Deep Yellow delays Tumas project plant construction amid uranium price uncertainty
Deep Yellow Limited (JSE:DYL) announced a delay in the construction of the processing plant for its flagship Tumas Project, despite continued engineering and early works. The decision is driven by the need for improved uranium prices to support the greenfield development. The Board has approved further staged development of the project, excluding the plant construction, which will be reassessed with improved uranium pricing. Recent optimization work indicates robust project economics with a uranium price of USD82.50/lb U3O8, yielding a post-tax NPV of USD577M and an IRR of 19%. Initial CAPEX is estimated at USD474M and C1 OPEX at USD35.02/lb U3O8 for the first 20 years. The company is adopting a three-phase approach to mitigate risk and preserve shareholder value, continuing detailed engineering, early works infrastructure investment, and advancing project financing. Deep Yellow reports a strong financial position, with an A$227 million cash balance as of 31 March 2025, and expects A$170-180 million remaining by the end of the year.
This report was generated by FilingReader's AI system from regulatory filings and company disclosures. To request a correction, contact editorial@filingreader.com
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