Global Atomic Announces Q2 2024 Results
Dasa Uranium Project Remains on Schedule to Produce Yellowcake in Q1 2026
Q2 2024 HIGHLIGHTS
- Ramp development has been underway since the Opening Blast Ceremony,
November 5th, 2022 , with over 1,235 meters completed as of the date hereof; and 7,000 tonnes of development ore now hauled to surface. Mine development is continuing with level development in the footwall and decline development. - Raise Boring is now underway for the Fresh Air Raise and Return Air Raise which will act as the main components of the mine's ventilation infrastructure.
- As of the date hereof, the
Dasa Mine , operated by SOMIDA and overseen byGlobal Atomic Corporation , has achieved 732 days without a Lost Time Injury ("LTI"), a testament to management's dedication to create a safe work environment and the team's success in implementing effective safety measures.
- The Company began extensive earthworks in Q2 2024 to prepare the site for construction of the
Dasa processing plant as well as expansion of the Daiy Camp to house employees and construction crews. - A 250-person housing facility has arrived on site. Civil works are underway for cement pads, water and sanitary facilities.
- The Dasa Project Acid Plant fabrication has been completed and the plant is now being shipped to site. This will be the first major construction that will get underway once the shipment arrives at
Dasa . - Our EPCM contractors have made significant progress to complete final engineering and order long lead items.
- The procurement team is working to advance product specifications and select vendors for plant parts and equipment.
Turkish Zinc Joint Venture
- In Q2 2024, the Turkish JV processed 19,162 tonnes of Electric Arc Furnace Dust ("EAFD").
- Zinc contained in concentrate shipments totalled 7.4 million pounds and the average monthly LME zinc price was
US$1.31 /lb in Q2 2024. - The Company's share of the Turkish JV EBITDA was a gain of
$2.8 million in Q2 2024 (a loss of$1.4 million in Q2 2023). - The cash balance of the Turkish JV was
US$5.1 million at the end of Q2 2024.
Corporate: Financing – Private Placement
- On
July 23, 2024 , Global Atomic announced a non-brokered private placement (the "Offering") for gross proceeds of up toC$15 million from the sale of up to 11,111,111 units of the Company (each, a "Unit") at a price ofC$1.35 per Unit. - On
July 24, 2024 , the Company increased the maximum gross proceeds of the Offering fromC$15 million toC$20 million . Under the revised Offering, the Company sold 14,814,815 Units at a price ofC$1.35 per Unit. - Each Unit consists of one common share of the Company (each, a "Common Share") and one Common share purchase warrant (a "Warrant"). Each Warrant entitles the holder to purchase one Common Share at a price of
C$1.80 for a period of 24 months following the issue date. - The Warrants are subject to an acceleration clause whereby if (i) the 10-day volume weighted average price of the Common Shares is above
C$2.50 and, (ii) within a period of 5 trading days following the date the Company provides a notice via widely disseminated press release, the expiry date of the Warrants shall be accelerated to the date that is 30 days from the date of the aforementioned press release. - The Company intends to use the net proceeds from the Offering for the advancement of the
Company's Dasa Project and for general working capital purposes. - The Offering closed on
July 31, 2024 .
Corporate
- Global Atomic received
$305,000 in quarterly management fees and monthly sales commissions from the Turkish JV ($202,000 in Q2 2023), helping to offset corporate overhead costs. - The cash balance as of
June 30, 2024 , was$1.9 million . Subsequent to the end of the quarter, the Company raisedC$20 million of gross proceeds under a private placement.
Global Atomic President and CEO,
"As for project financing, the recent
"
OUTLOOK
- Continue development of the underground ore access drifts and ramp to lower levels to remain on schedule to supply uranium ore to the processing plant from the end of 2025.
- Scheduled additions to the in-country construction team will increase the site complement from 450 to approximately 900 workers.
- In Q3 2024, our Bank Syndicate is expected to approve the Debt Financing facility for the construction of the
Dasa Project . In the event of potential further delays in the approval of this facility, the Company is actively considering funding options and advancing several options in parallel to determine the preferred funding structure. - Complete final engineering, site development and civil works for the
Dasa processing plant and begin installation of equipment. - Continue marketing efforts to secure additional uranium off-take agreements.
Turkish Zinc Joint Venture
- The Company anticipates operations at its Turkish JV will be profitable in 2024 due to a return to usual local steel mill production levels, a recovery in zinc prices this past quarter and lower input prices.
COMPARATIVE RESULTS
The following table summarizes comparative results of operations of the Company:
|
Three months ended |
|
Six months ended |
||||
(all amounts in C$) |
2024 |
|
2023 |
|
2024 |
|
2023 |
|
|
|
|
|
|
|
|
Revenues |
$ 304,552 |
|
$ 202,273 |
|
$ 576,015 |
|
$ 333,114 |
|
|
|
|
|
|
|
|
General and administration |
1,785,746 |
|
1,806,321 |
|
3,984,967 |
|
4,639,152 |
Share of equity (gain) loss |
(835,770) |
|
3,547,248 |
|
(1,169,456) |
|
4,935,522 |
Finance income, net |
(98,114) |
|
(533,660) |
|
(339,745) |
|
(605,128) |
Foreign exchange (gain) loss |
(1,589,942) |
|
1,603,390 |
|
(5,340,304) |
|
2,814,106 |
Net income (loss) |
$ 1,042,632 |
|
$ (6,221,026) |
|
$ 3,440,553 |
|
$ (11,450,538) |
Net income (loss) attributable to: |
|
|
|
|
|
|
|
Shareholders of the Company |
1,037,691 |
|
(6,238,148) |
|
3,420,869 |
|
(11,475,811) |
Non-controlling interests |
4,941 |
|
17,122 |
|
19,684 |
|
25,273 |
Other comprehensive income (loss) |
1,660,233 |
|
$ (5,517,775) |
|
$ 2,345,344 |
|
$ (2,798,999) |
Comprehensive income (loss) |
$ 2,702,865 |
|
$ (11,738,801) |
|
$ 5,785,897 |
|
$ (14,249,537) |
Comprehensive income (loss) attributable to: |
|
|
|
|
|||
Shareholders of the Company |
2,689,275 |
|
(11,737,518) |
|
5,737,222 |
|
(14,255,736) |
Non-controlling interests |
13,590 |
|
(1,283) |
|
48,675 |
|
6,199 |
|
|
|
|
|
|
|
|
Basic and diluted net loss per share |
|
|
( |
|
|
|
( |
Diluted net income per share |
|
|
( |
|
|
|
( |
|
|
|
|
|
|
|
|
Basic weighted-average |
210,309,098 |
|
202,128,857 |
|
209,194,589 |
|
193,404,462 |
Diluted weighted-average |
211,542,626 |
|
202,128,857 |
|
210,874,240 |
|
193,404,462 |
|
|
|
|
|
2024 |
|
2023 |
|
|
|
|
Cash |
$ 1,862,292 |
|
$ 24,857,915 |
Property, plant and equipment |
174,800,983 |
|
129,986,343 |
Exploration & evaluation assets |
1,570,820 |
|
1,370,358 |
Investment in joint venture |
15,877,764 |
|
12,628,251 |
Other assets |
4,875,179 |
|
8,755,878 |
Total assets |
$ 198,987,038 |
|
$ 177,598,745 |
|
|
|
|
Total liabilities |
$ 20,952,167 |
|
$ 19,412,976 |
|
|
|
|
Total equity |
$ 178,034,871 |
|
$ 158,185,769 |
The condensed interim 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
On
Niger Political Situation
With the exception of logistics delays, project development has not been affected by the political developments since
Project Development Schedule
Mine development activities at the
Project Financing
The Company has been advancing Project Financing. On
The Company is also in discussions with alternative financing sources that are available. Such parallel discussions will continue so that alternative financing is available in case the banks further delay their approval process or choose not to proceed.
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 three and six months ended
|
Three months ended |
|
Six months ended |
||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
100 % |
|
100 % |
|
100 % |
|
100 % |
Net sales revenues |
$ 13,515,534 |
|
$ 6,179,649 |
|
$ 23,023,832 |
|
$ 12,016,043 |
Cost of sales |
$ 7,886,295 |
|
9,957,890 |
|
16,302,001 |
|
16,629,211 |
Foreign exchange gain |
87,900 |
|
826,550 |
|
328,755 |
|
902,615 |
EBITDA(1) |
$ 5,717,139 |
|
$ (2,951,691) |
|
$ 7,050,586 |
|
$ (3,710,553) |
|
|
|
|
|
|
|
|
Management fees & sales commissions |
467,869 |
|
343,456 |
|
1,235,734 |
|
727,470 |
Depreciation |
832,100 |
|
511,779 |
|
1,384,462 |
|
1,480,281 |
Interest expense |
428,671 |
|
241,998 |
|
993,354 |
|
792,122 |
Foreign exchange loss |
240,173 |
|
3,350,450 |
|
1,383,886 |
|
3,672,808 |
Monetary gain (loss) |
1,023,865 |
|
5,317 |
|
(349,856) |
|
1,101,021 |
Tax expense (recovery) |
319,095 |
|
(154,778) |
|
(683,351) |
|
790,281 |
Net income (loss) |
$ 1,705,654 |
|
$ (7,239,279) |
|
$ 2,386,645 |
|
$ (10,072,494) |
Global Atomic's equity share |
$ 835,770 |
|
$ (3,547,247) |
|
$ 1,169,456 |
|
$ (4,935,522) |
|
|
|
|
|
|
|
|
Global Atomic's share of EBITDA |
$ 2,801,398 |
|
$ (1,446,329) |
|
$ 3,454,787 |
|
$ (1,818,171) |
|
|
(1) |
EBITDA is a non-IFRS measure, does not have a standardized meaning prescribed by IFRS and may not be comparable to similar terms and measures presented by other issuers. EBITDA comprises earnings before income taxes, interest expense (income), foreign exchange loss (gain) on debt and bank, depreciation, management fees, sales commissions, losses (gains) on sale of property, plant and equipment. |
The Turkish JV realized significant growth in revenues during three and six months ended
The cash balance of the Turkish Zinc JV was
The following table summarizes comparative operational metrics of the Iskenderun facility.
|
Three months ended |
|
Six months ended |
||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
100 % |
|
100 % |
|
100 % |
|
100 % |
|
|
|
|
|
|
|
|
Exchange rate (C$/TL, average) |
23.67 |
|
15.68 |
|
23.31 |
|
14.82 |
Exchange rate (US$/C$, average) |
1.37 |
|
1.34 |
|
1.36 |
|
1.35 |
|
|
|
|
|
|
|
|
Exchange rate (C$/TL, period-end) |
23.92 |
|
19.69 |
|
23.92 |
|
19.69 |
Exchange rate (US$/C$, period-end) |
1.37 |
|
1.32 |
|
1.37 |
|
1.32 |
|
|
|
|
|
|
|
|
Average monthly LME zinc price (US$/lb) |
1.31 |
|
1.15 |
|
1.21 |
|
1.29 |
|
|
|
|
|
|
|
|
EAFD processed (DMT) |
19,162 |
|
17,233 |
|
39,152 |
|
23,358 |
|
|
|
|
|
|
|
|
Production (DMT) |
6,506 |
|
5,167 |
|
12,757 |
|
6,978 |
Sales (DMT) |
5,089 |
|
7,027 |
|
11,566 |
|
9,506 |
|
|
|
|
|
|
|
|
Sales (zinc content '000 lbs) |
7,352 |
|
10,088 |
|
16,623 |
|
13,744 |
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
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
Global Atomic's Base Metals Division holds a 49% interest in the
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.
SOURCE