Global Atomic Signs Construction Agreement for Process Plant Expansion in Turkey
- EPC contract signed with Grupo Sarralle
- Construction completion targeted for September 2019
- Annual zinc production expected to increase from 33 million pounds in 2017 to 60 million pounds, attributable to the BST JV (100%)
- EBITDA is expected to more than double from C$22.0 million recorded in 2017 to C$47.9 million attributable to the BST JV (100%), at current zinc prices and exchange rates
- Net income from the BST JV attributable to Global Atomic is expected to increase from C$6.9 million in 2017 to C$17.2, at current zinc prices and exchange rates
Toronto, ON: Global Atomic Corporation (“Global Atomic” or the “Company”), (TSX-V: GLO) is pleased to announce it has signed an Engineering, Procurement and Construction (“EPC”) contract with Grupo Sarralle, headquartered in Spain, to complete the expansion of its electric arc furnace dust (“EAFD”) plant in Iskenderun, Turkey. Costs for expansion will be funded through forecasted cash flow and lines of credit available to the Befesa Silvermet Turkey, S.L. (“BST”) joint venture, of which Global Atomic holds a 49% interest. Expansion costs are estimated at US$26 million, of which US$24 million is a fixed price EPC contract.
The expansion project will modernize the entire processing plant, expanding throughput to 110,000 tonnes of EAFD processing capacity per annum and producing approximately 60 million pounds of zinc in concentrate, attributable to the BST Joint Venture. At expanded production levels and assuming current zinc and foreign exchange prices, EBITDA is forecasted to more than double to C$47.9 million, implying C$23.4 million in EBITDA for Global Atomic’s 49% interest. Net income attributable to the Company’s interest in the BST JV is expected to grow to C$17.2 million.