TSX wrap for week of July 24: Base metals rise, Global Atomic shares drop

Over the July 24-28 trading period, the S&P/TSX Composite Index lost 28.14 points or 0.14%, to 20,519.37. The S&P/TSX Global Mining Index added 1.13 points or 1% to 110.62 and the S&P/TSX Global Base Metals Index gained 8.8 points or 4.5% to 202.28. The S&P/TSX Global Gold Index dipped by 5.67 points or 2% to 383.46 and spot gold ended the week off US$6.35 per oz., or 0.3% lower, at US$1,954.25 per ounce. 

Global Atomic Corp. shares lost 33%, ending the week at $1.89 each as a military coup erupted in Niger, where the company is building the Dasa uranium mine. Niger’s elected president Mohamed Bazoum was overthrown on July 26, with General Abdourahmane Tchiani, the head of the presidential guards unit, seizing power. 

In a statement on Friday, the company said it’s continuing to prepare the plant site for construction and to open access to the orebody. However, Global Atomic said in late June it was still working to finalize a term sheet for a loan with a syndicate of North American financial institutions. A 2021 feasibility study estimated initial capital costs of US$208 million. 

The company expects to begin shipments of yellowcake from Dasa in 2025. 

“While the situation in Niger remains volatile and there has been protesting in some parts of the capital, the rest of the country remains calm,” Stephen Roman, president and CEO of Global Atomic said in a statement. “Importantly, our people remain safe and normal business is being conducted at our offices and development of the Dasa project continues.” 

Roman noted that leaders of other West African countries part of ECOWAS have given the coup leaders one week to reinstate President Bazoum. 

“It is too early to speculate on the outcome of this mandate. In the meantime, the Global Atomic Board and Management team, as well as SOMIDA Management in Niger are closely monitoring the situation. We hope for a timely and successful resolution to this unexpected event.”  

Western Africa has seen a number of coups in the past few years, including in Mali, Burkina Faso and Guinea.  

Excelsior Mining jumped 19.6% to 28¢ per share after it made an agreement with Rio Tinto’s copper heap-leaching technology unit, Nuton. 

The US$5-million agreement will see Nuton fund costs at Excelsior for a two-stage work program at is Johnson camp project in Cochise Cty., Ariz. Nuton will pay US$3 million in advance for stage 1 costs, and US$2 million for an exclusive option to form a 51/49 joint venture with Excelsior after stage 2 work is complete. Stage 1 work will start in August and take six to nine months.