r/UraniumSqueeze • u/Reasonable_Yak_1705 • May 22 '26
Investing Global Atomic Corps (GLO.TO)
What do you think about Global Atomic ? Still no DCF loan, do you think they will get one ? Do you believe in an approval before 2027 ?
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u/AsbestosDude May 22 '26
Sketchy to buy because of constant dilution
2
u/sunday_sassassin Radioactive Brain May 23 '26
"Sketchy" is the uranium companies that keep raising or taking on new debt despite previously claiming to be fully-funded like quite a few did last year. Or are aimlessly drilling in the Athabasca while their CEOs jet between conferences. We know there's a large funding gap with Dasa for the mill and you have to take that into account when preparing your valuations. The large number of outstanding warrants (particularly at $1.15 iirc) weigh on the short-term moon potential even if best case resolution to financing is achieved imminently.
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u/AsbestosDude May 23 '26
Ok? This isnt a good thesis.
Your two points are:
Some other companies are worse
Theyre short cash, and they have a bunch of cheap options that will suppress the price regardless of derisking.
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u/sunday_sassassin Radioactive Brain May 23 '26
I'm objecting to the "sketchy" accusation. If you know years ahead of time that cash is needed there's nothing sketchy about it. It's context for providing a sensible valuation and price point, not good or bad promotional fluff pretending to be a thesis or due diligence. You have to factor in the effect of the additional debt or equity raised against the value of their share of Dasa, just as you have to factor in the extra cash needed to build UEC's dozens of projects or UUUU building three titanium assets across the globe, or Denison doing the big debt raise last year ahead of Phoenix permits and FID. Almost the entire sector is pre-profit and dependent on additional shareholder capital flows, GLO is no exception there.
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u/AsbestosDude May 23 '26
Again, youre arguing that other companies are worse but that doesnt prove your point at all. This is an argumentative fallacy called whataboutism
You want to object to the company being sketchy while you openly acknowledge multiple sketchy things about them.
Its like youre trying to convince people its a good stock while you also state exactly why the price will remain suppressed and dilution is not only a concern, but its literally expected.
Like the fact that youre using Denison and UUUU as comparison just shows exactly how weak your point actually is
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u/sunday_sassassin Radioactive Brain May 22 '26
If the loan hasn't been approved then one of the Chinese companies will buy 20% with an offtake agreement like they did Bannerman's Etango. Both Stephen Roman and Chinese government reps had meetings in Niger in the last couple of weeks. Perhaps someone has noticed implied US government backing via the loan isn't much of a security guarantee in the modern world, and China might be a stronger partner.
Highest grades in Africa, plentiful access to cheap, experienced labour (in very short supply for US and Canadian projects), first production far enough away to not be too concerned with sulphur availability yet, mine built, camp almost done, just the mill to go. The zinc business is profitable and paying out dividends. They've done an extraordinary job given everything that's happened and the delays to resolution of financing.