Dasa Uranium Mine Currently Under
Development, Project On
Schedule
-
Stronger
Uranium and Zinc Prices Improve Outlook
TORONTO, March 29,
2022 /CNW/ - Global Atomic Corporation ("Global
Atomic" or the "Company"), (TSX: GLO) (OTCQX: GLATF) (FRANKFURT:
G12) announced today its operating and financial results for the
year ended December 31, 2021.
HIGHLIGHTS
Dasa Uranium
Project
- The Company issued its Dasa Project, Phase 1, Feasibility Study
("Feasibility Study"), based on multiple trade-off studies and
pilot plant campaigns.
- The Feasibility Study reported a maiden reserve for the Dasa
Project of 4.1 million tonnes grading 5,267 ppm for a total of 47.2
million pounds U3O8.
- The Feasibility Study resulted in an initial, Phase 1, 12-year
mine schedule at a production throughput of 1,000 tonnes per day to
produce 45.4 million pounds U3O8.
- The Study estimates cash costs, including royalties and all
Niger off-site costs, of
US$18.91/lb
U3O8 and an all-in sustaining cost of
US$21.93/lb
U3O8.
- Initial capital expenditures are estimated to be US$208 million.
- Based on a U3O8 price of US$35/lb, the after-tax NPV discounted at 8%, is
US$157 million for an after-tax IRR
of 22.7%. The Feasibility Study sensitivity analysis shows that at
a U3O8 price of US$50/lb the after-tax IRR rises to 44.6% and at
US$60 the after-tax IRR would be
57.2% for Phase 1 only.
- In Q4 2021, the Company began an infill drill program to
upgrade Inferred Resources on strike of the Phase 1 Flank Zone to
Indicated Resources in order to begin incorporation of additional
Phase 2 resources into an updated mine plan.
- With the mining permit, final Feasibility Study results and
Board approval, the Company determined that effective December 30, 2021, the technical feasibility and
commercial viability of the Dasa Project were sufficient to support
its development decision.
- The development decision resulted in a transfer of $45.2 million previously capitalized expenditures
from "exploration and evaluation assets" to "mineral property
assets" on the Company's balance sheet.
- The Company engaged HCF International Advisers Limited as its
financial advisors for project financing and, by the end of 2021, a
short list of interested project lenders had been identified.
- The Company engaged Fuel Link Limited as its uranium marketing
agent and yellowcake offtake discussions have been initiated with
utilities.
- The Company began a drill program in Q4 2021 at the Isakanan
deposit on the Adrar Emoles 4 permit to recover core for in-situ
leach testing.
Turkish Zinc Joint Venture
- The Turkish Zinc Joint Venture ("BST" or the "Turkish JV")
plant processed over 70,000 tonnes EAFD in 2021.
- The Company's share of the Turkish JV EBITDA was $11.3 million in 2021 ($5.6 million in 2020), an increase of 102%.
- The zinc contained in concentrate shipments in 2021 was 34.8
million pounds and the average realized price was US$1.36/lb.
- Available funds were used to secure adequate supplies of
critical materials in case of unforeseen supply disruptions and the
planned final payment on the Befesa loan was deferred to Q2
2022.
- The non-recourse Turkish JV debt owing to Befesa was
US$4.65 million at the end of 2021
(Global Atomic share – US$2.28
million).
- The revolving credit facility of the Turkish JV had been paid
down to US$7.8 million at the end of
2021 from US8.2 million.
- The cash balance of the Turkish JV was US$2.8 million at the end of 2021.
Corporate
- Global Atomic continues to receive approximately $1 million in management fees and sales
commissions annually from the Turkish JV, helping to offset
corporate overhead costs.
- The Company completed a Bought Deal private placement of
6,250,000 Units on March
16th at a price of $2.00 per Unit for gross proceeds of $12,500,000. Each Unit comprised one common share
and one-half warrant exercisable at $3.00 per common share over an 18-month
period.
- The Company completed a Bought Deal private placement of
8,750,000 Units on December
7th at a price of $4.00 per Unit for gross proceeds of $35,000,000. Each Unit comprised one common share
and one-half warrant exercisable at $6.00 per common share over an 18-month
period.
- In May, the Company announced the appointment of Mr.
Dean R. Chambers P.Eng., ICD.D to
the Board of Directors and Pierre Hardouin MBA, CPA, CMA joined the
Company in September as Vice President Finance.
- Cash balance at December 31,
2021, was $34.2 million.
SUBSEQUENT EVENTS
Corporate
- 140,000 warrants outstanding at December
31, 2021 were exercised for proceeds of $420,000.
- In the year to date period Global Atomic granted 1,082,000
options to directors, officers and employees of the Company Stock
options are exercisable at $3.40 to
$4.54 for a period of five
years.
Stephen G. Roman, President and
CEO commented, "Global Atomic had a very productive year in
2021. The major milestone met during the year was the
completion of our Phase 1 Feasibility Study for the Dasa Project,
where using a base uranium price of US$35 per pound we determined Phase 1 is able to
generate an after-tax 22.7% IRR over a 12-year period.
Uranium is continuing to move higher and is currently trading
near US$60 per pound, a price that
generates a 57.2% IRR, after tax! It is important for
investors to remember the Phase 1 mine plan represents
approximately 20% of the known deposit. The Dasa Deposit is the
largest, high-grade uranium deposit under development in
Africa, and remains open along
strike and down dip for further exploration and
expansion."
"The outlook for the Company continues to improve.
Higher zinc prices during 2021 helped double EBITDA from our
Turkish Zinc JV over the prior year and zinc prices continue to
rise in 2022. At the Dasa Project site we continue to
make excellent progress with the excavation of the Boxcut and
building surface infrastructure in preparation for mining.
The Dasa drilling program initiated in the fall of 2021 has shown
excellent results and by converting Inferred Resources to the
Measured and Indicated categories we expect to increase contiguous
Phase 1 mine plan Mineral Reserves and improve Project
economics. Demand for uranium is increasing as nuclear power
is now recognized as a key contributor of baseload, green power
solution that will assist in meeting net zero carbon targets.
The Dasa Project remains on schedule to produce Yellowcake at the
beginning of 2025, and make a meaningful contribution to world
uranium supply."
OUTLOOK
Dasa Uranium
Project
- The Company expects to finalize the incorporation of its
Niger mining company in Q2
2022.
- The Company began the boxcut excavation in February and expects
this to be complete in April.
- Surface infrastructure to support mine development activities
is under construction.
- Based on an updated mine plan and budget schedule, timing of
mining will coincide with mill completion in Q4, 2024. Ore
stockpiling will be kept to a minimum by matching the ore
development schedule with the mill completion, unless an agreement
to transport development ore to Orano Mining is reached.
- Mining equipment has begun to arrive on site and at the Port of
Cotonou in Benin. Assembly and
commissioning will occur over the summer months and CMAC-Thyssen
(CMAC) will begin training programs in Q3, 2022.
- The Company has engaged engineering consultants to complete
Value Engineering studies for the mill construction, due by the end
of March.
- An EPCM (Engineering, Procurement, and Construction Management)
contract is expected to be awarded in Q2 2022.
- Detailed engineering will be initiated immediately following
the EPCM contract award to support the start of the processing
plant construction in Q1 2023.
- Project financing is expected by the end of the year to support
construction of the processing plant.
- The Dasa drilling program has been successful in both
indicating an expansion of the resources and upgrading Inferred
Resources to Indicated Resources.
- On completion of the Dasa drill program currently scheduled for
June, and the receipt of assays, the current Mineral Resource
Estimate ("MRE") will be updated.
- Following the MRE update, a revised mine plan will be developed
and the reserve statement updated; it is expected that this will
result in an increase in Phase 1 ore reserves and lower operating
costs.
- The Company is continuing discussions with Orano Mining
relating to direct shipping of development ore to the Somair Mine
located 105 kilometers north of the Dasa Project.
- The Isakanan drill program was completed in February and core
samples have been shipped to Canada to test for in-situ leach
potential.
Turkish Zinc Joint
Venture
- The Turkish zinc plant continues to operate at target operating
efficiencies.
- Various factors have influenced the zinc price in the current
year, which has traded above US$1.60
per pound throughout the year-to-date period.
- Repayment of the remaining Befesa loan is expected to occur in
Q2 2022.
- Turkish JV dividend payments will resume following repayment of
the Befesa loan.
COMPARATIVE RESULTS
The following table summarizes comparative results of operations
of the Company:
|
|
|
|
|
Year ended December
31,
|
(all amounts in
C$)
|
2021
|
|
2020
|
|
|
|
|
Revenues
|
$
957,723
|
|
$
707,552
|
|
|
|
|
General and
administration
|
9,156,217
|
|
3,397,564
|
Share of equity loss
(earnings)
|
(4,112,819)
|
|
1,012,580
|
Other income
|
(68,001)
|
|
16,787
|
Finance
expense
|
19,882
|
|
4,371
|
Foreign exchange loss
(gain)
|
108,197
|
|
(86,044)
|
Net income
(loss)
|
$
(4,145,753)
|
|
$
(3,637,706)
|
Other comprehensive
income (loss)
|
$
(9,086,937)
|
|
$ (1,490,473)
|
Comprehensive income
(loss)
|
$
(13,232,690)
|
|
$
(5,128,179)
|
|
|
|
|
Basic and diluted net
loss per share
|
($0.026)
|
|
($0.024)
|
|
|
|
|
Basic and diluted
weighted-average
number of shares outstanding
|
162,371,970
|
|
149,403,862
|
|
|
|
|
|
|
|
|
|
As at December
31,
|
|
2021
|
|
2020
|
|
|
|
|
Cash
|
$ 34,179,449
|
|
$
2,448,235
|
Property, plant and
equipment
|
46,175,097
|
|
72,721
|
Exploration &
evaluation assets
|
681,989
|
|
37,812,477
|
Investment in joint
venture
|
8,981,986
|
|
11,497,351
|
Other assets
|
3,581,512
|
|
1,210,303
|
Total
assets
|
$
93,600,033
|
|
$
53,041,087
|
|
|
|
|
Total
liabilities
|
$
2,895,756
|
|
$
1,231,149
|
|
|
|
|
Shareholders' equity
|
$
90,704,277
|
|
$
51,809,938
|
The 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.
Revenues include management fees and sales
commissions received from the joint venture. These are based on
joint venture revenues generated and zinc concentrate tonnes sold.
Revenues in 2021 have increased with the increased zinc prices and
higher sales in the Turkish Zinc JV.
General and administration costs at the
corporate level include general office and management expenses,
stock option awards, costs related to maintaining a public listing,
professional fees, audit, legal, accounting, tax and consultants'
costs, insurance, travel and other miscellaneous office expenses.
Stock option expenses, professional fees and salaries have
increased in 2021 compared with 2020 due to growth required to
support Dasa development.
Share of net earnings from joint
venture represents Global Atomic's equity share of net
earnings from the Turkish Zinc JV. The significant growth in 2021
EBITDA of the Turkish Zinc JV has resulted in positive equity
income compared to a loss in 2020.
Uranium Business
Following completion of the Preliminary Economic Assessment of
the Dasa Project in May 2020, the
Company initiated various trade-off studies which were followed up
by a Feasibility Study. The Feasibility Study was reported with an
effective date of November 15, 2021
and the full Feasibility Study was filed on SEDAR on December 30, 2021.
The Feasibility Study was completed at a detailed level of
design and engineering to enable an appropriate level of confidence
to be applied to the economic viability and outcomes of the
project. As a result of the Feasibility Study, the following
Mineral Reserves were estimated.
Mineral Reserve
Category
|
RoM
(tonnes)
|
U308
(ppm)
|
U308
(t)
|
U308
(Million
lbs)
|
Proven Mineral
Reserve
|
-
|
-
|
-
|
|
Probable Mineral
Reserve
|
4,066,390
|
5,267
|
21,417
|
47.217
|
The mining inventory included in the Feasibility Study included
a minor amount of Inferred Resources. In Q4 2021, the Company began
an infill drilling program to convert the Inferred Resources to
Indicated Resources. To date, this drilling program has been very
successful and has identified additional resources in these areas
as well. The drilling campaign will likely be completed at the end
of Q2 2022. Once the assays have been received, the MRE will be
updated to reflect both the additional resources and changes in
resource categorization.
The expectation is that there will be a significant conversion
of Inferred to Indicated Resources. Once the MRE has been updated,
the Company will also update its mine plan. The updated mine
plan will also result in an update to the reserve estimate, and is
expected to be completed before year end.
Phase 1 Feasibility Study
Results
The Phase 1 Feasibility Study on the Dasa deposit was completed
using a uranium price of US$35/pound
U3O8. Key economic and production statistics
are as follows:
Summary Project
Metrics @ US$35/lb U3O8
|
|
|
Project Economics
(USD)
|
|
|
After-tax NPV (8%
discount rate)
|
US$M
|
$157
|
After-tax
IRR
|
%
|
22.7%
|
Undiscounted
after-tax cash flow (net of capex)
|
US$M
|
$677
|
After-tax payback
period
|
Years
|
3
|
Unit Operating
Costs
|
|
|
LOM average cash
cost(1)
|
$/lb
U3O8
|
$18.91
|
AISC(2)
|
$/lb
U3O8
|
$21.93
|
Production
Profile
|
|
|
Mine Life
|
Years
|
12
|
Total tonnes of
mineralized material processed
|
M Tonnes
|
4.25
|
Mill processing
rate
|
Tonnes/day
|
1,000
|
Mill Head
Grade
|
ppm
|
5,184
|
Overall Mill Recovery
(2)
|
%
|
93.4%
|
Total Lbs
U3O8 processed
|
Mlbs
|
48.6
|
Total Lbs
U3O8 recovered
|
Mlbs
|
45.4
|
Average annual Lbs
U3O8 production (3)
|
Mlbs
|
3.5
|
Peak annual Lbs
U3O8 production
|
Mlbs
|
6.0
|
|
|
(1)
|
Cash costs include
all mining, processing, site G&A, and royalty costs, as well as
Niamey head office and other off-site costs. All-in sustain costs
("AISC") include cash costs plus capital expenditures forecast
after the start of commercial production.
|
(2)
|
Ramp up of the mill
is assumed to take 12 months, during which recoveries increase.
Once stable production levels have been achieved at the end of this
12 months, the recovery rate stabilizes at 94.15%.
|
(3)
|
Annual production
averages 4.8 million lbs/annum during the first 7 years when the
high grade Zone 1 is being mined.
|
The economic analysis for the Study was done via a discounted
cash flow ("DCF") model based on the mining inventory from the
Feasibility Study Phase 1 mine plan and a price of US$35 per pound of U3O8.
Sensitivity analysis was carried out at price intervals from
US$35 per pound to US$60 per pound, as shown in the table below. The
DCF includes an assessment of the current tax regime and royalty
requirements in Niger. Net present
value ("NPV") figures are calculated using a range of discount
rates as shown. The discount rate used for the base-case analysis
is 8% ("NPV8").
Economic
sensitivity with varying uranium prices (USD)
|
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-tax NPV @
8%
|
$157
M
|
$259 M
|
$468 M
|
$676 M
|
After-tax
IRR
|
22.7%
|
30.6%
|
44.6%
|
57.2%
|
The plant is designed with a capacity of 1,000 tonnes per day
(t/d) or 365,000 tonnes per annum (t/a). The plant layout has been
optimised to enable the addition of more processing lines in the
future.
The Company is in the process of incorporating a Niger mining company to develop and mine the
Dasa deposit. The company's name has been agreed with the Niger
Mines Minister to be Société Minière de Dasa S.A. avec CA
("SOMIDA"). Discussions are on-going about other aspects of the
incorporation of SOMIDA. On August 19,
2021, the Mines Minister issued a formal letter to the
Company indicating that it would only be participating in the
equity of SOMIDA for the 10% free carried interest.
Notwithstanding, the Mines Minister could change this position up
until the incorporation of SOMIDA.
The Company has entered into an agreement with CMAC-Thyssen
International Inc. ("CMAC"), a contract miner based in Val d'Or, Quebec to provide contract mining
services in the development of the Dasa underground mine over the
first 24 months of mining. Following the March 2020 closure of the Cominak underground
uranium mine in Arlit, there is a pool of skilled miners available
to the Company in Niger. CMAC will
be providing training, development and oversight of the
Niger workforce with the new
equipment that will be used at site. Initial mining will comprise
only ramp development during the first 12 months, followed by
access and level. Equipment and mining consumables are being
procured and shipped to site. In view of worldwide supply chain
disruptions, moving materials to site is taking longer than
expected.
The boxcut has been blasted and all preparations should be
complete in April. Surface infrastructure is under construction and
will continue to be installed throughout the summer. All equipment
and supplies should arrive at site by the end of the summer to be
ready to start the portal and ramp development thereafter. Although
well-funded, the Company has decided to conserve cash and will
begin the underground mine development in Q4 2022 rather than in
April 2022. Until an agreement to
direct ship ore to Orano's operation in Arlit is finalized,
considerable cash can be saved by not stockpiling development ore
longer than necessary. This decision has additional benefit of
allowing time for more deliveries of equipment and consumables to
arrive prior to underground mine development.
Upon completion of the Feasibility Study, the Company has
embarked on certain Value Engineering studies to improve on the
Feasibility Study processing plant design details. Such studies
will be completed by the end of March and an EPCM provider will be
selected in Q2 2022. Following the appointment of an EPCM provider,
detailed engineering will get underway and surface groundwork
preparation will begin in Q4 of this year followed by remaining
civils work and construction beginning in 2023. The Company's plan
is to commission the processing plant in Q4 2024 so that yellowcake
can be produced at the beginning of 2025.
In 2021, the Company engaged HCF International Advisers Limited
("HCF") as its financial advisor to secure project finance for the
Dasa Project. HCF has succeeded in short-listing a number of
interested project lenders who are in the process of due diligence.
It is expected that term sheets can be agreed upon in Q2 2022 to be
followed by final due diligence and documentation. With this
schedule, the project finance could be in place by Q4 2022 with
drawdowns to coincide with the start of processing plant
construction in 2023.
Interest in long-term contracting among fuel buyers has been
increasing, particularly in view of the Ukrainian situation. The
Company expects to receive and respond to a number of requests for
proposals from fuel buyers over the coming months.
On January 21, 2021, GAFC was
awarded a further extension on all 6 Exploration Permits through to
December 17, 2023. The Company
intends to further explore these permit areas to identify
additional deposits which may be developed to feed the Dasa
processing facility. All six Exploration Permit areas lie within
the Tim Mersoï Basin which has produced uranium for the Republic of
Niger for the past 50 years.
With the discovery of the Dasa uranium deposit, the Company's
focus in recent years has been on Dasa, including the development
of a uranium processing facility to support commercial production.
Within the Adrar Emoles 3 Exploration Permit there remains
significant potential to extend the known resources of the
high-grade Dasa deposit along both strike and at depth.
Further potential exists along strike of the Isakanan prospect
on the adjacent Adrar Emoles 4 Exploration Permit. Historical
drilling on the Isakanan prospect outlined a non-compliant
resource. A drill program was initiated at Isakanan in October 2021 and was completed in February 2022. Core samples have been sent to
Canada to be tested for in-situ
recovery (ISR) potential.
Turkish Zinc JV EAFD
Operations
The Company's Turkish EAFD business operates through a joint
venture, known as Befesa Silvermet Turkey, S.L. ("BST" or the
"Turkish JV"), with Befesa Zinc S.A.U. ("Befesa"), an industry
leading Spanish company that operates a number of Waelz kilns
throughout Europe, the United States and Asia. Under the terms of a Shareholders
Agreement, management fees and sales commissions are distributed
pro rata to Befesa and Global Atomic. Net income earned each year
in Turkey, less funds needed to
fund operations, must be distributed to the partners annually,
following the BST annual meeting, which is usually held in the
second quarter of the following year.
BST owns and operates an EAFD processing plant in Iskenderun,
Turkey. The plant processes EAFD
containing 25% to 30% zinc that is obtained from electric arc steel
mills, and produces a zinc concentrate grading 67% to 70% zinc that
is then sold to zinc smelters.
Global Atomic holds a 49% interest in the Turkish JV and, as
such, the 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 operational metrics
of the Iskenderun facility.
|
|
|
|
|
Year ended December
31,
|
|
2021
|
|
2020
|
|
100%
|
|
100%
|
|
|
|
|
Exchange rate (C$/TL,
average)
|
6.90
|
|
5.24
|
Exchange rate (US$/C$,
average)
|
1.25
|
|
1.34
|
|
|
|
|
Exchange rate (C$/TL,
period-end)
|
10.54
|
|
5.84
|
Exchange rate (US$/C$,
period-end)
|
1.27
|
|
1.27
|
|
|
|
|
Average zinc price
(US$/lb)
|
1.36
|
|
1.03
|
|
|
|
|
EAFD processed
(DMT)
|
70,538
|
|
68,841
|
|
|
|
|
Production
(DMT)
|
23,973
|
|
25,594
|
Shipments
(DMT)
|
23,553
|
|
26,600
|
|
|
|
|
Shipments (zinc content
'000 lbs)
|
34,810
|
|
40,665
|
The average zinc price in 2021 was US$1.36/lb, up from US$1.03/lb in 2020. The zinc price was negatively
affected by COVID-19 in Q1 & Q2 2020, but began recovering from
the summer 2020 through to the end of the year. The zinc price has
continued its upward trend throughout 2021. China has imposed reduced operating hours for
smelters and European smelters have reduced production, both the
result of higher energy costs and lower availability.
Notwithstanding, Waelz oxide concentrates sold by Befesa, including
those from the Turkish Zinc JV, continue to be in high demand, so
there has been no impact on our business.
A general recovery in the steel industry began in Q3 2020 and
has continued into 2021. For the year ended December 31, 2021, global steel production was up
3.7% compared to 2020. Within this, Chinese steel production
declined by 3% in 2021 compared with 2020, resulting in a decline
in China's market share from 57%
to 53%. Steel production in the rest of the world increased by
12.6% in 2021 when compared to 2020.
The World Steel Association published its short-term outlook for
demand in October 2021, which
projected 2.2% overall global demand growth in 2022. This demand
growth is broadly-based across all countries, with the exception of
China, where demand growth is
projected to be flat in 2022. In 2021, China experienced adverse weather, a weakened
real estate sector, and government caps on steel production due to
energy constraints. Reduced Chinese production resulted in an
overall decline in global steel production in Q4 2021. Combined
with softening global demand, steel prices declined significantly
in December 2021, but continued
supply chain disruptions and the war in Ukraine have resulted in significant steel
price recovery in early 2022. Global steel production declined by
6.1% in January and 5.7% in February
2022 compared with the prior year. A decrease in Chinese
production accounted for the decline, with the rest of the world
production at levels similar to the prior year.
The impact of the Ukrainian war on global steel markets is
uncertain, however as exports from Russia and Ukraine have historically accounted for 10% of
global steel exports, it is likely a material percentage of this
supply will be replaced by increased production in other
countries.
Turkish steel production increased by 13% in 2021 compared with
2020. Expanding consumer loans and infrastructure projects have
helped to drive steel demand. As well, Turkey has increased its exports to offset
reduced Chinese exports. The steel producers in Turkey are increasing production capacity. In
2021, a major Electric Arc Steel Mill in the Iskenderun region
resumed production in a plant that had been on care and maintenance
for a number of years. Another producer has announced plans to
begin construction of a new plant in the Iskenderun region. In the
Izmir region, two steel producers have announced plans to expand
their production facilities. These projects will increase the
supply of EAFD in the Turkish market and should enable the Turkish
Zinc JV to increase throughput at the Iskenderun plant.
In 2021, BST had a positive year
with a 102% increase in the Company's share of EBITDA as compared
with 2020. BST processed marginally
more EAFD in 2021, and as in 2020, ran at approximately 64% of its
capacity of 110,000 tonnes as local steel mills are not running at
full capacity due to COVID and supply chain disruptions.
The following table summarizes comparative results for 2021 and
2020 of the Turkish Zinc JV at 100%.
|
|
|
|
|
Year ended December
31,
|
|
2021
|
|
2020
|
|
100%
|
|
100%
|
Net sales
revenues
|
$
43,579,784
|
|
$
33,330,563
|
Cost of
sales
|
21,815,111
|
|
23,537,347
|
Foreign exchange
gain
|
1,266,467
|
|
1,609,936
|
EBITDA(1)
|
$
23,031,140
|
|
$
11,403,152
|
|
|
|
|
Management fees &
sales commissions
|
1,930,846
|
|
1,560,743
|
Depreciation
|
2,744,568
|
|
3,183,605
|
Interest
expense
|
885,297
|
|
1,754,562
|
Foreign exchange loss
on debt and cash
|
4,966,353
|
|
6,933,343
|
Other
expense
|
25
|
|
14,690
|
Gain on property
disposition
|
13,870
|
|
64,040
|
Tax expense
|
4,124,413
|
|
86,738
|
Net income
(loss)
|
$
8,393,508
|
|
$
(2,066,489)
|
Global Atomic's equity
share
|
$
4,112,819
|
|
$
(1,012,580)
|
|
|
|
|
Global Atomic's share
of EBITDA
|
$
11,285,259
|
|
$
5,587,544
|
|
|
(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 Zinc JV realized significant growth in revenues in
2021 compared to 2020, benefiting from higher zinc prices and
reduced treatment charges in 2021. EBITDA increased to $23 million in 2021 (Global Atomic share -
$11.3 million) compared with
$11.4 million in 2020 (Global Atomic
share - $5.6 million).
The cash balance of the Turkish Zinc JV was US$2.8 million at December
31, 2021.
Total debt was reduced to US$12.45
million in 2021 from US$21.8
million at the end of 2020. At December 31, 2021, the Befesa loan totaled
US$4.65 million (December 31, 2020 – US$13.6 million) which bears interest at 4.34%
with no fixed maturity date (Global Atomic's share of the Befesa
loan was US$2.28 million). The local
Turkish revolving credit facility balance was US$7.8 million at December
31, 2021 (December 31, 2020 -
US$8.2 million) and bears interest
only at 7%. The Turkish revolving credit facility can be rolled
forward.
The Befesa loan is expected to be paid off in Q2 2022. Once it
has been repaid, dividend payments to the Company will resume.
QP Statement
The scientific and technical disclosures in this news release
have been reviewed and approved by Ronald
S. Halas, P.Eng. and George A.
Flach, P.Geo. who are "qualified persons" under National
Instrument 43- 101 – Standards of Disclosure for Mineral
Properties.
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 includes four deposits with the
flagship project being the large, high-grade Dasa Project,
discovered in 2010 by Global Atomic geologists through grassroots
field exploration. With the issuance of the Dasa Mining Permit and
an Environmental Compliance Certificate by the Republic of
Niger, the Dasa Project is fully
permitted for commercial production. The Phase 1
Feasibility Study for Dasa was filed in December 2021 and estimates Yellowcake production
to commence by the end of 2024. Mine excavation began
in Q1 2022.
Global Atomics' Base Metals Division holds a 49% interest in the
Befesa Silvermet Turkey, S.L. ("BST") Joint Venture, which operates
a modern zinc production plant, located in Iskenderun, Turkey. The plant recovers zinc from Electric
Arc Furnace Dust ("EAFD") to produce a high-grade zinc oxide
concentrate which is sold to zinc smelters around the world. The
Company's joint venture partner, Befesa Zinc S.A.U. ("Befesa")
listed on the Frankfurt exchange
under 'BFSA', holds a 51% interest in and is the operator of the
BST Joint Venture. Befesa is a market leader in EAFD recycling,
with approximately 50% of the European EAFD market and facilities
located throughout Europe,
Asia and the United States of America.
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.
The Toronto Stock Exchange has not reviewed and does not accept
responsibility for the adequacy and accuracy of this news
release.
SOURCE Global Atomic Corporation