Interview with Stephen G. Roman, President & CEO of Global Atomic Corp.
Our previous interview: https://www.cruxinvestor.com/posts/global-atomic-tsxglo-on-track-for-uranium-production-as-operations-advance-5171
Recording date: 6th August 2024
Global Atomic Corporation (TSX: GLO) is positioning itself as a frontrunner in the uranium sector with its Dasa project in Niger, which the company claims is the only greenfield uranium project currently advancing to production globally. As the world grapples with energy security concerns and the need for clean, reliable baseload power, Global Atomic aims to capitalize on the growing demand for nuclear fuel.
President and CEO Matthew Stephen Roman provided insights into the company's progress and strategies. The Dasa project is in full buildout, with 450 people currently working on site, expected to increase to 600-700 in the coming months. Significant milestones have been achieved, including 7,000 tons of development ore on surface and 1200 meters of underground development.
Financing remains a key focus for the company. Global Atomic recently completed a $20 million private placement to maintain operations while working on securing more substantial project financing. The company is primarily engaged with U.S. bankers but is also exploring alternative options, including potential joint ventures with industry players.
A crucial advantage for Global Atomic is its strong relationship with the Niger government. Roman emphasized that the government sees the company as a "poster child" for investment in the country. This positive relationship is particularly important given the recent political events in Niger, including border closures with neighboring countries.
The broader uranium market context supports Global Atomic's development timeline. With uranium prices currently above $80 per pound and a persistent global supply deficit, the company anticipates favorable market conditions when Dasa begins production, targeted for 2026. Roman expressed confidence in the project's economics, noting that feasibility studies were conducted at much lower uranium prices.
However, investors should be aware of the risks associated with the project. These include potential financing delays, political instability in Niger, operational challenges inherent in mine development, and uranium price volatility. Despite these risks, Global Atomic's first-mover advantage in bringing new supply to market could be significant.
Global Atomic represents a high-risk, high-potential opportunity in the uranium sector. Its advanced project status, strong government relations, and favorable market timing position it well to capitalize on growing uranium demand. However, investors should carefully consider the associated risks and view any investment as part of a diversified portfolio strategy.
As the global energy landscape evolves, projects like Dasa may play an increasingly important role in meeting future energy needs, potentially offering substantial returns for risk-tolerant investors bullish on the future of nuclear power.
View Global Atomic's company profile: https://www.cruxinvestor.com/companies/global-atomic-corp
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An insight into junior mining and opportunities to invest.
Company Interviews, a Crux Investor show, exists to cut through the jargon, bias and bluster.
Matthew Gordon, and guest host Merlin Marr-Johnson hone in on the important factors that indicate a company's strong footing for growth and success.