Impact: Neutral
Global Atomic (GLO) reported FY/23 operating and financial results. The company generated revenue of ~C$690k (-40% YoY) and reported a net loss of $0.08/sh, missing our estimate of neg. $0.04/sh. Revenues were impacted as the operations at GLO’s 49%-owned Turkish JV ceased for a while after an earthquake last year. GLO realized an EBITDA loss of US$2.4M from the JV, primarily due to lower EAFD processed and lower realized zinc prices of US$1.20/lb (vs US$1.58/lb in 2022). Dasa uranium project development is on schedule with little to no impact from the recent political developments in Niger. Project financing is moving ahead and Credit Committee with from baking syndicate approval due in April 2024, followed by Board approval in June. With the recently updated FS demonstrating robust economics, development on schedule, and financing discussions on track, we remain confident that production can begin in early 2026, as guided by management. However, GLO has not recovered after the recent news of Niger ending its military cooperation with the US (read note), and trades at a P/NAV of 0.37x vs its peers at 0.81x. In our view, the stock remains highly undervalued given that development work continues unhindered. Niger is a major supplier of uranium to the world and has respected Orano’s business despite the removal of French troops last year, and we would expect it to do the same with GLO and others.
