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

Roman calls us to update about the announcement of their PEA results. They plan to mine a higher grade flank zone in Phase 1 at their Dasa project in Niger, which is what this PEA relates to. The results are impressive for many reasons.

Firstly the economics an AISC of just $18.39. That is world-class. And a cash cost of just $16.72. Also world-class. The number which caught our eye though was the steady-state production of 4.4Mlbs. Global Atomic become a meaningful second tier player at that level. At $35 per pound the NPV8 is $211M with an IRR or 26.6%. However if the price of uranium goes to $50 (where most producers and developers expect and need it to go), the NPV8 leaps to $485M with a 46.3% IRR.

That in itself is a good company. But remember this is Phase 1 of the much larger, albeit lower grade, Dasa ore body.

The key to this is the speed at which Roman believes they can get into production. He says by end of 2022. What that means is they can get in to supplying U308 in to this contract cycle and start relationships with utilities for long-term contracts while other are still seeking financing.We discuss the winners and losers and the realities of the time lines involved.

We also discuss their Turkish zinc JV which gives them a 40-50 year annuity stream of cash. This could be used to finance the capex requirement for Dasa.

Interesting times ahead. Let's see if this experienced uranium team can deliver. We fully expect it to quietly go about its business. This one is leading from the front.

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

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