Global Atomic Corporation · TSX:GLO
Global Atomic — Investor Presentation (July 2021)
25 slides from Global Atomic's investor presentation, July 2021
Slide 1: Advancing the Large, High-Grade Dasa Uranium Project in Niger
Global Atomic Corporation ADVANCING THE LARGE, HIGH-GRADE DASA URANIUM PROJECT IN THE REPUBLIC OF NIGER July 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: 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 7: Dasa PEA: 5,396 ppm + 12 years, 44 Mlbs U3O8
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 Phase 1 Phase 1 production Compelling project economics after-tax $203M + $18.39/lb ➞ $210.7M Start-Up CapEx AISC
Slide 8: 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) $25/lb $30/lb $35/lb $40/lb $45/lb $50/lb Before-tax NPV @ 8% $41 M $139 M $260 M
Slide 9: Dasa Mine Phase I - Estimated U3O8 Production
Dasa Mine Phase I - Estimated U3O8 Production Source: 2020 Preliminary Economic Assessment (to be updated with 2021 Feasibility Study) 9
Slide 10: 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 • Pilot Plant for Flank Zone results confirm 2018 (Phase I ) Dasa uranium • Discovered • Filed EIS, recovery process the high- Hydrogeolog
Slide 11: Significant catalysts ahead in each of the upcoming four years
THE DASA PROJECT IS COMPELLING There are significant catalysts ahead in each of the upcoming four years 2024 • Commission plant • Commence 2023 Commercial • Advance ramping and Production underground development 2022 • Begin plant construction • Complete project financing • Break ground to begin 202
Slide 12: 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 13: 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 2005, the
Slide 14: 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 14
Slide 15: 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 16: Plant expansion means no major capital needed for the zinc business
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 80,000 $2.00 • Capacity increased to process 110,000 tonnes EAFD p.a., up from 70,000 $1.80 65,000 tonnes previously $1.60 60,0
Slide 17: Uranium Demand Projected to Outpace Supply Forecast
URANIUM OUTLOOK IS ATTRACTIVE Uranium Demand Projected to Outpace Supply Forecast • Legacy mines closed due to high costs & COVID restrictions • Ranger & Cominak ore depleted & closed • Exploration & development projects restrained by high costs & permitting • Downstream inventories exhausted • Spot
Slide 18: EV/Resource of Uranium Exploration & Development Companies
GLOBAL ATOMIC IS UNDERVALUED COMPARED TO ITS PEERS EV/Resource of Uranium Exploration & Development Companies (US$/lb U3O8) $5 $4 EV/Resource (US$/lb) $3 $2 $1 $0 Laramide Toro Energy Vimy Berkeley Azarga UEX Deep Yellow Global Blue Sky Fission enCore Resources Resources Energies Uranium Corporation
Slide 19: Market Capital/Resource of Uranium Exploration & Development Companies
GLOBAL ATOMIC IS UNDERVALUED COMPARED TO ITS PEERS Market Capital/Resource of Uranium Exploration & Development Companies (CDN$/lb U3O8) $10 $9 $8 $7 $6 $5 $4 $3 $2 $1 $0 Anfield Azarga UEX Global Peninsula Fission Denison Energy Ur-Energy Skyharbour NexGen UEC enCore Atomic Fuels Zinc Uranium Sourc
Slide 20: 80% of new projects need a uranium price above current spot price
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. 20
Slide 21: Tight share structure, dilution protected by cash flow
EXCELLENT CAPITAL STRUCTURE Tight share structure, dilution protected by cash flow C$509 M* C$3.14* 162.1 M Market Capitalization TSX Share Price Shares Issued * As of June 30, 2021 Share Price Performance for Global Atomic (TSX:GLO) 12 months ending June 30, 2021 Shareholder composition Institution
Slide 22: 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 of Denison Mines. Founded, managed and sold Gold Eagle Mines to An exp
Slide 23: 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 of Denison Mines. Founded, managed and sold Gold Eagle Mines to Count
Slide 24: 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 24
Slide 25: 8 King St E, Suite 1700 Toronto, ON M5C 1B5 Tel: +1 416 368
8 King St E, Suite 1700 Toronto, ON M5C 1B5 Tel: +1 416 368 3949 info@globalatomiccorp.com globalatomiccorp.com