Author: RCFS Web

Global Atomic announced Q1/22 results and provided an update on its flagship Dasa uranium project in the Republic of Niger, and its zinc business in Turkey. EPS of neg. $0.026 was in line with our estimates of neg. $0.02/sh. While Q1/22 was slightly off for its zinc operations given the maintenance shutdown, higher zinc prices almost made up for the entire loss of sales as compared to last year and should fare well for the company moving forward. We also note that the focus of most investors remains on Dasa, which is quickly moving towards development. It was a very positive quarter for exploration, project financing, and other de-risking efforts. We believe Dasa is heading in the right direction as the project is being continuously improved and de-risked. With a commitment of up to US$75M from Export Development Canada, GLO is gaining its financial independence which it can use in its favour as it arranges off-takes and other development contracts needed to cover ~US$200M in Capex. Discussions continue surrounding Orano’s purchase of development ore as per its MOU, but meanwhile, we see mine development deferred until a reasonable offer is arranged. We also expect an updated Dasa resource and mine plan in June which should provide significant Phase 1 economic improvement.