TSX.V: GLO Frankfurt ETR: BFSA. Developing sustainable projects that provide shareholders with solid cash flow

Transcription

1 TSX.V: GLO Frankfurt ETR: BFSA Developing sustainable projects that provide shareholders with solid cash flow Corporate Presentation Spring 2018

2 Forward-Looking Statement 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. TSX.V: GLO, Frankfurt ETR: BFSA 2

3 Capital Structure Shares Issued 106,997,850 $ ,145,455 $0.25 5,554,190 $0.64 2,453,977 $ ,532 $1.92 2,574,448 Fully Diluted 123,047,452 Market Cap (April 26, 2018) $25.6 Million Nearly $100M has been spent on the development of Global Atomic s uranium and zinc projects which are now mature and capable of generating significant returns to shareholders TSX.V: GLO, Frankfurt ETR: BFSA 3

4 Proven Management Team Stephen G. Roman Chairman, President & CEO 35+ years Former senior officer and Director of Denison Mines Limited Discovered Gold Eagle, sold to Goldcorp ($1.5B) Harte Gold, Verena Minerals / Belo Sun Volta Grande, Black Fox, Gabriel Resources PDAC Bill Dennis Award winner, Prospector of the Year, 2016 George A. Flach, P.Geo. Vice President, Exploration, Director 30+ years Discovered / developed gold projects in West Africa 20 Moz Goldfelds Tarkwa, 4 Moz Bogosu and 2 Moz Benso mines in Ghana 2 Moz Goulagou mine in Burkina Faso Rein A. Lehari, CPA, CA Chief Financial Officer 30+ years Chartered Professional Accountant and former partner, PricewaterhouseCoopers Primary focus over career on mining and real estate Peter Wollenberg, Ph.D., P.Geo. Director, Exploration & Resource Development 30+ years Former Director North American exploration, AREVA Resources Canada Previously worked on AREVA s Niger projects Tim Campbell Vice President and Corporate Secretary 20+ years Government relations, community consultation First Nations, permitting Corporate finance, go-public transactions Regulatory compliance Fergus P. Kerr, P.Eng. Mining Consultant 35+ years Mining engineer and uranium specialist, Royal School of Mines General Manager at Denison Elliot Lake uranium mine Subsequently, Mine Manager at Inco s Sudbury operations TSX.V: GLO, Frankfurt ETR: BFSA 4

5 Board of Directors Stephen G. Roman (see previous page) George A. Flach, P.Geo. (see previous page) Richard Faucher, P.Eng. Retired metallurgical engineer Formerly VP, Brunswick Mining & Smelting (Noranda Inc.), President & General Manager, Falconbridge Dominica Paul Cronin, B.Com., MBA Formerly CEO, Anatolia Energy; currently CEO and Managing Director, Black Dragon Gold Mining finance executive experienced in equity, debt, and mergers and acquisitions Derek C. Rance, P.Eng., MBA Chairman and Senior Associate of Behre Dolbear & Company Ltd., a mineral industry consulting company Formerly President and COO of the Iron Ore Company of Canada TSX.V: GLO, Frankfurt ETR: BFSA 5

6 Company Snapshot Who is Global Atomic? Global Atomic Corporation is committed to developing sustainable projects that provide shareholders with a solid cash flow base from multiple operations. Headquarters: Toronto, Canada Publicly Traded: TSX.V: GLO Frankfurt ETR: BFSA Market Cap: C$25.6 million What are Global Atomic s Assets? Unique combination of high-grade uranium development in the Republic of Niger and cash-flowing zinc concentrate production in Turkey Uranium: DASA Project (Niger) Zinc: BST JV (Turkey) 2017 EBITDA (100%): C$22 Zn What Sets Global Atomic Apart? Alignment with industry-leading operators to develop innovative cash-flowing green projects Uranium Partner: Previously Areva, one of the largest producers of uranium globally Zinc Partner: Market leader in Europe providing zinc recycling services * Institutional Shareholders: 3.4% 3.3% 1.4% TSX.V: GLO, Frankfurt ETR: BFSA 6

7 Asset Summary Uranium Division Base Metals Division Flagship Asset: 100% interest in DASA uranium deposit in Niger. Partner: Orano Mining ore sales strategic development. and High-grade resource: Indicated 21.4 M lbs at 2,608 ppm Inferred 49.8 M lbs at 2,954 ppm Near-surface, near-term cash-flow potential: Target production by 2020; no mill necessary to support initial operations. Upside: DASA exploration and three additional deposits with defined resources. Flagship Asset: 49% JV interest in a highgrade zinc processing facility in Turkey. Exposure to Zinc: Currently producing +30 M lbs of zinc in concentrate. Industry-leading partner: Befesa Zinc S.A.U. 51% owner; operates several processing facilities in Europe and Asia. Positive cash flow : Plant running at capacity with expansion to double throughput under study. TSX.V: GLO, Frankfurt ETR: BFSA 7

8 Uranium Division TSX.V: GLO, Frankfurt ETR: BFSA 8

9 High-Grade Uranium Production DASA is located in the Tim Mersoi Basin, one of the world s largest underexplored uranium-producing regions. 30% of France s uranium supply comes from Niger, the world s 4 th largest producer. Uranium Grade (% U 3 O 8 ) 2% - 5% 0.28% 0.15% DASA has the highest-grade resource outside the Athabasca Basin 0.11% 0.11% 2005: Global Atomic and Silvermet incorporated 2007: Six mining concessions granted from Republic of Niger covering 3,500 km : Acquired shuttered recycler in Iskenderun, Turkey 2010: Signed JV and investment agreement with Befesa Zinc 2011: DASA deposit discovery on Adrar Emoles 3 concession, Tim Mersoi Basin, Niger 2012: 250-person exploration camp established at DASA 2013: Initial DASA resource estimate, ~120,000 meters drilling completed 2017: Updated DASA resource by CSA Global Pty Ltd Total raised ~$100 million for both projects Significant institutional shareholders Successful merger of Global Atomic Fuels Corporation and Silvermet Inc. Listed on TSX-V: GLO Frankfurt ETR: BFSA 0.06% 0.05% 0.05% 0.02% 0.02% Athabasca Basin Global Atomic Mega Uranium Azarga Uranium Laramide Resources GoviEx Toro Energy Berkely Energia Bannerman Forsys TSX.V: GLO, Frankfurt ETR: BFSA 9

10 Agreement with Orano Mining Global Atomic signed an MOU with Orano Mining (formerly AREVA Mining), the French national uranium company, in respect to the DASA project on July 17, 2017 Terms of the joint cooperation agreement include: Ore sales agreement for a minimum of 100,000 tonnes per annum at a minimum grade of 1,000 ppm U 3 O 8, delivered to Orano s processing plant in Arlit, 80 km north of DASA Minimum five-year term Use of Orano s metallurgical and assay labs in France Mutual assistance and cooperation in Niger Coordination of logistics between the parties for the further development of DASA The Global Atomic / Orano agreement de-risks the project considerably: Accelerates timeline to production and cash flow Significant reduction in pre-development costs and CAPEX requirements No mill required to process DASA ore TSX.V: GLO, Frankfurt ETR: BFSA 10

11 DASA Project Overview Situated in the Tim Mersoi Basin, Republic of Niger One of the world s largest uranium-producing regions for 50 years Ranked fourth in world uranium production DASA Project covers a land package of km 2 Located on the Adrar Emoles III permit LOW CAPEX to production preliminary estimate of US$25M for mine development, no mill required, direct shipment of ore TSX.V: GLO, Frankfurt ETR: BFSA 11

12 Excellent Project Infrastructure Niger is known for being a supportive mining region: attractive Mining Code, 100% foreign ownership is allowed, repatriation of profits allowed Route N25 Route d Uranium Project accessible by paved road known as Route d Uranium connecting Agadaz and Arlit Key transportation network used by Orano to export yellowcake to the port of Cotonou in Benin, West Africa Accessible by air via Agadez, Niger s second largest city and 100 km from the property DASA Camp Grid power available on-site, water available from underground aquifer Large pool of experienced local mining personnel TSX.V: GLO, Frankfurt ETR: BFSA 12

13 Niger A Supportive Mining Region The government of Niger supports foreign private investment Foreign investment is viewed as a key to economic growth and development The Government has taken a concerted effort to revitalize the private sector, with the assistance of the United Nations Development Program (UNDP) Revisions to the mining code in 2007 provide attractive terms for investors, including accelerated permitting process, tax and customs exemption and tariff protection Equal treatment of all investors is guaranteed and 100% foreign ownership is allowed Niger has a long history of uranium exploration and development Uranium was first discovered in the Tim Mersoi basin in 1957 The discovery prompted the French Atomic Energy Commission to initiate detailed geological studies and exploration, leading to development of the Cominak and Somair uranium mines which have been in steady production since TSX.V: GLO, Frankfurt ETR: BFSA 13

14 DASA Resource Summary 119,620 metres of RC and diamond drilling completed to-date NI Compliant Resource At Varying Cut-Off Grades Indicated Inferred NI compliant resource report dated January 1, 2017 by CSA Global Pty Ltd Cut-off (ppm) Ore Tonnes (millions) Grade (ppm) U 3 O 8 Pounds (Millions) Ore Tonnes (millions) Grade (ppm) U 3 O 8 Pounds (Millions) Deposit is open on strike (NE and SW) and down dip Shallow, open-pitable DASA 1, 2 and 3 deposits; surface material In 2012, deeper drilling lead to the discovery of the large, high-grade ore body below impervious mudstone cap , , , , , , , , , , , , , , Source: NI Technical Report effective January 1, TSX.V: GLO, Frankfurt ETR: BFSA 14

15 DASA Plan View Open On Strike Large, high-grade, sedimentary sandstone deposit Metallurgical recovery >95% Open On Strike Potential for significant expansion with further drilling 4 km TSX.V: GLO, Frankfurt ETR: BFSA 15

16 DASA Deposit TSX.V: GLO, Frankfurt ETR: BFSA 16

17 DASA Geophysics HRIP Survey 2D rendering of DASA graben Profile spacing 200 m Looking Northwest Looking Northeast TSX.V: GLO, Frankfurt ETR: BFSA 17

18 DASA Flank Zone: Open-Pit Deposit ASDH477 (Assay XRF) Tch ppm incl ppm m m Initial Flank Zone Holes ASDH478 (Assay XRF) Tch ppm incl ppm m m TSX.V: GLO, Frankfurt ETR: BFSA 18

19 Flank Zone Proposed Open Pit Area Section 1950 NW ASDH126 Tch ppm incl ppm m m ASDH1448 Tch ppm incl ppm m 8.00 m ASDH480 Mad ppm incl ppm m 4.60 m ASDH307B Tel 1119 ppm incl ppm m m TSX.V: GLO, Frankfurt ETR: BFSA 19

20 Ramp Access / Underground from Flank Zone Pit Initial Deep Zone Hole ASDH256 Tel 3307 ppm incl ppm m m ASDH312 Guezouman : Same formation as Cominak 2811 ppm incl ppm m m TSX.V: GLO, Frankfurt ETR: BFSA 20

21 Ramp Access / Underground from Flank Zone Pit ASDH476 Tel/Mad/Tar 4462 ppm incl ppm m m TSX.V: GLO, Frankfurt ETR: BFSA 21

22 DASA Project Development Timeline Near-term production opportunity and resource expansion Global Atomic is entering the development phase with a clear timeline and deliverables H H H H Exploration and Development Drilling Resource Expansion Drilling Mine Plan Development / PFS Permitting Organize Financing, Mining + Shipping Contracts Site Preparation Initial Production TSX.V: GLO, Frankfurt ETR: BFSA 22

23 Base Metal Division TSX.V: GLO, Frankfurt ETR: BFSA 23

24 Business Overview Principal business activity is the operation of the Electric Arc Furnace Dust ( EAFD ) recycling business in Turkey to recover zinc and produce a high-grade concentrate which is sold to smelters, primarily in the European and Asian markets Current asset is a 49% interest in the Befesa Silvermet Turkey joint venture ( BST ) 2017 zinc concentrate production = 21,000 tonnes grading 70% Zinc (33M lbs) at 100% capacity utilization (>60,000 tonnes EAFD processed during 2017) Future plant expansion to 110,000 tonnes EAFD for annual production of 38,500 tonnes of zinc concentrate containing approximately 60 million pounds of zinc 7 steel plants 9.1 m tonnes steel 180,000 tonnes EAFD 7 steel plants 5.7 m tonnes steel 115,000 tonnes EAFD Location EAFD typically contains 30% zinc, recoveries = 80% plant capacity = 60,000 tonnes Plant expansion will increase capacity to 110,000 tonnes 7 steel plants 6.1 m tonnes steel and 120,000 tonnes EAFD BST Processing Facility TSX.V: GLO, Frankfurt ETR: BFSA 24

25 Positive Cash Flow from Zinc Concentrate Production Revenue & EBITDA (Millions C$, 100%-Basis) Millions $80 Revenue EBITDA EBITDA Margin $ % 70% 60% $60 52% 50% $40 $20 26% $0.88 $ % 32% $0.98 $ % $ % $ % 30% 20% 10% $0 0% Expansion (Run-Rate) Estimated by TSX.V: GLO, Frankfurt ETR: BFSA 25

26 Joint Venture with Befesa Befesa provides innovative sustainable services for the recycling of hazardous residues from the steel, zinc and aluminium industry. Befesa manages more than 1.3 million tonnes of residues annually, with a production of more than 600 million pounds of zinc which is sold to smelters. On October 27, 2010, Silvermet and Befesa Zinc S.A.U. ( Befesa ), established a joint venture known as Befesa Silvermet Turkey, S.L. ( BST ) to operate Silvermet s Iskenderun plant and further develop the EAFD recycling business in Turkey. BST is now held 51% by Befesa and 49% by Global Atomic, which owns 100% of Befesa Silvermet Iskenderun Celik Tozu Geri Donusumu A.S. ( BSI ) that holds and operates the Iskenderun facility. TSX.V: GLO, Frankfurt ETR: BFSA 26

27 Future Plans in Turkey Expansion plan is underway Engineering is complete and paid Capital costs and EPC contract being negotiated The Company expects to order long lead-time items in 2018 Construction to begin in 2019 Completion in 6 months with swap of kilns requiring 3-4 month downtime Expansion financing from 2018 cash flow + available lines of credit TSX.V: GLO, Frankfurt ETR: BFSA 27

28 Global Atomic Corporation: Investment Highlights Created a new uranium development story with best-in-class fundamentals. Signed a Memorandum of Understanding with Orano Mining, France s national uranium company. Developing Africa s highest-grade, near-term uranium development project, with a proven management team. Partnered with Befesa Zinc, an innovative company specializing in managing and recycling hazardous residues from the steel, zinc and aluminium industry. Developed projects that have low capital requirements, low cash costs and high profitability! Positive cash flow from zinc concentrate sales that supports growth in both business units. TSX.V: GLO, Frankfurt ETR: BFSA 28

29 Notes TSX.V: GLO, Frankfurt ETR: BFSA 29

30 Contact Us Stephen G. Roman, Chairman, President & CEO 8 King St E, Suite 1700 Toronto, ON M5C 1B5 Tel: (416) Fax: (416) info@globalatomiccorp.com TSX.V: GLO, Frankfurt ETR: BFSA 30