On March 7, 2022, Global Atomic CEO Stephan Roman and I sat down for a long-expected and sought-after interview, in which Stephen answered the questions that shareholders (myself included) wanted to see answered, and not the ones companies like answering.
As hinted above, although this is not a sponsored video, and I do not charge companies for video production, I am to be considered biased as I own shares of Global Atomic in my personal portfolio, and an increased interest in this stock has the ability to directly benefit me financially.
None of what you are about to read and/or hear is intended as financial advice nor trading recommendations. Read the full disclaimer (https://resourcetalks.com/disclosure/) before continuing.
According to Global Atomic’s website, the Company aims to start uranium production at the Tier 1 Dasa deposit, in the Republic of Niger by the end of 2024. In addition, Global Atomic has a 49% stake in the BST steel dust recycling operation in Turkey that produces zinc concentrate and provides financial leverage to minimise equity dilution.
Global Atomic owns 90% of the Dasa project, a graben-hosted sandstone first discovered by Company geologists in 2010. Dasa is the largest highest-grade uranium deposit discovered in Africa since the 1970s.
In 2017 the Company signed a Memorandum of Understanding (MOU) with Orano Mining S.A. (formerly known as AREVA Mines Ltd.) to potentially process uranium ore from Dasa at facilities 135 kilometers north, near the town of Arlit.
In December 2020, Dasa received its mining permit from the Government of Niger. In January 2021, Dasa received its Environmental Compliance Certificate and is now fully permitted.
The Dasa Feasibility Study announced in November 2021 comprises an optimized Phase 1 of a larger mine development at the Dasa project. The Phase 1 plan is a low-capital development targeting profitable production over a twelve – year mine life.
During Phase 1 implementation, Global Atomic has initiated drilling to upgrade the substantial mineral resources within Phase 1 to create a contiguous body of Measured and Indicated Resources and improve the Phase 1 economics. Drilling will also be done outside of Phase 1 to upgrade the resources throughout the Dasa Project , thus enabling economic value to be calculated beyond Phase 1.
Plans are in place for the initiate excavation of the Box Cut for the Dasa Project in January 2022 and collar the Portal in April 2022. Initial earthworks to prepare the site for this work and a camp to house the workforce is already underway.
Global Atomics also holds a 49% interest in the Befesa Silvermet Turkey, S.L. (“BST”) Joint Venture, which operates a processing facility located in Iskenderun, Turkey. BST converts Electric Arc Furnace Dust (“EAFD”) into a high-grade zinc oxide concentrate which is sold to zinc smelters around the world. The Company’s joint venture partner is Befesa S.A. (“Befesa”) which is listed on the Frankfurt exchange (FRA:BFSA) and is the market leader in EAFD recycling, capturing approximately 50% of the European EAFD market with facilities located throughout Europe, Asia and the United States. Befesa holds a 51% interest in and is the operator of the BST Joint Venture.
So, in this interview, I wanted to figure out if Niger really is a safe jurisdiction for uranium miners, what Stephan Roman, GLO’s CEO, plans on doing with the Turkish zinc project (spin-out?), and what his plans for the returning money to shareholders are.
Timestamps:
00:00 Important disclaimer
01:20 Introduction
03:00 Is Niger really a safe mining jurisdiction?
07:00 The historical problems in Niger were not small, what’s new?
14:00 The government in Niger has changed, what’s changed exactly?
16:40 Energy & food prices are rising, will this cause unrest in Niger?
20:20 The French moved their army in Niger, can that cause unrests?
21:40 The pros of being in Niger
24:00 The cons of being in Niger
28:00 Zinc spin-off coming soon?
32:25 How are shareholders going to make money on this deal?
38:00 Will Stephen Roman step down as a CEO once GLO is in production?
41:00 Which other uranium companies does Roman like?
43:35 What to look for in a uranium company in Africa?
47:40 What to watch out for, with uranium companies in Africa?
50:30 Closing thoughts
