Th The e Da Dasa Ur Uranium Projec ect t New PE PEA Pha Phase 1 1 Min Mine Pla Plan
GLOBAL AL A ATOMI MIC CORP RPORA RATION
Corporate Presentation Q2 2 2020
Th The e Da Dasa Ur Uranium Projec ect t New PE PEA Pha - - PowerPoint PPT Presentation
Th The e Da Dasa Ur Uranium Projec ect t New PE PEA Pha Phase 1 1 Min Mine Pla Plan GLOBAL AL A ATOMI MIC CORP RPORA RATION Corporate Presentation Q2 2 2020 Disclaimer This presentation has been prepared by the Global Atomic
GLOBAL AL A ATOMI MIC CORP RPORA RATION
Corporate Presentation Q2 2 2020
This presentation has been prepared by the Global Atomic Corporation (“Global Atomic” or the “Company”) and includes information from sources believed by management to be reliable. No representation or warranty, expressed or implied, is made as to the accuracy of the information set forth herein. The information contained herein is as of the date hereof and is subject to change, completion or amendment without notice. This presentation contains forward-looking statements, estimates and projections with respect to the anticipated future performance of the company that may be deemed to be “forward-looking statements.” These statements, estimates and projections reflect various assumptions made by the Company concerning anticipated results, which may or may not prove to be correct. All statements contained in the presentation that address operating performance, future direction, management and control of the Company, events or developments that are expected to occur in the future (including statements related to earnings, expectations, sales of assets, capital expenditures, or statements expressing general optimism about future operating results) are forward-looking statements. Actual results could differ materially from those reflected in the forward-looking statements contained herein as a result of a variety of factors, many of which are beyond the Company’s control. Figures as of 14 April 2020
Disclaimer
1 Corporate Presentation Q2 2020
Company Overview
2
Ur Uran anium develo lopment, Niger r
(100% GLO)
Dasa sa Uranium, m, Niger ger Stand alone, high grade, high margin, underground operation, in Phase 1 plan
202 2020 Q3: apply for Mine Permit Lev ever erag aged upside, p prote tecte ted downside
C$63 M M Market Cap
Bringing Uranium to market Cash f flow from m recycli ling, Tu Turkey
(49% GLO)
BST, Isk skend nderun, un, Tur urkey New kiln commissioned to produce zinc oxide from EAFD (110,000tpa capacity)
202 2020 Steady state production
Corporate Presentation Q2 2020
TSX: GLO | OTCQX: GLAT ATF | FRA: G1 G12
Capital Structure
3 Sha hare res Is Issued ( (M) M) 145. 45.6 Options 14.4 Warrants 0.4 Fu Fully D Dilute ted 160. 60.4
Major Shareholders
Market Capitalisation
Cash 31 Dec 2019
Share Price
Shares issued
Stephen G. Roman (10%) Frame Group (7%) Sachem Cove (7%) Befesa (4%) Canaccord (4%) Deutsche Rostoff (3%) Others (66%)
52 week High
52 week Low
Corporate Presentation Q1 2020
Stephe hen G
man --
airman, P President a and C CEO
Former director of Denison Mines. Founded, managed and sold Gold Eagle Mines to Goldcorp Inc for $1.5 B. Won “Prospector of the Year”, “Bill Dennis Award” from the PDAC in 2016. Founder of Harte Gold Corp.
Board and Management
4
Georg rge Flac ach, , P. P.Geo --
Chairman, V VP Explor lorat ation
Track record of discovery (approximately 35 Moz gold, 250 Mlbs uranium) over 35 years of exploration history
Pa Paul C Cronin --
ecutive D e Director
CEO of Adriatic Metals and Executive Director of Black Dragon Gold, former CEO of Anatolia Energy. 20 years banking experience, former Vice President of RMB Resources
Richard Fa Faucher --
Director
Metallurgical Engineer, former President & GM of Falconbridge Dominicana, COO of Princeton Mining, VP Brunswick Mining and Smelting for Noranda Inc
Derek ek Rance --
Director
Professional Engineer and principal of Behre Dolbear & Company Inc. Former: President and COO of Iron Ore Company of Canada, Mine Manager of Dickenson Mine, President and CEO of Cape Breton Development Corp.
Asier Zar arraon
andia Ayo --
Director
CEO of Befesa Zinc S.A.U. a world leader in electric arc furnace dust recycling since 2006. Former CFO Befesa Aluminium, previously senior manager, auditor and consultant, with Arthur Andersen
Merli lin M Mar arr-Johnson, B , BSc, M , MSc, D , DIC – Exec. V Vice P e Presiden ent
25 years’ experience in the minerals sector. Former: exploration geologist for Rio Tinto, analyst for HSBC, portfolio manager for Blakeney Management, CEO of Palladex plc and Erris Resources plc. Director of Salazar Resources Ltd
Re Rein Lehari ri, CP CPA A --
FO
Accountant, previously CFO of Silvermet prior to its merger with Global Atomic in 2017. Ex partner at PricewaterhouseCoopers
Fergus Kerr, B , BSc, P , P Eng ng, ARS ARSM – Mini ning ng C Cons nsultant nt
Registered Professional Engineer in the Province of Ontario with >40 years experience in the mining industry mostly senior management in Canadian underground mines
Peter Wolle lenbe berg, B , BSc, M , MSc, P , PhD --
Explor
Resource D Dev evel elopmen ent
>38 years of experience in uranium exploration and mining. Former VP Exploration for Urangesellschaft, and senior mine geologist at the Cluff Lake uranium mine (COGEMA), and as exploration manager both in Australia and Niger
Tim C Campbe bell ll --
President a and Corpor
ate Secretar ary
>25 years’ experience in the mining sector focusing on corporate finance, regulatory compliance, government relations and permitting, local community and aboriginal consulting.
Corporate Presentation Q2 2020
Ron H Halas, , P. P.Eng – Chief Operating O Officer
30 years of open pit and underground mining with Kinross, IAMGOLD, Vale, PT Freeport Indonesia, Placer Dome, and Cominco. Mine feasibility, development, and operational experience in Canada, Indonesia, New Caledonia, Suriname, Brazil, and Mauritania.
Corporate Presentation Q2 2020 5
(100% GLO)
Corporate Presentation Q2 2020
Optimized PEA Highlights (1)
6
NPV8 (post tax) at US$35/lb
IRR (post tax) at US$35/lb
Payback at US$35/lb
Average LOM grade
C1 Cost
Initial CapEx
LOM uranium produced
Average annual steady-state uranium production
AISC Cost
Mine life
Corporate Presentation Q2 2020
Optimized PEA Highlights (2)
7
Economic ic sensitivity with varying uran anium pr price ces(1) Ur Uran anium pr price ce (pe per pound) $25/lb $30/lb $35 $35/lb $40/lb $45/lb $50/lb Before-tax NPV PV8 $41 M $139 M $260 M M $365 M $485 M $601 M After-ta tax NPV PV8 $34 M $113 M $21 211 M M $294 M $391 M $485 M After-ta tax IR IRR 11.5% 18.5% 26. 26.6% 32.6% 39.7% 46.3% Economic ic sensitivity with varying discou
tes usi sing ba base-case uran anium pr price ce $35 35/l /lb Discount rate te (%) 5% 8% 8% 10% 12% Before-tax NPV PV $341 M $260 M M $215 M $177 M After-ta tax NPV PV $279 M $21 211 M M $173 M $141 M
1 Sensitivities used the base case mining model at US$35 per pound uranium
Dasa, longitudinal section
8 Schematic l long-section a and hypothetical u underground i infrastructure Corporate Presentation Q2 2020
Phase 1 mine plan
9 Schematic m mine d development nt a and undergroun und i infrastruc ucture August 2023 2023 December 2025 2025 Septemb mber 2032 2032 Corporate Presentation Q2 2020
Maps
10 10 Corporate Presentation Q2 2020
11 11
Somaïr
1971
Niger er - Uran aniu ium Pr Production sin ince 1971 Orano (ex-Areva) Cominak closing March 2021
Cominak
ened ed 197 978 EU, F Fre rench, U US S military s y suppo pport
Sah ahel stab ability A stable Niger is key to regional stability
Elections i in Apri ril 202 2021 Oil D Discoveries Agadem em Basin Sirte B Basin
Strat ategic I Industry Fourth largest global uranium producer
200 2006 New M Mini ning ng Code
Republic of Niger
Corporate Presentation Q2 2020
Active in Niger since 2005 Global Atomic in Niger
12 12
2007 2008 2009 2010-19 2020
Tin Negouran, 8.8 Mlbs @ 170 ppm, (non-NI 43-101 compliant resource) Dajy Prospect, 16.6 Mlbs @ 689 ppm, (non-NI 43-101 compliant resource) Isakanan, 33 Mlbs @ 896 ppm, (non-NI 43-101 compliant resource) Dasa, >250 Mlbs, 1028 drill holes, five NI 43-101 compliant mineral resource updates PEA, Final Technical Report, and Application for Exploitation Permit MoU with Orano signed 2017
Corporate Presentation Q2 2020
Dasa uranium project, Niger
13 13
Grade / / Tonna nnage R Report a at V t Varyi ying ng C Cut ut-Off Gr Grades es Cut ut-Off
(e (eU3O8, ppm ppm)
Category Tonne nnes (Mt) t) eU eU3O8 (ppm ppm) Containe ained eU eU3O8 (Mlb lb) 10 100 Indicated 81.6 718 129.1 Inferred 96.1 606 128.4 320 320 Indicated 32.0 1,530 108.0 Inferred 35.0 1,333 102.7 1,200 200 Indicated 7.9 4,483 78.0 Inferred 8.4 3,783 69.9 2, 2,500 500 Indicated 3.6 7,849 61.9 Inferred 3.4 6,838 51.4 10, 0,000 000 Indicated 0.6 24,401 31.1 Inferred 0.8 14,598 25.3
Corporate Presentation Q2 2020
Corporate Presentation Q2 2020 14 14
Turkey
15 15
World’ d’s 8 8th larges est s steel eel produ ducer er
52 52 Mtpa pa capacity 80% 80%
secondar ary (scr crap)
4 ma main stee eel produc ucti tion n clust usters 23
Ele lectri ric A Arc Fu Furnaces
5
Inductio ion Fu Furnaces
3
Bl Blast st Fu Furnaces
Ele Electric Ar Arc Fur urna nace Dust ust (EAF EAFD)
Waste te Recycli ling BST i in Mediterranean an Cluste ter Sustai ainable able fe feedstock
Corporate Presentation Q2 2020
Turkey
16 16 Corporate Presentation Q2 2020
BST, Iskenderun, Turkey (49% Global Atomic)
17 17
and nd o
perator
market l leader in E EAFD r recycling
20 2018 18 60,000 tpa pa
2019 Expan ansion
comple leted a and p plant com
202 2020 110,000 tpa pa cap apac acity
zinc market
Corporate Presentation Q2 2020
Timeline
18 18 Dasa sa, N , Niger ( (100%) BST, T , Turkey ( (49%) %)
Ap Apply f for M Min inin ing P Permit Comp mplete t technical studie ies t to a advanc ance Dasa sa to a a product ction d decision Stea eady s state oper perations (coronavirus p permitting) Grad adual r retir irement o
pr projec ect l level el d deb ebt Finali lise debt r t repaymen ment, t, ta target f ful ull c capacity y (1 (110, 0,00 000t 0tpa) Robu bust st P PEA re rele lease sed, , dri rill ll water er w wel ells, pr prepa epare application f for Min inin ing P Permit
Corporate Presentation Q2 2020
Investment Case
19 19
Nig iger pro-mining
continuous uranium production
underground mine
Application in 2020
Tie ier 1 1 Dasa Uran aniu ium Tight e t equity ty structure
production
BST ST
(4 (49% G GLO)
Corporate Presentation Q2 2020
Suspe spensi sion
Covid-19 related suspensions in Canada, Kazakhstan, Namibia. Overall idled capacity insufficient to meet future demand Deple leti tion: 3 top--ten mines forecast to close before 2030 (Rossing, Cominak, Ranger) Lo Long l lead-times f s for n new p production
9 year bear market = underinvestment in exploration & development. Permitting is a key risk Capacity ty s shortf tfall ll: Significant production increase needed to meet future demand
Uranium Market
20 20
50 nuclear r r reactor
s under r const stru ruction
15 15 c countries
countries
Short-term rm d demand i incre rease se ~20 r 20 reactors scheduled f for r start-up p within 1 1 year Base seloa
by Covid-19 19 Prod
rs b buying in spot m t market t t to meet t supply contr tract o t obli ligati tions
Corporate Presentation Q2 2020
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