Interview with Stephen Roman, Chairman, President & CEO of Global Atomic Corp. (TSE:GLO).

Roman gives us an update on the Dasa mine plan and talks about cash flowing from the new zinc processing plant which will enable the development of the uranium component. In 2018 the Turkish operation was EBITDA $13M ($10M profit), this doubles under the new set up.

The exciting element for investors though is the uranium development and the economics around a potential new mine plan. The Flank Zone (not Western flank as Matthew says) is higher grade at near surface which may allow the company to get in to production economically at low spot prices. Roman talks about Global Atomic needing to advance and expanding their PEA that mentioned an alternative mining scenario that is in a persistently low uranium environment. The company looks like it is shelving the large project idea and focusing on a high margin project at realistic prices and getting in to production quicker. That model and that kind of thinking is the difference between them and some of their peers. It is of course enable by the cashflowing from the Turkish zinc project. Roman suggests that 2020 could be the year that dramatically changes the company profile.

So on the back of beer mat type numbers from the data available: Phase 1 mine plan for 3.4Mt @5,450ppm (11 U308 per tonne ore). Mine for 10yrs, producing 3.7Mlbs per annum on average so 37Mlbs in total. This also opens up the rest of the ore body. Let's use c.$200M CAPEX at $40lb flat, gives it a c.25% IRR and NPV c.$150M.

Trucking is not without its problems, but if Global Atomic trucks to Somair, reduces CAPEX to c.$100M, IRR rises to 45% and NPV goes to c.$180M. Even at $30lb, trucking still gives c.24% IRR and an NPV of $70M.

Interesting times ahead. Let's see if this experienced team can deliver or if the markets intervene.

Company page: https://www.globalatomiccorp.com/ 

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