TORONTO, Aug. 11,
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
three and six months ended June 30,
2022.
HIGHLIGHTS
Dasa Uranium Project
- In Q4 2021, the Company began a 15,000-meter drill program at
the Dasa Project with three objectives:
-
- Conduct infill drilling to upgrade Inferred Resources to
Indicated Resources so that they may be included in a revised mine
plan.
- Connect Mining Zones 2, 2a and 2b
to Zone 3 to form one continuous expanded zone instead of four
separate zones.
- Expand the total resources in the area of Phase 1.
- On April 19, 2022, the Company
provided a second update on the drill program that included the
probe results of 10 additional holes which indicated that mining
zones 2, 2a, 2b and 3 now represent a
contiguous ore body approximately three times larger than initially
defined in the Phase 1 Feasibility Study mine plan.
- On April 19, 2022, the Company
also announced that it had received a Letter of Interest from
Export Development Canada ("EDC") confirming their interest in
working with the Company in regard to the financing of the Dasa
Uranium Project.
- On June 15, 2022, the Company
announced that it had entered into a Letter of Intent with a major
North American utility to supply 2.1 million pounds
U3O8 over a six-year period commencing 2025;
the revenue potential of this sale exceeds US$110 million in real terms and represents about
7% of Phase 1 production.
- On June 20, 2022, the Company
announced that it had received Letters of Intent from a banking
syndicate to finance the processing plant at Dasa and that the
syndicate is comprised of North American financial institutions,
including EDC.
- On July 21, 2022, the Company
announced it had engaged Enernet Global Inc. ("Enernet") to design
an optimal hybrid power solution for the Dasa Project, which would
be built, owned, operated and maintained by Enernet.
- The Box-Cut excavation for the mine continued and was completed
with ground support installed subsequent to the end of the
quarter.
- Site work in preparation for portal and ramp development
includes construction of employee housing, warehouse and
maintenance facilities, surface buildings for mining activities,
power and water servicing of the site.
- A convoy of 37 trucks carrying camp infrastructure including
accommodations, generators and office buildings has arrived on site
in anticipation of the arrival of the mining team.
- The Company's Niger mining
subsidiary, Société Minière de DASA S.A. ("SOMIDA") was
incorporated on August 11, 2022.
- The Niger Government elected to increase its interest in total
to 20% of SOMIDA, including the 10% free carried interest and an
additional 10% interest to be funded.
Turkish Zinc Joint Venture
- The Turkish Zinc Joint Venture ("BST" or the "Turkish JV")
plant processed 45,611 tonnes EAFD for first six months of 2022
(36,642 in 2021).
- The Company's share of the Turkish JV EBITDA was $2.5 million in Q2 2022 ($1.6 million in Q2 2021).
- Year-to-date 2022, the Company's share of EBITDA was
$6.0 million ($5.8 million in 2021).
- For the first six months of 2021 and 2022, the zinc contained
in concentrate shipments was 20.0 million pounds.
- In the first six months of 2022 the average zinc price was
US$1.74/lb (US$1.28/lb in 2021).
- The non-recourse Befesa 2019 plant expansion loan was fully
paid at the end of Q2 2022, a reduction of US$4.65 million from the year end.
- The revolving credit facility of the Turkish JV has been paid
down to US$6.8 million at the end of
Q2 2022 (Global Atomic share – US$3.3
million).
- The cash balance of the Turkish JV was US$2.8 million as at June
30, 2022.
Corporate
- At the Company's Annual and Special Meeting of Shareholders on
June 23, 2022, George Flach, Vice Chairman and VP Exploration
resigned from the Board and Management but continues as a
consultant to the Company.
- Fergus P. Kerr, P.Eng, former General Manager of Denison's
Elliot Lake uranium operation
joined the Board of Directors.
- Global Atomic continues to receive management fees and sales
commissions monthly from the Turkish JV ($398,000 in Q2 2022 compared to $167,000 in Q2 2021).
- Cash balance at June 30, 2022,
was $15 million.
President & CEO of Global Atomic, Stephen Roman, stated, "Global Atomic had an
excellent second quarter of 2022. We advanced several
key initiatives for the Dasa Project and our Turkish JV Zinc
operation had a strong operating performance and made its final
payment on the 2019 expansion loan."
"Earlier today, the Company finalized the formation of SOMIDA
as its Niger subsidiary enabling
the Company to accelerate activities in Niger. With all permits in place and project
financing scheduled for completion by the end of the year, Dasa
remains on track for yellowcake production by the beginning of
2025."
"We believe the Dasa Project is well timed with the
renaissance in demand for nuclear power. Global Atomic is
expected to be in the lowest cost quartile of uranium
producers."
OUTLOOK
Dasa Uranium Project
- The banking syndicate that intends to finance the processing
plant at Dasa has begun its due diligence process and expects to
close its project financing in Q4 of this year.
- The Company is continuing discussions with Orano Mining
relating to the direct shipment of development ore to the Somaïr
processing facility located 105 kilometers north of the Dasa
Project.
- Discussions with international Electric Utilities continue with
the expectation that additional long-term contracts will be
concluded during 2022.
- Surface infrastructure construction to support mine and mill
development activities continues.
- Mining equipment and supplies have arrived on site and at the
Port of Cotonou in Benin to
support the start of mine development.
- Additional mining equipment and supplies will arrive throughout
Q3 2022.
- CMAC-Thyssen ("CMAC"), the Company's contract miner, will begin
training programs in Q3 2022 and start mine development in Q4
2022.
- The Company's EPCM strategy (Engineering, Procurement, and
Construction Management) is expected to be finalized in Q3, with
detailed engineering and procurement activities beginning shortly
thereafter.
- On completion of the Dasa drill program anticipated in early
September, and subsequent receipt of assays, the Company will
update the current Mineral Resource Estimate ("MRE").
- 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.
- Permeability and porosity test results to determine in-situ
leaching potential for the Isakanan Project on the Adrar Emoles 4
permit are expected in Q3 2022.
Turkish Zinc Joint Venture
- The Turkish zinc plant continues to operate at target operating
efficiencies.
- The zinc price has weakened but remains well above the 2020 low
price of US$0.80/lb, at which the
Turkish JV was still profitable.
- The business outlook continues to be positive amid inflationary
pressures and lower prices.
- Now that the Befesa loan has been repaid, Turkish JV dividend
payments will resume.
COMPARATIVE RESULTS
The following table summarizes comparative results of operations
of the Company:
|
|
|
|
|
|
|
|
|
|
|
Three months ended
June 30,
|
|
Six months ended
June 30,
|
|
(all amounts in
C$)
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
397,862
|
|
$
166,627
|
|
$
829,978
|
|
$
609,790
|
|
|
|
|
|
|
|
|
|
|
General and
administration
|
1,856,994
|
|
1,704,173
|
|
5,033,228
|
|
3,715,706
|
|
Share of equity loss
(earnings)
|
(1,095,964)
|
|
(308,491)
|
|
(2,529,301)
|
|
(1,809,581)
|
|
Other (income)
expense
|
(15,076)
|
|
(32,000)
|
|
591,635
|
|
(67,000)
|
|
Finance (income)
expense
|
(13,321)
|
|
6,262
|
|
(43,138)
|
|
10,601
|
|
Foreign exchange (gain)
loss
|
(113,508)
|
|
82,755
|
|
67,413
|
|
53,373
|
|
Net income
(loss)
|
$
(221,263)
|
|
$
(1,286,072)
|
|
$
(2,289,859)
|
|
$
(1,293,309)
|
|
Other comprehensive
income (loss)
|
$
(2,287,301)
|
|
$
(792,754)
|
|
$
(4,535,985)
|
|
$
(3,886,893)
|
|
Comprehensive income
(loss)
|
$
(2,508,564)
|
|
$
(2,078,826)
|
|
$
(6,825,844)
|
|
$
(5,180,202)
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net
loss per share
|
($0.001)
|
|
($0.008)
|
|
($0.013)
|
|
($0.008)
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
weighted-average
number of shares outstanding
|
177,036,594
|
|
162,119,449
|
|
175,963,295
|
|
158,934,765
|
|
June
30,
|
|
December
31,
|
|
2022
|
|
2021
|
|
|
|
|
Cash
|
$
14,964,775
|
|
$
34,179,449
|
Property, plant and
equipment
|
60,981,836
|
|
46,175,097
|
Exploration &
evaluation assets
|
914,132
|
|
681,989
|
Investment in joint
venture
|
9,572,848
|
|
8,981,986
|
Other assets
|
2,717,982
|
|
3,581,512
|
Total
assets
|
$
89,151,573
|
|
$
93,600,033
|
|
|
|
|
Total
liabilities
|
$
1,444,009
|
|
$
2,895,756
|
|
|
|
|
Shareholders' equity
|
$
87,707,564
|
|
$
90,704,277
|
The consolidated financial statements reflect the equity method of
accounting for Global Atomic's interest in the Turkish JV.
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.
General and administration costs at the
corporate level include general office and management expenses,
stock option awards, depreciation, costs related to maintaining a
public listing, professional fees, audit, legal, accounting, tax
and consultants' costs, insurance, travel and other miscellaneous
office expenses. The variance between the years is largely due to
higher stock option grants in Q1 2022 and increased staffing that
took place in Q2 and Q3 2021.
Share of net earnings from joint
venture represents Global Atomic's equity share of net
earnings from the Turkish JV. In view of higher zinc prices in
2022, operating margins more than offset the non-cash expenses,
resulting in a positive equity income of $1.1 million in Q2 2022 ($308,500 in Q2 2021) and $2.5 million in H1 2022 ($1.8 million in H1 2021).
Other Comprehensive Income (loss) represents
unrealized exchange gains (losses) that arise from the translation
of the balance sheets from functional currencies (West African CFA
Franc and Turkish Lira) to the Canadian dollar presentation
currency. For example, the Turkish plant had a cost to construct
that is reported in Turkish Lira, translated at the time the
investment was made. Since then, the Turkish Lira has depreciated
relative to the Canadian dollar, so an unrealized loss occurs on
translation of the same asset at the current date, even though
there has been no change in its economic value. This unrealized
loss on translation of non-monetary balance sheet assets and
liabilities is recorded as comprehensive income (loss).
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 for the first 12 years ("Phase 1"). The
Phase 1 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.
Laboratory test work was undertaken in three independent pilot
plant campaigns with results from each campaign guiding and
directing the subsequent campaign. Variations in quantity and type
of process recovery consumables were used to determine the optimum
recovery of uranium for the most practical equipment selection with
the lowest reasonable consumable cost. The final selection of the
process followed the principles established in uranium operations
in the region which have proven to be successful over the past 50
years.
Mineral Reserves for the Dasa Project were estimated based on
the geology and Mineral Reserve Estimate ("MRE") previously
reported by CSA Global. An engineering design and costing exercise
was undertaken to a feasibility study level of accuracy which
supports the MRE.
Detailed engineering designs were undertaken for the underground
mine workings, mining surface infrastructure, process plant,
tailing storage facility, and support services infrastructure.
These designs enabled detailed pricing enquiries to be issued to
the market in the development of a comprehensive capital cost and
sustaining cost estimate. Labour and consumable material
requirements were developed and costed in the open markets to
establish an expected operating cost over Phase 1. Sourcing of
electrical power and water was determined to meet the mine
requirements, and these too, contributed to the operational cost
estimate. The capital cost estimate, sustaining cost estimate and
operational cost estimates for the various elements of the mine and
process plant were combined into an economic analysis of the
project to determine a financial model for the mine.
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 Phase 1 Feasibility Study identified five zones of mineral
reserves as shown in the following schematic.
The mining inventory included in the Feasibility Study included
a minor amount of Inferred Resources shown as follows:
|
RoM tonnes
|
U3O8 ppm
|
U3O8 (t)
|
U3O8 (Million
lbs)
|
Measured
|
-
|
-
|
-
|
|
Indicated
|
4,066,390
|
5,267
|
21,417
|
47.217
|
Inferred
|
187,236
|
3,375
|
632
|
1.393
|
Total Mining
inventory
|
4,253,626
|
5,184
|
22,050
|
48.611
|
The Zones vary in grades, with Zone 1 (Flank Zone) contributing
the largest portion of the U3O8 tonnes:
Zone
|
In-situ Tonnes
|
U3O8 PPM
|
RoM Tonnes
|
RoM U3O8
PPM
|
RoM U3O8
Tonnes
|
1
|
2,464,615
|
6,980
|
2,316,047
|
6,887
|
15,950
|
2
|
264,339
|
3,621
|
256,078
|
3,574
|
915
|
3
|
656,114
|
3,093
|
633,541
|
3,056
|
1,936
|
4
|
604,673
|
3,003
|
584,616
|
2,966
|
1,734
|
5
|
478,916
|
3,312
|
463,345
|
3,269
|
1,515
|
Total
|
4,468,657
|
5,279
|
4,253,626
|
5,184
|
22,050
|
Reserve Expansion
As noted on the overall resource schematic, there are
significant Inferred Resources located above Zone 3 and between
Zones 2 and 3. 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 Q3 2022.
Once the assays have been received, the MRE will be updated to
reflect both the additional resources and changes in resource
categorization.
These drill results indicate that Zones 2, 2a and 2b now represent a contiguous zone with Zone 3
which is estimated to be approximately three times larger than
initially defined (see the longitudinal depiction on the following
page). Recent drilling has also targeted the extension of Zone
4.
As the next step to compiling these drill results into a new
Mineral Resource Estimate ("MRE") for Dasa, the Company has engaged
Dmitry Pertel of AMC Consultants of
Perth, Australia. Mr. Pertel
completed all the previous work on the Dasa Project while with CSA
Global. The updated MRE results will then be used to develop an
updated Mine Plan and resultant
Reserves update. With increased Indicated Resources between Zones 2
and 3, such resources are expected to extend the number of years of
mining in Zones 2 and 3, which will defer the development required
to access Zones 4 and 5. This should improve overall production
costs of the Dasa Project.
Mining Permits and Niger Mining Company
In September 2020, GAFC applied
for the Mining Permit on the Dasa deposit and the Mining Permit was
subsequently awarded on December 23,
2020. The Company also completed its Environmental Impact
Statement and on January 28, 2021
received its Environmental Certificate of Compliance. GAFC now
holds all permits required to construct and mine the Dasa
deposit.
Under Niger's Mining Code, upon
the issuance of a mining permit, the resource must be transferred
to a newly incorporated Niger
mining corporation, which the Company and the Niger Mines Minister
have agreed to name Société Minière de Dasa S.A. ("SOMIDA"). SOMIDA
was incorporated on August 11, 2022.
The Republic of Niger is granted
10% of the common shares of SOMIDA at no cost on a carried interest
basis and GAFC is entitled to be repaid 100% of the historic
exploration costs incurred. The Republic of Niger has also elected to increase its
interest in the common shares of SOMIDA by 10% by committing to
fund its proportional share of future debt and equity requirements.
Subsequent to the incorporation of SOMIDA, the Republic of
Niger has no rights to further
increase its interest. The Government interest in SOMIDA is solely
in the common shares of that entity and entitles it to payments of
dividends on such equity shares.
Dasa Mine Development and Construction
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 development. 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 Box-Cut has been completed and is prepared for development
of the portal once CMAC site work begins. CMAC is presently
scheduled to begin development work on November 1, 2022. Surface infrastructure is under
construction and will continue to be installed over the period
prior to start of CMAC development work. All equipment and supplies
should arrive at site by the end of Q3.
The EPCM strategy is being finalized with contract award
expected shortly, at which time detailed engineering and
procurement activities will proceed. Surface groundwork preparation
will begin later this year followed by civil works and
construction. The Company's plan is to commission the processing
plant in Q4 2024 so that yellowcake can be produced at the
beginning of 2025.
Project Financing
Global Atomic has received a Letter of Interest ("LOI") from
Export Development Canada ("EDC") confirming their interest in
working with the Company on a project financing of the Dasa
Project. EDC expects to partner with other export credit agencies,
commercial banks and/or financial institutions as co-lenders and to
have a lead role in the structuring of the debt facility. EDC has
indicated a potential participation, at typical bank rates for a
greenfield mining project finance, of up to US$75 million to form the cornerstone of what is
expected to be a syndicate of banks. On June
15, 2022, Global Atomic also received additional Letters of
Intent such that a complete syndicate has been formed to finance
the Dasa Project. The syndicate is comprised of North American
financial institutions, including EDC.
The names of all members of the syndicate will be named
following further due diligence and board approvals by the
financial institutions. The Company expects to complete the Dasa
Project financing arrangements in Q4 2022.
Turkish Zinc JV EAFD Operations
The Company's Turkish EAFD business operates through a joint
venture with Befesa Zinc S.A.U. ("Befesa"), an industry leading
Spanish company that operates several Waelz kilns throughout
Europe, North America and Asia. On October 27,
2010, Global Atomic and Befesa established a joint venture,
known as Befesa Silvermet Turkey, S.L. ("BST" or the "Turkish JV")
to operate an existing plant and develop the EAFD recycling
business in Turkey. BST is held
51% by Befesa and 49% by Global Atomic. A Shareholders Agreement
governs the relationship between the parties. Under the terms of
the 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 20% to 30% zinc that is obtained from electric arc steel
mills, and produces a zinc concentrate grading 65% 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
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.
|
Three months ended
June 30,
|
|
Six months ended
June 30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
100 %
|
|
100 %
|
|
100 %
|
|
100 %
|
|
|
|
|
|
|
|
|
Exchange rate (C$/TL,
average)
|
12.33
|
|
6.84
|
|
11.65
|
|
6.34
|
Exchange rate (US$/C$,
average)
|
1.28
|
|
1.23
|
|
1.27
|
|
1.25
|
|
|
|
|
|
|
|
|
Exchange rate (C$/TL,
period-end)
|
12.95
|
|
7.02
|
|
12.95
|
|
7.02
|
Exchange rate (US$/C$,
period-end)
|
1.29
|
|
1.24
|
|
1.29
|
|
1.24
|
|
|
|
|
|
|
|
|
Average zinc price
(US$/lb)
|
1.78
|
|
1.32
|
|
1.74
|
|
1.28
|
|
|
|
|
|
|
|
|
EAFD processed
(DMT)
|
25,826
|
|
12,235
|
|
45,611
|
|
36,642
|
|
|
|
|
|
|
|
|
Production
(DMT)
|
8,159
|
|
4,262
|
|
13,854
|
|
13,017
|
Shipments
(DMT)
|
8,172
|
|
3,742
|
|
13,761
|
|
13,197
|
|
|
|
|
|
|
|
|
Shipments (zinc content
'000 lbs)
|
11,780
|
|
5,632
|
|
19,963
|
|
20,056
|
For the six months ended June 30,
2022, world steel production decreased by 5.5% over the
comparable 2021 period. The impact by region was mixed. In H1 2022
compared to H1 2021: Chinese production decreased 6.5%; European
Union production decreased 6.2%; North American production
decreased 2.3%, and Turkish production decreased by 4.6%.
In April 2022, the World Steel
Association published its short-term outlook for demand, which
projected 0.4% overall global demand growth in 2022 and a further
growth of 2.2% in 2023. The impact of the Ukrainian conflict 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.
The Ukrainian conflict, post-COVID demand increases, raw
material shortages and global logistics challenges have in
combination resulted in substantial inflationary pressures on all
costs. Although strong zinc prices have largely offset the impact
of inflation on dollar margins, the EBITDA margin percentage has
declined in the current year.
The Turkish economy became hyperinflationary after the
International Monetary Fund World Economic Outlook ("IMF WEO") that
was published in April 2022 reported
a 3-year cumulative rate of inflation of 74% and an annual rate of
inflation of 36% as of December 2021.
For 2022, the IMF WEO forecasts an annual rate of inflation of 52%
(2023: 30%) and a 3-year cumulative rate of inflation of 138%
(2023: 169%). The Turkish Statistical Institute ("TURKSTAT")
reported a 3-year and 12-month cumulative rate of inflation of 136%
and 79%, respectively, as of June 30,
2022. Therefore, in the first half of 2022, the Turkish
economy became hyperinflationary, requiring the first-time
application of IAS 29, Financial Reporting in Hyperinflationary
Economies. The company is currently in the process of calculating
the impact and application of the standard and expecting to apply
IAS 29, Financial Reporting in Hyperinflationary Economies in the
Condensed Interim Consolidated Statements for the three and nine
months ended September 30, 2022 and
2021.
The following table summarizes comparative results for the three
and six months ended June 30, 2022
and 2021 of the Turkish JV at 100%.
|
Three months ended
June 30,
|
|
Six months ended
June 30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
100 %
|
|
100 %
|
|
100 %
|
|
100 %
|
Net sales
revenues
|
$
18,128,699
|
|
$
6,408,617
|
|
$
32,477,422
|
|
$
22,207,251
|
Cost of
sales
|
13,872,538
|
|
3,279,251
|
|
21,289,519
|
|
11,266,770
|
Foreign exchange
gain
|
940,773
|
|
88,850
|
|
986,008
|
|
817,225
|
EBITDA(1)
|
$
5,196,934
|
|
$
3,218,216
|
|
$
12,173,911
|
|
$
11,757,706
|
|
|
|
|
|
|
|
|
Management fees &
sales commissions
|
667,781
|
|
320,933
|
|
1,689,945
|
|
1,226,675
|
Depreciation
|
349,364
|
|
614,511
|
|
743,572
|
|
1,343,868
|
Interest
expense
|
232,696
|
|
190,139
|
|
536,753
|
|
470,957
|
Foreign exchange loss
on debt and cash
|
1,119,211
|
|
611,939
|
|
2,560,470
|
|
3,234,932
|
Tax expense
|
591,221
|
|
851,121
|
|
1,481,332
|
|
1,788,251
|
Net income
|
$
2,236,661
|
|
$
629,573
|
|
$
5,161,839
|
|
$
3,693,023
|
Global Atomic's equity
share
|
$
1,095,964
|
|
$
308,491
|
|
$
2,529,301
|
|
$
1,809,581
|
|
|
|
|
|
|
|
|
Global Atomic's share
of EBITDA
|
$
2,546,498
|
|
$
1,576,926
|
|
$
5,965,216
|
|
$
5,761,276
|
(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.
|
Zinc concentrates are sold to smelters in US dollars. Because the
Turkish Lira is the functional currency of the Turkish operations,
sales are converted to Turkish Lira at the date of the sale when
funds are subsequently received. When the Turkish Lira depreciated
in both Q2 2021 and Q2 2022, exchange gains were recognized on
those sales. In calculating EBITDA, these exchange changes related
to the functional and reporting currencies are treated as
operations related (i.e., above the EBITDA subtotal). Sales are
recorded upon receipt at the smelter, which means that recorded
sales in any given month generally represent the concentrate from
EAFD processed in the prior month. Sales for the six months ended
June 30, 2022 were produced in
December 2021 through May 2022.
The cash balance of the Turkish JV was US$2.8 million at June 30,
2022.
Total debt was reduced to US$6.8
million in Q2 2022 from US$12.45
million at the end of 2021. The local Turkish revolving
credit facility balance was US$6.8
million at June 30, 2022
(December 31, 2021 - US$7.8 million) and bears interest at 9%. The
Turkish revolving credit facility can be rolled forward. At
June 30, 2022, the Befesa loan
related to the 2019 plant expansion, was fully paid (December 31, 2021 – US$4.65 million). Now that the Befesa loan has
been repaid, Turkish JV dividend payments will resume.
QP Statement
The scientific and technical disclosures in this news release
have been reviewed and approved by Ronald
S. Halas, P.Eng. who is a "qualified person" 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
Dasa Feasibility Study filed December 2021 represents approximately 20% of the
current resource and estimates 45.4 million pounds
U3O8 production over a 12-year period 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