Global Atomic Corporation · TSX:GLO
Global Atomic — Investor Presentation (January 2022)
24 slides from Global Atomic's investor presentation, January 2022
Slide 1: Global Atomic Corporation
Global Atomic Corporation ADVANCING THE LARGE, HIGH-GRADE DASA URANIUM PROJECT IN THE REPUBLIC OF NIGER January 2022
Slide 2: Disclaimer
DISCLAIMER This presentation has been prepared by the Global Atomic Corporation (“Global Atomic” or the “Company”) and includes information from sources believed by management to be reliable. No representation or warranty, expressed or implied, is made as to the accuracy of the information set forth
Slide 3: Global Atomic has a unique business model for success
Global Atomic has a unique business model for success: URANIUM ZINC RECOVERY Processing Electric Iskenderun, Turkey Arc Furnace Dust to Produce Zinc Oxide PROVIDING STABLE CASH-FLOW WHILE WE BRING URANIUM TO MARKET PROFITABLE ZINC RECYCLING IS FUELLING OUR LOW-CARBON FUTURE 3
Slide 4: A unique model of two complementary businesses
A unique model of two complementary businesses: creating value and limiting dilution URANIUM Dasa Uranium, Republic of Niger Stand alone, high grade, high margin, underground operation, in Phase 1 Dasa Mine plan FUELING A LOW-CARBON FUTURE OF CLEAN ENERGY 4
Slide 5: The Dasa Project is high grade and long life
THE DASA PROJECT IS COMPELLING The Dasa Project is high grade and long life: Dasa Project schematic long-section and hypothetical underground infrastructure Phase 1 – Flank Zone, initial 12 years Phase 2 – Future Mine Development Phase 3 – Surface Mineralization PHASE I DEFINES THE INITIAL 12-YEAR M
Slide 6: Dasa contains substantial Inferred resources
THE DASA PROJECT IS COMPELLING Dasa contains substantial Inferred resources that infill drilling can convert into the Measured and Indicated resource DASA HAS SUBSTANTIAL MINERAL RESOURCES TO BE MINED BEYOND THE PHASE 1 ZONES 6
Slide 7: Grade / Tonnage Report at Varying Cut-Off Grades
THE DASA PROJECT IS COMPELLING Grade / Tonnage Report at Varying Cut-Off Grades Uranium Contained Cut-Off Grade Content Uranium Category Tonnes (Mt) (eU3O8 ppm) (eU3O8 ppm) (eU3O8 Mlb) Indicated 81.6 718 129.1 100 Inferred 96.1 606 128.4 Indicated 32.0 1,530 108.1 320 Inferred 35.0 1,333 102.7 Indic
Slide 8: Dasa is an impressive project per the 2021 Feasibility Study
THE DASA PROJECT IS COMPELLING Dasa is an impressive project as per the 2021 Feasibility Study using a uranium price of $35/lb 5,184 ppm + 12 years ➞ 45.4 Mlbs Phase 1 U3 O 8 Phase 1 production Compelling project economics after-tax $208M + $21.93/lb ➞ $157 M Start-Up CapEx AISC Cost NPV8 ➞ 22.7% IR
Slide 9: Strong base case economics that improve with higher uranium prices
THE DASA PROJECT IS COMPELLING The Dasa Project has strong base case economics @ $35/lb that improve significantly using higher uranium prices Economic sensitivity with varying uranium prices* Uranium price (per pound) $35/lb $40/lb $50/lb $60/lb Before-tax NPV @ 8% $187 M $309 M $556 M $804 M After
Slide 10: Dasa Mine Phase - Estimated U3O8 Production
Dasa Mine Phase 1 - Estimated U3O8 Production Source: 2021 Feasibility Study (plus expected Phase 2) 7 6 5 Millions of Pounds 4 3 2 1 0 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 Phase 1 Phase 2 (proposed) 10
Slide 11: Dasa Project has already achieved significant milestones
THE DASA PROJECT IS COMPELLING Dasa Project has already achieved significant milestones 2021 • Received Environmental Compliance 2020 Certificate • Published PEA for Phase I • Pilot Plant 2018 (first 12 years) results confirm • Discovered Dasa uranium high-grade • Received 3- recovery process Flank
Slide 12: Many significant catalysts ahead leading to uranium production
THE DASA PROJECT IS COMPELLING Many significant catalysts ahead leading to uranium production 2025 2024 • Begin shipping Yellowcake from 2023 • Commission plant Dasa plant 2022 • Advance ramping and • Commence underground development Commercial Production • Complete project financing • Commence DSO
Slide 13: Niger is an ideal jurisdiction to mine uranium
THE DASA PROJECT IS COMPELLING 5th largest global uranium producer Niger is an ideal jurisdiction to mine uranium • 50 years of uranium mining • Established markets for uranium including France & U.S. • Excellent infrastructure, including paved roads, power and water • Excess milling capacity if nee
Slide 14: ESG and CSR are key components of the culture
ESG AND CSR ARE KEY COMPONENTS OF THE GLOBAL ATOMIC CULTURE Global Atomic’s ESG plans include: • Minimizing carbon emissions • A solar power installation to supplement the mine’s energy requirements • The use of battery-electric mining vehicles Since Global Atomic became active in Niger in 2007, the
Slide 15: Cash flow from zinc recycling underpins uranium development
Cash flow from zinc recycling underpins uranium development URANIUM ZINC RECOVERY Processing Electric Iskenderun, Turkey Arc Furnace Dust to Produce Zinc Oxide PROVIDING STABLE CASH-FLOW WHILE WE BRING URANIUM TO MARKET 15
Slide 16: Befesa Silvermet Turkey
Zinc oxide recovery plant Iskenderun, Turkey Befesa Silvermet Turkey • Joint venture with Befesa Zinc, the market leader in zinc recovery • Processes Electric Arc Furnace Dust (“EAFD”) containing 25% to 30% zinc sourced from local steel mills • Produces a 70% zinc oxide concentrate, which is sold to
Slide 17: Strong zinc prices contribute to a two-year payback of the modernization loan
CASH FLOW FROM ZINC RECYCLING UNDERPINS DASA PROJECT DEVELOPMENT Strong zinc prices contribute to a two-year payback of the 2019 modernization loan • In the first 9 months of 2021, the plant 110,000 $2.00 processed 53,012 tonnes of EAFD $1.80 90,000 • Zinc prices staged a strong recovery in $1.60 20
Slide 18: Uranium Demand Projected to Outpace Supply Forecast
URANIUM OUTLOOK IS ATTRACTIVE Uranium Demand Projected to Outpace Supply Forecast • Legacy mines closed due to high costs & COVID restrictions & ore depletion • Exploration & development restrained by permitting & low prices since 2011 • Downstream inventories limited • Uncovered demand growing due
Slide 19: Enterprise Value/Resource of Uranium Companies
GLOBAL ATOMIC IS UNDERVALUED COMPARED TO ITS PEERS Enterprise Value/Resource of Uranium Companies Source: S&P Market Intelligence, provided courtesy Cormark Securities Inc., January 2022. 19
Slide 20: Tight share structure, dilution protected by cash flow
EXCELLENT CAPITAL STRUCTURE Tight share structure, dilution protected by cash flow C$732 M C$4.19 174.8 M Market Capitalization TSX Share Price Shares Issued As of December 31, 2021 As of December 7, 2021 Global Atomic Share Price Performance Shareholder composition Institutional shareholders includ
Slide 21: Experienced Board of mining and business executives
EXCELLENT CORPORATE STRUCTURE Experienced Board of mining and business executives Executive Directors Independent Directors Stephen G. Roman – Founder, Chairman, President and CEO Trace Arlaud-- Non-executive Director Ex Director and VP Exploration of Denison Mines. Founded, managed and sold Gold Ea
Slide 22: Strong management of mine development and uranium veterans
EXCELLENT CORPORATE STRUCTURE Strong management of mine development and uranium veterans Executives Operations Leaders and Consultants Stephen G. Roman – Founder, Chairman, President and CEO Ibrahim Alisso, MSc Geology Ex Director and VP Exploration of Denison Mines. Founded, managed and sold Gold E
Slide 23: Investment Case
IN CONCLUSION Investment Case Fully permitted Uranium Project Established cash flowing zinc recycling operation Tight share structure, strong shareholder register Global Atomic contributing to a cleaner world 23
Slide 24: Contact
8 King St E, Suite 1700 Toronto, ON M5C 1B5 Tel: +1 416 368 3949 info@globalatomiccorp.com globalatomiccorp.com