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Global Atomic posts higher income and working capital thanks to Turkish zinc operations

The Toronto-based company has a 49% interest in the Befesa Silvermet zinc concentrate production facility in Turkey and is advancing the DASA uranium deposit in Niger
turkish zinc plant
The plant is currently undergoing a modernization and expansion program that is on track to be fully operational by September

Global Atomic Corporation (CVE:GLO) reported higher income and working capital from its Turkish zinc operations as part of its 2018 financials released Monday.

The Toronto-based company has a 49% interest in the Befesa Silvermet zinc concentrate production facility in Turkey and is advancing the DASA uranium deposit in Niger.

WATCH: Global Atomic Corporation sees supply as a key to improving uranium prices

The BST joint venture owns and operates an electric arc furnace dust (EAFD) processing plant in Iskenderun, Turkey. The plant processes EAFD containing 25% to 30% zinc that is obtained from electric arc steel producers and produces a zinc concentrate of around 70% zinc that is then sold to zinc smelters.

Consolidated net income for the company was C$7.4 million in 2018, up from $5.1 million a year prior, while its working capital surplus as $7.3 million, a turnaround from a deficit of $1 million during 2017.

The Turkish operations shipped nearly 21,000 tons of zinc concentrate in 2018, around 500 tons less than 2017 levels, but the difference was offset by higher zinc prices in the first half of 2018.

The plant is currently undergoing a modernization and expansion program that is on track to be fully operational by September. Upgrades include increasing the plant’s throughput from 60,000 tons to 110,000 tons, which should result in a 10% increase in zinc recovery rates.

Progress at DASA project

At the company’s DASA project in Niger, the company completed a preliminary economic assessment that outlined a resource of 69 million pounds uranium at an average grade of 2,380 parts per million for a 15-year mine life.

According to Global Atomic, an updated resource statement is in progress and expected to be released by 2Q 2019.

On the financing front, the company raised $8.9 million in November 2018 and a further $1.3 million in January 2019.

Shares of Global Atomic eased 4.7% in Canada to C$0.41 on Tuesday morning.

Contact Angela at [email protected]

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