Impact: Positive
Global Atomic provided an update on the Phase 1 Feasibility Study (FS) for its 80%-owned Dasa uranium project in Niger, and its 2023 outlook. At the request of the Ontario Securities Commission (OSC), the company has refiled its FS and removed ~187kt of inferred resources from the Phase 1 mine plan. While the impact of this change is minimal, it does decrease the NPV8% of the project to US$456M (was US$468M) as this material is now treated as waste. With plenty of exploration upside, we believe the ongoing 16,000m program and future drill programs, will continue to expand reserves, offsetting the impact of removing inferred resources. These lower confidence resources are likely to be expanded and better confirmed in coming months but make little impact to our valuation by removing them from our DCF model.
