Zinc JV realized significant growth in revenues in 2024 amounting to $44 million compared to 2023 of $30 million. This mainly indicates an improvement in zinc sales and higher production output. The growth in 2024 is mainly due to higher EAFD volumes, lower input costs, increased shipments and higher zinc prices as compared to 2023.

Operations for the year ended 2023 were adversely affected by significant earthquakes in Türkiye. In the year ended December 31, 2024, the Turkish JV sold 30.9 million pounds of zinc concentrate, an increase of 13.7% from the 27.3 million pounds sold in the corresponding period last year.

During 2024, production increased by 10.7% to 21 million dry metric tonnes (DMT) after a 19.1% drop in 2023 amounting to 18.9 million DMT, reflecting a recovery in operational performance. Sales volumes followed a similar trend, increasing by 11.5% in 2024 up to 21.4 million DMT.

The average LME zinc price increased year over year by 5%, from US$1.20/lb in 2023 to US$1.26/lb in 2024. Cost of sales decreased by 12.4% in 2024, from $36.1 million incurred in 2023 to $31.6 million in 2024, due to operational efficiencies and reduced input costs such as coking coal, resulting in EBITDA of $12.9 million.

The cash balance of the Turkish Zinc JV was US$4.4 million at December 31, 2024 (US$1.2 million at December 31, 2023).

The following table summarizes comparative operational metrics of the Iskenderun facility.

Qualified Person

The scientific and technical disclosures in this Management's Discussion and Analysis have been extracted from the 2024 Feasibility Study, which was reviewed and approved by Dmitry Pertel, M.Sc., MAIG, John Edwards, B.Sc. Hons., FSAIMM, Andrew Pooley, B. Eng (Hons)., FSAIMM who are "qualified persons" under National Instrument 43-101 – Standards of Disclosure for Mineral Properties.

About Global Atomic

Global Atomic Corporation (www.globalatomiccorp.com) is a publicly listed company that provides a unique combination of high-grade uranium mine development and cash-flowing zinc concentrate production.

The Company's Uranium Division is currently developing the fully permitted, large, high grade Dasa Deposit, discovered in 2010 by Global Atomic geologists through grassroots field exploration.  The "First Blast Ceremony" occurred on November 5, 2022, and commissioning of the processing plant is scheduled for H1 2026.  Global Atomic has also identified 3 additional uranium deposits in Niger that will be advanced with further assessment work.

Global Atomic's Base Metals Division holds a 49% interest in the Befesa Silvermet Turkey, S.L. (BST) Joint Venture, which operates a modern zinc recycling plant, located in Iskenderun, Türkiye. The plant recovers zinc from Electric Arc Furnace Dust (EAFD) to produce a high-grade zinc oxide concentrate which is sold to zinc smelters around the world. The Company's joint venture partner, Befesa Zinc S.A.U. (Befesa) holds a 51% interest in and is the operator of the BST Joint Venture.  Befesa is a market leader in EAFD recycling, with approximately 50% of the European EAFD market and facilities located throughout Europe, Asia and the United States of America.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS:

The information in this release may contain forward-looking information under applicable securities laws.  Forward-looking information includes, but is not limited to, statements with respect to completion of any financings; Global Atomics' development potential and timetable of its operations, development and exploration assets; Global Atomics' ability to raise additional funds necessary; the future price of uranium; the estimation of mineral reserves and resources; conclusions of economic evaluation; the realization of mineral reserve estimates; the timing and amount of estimated future production, development and exploration; cost of future activities; capital and operating expenditures; success of exploration activities; mining or processing issues; currency exchange rates; government regulation of mining operations; and environmental and permitting risks.   Generally, forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "is expected", "estimates", variations of such words and phrases or statements that certain actions, events or results "could", "would", "might", "will be taken", "will begin", "will include", "are expected", "occur" or "be achieved".  All information contained in this news release, other than statements of current or historical fact, is forward-looking information.   Statements of forward-looking information are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Global Atomic to be materially different from those expressed or implied by such forward-looking statements, including but not limited to those risks described in the annual information form of Global Atomic and in its public documents filed on SEDAR from time to time.

Forward-looking statements are based on the opinions and estimates of management at the date such statements are made.  Although management of Global Atomic has attempted to identify important factors that could cause actual results to be materially different from those forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended.  There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.  Accordingly, readers should not place undue reliance upon forward-looking statements.  Global Atomic does not undertake to update any forward-looking statements, except in accordance with applicable securities law.  Readers should also review the risks and uncertainties sections of Global Atomics' annual and interim MD&As.

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy and accuracy of this news release.

SOURCE Global Atomic Corporation