Global Atomic (TSX:GLO) - Uranium Operations Rapidly Advancing to Production

Interview with Stephen G. Roman, President & CEO of Global Atomic Corp.
Our previous interview: www.cruxinvest...
Recording date: 4th September 2024
Global Atomic Corporation (TSX:GLO) is making significant progress on its Dasa uranium project in Niger, positioning itself as a key player in the growing nuclear energy sector. CEO Stephen Roman recently provided updates on the project's development, financing efforts, and market dynamics, offering valuable insights for potential investors.
Project Development:
The Dasa project is advancing on schedule, with earthworks completed for the acid plant area and the plant itself fabricated and ready for shipment. Underground development is underway, with major drilling operations creating two ventilation shafts to support continued mining activities. The project currently employs about 450 people, indicating its substantial scale and potential economic impact on the local community.
Government Support and Political Landscape:
Global Atomic has secured strong backing from the Niger government, evidenced by a recent letter from the president directing all government departments to support the project. Despite recent political changes in the region, relations with key international partners, including the United States, remain positive. The expected reopening of the Niger-Benin border should improve logistics for the project.
Financing and Market Dynamics:
The company is pursuing financing through the U.S. International Development Finance Corporation (DFC), with approval expected by the end of Q4. Alternative financing options, including joint venture discussions, are also in progress. This multi-pronged approach demonstrates flexibility in securing the necessary funds for project development.
The uranium market has seen rising prices, with term prices reaching $80 per pound, up from $35 eighteen months ago. However, uranium equities, including Global Atomic, have faced recent pressure, with the company's stock down 40% since mid-July. This disconnect between commodity prices and stock valuations presents both a challenge and a potential opportunity for investors.
Competitive Advantage:
Global Atomic's Dasa project holds a unique position as the only new greenfield uranium mine being developed globally. This status potentially gives the company a significant advantage in meeting future demand growth as the world increasingly turns to nuclear power as a clean energy solution.
Risks and Considerations:
Investors should be aware of the challenges facing the company, including market volatility, geopolitical risks in the Sahel region, and the complex nature of developing a large-scale mining project. The cautious approach of utility companies in signing long-term contracts until project financing is secured also presents a near-term challenge.
For investors considering Global Atomic, the key attractions include:
Exposure to rising uranium prices and growing nuclear energy demand
Strong government support in Niger
Advanced stage of project development with key milestones approaching
Potential for long-term utility contracts once financing is secured
Unique position as developer of the only new greenfield uranium mine globally
Investors should weigh these opportunities against the risks inherent in mining development and frontier market operations. A long-term investment horizon is likely necessary given the cyclical nature of the mining sector and the time required to bring new production online.
As the global energy landscape continues to evolve, with increasing emphasis on low-carbon power sources, Global Atomic's progress at Dasa bears watching for those interested in the intersection of mining, energy, and frontier market development.
View Global Atomic Corp's company profile: www.cruxinvest...
Sign up for Crux Investor: cruxinvestor.com

[@stanburman9978]

Interesting interview. Mr. Roman you are a tenacious problem solver. Thank you.

[@nickhornsey5719]

Great interview Matt. Good luck Stephen. Have a good conference and really looking forward to positive news.

[@MilesTincknell]

The audio sounds garbled on this to me.

[@phillipwatts7226]

Stephen is clearly frustrated with his share price but given the company only has approximately $ 19 million in the bank after the most recent financing the company will burn through that cash within the next 2-3 months at best and given the ongoing delays with DFC he could be in a precarious position to go back to the market again without DFC financing approved in October/November. So the bottom line is he is in a brutal spot. The stock could drop below $ 1.00 per share under this scenario IMO it will be interesting to see what happens here in next 3 months

[@dennysheldon1682]

It's already been under $1.00 since late Aug...

[@akash2000blue]

@@dennysheldon1682 He's talking about the CAD capitalization

[@MathiasKarlsson-my8mc]

Dasa should be financed ✅

[@jptrainor]

FYI people: A DFC loan of the size of Dasa's ($200m USD) requres: i) credit committee approval, ii) equity committee approval, iii) DFC board of directors approval. I wouldn't expect any intermediate updates. We'll hear when the board votes. Which CEO Roman stated is expected by the end of Q4.

[@Dawkins007]

At 5:25 Matt talks about a copper project in Namibia having their license taken away as being "reasonable behaviour". He is referring to the Haib copper project which was illegally withdrawn by a corrupt government official who was receiving bribes from Chinese companies to take away licenses from western held companies. A judge overturned the decision and the official has been sacked.

[@enricoinnocente2770]

Would be helpful for investors is Mr Roman could put some lights on the following transaction…we are all frustrated and sound like he knows financing will not happen and another dilution is in the way On the 22nd of August, Stephen Roman sold around 320k shares on-market at roughly CA$1.37 per share. This transaction amounted to 2.0% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. This was Stephen's only on-market trade for the last 12 months.

[@chrisb236]

He didn't indicate if the credit committee had their meeting in August.

[@jptrainor]

It's a three step approval process. i) credit committee, ii) equity committee, iii) board approval. I don't think we'll hear until the final approval.

[@jptrainor]

6:35 " ... We understand from our discussions that by the end of Q4 we should have that completed". Referring to the DFC financing. And after that he mentions DFC board approval which is the last step. It sounds like it's back on track.

[@chrisb236]

@@jptrainor yes there is multiple step process, i checked the development bank website for agenda minutes but there were none for August. I would have thought he would know if the credit committee had their meeting or not. He's in constant communication with them and the credit committee had told him in July they were delaying till August. he didn't say if they had that meeting

[@jptrainor]

@@chrisb236 He might not be able to say due to NDA. Or chooses to simply say nothing until the end of the process.

[@robertdagge200]

Guys who overthrew the prior government in a coup want foreign coys to follow the rulebook? Yeah. Good luck - hope this project reaches its intennded conclusion.

[@meemo4279]

Yeah but the nigers possible 33.3 percent stake still concerns the markets. To my understanding the mining code can be changed

[@darren2351]

Says the guy who believes $PEN will get into production. You cannot make this stuff up

[@Lyzaaarnew]

So we are about to get diluted to shite in Q4 2024? Oh no

[@jptrainor]

No. He said that the DFC financing is expected at the end of Q4.

[@Lyzaaarnew]

@@jptrainor financing yes. But they’ve said a good % will be a equity raise alongside

[@jptrainor]

@@Lyzaaarnew That's already been raised. The DFC deal is a 60/40 debt/equity split. They've almost entirely already put their 40% into the mine. The DFC counts the existing mine build expenditures. They may need a small equity raise to bridge them until the debt funding becomes availabe for draw down. That's all I see personally.

[@Lyzaaarnew]

@@jptrainor ohhh I see, thank you. Wanted to get in after the equity raise so that’s brilliant, might start scaling in

[@jptrainor]

@@Lyzaaarnew If you want confirm just watch older interviews. The CEO explains it. It's very attractive at the current price.