Impact: Slightly Positive
Global Atomic (GLO) provided an update on its flagship Dasa uranium project in the Republic of Niger, upcoming drill programs and its zinc business in Turkey. The development of Dasa is on schedule with the initial box cut blast, leading to mine portal construction by late April/22. Global Atomic is quickly moving towards potential production and could have development ore available for sale as it sinks the Flank zone underground development. In our view, given that the mine has amongst the highest grade in the world at ~0.7% U3O8, we see this project moving towards production regardless of minor spot price fluctuations. The mine is already funded, but the sale of development ore (500kt under MOU) could ultimately help finance process plant construction. We also do not see ore shipments to be a long-term solution, as the ore is too rich. Global Atomic’s goal is to build the US$150M plant quickly, which would reduce trucking costs, lower Opex, and provide the benefit of long-term contracts and allow GLO to control its own destiny.
