Global Atomic is two businesses within a single company. Cash flow from the Turkish zinc dust recycling operation is $10m-15m p.a. which will allow the company to unlock value at its high grade and large DASA uranium project, Niger. Development of DASA is low CAPEX as it can truck ore to an existing process plant. With a market capitalisation of US$44m, the Tier 1 uranium asset is in for negative value.Arlington Group Report in November 2018
Merlin Marr-Johnson, Executive Vice President
Merlin Marr-Johnson is a graduate in geology from Manchester University and holds a Master’s Degree in Mineral Deposit Evaluation from the Royal School of Mines, Imperial College. He has 25 years’ experience in the minerals sector, including work as an exploration geologist for Rio Tinto, an analyst for HSBC and a portfolio manager for Blakeney Management. Merlin has worked on projects in South America, Africa, Central Asia and Europe, and as CEO has brought two companies to AIM, London. He speaks several languages, including French.
What is your rationale for attending 121 Mining Investment?
To raise the profile of the company, grow the investment audience, attract new shareholders
What recent news would you like to highlight to investors attending?
High grade drill results from DASA, 23 January and 3 April. Update on the expansion of the zinc recycling facility in Turkey, 9 April
What are your key goals for the next 3, 6 and 12 months?
Publish a new Mineral Resource Estimate for the DASA Project, Niger
Complete the expansion, and commission the new furnace at the zinc recycling facility in Turkey
Finalise commercial terms with Orano Mining for delivery of ore, and complete a Production Plan (Feasibility Study) for the Niger government.
What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?
The recent PEA included an underground mine as a route to establishing early production of ore to deliver to Orano Mining process plants. Recent high grade chemical assays mean that Global Atomic is re-engineering for an open pit, which requires specialised blending of low and high grade portions of the orebody. The company is working with consultant engineers (CSA Global and others) to reach a engineering and sequencing solution.
Niger country risk is a key challenge for Global Atomic. Security incidents in the border areas of Niger, particularly in the southwest (near Burkina Faso) and southeast (near Nigeria) of the country are a concern. Niger has produced uranium on a continuous basis for almost fifty years and Global Atomic is working closely with the government to be a part of the future of the mining industry of Niger.
What do you think makes your company such a compelling investment?
Global Atomic is well financed, with revenue from zinc recycling in Turkey, and a Tier 1 uranium deposit in Niger. DASA offers low capex, near term production potential through the MOU with Orano Mining. The current market capitalisation can be justified on the zinc business alone, meaning that the highest grade, large uranium deposit that can be brought into production quickly is ‘in’ for free. DASA is a strategic asset, one of the few deposits that can fill the anticipated uranium supply shortage in the near term.