Global Atomic Corporation · TSX:GLO
Global Atomic — Investor Presentation (July 2018)
29 slides from Global Atomic's investor presentation, July 2018
Slide 1: Corporate Presentation: July, 2018
TSX.V: GLO | Frankfurt: G12 Developing sustainable projects that provide shareholders with solid cash flow Corporate Presentation: July, 2018
Slide 2: Forward-Looking Statement
Forward-Looking Statement 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 inform
Slide 3: Capital Structure
Capital Structure Shares Issued 106,997,850 Options @ $0.275 5,145,455 Options @ $0.25 5,554,190 Warrants @ $0.64 2,453,977 Warrants @ $2.88 321,532 Warrants @ $1.92 2,574,448 Fully Diluted 123,047,452 Market Cap (June 19, 2018) $37 Million “Nearly $100M has been spent on the development of Global A
Slide 4: Proven Management Team
Proven Management Team Stephen G. Roman, BA • Former senior officer and Director of Denison Mines Limited Chairman, President & CEO • Discovered Gold Eagle, sold to Goldcorp ($1.5B) 35+ years • Founder and developer of Harte Gold, Verena Minerals / Belo Sun – Volta Grande, Black Fox, Gabriel Resourc
Slide 5: Board of Directors
Board of Directors Stephen G. Roman (see previous page) George A. Flach, P.Geo. (see previous page) • Retired metallurgical engineer Richard Faucher, P.Eng. • Formerly VP, Brunswick Mining & Smelting (Noranda Inc.), President & General Manager, Falconbridge Dominica • CEO and Managing Director, Blac
Slide 6: Company Snapshot
Company Snapshot Global Atomic Corporation is committed to developing sustainable projects that provide shareholders with a solid cash flow base from multiple operations. Who is Global Headquarters: Publicly Traded: Market Cap: Atomic? Toronto, Canada TSX.V: GLO C$37 million Frankfurt: G12 June 19th
Slide 7: Asset Summary
Asset Summary Uranium Division Base Metals Division Flagship Asset: 100% interest in DASA uranium deposit in Niger. Flagship Asset: 49% JV interest in a high- Orano Mining: MOU signed related to ore grade zinc processing facility in Turkey. sales and strategic development. Exposure to Zinc:
Slide 8: Illustrative Value Potential (Millions C$)
Value Proposition • Base Metals Division providing solid cash flow Global Atomic Illustrative Value Potential • C$48 million in EBITDA (100%) after expansion, Figures in Canadian Dollars at current zinc price and exchange rate • Operating partner, Befesa, trades at ~10x EBITDA $500 $140 to $308 to I
Slide 9: Uranium Division
Uranium Division www.globalatomiccorp.com | TSX.V: GLO, Frankfurt: G12 9
Slide 10: High-Grade Uranium Production
High-Grade Uranium Production DASA is located in the Tim Mersoi Basin, one of the world’s largest underexplored uranium-producing regions. 30% of France’s uranium supply comes from Niger, the world’s 4th largest producer. 2005: Global Atomic and Silvermet incorporated 2007: Six mining concessions gr
Slide 11: Development Strategy
Development Strategy Phased development approach will provide positive cash flow return at current uranium prices, with full scale development when uranium prices improve • Phase 1 – Near Term Cash Flow: • “Bulk sample” mine development during period of low uranium prices • Will direct ship ore to O
Slide 12: Agreement with Orano Mining
Agreement with Orano Mining • Global Atomic signed an MOU with Orano Mining (formerly AREVA Mining), the French national uranium company, in respect to the DASA project on July 17, 2017 • Terms of the joint cooperation agreement include: • Ore sales agreement for a minimum of 100,000 tonnes per annu
Slide 13: Illustrative Production Sensitivities – Phase 1
Illustrative Production Sensitivities – Phase 1 Annual Shipments to Orano Tonnes 100,000 200,000 300,000 Tonnes Per Day Tpd 274 548 822 Number of 30-T Trucks Daily 9 18 27 Production Grade Of Material Shipped ppm 3,000 3,000 3,000 Contained U3O8 lbs 661,387 1,322,774 1,984,160 Total Revenues @ US$25
Slide 14: DASA Project Overview
DASA Project Overview • Situated in the Tim Mersoi Basin, Republic of Niger • One of the world’s largest uranium- producing regions for 50 years • Ranked fourth in the world in uranium production • DASA Project covers a land package of 121.3 km2 located on the Adrar Emoles III permit • Over the past
Slide 15: DASA Plan View
DASA Plan View Large, high-grade, sedimentary sandstone deposit Open On Strike Metallurgical recovery >95% Potential for significant expansion with further Open On Strike drilling 4 km www.globalatomiccorp.com | TSX.V: GLO, Frankfurt: G12 15
Slide 16: DASA Deposit
DASA Deposit www.globalatomiccorp.com | TSX.V: GLO, Frankfurt: G12 16
Slide 17: DASA Geophysics
DASA Geophysics HRIP Survey 2D rendering of DASA graben Profile spacing 200 m Looking Northwest Looking Northeast www.globalatomiccorp.com | TSX.V: GLO, Frankfurt: G12 17
Slide 18: DASA Resource Sensitivity At Varying Cut-Off Grades
DASA Resource Sensitivity At Varying Cut-Off Grades Cut-Off Tonnes eU3O8 Contained Metal Category eU3O8 ppm (Millions) (ppm) (M lbs) Indicated 26.7 1,364 80.2 200 Inferred 60.4 738 98.3 Indicated 6.9 4,077 62.3 1,000 Inferred 10.4 2,331 53.4 Indicated 6.0 4,552 60.0 1,200 Inferred 8.2 2,651 48.1 Ind
Slide 19: Excellent Project Infrastructure
Excellent Project Infrastructure • Project accessible by paved road known Route N25 – Route d’Uranium as Route d‘Uranium connecting Agadaz and Arlit • Key transportation network used by Orano Mining to export yellowcake to the port of Cotonou in Benin, West Africa • Accessible by air via Agadez, Nig
Slide 20: DASA Project Development Timeline
DASA Project Development Timeline • Global Atomic is entering Phase 1 development, with a clear timeline and deliverables H1 2018 H2 2018 H1 2019 H2 2019 2020 Exploration and Development Drilling Resource Expansion Drilling Mine Plan Development Permitting Organize Financing, Mining + Shipping Contr
Slide 21: Republic of Niger: A Supportive Mining Region
Republic of Niger: A Supportive Mining Region The government of Niger supports foreign private investment • Foreign investment is viewed as a key to economic growth and development • Income tax rate in Niger is 30%, companies are provided tax exemption for the first three years and benefit from acce
Slide 22: Uranium Market Commentary
Uranium Market Commentary Recent Corporate Actions Are Expected To Improve Uranium Market Fundamentals • Kazatomprom, the world’s largest uranium producer is Analyst Uranium Price Forecast planning an IPO in Q4 of this year $60.00 • Kazatomprom will reduce the amount of U3O8 in Long term: US$48/lb a
Slide 23: Base Metal Division
Base Metal Division www.globalatomiccorp.com | TSX.V: GLO, Frankfurt: G12 23
Slide 24: Business Overview
Business Overview • Principal business activity is the operation of the Electric Arc Furnace Dust (“EAFD”) recycling business in Turkey to Location recover zinc and produce a high-grade concentrate which EAFD typically contains 30% zinc, recoveries = 80% is sold to smelters, primarily in the Europea
Slide 25: Positive Cash Flow from Zinc Concentrate Production
Positive Cash Flow from Zinc Concentrate Production Revenue & EBITDA (Millions C$, 100%-Basis) $1.40 Millions $100 60% 57% Revenue EBITDA EBITDA Margin $ figures represent realized zinc price (US$/lb) 52% 50% $80 40% $60 37% 32% 30% 28% $1.31 26% $40 20% $0.98 $0.95 $0.88 $0.87 14% $20 $0.85 10% $0
Slide 26: Future Plans in Turkey
Future Plans in Turkey Expansion is underway Engineering is complete and paid Capital costs and EPC contract have been signed The Company will order long lead-time items in 2018 Construction to begin in February, 2019 Completion in 6 months with “swap” of kilns requiring 3-4 month downti
Slide 27: Global Atomic Corporation: Investment Highlights
Global Atomic Corporation: Investment Highlights Positive cash flowing company Developing Africa’s highest-grade, near-term uranium development project, with a proven management team. Signed a Memorandum of Understanding with Orano Mining, France’s national uranium company, in 2017. Partnere
Slide 28: Thank You For Your Support
THANK YOU FOR YOUR SUPPORT www.globalatomiccorp.com | TSX.V: GLO, Frankfurt: G12 28
Slide 29: Contact Us
Contact Us Stephen G. Roman, Chairman, President & CEO 8 King St E, Suite 1700 Toronto, ON M5C 1B5 Tel: (416) 368-3949 Fax: (416) 368-5146 Email: info@globalatomiccorp.com Website: www.globalatomiccorp.com www.globalatomiccorp.com | TSX.V: GLO, Frankfurt: G12 29