bringing the dasa uranium project to market€¦ · 2010-19 2020 tin negouran, 8.8 mlbs @ 170 ppm,...

Bringing the Dasa uranium project to market

GLOBAL ATOMIC CORPORATION

Mines and Money London

November 2019

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 herein. The information contained herein is as of the date hereof and is subject to change, completion or amendment without notice.

This presentation contains forward-looking statements, estimates and projections with respect to the anticipated future performance of the company that may be deemed to be “forward-looking statements.” These statements, estimates and projections reflect various assumptions made by the Company concerning anticipated results, which may or may not prove to be correct.

All statements contained in the presentation that address operating performance, future direction, management and control of the Company, events or developments that are expected to occur in the future (including statements related to earnings, expectations, sales of assets, capital expenditures, or statements expressing general optimism about future operating results) are forward-looking statements. Actual results could differ materially from those reflected in the forward-looking statements contained herein as a result of a variety of factors, many of which are beyond the Company’s control.

Figures as of 18 November 2019

Disclaimer

1Mines and Money November 2019

Uranium development underpinned by cash flow from zinc production

Overview

2

Uranium

development,

Niger

(100% GLO)

Dasa Uranium, Niger

High grade, high margin, underground

operation planned, Flank Zone in Phase 1

2020

Apply for

Mine

Permit

Leveraged

upside, protected

downside

C$70 M

Market Cap

Bringing

Uranium to

market

Cash-flow from

recycling,

Turkey

(49% GLO)

BST, Iskenderun, Turkey

New kiln commissioned to produce zinc oxide

from EAFD (110,000tpa capacity)

2020

Est. Attrib.

$15 M

EBITDA

Mines and Money November 2019

Tight shareholder structure, dilution protected by cash flow

TSX: GLO | OTCQX: GLATF | FRA: G12

Capital Structure

3

Shares Issued (m) 144.2

Options $0.28 5.1

Options $0.25 5.6

Warrants $0.64 2.5

Warrants $2.88 0.3

Warrants $1.92 2.6

Fully Diluted 160.2

Major Shareholders

C$70 M

Market Capitalisation

C$5.2 M

Cash end Q3

49c

Share Price

144.2 M

Shares issued

Stephen G. Roman

(8.2%)

Frame Group (6.9%)

Befesa (4.1%)

H&H (3.5%)

Sachem Cove (3.0%)

Deutsche Rostoff

(2.8%)

Others (71.5%)

52 week High

56c

52 week Low

28c


Experienced team of mine development and uranium veterans

Stephen G. Roman -- Chairman, President and CEO

Ex director of Denison Mines. Founded, managed and sold Gold Eagle Mines to Goldcorp Inc for $1.5B. Won “Prospector of the Year”, “Bill Dennis Award” from the PDAC in 2016. Currently Chairman of Harte Gold Corp.

Board and Management

4

George Flach -- Vice Chairman, VP Exploration

P.Geo with track record of discovery (approximately 35moz gold, 250mlbs uranium) over 35 years of exploration history

Paul Cronin -- Non-executive Director

Co-founder of Adriatic Metals, CEO of Black Dragon Gold, ex-CEO of Anatolia Energy. 20 years banking experience, ex-Vice President of RMB Resources

Richard Faucher -- Non-executive Director

Metallurgical Engineer, ex President & GM of Falconbridge Dominicana, ex COO of Princeton Mining, ex VP Brunswick Mining and Smelting for Noranda Inc

Derek Rance -- Non-executive Director

Professional Engineer and principal of Behre Dolbear & Company Inc. Ex President and COO of Iron Ore Company of Canada, ex Mine Manager of Dickenson Mine, ex President and CEO of Cape Breton Development Corp.

Asier Zarraonandia Ayo -- Non-executive Director

CEO of Befesa Zinc S.A.U. a world leader in electric arc furnace dust recycling since 2006. Ex CFO Befesa Aluminium, previously senior manager, auditor and consultant, with Arthur Andersen

Merlin Marr-Johnson, BSc, MSc, DIC – Exec. Vice President

25 years’ experience in the minerals sector, ex exploration geologist for Rio Tinto, analyst for HSBC and portfolio manager for Blakeney Management. Ex CEO of Palladex plc and Erris Resources plc. Director of Salazar Resources Ltd

Rein Lehari, CPA -- CFO

Accountant, previously CFO of Silvermet prior to its merger with Global Atomic in 2017. Ex partner at PricewaterhouseCoopers

Fergus Kerr, BSc, P Eng, ARSM – Mining Consultant

Registered Professional Engineer in the Province of Ontario with > 40 years experience in the mining industry mostly senior management in Canadian underground mines. Ex General Manager at Denison Mines, Elliot Lake and Area Manager of Mines for INCO Ltd. Ex Director, Mining Sector with the Workplace Safety and Insurance Board, Toronto, Ontario and Employer Co-Chair of the Mining Health, Safety and Prevention Review

Peter Wollenberg, BSc, MSc, PhD -- Director of Exploration and Resource Development

>38 years of experience in uranium exploration and mining. Ex VP Exploration for Urangesellschaft, and senior mine geologist at the Cluff Lake uranium mine (COGEMA), and as exploration manager both in Australia and Niger. Previously responsible for the quality management system at Areva Resources Canada Inc. and the Director Exploration North America

Tim Campbell -- Vice President and Corporate Secretary

>25 years’ experience in the mining sector focusing on corporate finance, regulatory compliance, government relations and permitting, local community and aboriginal consulting.


Mines and Money November 2019 5

Uranium projects, Niger (100% GLO)

High grade underground mine planned at Dasa

Mine permit application H2 2020

A uranium country, a strategic country

Mines and Money November 2019 6

Somair

opened

1971

Niger - Uranium Production since 1971

Orano (ex-Areva)

Cominak closing March 2021

Cominak

opened

1978

EU, French, US

military support

Sahel stability

Regional insecurity, a stable Niger is key

Elections in

April 2021

Oil Discoveries

Agadem Basin

Sirte Basin

Strategic Industry

Fourth largest global uranium producer

2006

New Mining

Code

Republic of Niger

Dasa in the heart of a uranium district

Maps

7Mines and Money November 2019

12 years, 6 licences, 4 discoveries, 1 MOU

Operations in Niger since 2007

Global Atomic in Niger

8

2007

2008

2009

2010-19

2020

Tin Negouran, 8.8 mlbs @ 170 ppm, (non-NI 43-101 compliant resource)

Dajy Prospect, 16.6 mlbs @ 689 ppm, (non-NI 43-101 compliant

resource)

Isakanan, 33 mlbs @ 896 ppm, (non-NI 43-101 compliant resource)

Dasa, >250mlbs, 1028 drill holes, 5 consecutive NI 43-101 compliant

mineral resource updates

Technical Report, EIA and Application for Exploitation Permit

MOU with Orano signed 2017


Large, high grade, strategic asset

Dasa uranium project, Niger

9

Grade / Tonnage Report at Varying Cut-Off Grades

Cut-Off(eU3O8, ppm)

CategoryTonnes

(Mt)

eU3O8(ppm)

Contained

eU3O8(Mlb)

100Indicated 81.6 718 129.1

Inferred 96.1 606 128.4

320Indicated 32.0 1,530 108.0

Inferred 35.0 1,333 102.7

1,200Indicated 7.9 4,483 78.0

Inferred 8.4 3,783 69.9

2,500Indicated 3.6 7,849 61.9

Inferred 3.4 6,838 51.4

10,000Indicated 0.6 24,401 31.1

Inferred 0.8 14,598 25.3


Phase 1 plan focused on ~10 year mine life at Flank Zone

Dasa, longitudinal section

10

Schematic long-section and hypothetical underground infrastructure


11

Befesa Silvermet Turkey (BST)(49% GLO)

110,000 tpa EAFD capacity

Cash flow from zinc production


Home of a robust steel industry

Turkey

12

World’s 8th

largest steel

producer

52

Mtpa

capacity

80% secondary

(scrap)

4 main steel

production

clusters

23Electric Arc

Furnaces

5 Induction

Furnaces3

Blast

Furnaces

Electric Arc

Furnace Dust

(EAFD)

Waste

Recycling

BST in

Mediterranean

Cluster

Sustainable

feedstock


Map of Turkish steel production centres

Corporate Presentation Q4 2019

Turkey

13

New efficient kiln doubles capacity

BST, Iskenderun, Turkey (49% Global Atomic)

14

(51% and operator) market leader in EAFD recycling

• BFSA.F, mkt cap US$1.3 Bn

• 14x cash flow, 10x EBITDA

2018 60,000 tpa

• 33 Mlbs zinc produced

• Attributable GLO EBITDA US$10.0 M

2019 Expansion Q1-Q3, commissioning Q4

• US$27 M rebuild funded out of cash flow

2020 110,000 tpa capacity

• Modern plant

• Forecast US$15 M attributable EBITDA


Significant near-term value catalysts

Timeline

15

Da

sa

, N

ige

r (1

00

%)

BS

T, T

urk

ey

(49

%)

Q4 2019 H1 2020 H2 2020 2021

Mine Plan and EIAExploitation

Permit

Final Feasibility

Study

Hot commissioningSteady state operations

110,000tpa capacity

Up to 60 Mlb pa

zinc production

Trade-off Studies


Strategic uranium assets backed by positive cash flow

Investment Case

16

Niger

pro-mining

• Uranium country

• Rapid permitting

• High grade u/g

development

• Feasibility Study in

2021

Tier 1 Dasa

Uranium

Tight equity

structure

• Mkt cap C$70 M

• 110,000 tpa capacity

• Cash flow from zinc

productionBST

(49% GLO)


Supply / Demand deficit continues to grow

Depletion:

3 top--ten mines forecast to close before

2030 (Rossing, Cominak, Ranger)

Time:

Long lead-time for mine development or

re-start

Capacity:

50-100% expansion / infrastructure

requirement

Uranium Market

17

SUPPLY -12% since 2015

50 nuclear reactors under construction

in 15 countries

• Currently 450 operating reactors in 30 countries

• Installed capacity 400 Gigawatts

• >10% of world's electricty

Increasing to 25% of installed capacity

by 2040

DEMAND +49% by 2040


8 King St E, Suite 1700

Toronto, ON M5C 1B5

Tel: +1 416 368 3949

[email protected]

Globalatomiccorp.com

bringing the dasa uranium project to market€¦ · 2010-19 2020 tin negouran, 8.8 mlbs @ 170 ppm,...

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