Global Atomic’s shares jumped over 20% following positive updates on the Dasa uranium project in Niger, which is projected to yield 68.1 million pounds of uranium oxide over 23 years. With 90% of the initial output committed to U.S. utilities, the company is on track for early plant commissioning in 2026. Meanwhile, Niger’s uranium export figures show a slight decrease expected in 2024 amid contrasting experiences for other miners in the region.
Global Atomic (TSX: GLO) saw its shares increase by over 20% following affirmations about its uranium project in Niger. The company reported that the Dasa project is progressing favorably and is well-supported by the current administration, as noted in a recent update. The project, designed for underground mining, anticipates a daily production capacity of 1,000 tonnes, yielding about 68.1 million pounds of uranium oxide (U3O8) over its lifespan of 23 years.
The offtake agreements secured by Global Atomic cover approximately 8.8 million pounds of yellowcake for the initial seven years, averaging 1.3 million pounds annually, with a substantial 90% of the output designated for U.S. utilities. Additionally, construction at the Dasa plant is on schedule, with significant earthworks nearing completion and civil works underway, targeting commissioning by early 2026.
Looking at the broader market, Niger’s uranium exports have recently displayed intriguing trends. Data from IndexBox indicates that uranium ore and concentrate exports were valued at USD 204.4 million in 2023 but are expected to slightly decline to USD 169.6 million in 2024. France remained the primary destination for Niger’s uranium, with imports valued at USD 129.6 million in 2023, followed by South Korea, Japan, the U.S., and Spain.
In contrast to Global Atomic’s positive developments, other miners in Niger faced challenges. For instance, the Nigerien government revoked the Imourare mine permit from France’s Orano and seized control of its Somair operations. Similarly, the Canadian company GoviEx Uranium lost its license for the Madaouela project amid stringent government actions during a peak in the global uranium market.
In the latest trading session, Global Atomic’s shares closed at CAD 0.58 per share, reflecting a significant increase of 23.4% despite being near a 52-week low of CAD 0.43. The company’s market capitalization is currently CAD 152.8 million, indicating a robust rebound in investor confidence due to recent project updates.
Global Atomic’s share surge is a direct outcome of positive developments regarding its Dasa uranium project in Niger. The project’s expected output and off-take agreements are promising, particularly with strong support from the local government. In contrast, other mining companies in Niger are encountering regulatory challenges, highlighting the complex landscape of uranium mining within the region. Global Atomic’s optimistic outlook suggests a potential turnaround for its operations and market performance.
Original Source: www.indexbox.io
