Global Atomic announces 2021 operating and financial results

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Global Atomic announces 2021 operating and financial results

Global Atomic Corporation announced today its operating and financial results for the year ended December 31, 2021.

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.

Dasa drilling program

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.”

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.

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