TSX.V: GLO Frankfurt: G12 OTCBB: SYIFF. Generating positive cash flow with significant growth underway.

Transcription

1 TSX.V: GLO Frankfurt: G12 OTCBB: SYIFF Generating positive cash flow with significant growth underway. Corporate Presentation: August 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. All figures in CDN unless otherwise noted TSX.V: GLO, Frankfurt: G12, OTCBB: SYIFF 2

3 Company Snapshot Global Atomic Corporation is a public company incorporated and headquartered in Canada Who is Global Atomic? Headquarters: Toronto, Canada Publicly Traded: TSX Venture: GLO Frankfurt Exchange: G12 Market Cap: C$30 million High-grade uranium in the Republic of Niger and cash-flowing zinc production in Turkey What are Global Atomic s Assets? Uranium (Niger): Zinc (Turkey): DASA Project Joint Venture producing Isakanan Project a zinc concentrate Tin Negouran Dajy Project Uranium resources: ~250 M lbs U 3 O EBITDA (100%): US$16 US$1.31/lb Zn Global Atomic has partnered with industry-leading operators to support development What Sets Global Atomic Apart? Uranium: One of the largest producers of uranium globally Zinc Partner: Market leader in EAFD and steel recycling Global Atomic Shareholders: 3.2% 1.3% 1.1% 0.9% TSX.V: GLO, Frankfurt: G12, OTCBB: SYIFF 3

4 Asset Summary Uranium Division Base Metals Division 100% interest in DASA uranium deposit. MOU signed with Orano related to ore sales and strategic development. High-grade resource (NI DASA*): Indicated 80.2 M lbs at 2,364 ppm Inferred 98.3 M lbs at 738 ppm Mine pre-stripping by DASA exploration upside and three additional deposits with defined resources. * 200 ppm cut-off Befesa / Global Atomic Joint Venture: 51/49 ownership. High-grade zinc processing facility in Iskenderun, Turkey. Currently producing +30 M lbs/year of zinc in concentrate. Expansion to 60 M lbs/year currently underway. US$41 US$1.25/lb Zn EBITDA post expansion: US$33 US$1.10/lb Zn (100% attributable) US$22 US$0.90/lb Zn TSX.V: GLO, Frankfurt: G12, OTCBB: SYIFF 4

5 Illustrative Value Potential (Millions C$) Value Proposition Base Metals provides solid cash flow and valuation fundamentals EBITDA target US$41 million (C$53 million) Peer recycling companies trade at 8 10x EBITDA Operating partner, Befesa, trades at ~10x forward year EBITDA Global Atomic Illustrative Value Potential Figures in Canadian Dollars $500 $200 M $425 M $400 $300 Uranium division provides significant upside potential >180 million lbs at DASA (200 ppm eu 3 O 8 cut-off) High grade resource: 113 million lbs at ~3,000 ppm eu 3 O 8 Uranium peers trading at ~US$0.90/lb in situ value $200 $100 $0 $225 M Base Metals Division Current Market Cap: $30 million Uranium Division Total Combined NAV Base + Uranium TSX.V: GLO, Frankfurt: G12, OTCBB: SYIFF 5

6 Uranium Division TSX.V: GLO, Frankfurt: G12, OTCBB: SYIFF 6

7 Uranium Grade (% U 3 O 8 ) High-Grade Uranium Production The DASA Deposit, located in the Tim Mersoi Basin, is one of the largest and highest grade uranium deposits in the world 2005: Global Atomic incorporated 2% - 5% Up to 3%* DASA has the highest-grade resource outside the Athabasca Basin 2007: Six mining concessions granted from Republic of Niger covering 3,500 km : DASA deposit discovery 2012: 250-person exploration camp established 2013: Initial DASA resource estimate, ~120,000 meters drilling completed 2017: Memorandum of Understanding ( MOU ) signed with Orano Mining Merger with Silvermet Completed metallurgical analysis for DASA 0.15% 0.11% 0.11% 2018: 30,000 m drill program completed to confirm high grade areas and expand mineralization Updated NI resource, June 5 th, 2018 PEA underway, delivery in September 0.06% 0.05% 0.05% 0.04% 0.02% 0.02% Athabasca Basin Athabasca Basin * 10,000 ppm cut-off Global Mega Azarga Laramide GoviEx Toro Berkely Husab Bannerman Forsys Husab Mine (Extract/Kalahari) TSX.V: GLO, Frankfurt: G12, OTCBB: SYIFF 7

8 Development Strategy The phased development of DASA provides positive cash flow at current uranium prices with opportunities to pursue for further value potential Near term cash flow during period of low uranium price: PEA for open pit and underground mining, target completion for September LOW initial CAPEX envisaged mine plan is profitable at current uranium prices Annual production target of 5 million lbs per annum reflects >10 year mine life for the open pit resource CSA Global Pty Ltd ( CSA Global ) is preparing the technical report PEA value opportunities: Direct ship ore to Orano for processing a minimum of 100,000 tonnes 1,000 ppm eu 3 O 8 Upgrading of lower grade surface mineable material through ablation or heap leaching of surface material Resource expansion through further drilling Sign additional ore sales agreements with other companies TSX.V: GLO, Frankfurt: G12, OTCBB: SYIFF 8

9 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 eu 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 initial production and cash flow Significant reduction in pre-development costs and CAPEX requirements No mill would be required to process DASA ore TSX.V: GLO, Frankfurt: G12, OTCBB: SYIFF 9

10 Illustrative Production Sensitivities Annual Shipments to Orano Tonnes 100, , ,000 Tonnes Per Day Tpd Number of 30-T Trucks Daily Production Grade Of Material Shipped ppm 3,000 3,000 3,000 Contained U 3 O 8 lbs 661,387 1,322,774 1,984,160 Value of Uranium in Ore US$25/lb U 3 O 8 M US$ $16.5 $33.3 US$40/lb U 3 O 8 M US$ $26.5 $52.9 $79.4 Note: Orano to supply milling cost and total amount of ore required by Q4, TSX.V: GLO, Frankfurt: G12, OTCBB: SYIFF 10

11 DASA Project Overview The DASA Project is near-term production ready Situated in the Tim Mersoi Basin, Republic of Niger DASA Project covers a land package of km 2 located on the Adrar Emoles III permit The following has been completed to advance the DASA Project towards production: >150,000 meters of drilling completed todate Updated NI Resource Report completed, tripling Indicated Resources at the conceptual open pit mining area MOU signed with Orano DASA Deposit Scale (Km) Metallurgical analysis confirming recovery method, flow sheet, U 3 O 8 recoveries CSA Global is completing a PEA for open pit and underground mining operations TSX.V: GLO, Frankfurt: G12, OTCBB: SYIFF 11

12 DASA Project Accessibility The DASA Project is readily accessible by well established infrastructure All weather road Route d Uranium connects DASA to Agadaz and Arlit Route N25 Route d Uranium The same road is used by Orano Mining to export yellowcake to the port of Cotonou in Benin, West Africa Grid power available on-site, water available from underground aquifers Large pool of experienced local mining personnel, including engineers, geologists, technicians and general labour DASA Camp TSX.V: GLO, Frankfurt: G12, OTCBB: SYIFF 12

13 DASA Deposit Overview; Looking East North South 0 m Surface mineable material Flank Zone Expansion Southwest Extension Zone m Northeast Extension Zone Tegama Hill South Zone Southwest Extension Zone m Tegama Hill Main Zone 4 Km TSX.V: GLO, Frankfurt: G12, OTCBB: SYIFF 13

14 DASA Plan View Open On Strike Open On Strike 4 km TSX.V: GLO, Frankfurt: G12, OTCBB: SYIFF 14

15 DASA Geophysics HRIP Survey 2D rendering of DASA graben Profile spacing 200 m Looking Northwest Looking Northeast TSX.V: GLO, Frankfurt: G12, OTCBB: SYIFF 15

16 DASA Resource Sensitivity At Varying Cut-Off Grades The DASA resource contains significant, high grade uranium at a range of cut-off grades Cut-Off eu 3 O 8 ppm Category Tonnes (Millions) eu 3 O 8 (ppm) Contained Metal (M lbs) 200 1,000 1,200 5,000 10,000 Indicated , Inferred Indicated 6.9 4, Inferred , Indicated 6.0 4, Inferred 8.2 2, Indicated , Inferred 0.8 7, Indicated , Inferred , TSX.V: GLO, Frankfurt: G12, OTCBB: SYIFF 16

17 DASA Project Development Timeline H H H H [] Exploration and Development Drilling [] Mine Plan Development / PEA [] Completion of Final Technical Report [] [] [] [] Permitting Organize Financing, Mining + Shipping Contracts Site Preparation Mine Pre-stripping / Mining Commences TSX.V: GLO, Frankfurt: G12, OTCBB: SYIFF 17

18 16 Month Work Plan A 16 month budget of approximately C$5 million completes remaining field work, technical reports and permitting and advances the project to a shovel ready status Summary (CDN $, Millions) Drilling and Field Work $1.5 Technical Reports $0.6 Niger Camp and Office $1.7 Corporate Office $0.9 Contingency $0.3 Total Budget (C$ M) $5.1 Note: Expansion drilling would require an additional C$2.0 million if deemed necessary and could be done simultaneously with the above program TSX.V: GLO, Frankfurt: G12, OTCBB: SYIFF 18

19 Republic of 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 Income tax rate in Niger is 30%, companies are provided tax exemption for the first three years and benefit from accelerated depreciation on capital expenditures; no VAT is paid Mining code provides accelerated permitting process, tax, customs exemption and tariff protection A sliding scale royalty is based on operating profit of the business: Profit < 20%: royalty = 5.5% Profit of 20% to 50%: royalty = 9.0% Profit of > 50%: royalty = 12.0% 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: G12, OTCBB: SYIFF 19

20 Base Metal Division TSX.V: GLO, Frankfurt: G12, OTCBB: SYIFF 20

21 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 Primary asset is a 49% interest in the Befesa Silvermet Turkey joint venture ( BST ) 2017 was a record year for BST, with 33 million pounds of zinc produced in concentrate, operating at 100% capacity utilization (>60,000 tonnes of EAFD was processed) Plant expansion is underway to process 110,000 tonnes EAFD producing 44,000 tonnes of zinc concentrate, approximately 60 million pounds of zinc, annually 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: G12, OTCBB: SYIFF 21

22 Figures in US$ Millions Positive Cash Flow from Zinc Concentrate Production Revenue & EBITDA (Millions US$, 100%-Basis) $60 Revenue EBITDA $1.25 $ figures represent realized zinc price (US$/lb) $40 $1.31 $20 $0.88 $0.87 $0.98 $0.95 $0.85 $ Expansion (Run-Rate) Estimated by TSX.V: GLO, Frankfurt: G12, OTCBB: SYIFF 22

23 Plant Expansion Uses and Sources of Funds For Expansion Figures in US$ Millions Figures in US$ Millions Cash Flow After Expansion Uses of Funds Sources of Funds Zinc Price (US$ / lb) $0.90 $1.10 $1.25 Capital Costs $26 Cash on Hand Plus Operations for 2018 $12 - $15 Revenue (100%) $39.6 $49.9 $57.6 Capital Spent Todate ($3) Existing Credit Lines $5 EBITDA (100%) $22.5 $32.8 $40.5 Start-Up / Working Capital $5 Increase to Existing Credit Lines $11 - $12 Dividend & Fees (Attributable to GLO) $7.5 $11.0 $13.7 Total Uses $28 Total Sources $28 - $32 TSX.V: GLO, Frankfurt: G12, OTCBB: SYIFF 23

24 Future Plans in Turkey Expansion is underway Engineering is complete and paid Capital costs and EPC contract have been signed The Company has ordered long lead-time items Site construction to begin in February 2019 Completion in August 2019 with swap of kilns requiring 4 5 months downtime* Funding for expansion from 2018 / 2019 cash flow and available lines of credit * Note: EAFD will be stockpiled during his period in order to maximize throughput in the new kiln for the balance of TSX.V: GLO, Frankfurt: G12, OTCBB: SYIFF 24

25 Global Atomic Corporation: Highlights Positive cash flowing company. Developing Africa s highest-grade, near-term uranium development project, with a proven management team. Signed a Memorandum of Understanding with Orano Mining, France s national uranium company, in Partnered with Befesa Zinc, an innovative company specializing in managing and recycling residues from the steel, zinc and aluminium industries. Developing projects that feature low capital requirements, low cash costs and high profitability! Positive cash flow will be driven by both zinc and uranium divisions. TSX.V: GLO, Frankfurt: G12, OTCBB: SYIFF 25

26 Contact Us Stephen G. Roman, Chairman, President & CEO 8 King St E, Suite 1700 Toronto, ON M5C 1B5 sgr@globalatomiccorp.com Tel: +1 (416) Website: TSX.V: GLO, Frankfurt: G12, OTCBB: SYIFF 26

27 Appendix TSX.V: GLO, Frankfurt: G12, OTCBB: SYIFF 27

28 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 (August 16, 2018) $30 Million All $ figures in CAD unless otherwise noted Nearly $100M has been spent on the development of Global Atomic s uranium and zinc projects. The Company currently generates positive cash flow with significant growth underway. TSX.V: GLO, Frankfurt: G12, OTCBB: SYIFF 28

29 Proven Management Team Stephen G. Roman, BA Chairman, President & CEO 35+ years George A. Flach, P.Geo. Vice President, Exploration, Director 30+ years Former senior officer and Director of Denison Mines Limited Discovered Gold Eagle, sold to Goldcorp ($1.5B) Founder and developer of Harte Gold, Verena Minerals / Belo Sun Volta Grande, Black Fox, Gabriel Resources PDAC Bill Dennis Award winner, Prospector of the Year, 2016 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, BA (Hons.) 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, London, UK General Manager at Denison Elliot Lake uranium mine Subsequently, Mine Manager at Inco s Sudbury operations TSX.V: GLO, Frankfurt: G12, OTCBB: SYIFF 29

30 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 CEO and Managing Director, Black Dragon Gold Formerly CEO, Anatolia Energy, a uranium development company in Turkey Mining finance executive experienced in equity, debt, and mergers and acquisitions; Rand Merchant Bank (RMB) Derek C. Rance, P.Eng., MBA Chairman and Senior Associate of Behre Dolbear & Company Ltd., a mining industry consulting company Formerly President and COO of the Iron Ore Company of Canada Asier Zarraonandia Ayo, B. Econ. CEO of Befesa Zinc S.A.U. Formerly a senior manager, auditor and consultant with Arthur Anderson, specializing in mergers and acquisitions TSX.V: GLO, Frankfurt: G12, OTCBB: SYIFF 30

31 Uranium (M lbs U 3 O 8 ) Uranium Supply and Demand Demand Outlook Demand driven by nuclear energy consumption is forecast to grow 3% annually China nuclear energy capacity is expected to increase from 30 GWe to 130 GWe by 2030 and 240 GWe by Supply and Demand Forecast World Demand (WNA) India nuclear capacity is expected to grow from 5 Gwe to 17 Gwe in 2024 and 63 Gwe in 2032 Japanese restarts have been slow to begin, however the country is targeting 20% long-term nuclear in overall energy consumption World Supply Supply Outlook Uranium production expected to decline unless new mines developed 0 (50) (100) Supply Surplus / (Deficit) All-in break even cost for uranium mines is estimated at US$40 to US$50 per lb U 3 O 8 (150) A higher uranium price is required to maintain current production and incentivize new production Source: World Nuclear Association (WNA), GoviEx, UxC Consulting, Houlihan Lokey TSX.V: GLO, Frankfurt: G12, OTCBB: SYIFF 31

32 U3O8 Spot Price (US$/lb) Uranium Price Outlook Recent Corporate Actions Are Expected To Improve Uranium Market Fundamentals Kazatomprom, the world s largest uranium producer is planning an IPO in Q4 of this year Analyst Uranium Price Forecast Kazatomprom will reduce the amount of U 3 O 8 in an effort to improve market fundamentals $60.00 $45.00 Long term: ~US$50/lb Yellow Cake purchased 8.1 M lbs U 3 O 8 in the spot market, so far! $30.00 Paladin s Langer Heinrich mine was shut down, removing 3.5 to 4.0 M lbs U 3 O 8 from the spot market $15.00 Cameco extended shutdown at McArthur River and Key Lake operations $ E 2020E 2021E 2022E Source: UxC, company reports, analyst estimates, as at June 1, 2018 Recent Equity Financings Yellow Cake IPO - US$200 million (completed) Uranium Participation Corp. - US$20 million (completed) TSX.V: GLO, Frankfurt: G12, OTCBB: SYIFF 32