CA - Global Atomic: Political Crisis In Niger Creates A Catch-22 (Rating Downgrade)

2024-02-13 04:51:47 ET

Summary

• In my view, the market valuation is soaring due to rising uranium prices as a result of the tense political situation in Niger.
• However, Global Atomic’s flagship project is located there, and the company failed to secure funding for its construction in 2023.
• If the political crisis in the country gets resolved soon, I think uranium prices could rapidly fall back to around $60 per pound.
• At that uranium price level, Dasa has an after-tax NPV of $661 million, based on the 2021 feasibility study.

Introduction

In October 2023, I wrote a bullish article on SA about Niger-focused uranium mining company Global Atomic (GLATF) ( GLO:CA ) in which I said that a reasonable valuation could be about $473.5 million, which was equal to a 46.5% upside potential back then....

For further details see: