Global Atomic Corporation · TSX:GLO
Global Atomic — Investor Presentation (January 2021)
20 slides from Global Atomic's investor presentation, Jan 19, 2021
Slide 1: Global Atomic Corporation
Global Atomic Corporation ADVANCING THE LARGE, HIGH-GRADE DASA URANIUM DEPOSIT IN THE REPUBLIC OF NIGER Stephen G. Roman, President & CEO January 2021
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 FUELLING 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 I DEFINES THE INITIAL 12-YEAR MINE PLAN OF THIS LARGE, HIGH-GRADE DASA PROJECT 5
Slide 6: Dasa is an impressive project as per the May 2020 PEA
THE DASA PROJECT IS COMPELLING Dasa is an impressive project as per the May 2020 PEA (Preliminary Economic Assessment) using a uranium price of $35/lb 5,396 ppm + 12 years ➞ 44 Mlbs U3O8 Mine life LOM production Compelling project economics after-tax $203M $18.39/lb ➞ $210.7M Start-Up CapEx + AISC C
Slide 7: Dasa has strong base case economics at $35/lb
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) $25/lb $30/lb $35/lb $40/lb $45/lb $50/lb Before-tax NPV @ 8% $41 M $139 M $260 M
Slide 8: Global Atomic has already met significant milestones
THE DASA PROJECT IS COMPELLING Global Atomic has already met significant milestones 2020 • Published new PEA for Phase I Mine 2018 Operations • Discovered • Environmental the high- Impact Statement 2017 grade Flank was completed • Signed MOU Zone and filed with Orano • Published • Hydrogeology and M
Slide 9: Significant catalysts ahead in each of the next four years
THE DASA PROJECT IS COMPELLING There are significant catalysts ahead in each of the next four years 2024 • Commercial Production 2023 • Commission plant and ramp 2022 up mining • Develop mine to enable direct ore shipments and/or 2021 construct mill • Complete Feasibility Study • Arrange off-take ag
Slide 10: 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 11: ESG and CSR are key components of the culture
ESG AND CSR ARE KEY COMPONENTS OF THE GLOBAL ATOMIC CULTURE Since the Company became active in Niger in 2005, the Company has provided: • Food during periods of drought • Medical supplies • Infrastructure projects such as water wells • Environment • Education and training • Procurement of goods and
Slide 12: 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 12
Slide 13: Zinc sales from BST help fund the Dasa Project
ZINC RECYCLING Joint venture with (51%), a market leader in zinc recovery Zinc sales from BST help • Processes Electric Arc Furnace Dust (“EAFD”) fund the Dasa Project. containing 25% to 30% zinc sourced from local steel mills • Produces a 70% zinc oxide concentrate, which is sold to smelters • Reco
Slide 14: Plant expansion completed in 2019, no major capital needed
CASH FLOW FROM ZINC RECYCLING UNDERPINS DASA PROJECT DEVELOPMENT The plant expansion and modernization completed in 2019 means no major capital needed for the zinc business • Capacity increased to process 80,000 $2.00 110,000 tonnes EAFD p.a., up from 70,000 $1.80 65,000 tonnes previously $1.60 60,0
Slide 15: Tight share structure, dilution protected by cash flow
EXCELLENT CAPITAL STRUCTURE Tight share structure, dilution protected by cash flow C$241 M* C$1.59* 151.8 M Market Capitalization TSX Share Price Shares Issued Shareholder composition (approx.) Average Share Capital Shares (M) 52-week Exercise Price Management/ VWAP High* Board Shares 151.8 Institut
Slide 16: Experienced team of mine development and uranium veterans
EXCELLENT CORPORATE STRUCTURE Experienced team of mine development and uranium veterans • Stephen G. Roman • Paul Cronin Founder, Chairman, President and CEO, Director Independent Director • Rein Lehari, CPA • Richard Faucher Chief Financial Officer Independent Director • George Flach, P.Geo • Derek
Slide 17: This is a great time to invest in uranium
URANIUM IS A NET ZERO INVESTMENT This is a great time to invest in uranium. SUPPLY: -30% DEMAND: +40% since 2015 by 2020 Uranium supply is constrained. Uranium demand is growing. • 3 top-ten mines closed or expected to • 50 nuclear reactors under close between 2020 and construction in 15 countries 2
Slide 18: 80% of new projects need a uranium price above spot
URANIUM IS A NET ZERO INVESTMENT 80% of new projects need a uranium price above current spot price The Dasa Project Total Operating Cash Costs and AISC are estimated at $16.72/lb and $18.39/lb respectively in the May 2020 Preliminary Economic Assessment. 18
Slide 19: Investment Case
IN CONCLUSION Investment Case Fully permitted Uranium Project Established cash flowing zinc recycling operation Tight share structure, strong shareholder register Global Atomic is a significant contributor to the Net Zero economy 19
Slide 20: Contact
8 King St E, Suite 1700 Toronto, ON M5C 1B5 Tel: +1 416 368 3949 info@globalatomiccorp.com globalatomiccorp.com