Deep Yellow (ASX:DYL) - Positioning Two Uranium Projects for Production

Interview with John Borshoff, CEO/MD of Deep Yellow Ltd.
Our previous interview: www.cruxinvest...
Recording date: 4th September 2024
Deep Yellow Limited (ASX:DYL) is emerging as a key player in the uranium sector, strategically positioned to capitalize on an anticipated supply shortage in the face of growing global demand for nuclear energy. Led by industry veteran John Borshoff, the company is advancing two significant projects with the goal of entering production before 2030, a timeline that could prove crucial as the uranium market tightens.
The company's flagship projects include the Tumas Project in Namibia and the Mulga Rock Project in Western Australia. Tumas has completed its Definitive Feasibility Study, demonstrating a 26-year mine life with annual production of 3.0 million pounds of U3O8. Mulga Rock, acquired through a merger with Vimy Resources in 2022, is undergoing a Definitive Feasibility Study update and has the potential to produce 3.5 million pounds of U3O8 annually.
A key differentiator for Deep Yellow is its management team's track record. CEO John Borshoff emphasizes that in the past 80 years, only three junior companies outside the US have successfully built uranium mines. Deep Yellow's team includes executives with hands-on experience in discovering, developing, and operating uranium mines globally, providing credibility with financiers and potential partners.
The investment thesis for Deep Yellow is underpinned by Borshoff's conviction that the uranium market is facing a severe and structural supply deficit. Years of low prices and underinvestment have left the industry ill-prepared for the surge in demand now materializing from nuclear power expansion, reactor life extensions, and emerging technologies like small modular reactors (SMRs).
Deep Yellow has made significant progress on the financing front, securing project financing mandates for Tumas and advancing detailed engineering work. The company is taking a measured approach to project financing, balancing debt and equity to maintain financial flexibility. Regarding offtake agreements, discussions have been initiated, but the company is not rushing to lock in contracts, focusing first on demonstrating project viability.
Investors should note that while the company's prospects appear promising, risks inherent in mine development and the cyclical nature of commodity markets remain. Key milestones to watch in the next 12-24 months include progress on project financing and the advancement of Mulga Rock's definitive feasibility study.
The broader uranium market dynamics present both opportunities and challenges. Borshoff argues that even if all currently planned projects come online, supply will fall far short of future requirements, potentially leading to a prolonged period of higher prices. This view is supported by macro trends including climate change mitigation efforts, energy security concerns, and technological innovations in the nuclear sector.
For investors, Deep Yellow represents a focused play on the anticipated uranium supply shortfall, backed by an experienced management team and two advanced projects in tier-1 jurisdictions. The company's success will depend on its ability to execute development plans and the materialization of the bullish uranium market scenario outlined by Borshoff.
As with any mining investment, thorough due diligence is crucial. Investors should closely monitor Deep Yellow's project milestones, financing developments, and broader uranium market dynamics. While the potential upside is significant, the uranium sector's volatility and the early stage of many projects necessitate a careful, long-term investment approach.
View Deep Yellow's company profile: www.cruxinvest...
Sign up for Crux Investor: cruxinvestor.com

[@dazsmith4022]

Jeez I like this bloke and his buiz . Aussie as. No bs Borshoff. Luv it Thanks Crux

[@bushbunyip1986]

An excellent leader in his field, none better.

[@harrisrubinroit2863]

If you’re a Uranium Investor, this is a MUST-WATCH. Well worth a listen.

[@nuller4ever]

Fantastic interview and conversation!

[@darren2351]

Is there a better uranium developer than $DYL led by JB? I doubt it. Love the novel ideas and thinking in this interview always something new from JB

[@hillbillydeluxe5534]

Lol retail fan boys

[@TheCoolbreeze45]

Husab Gavin and Paul Goranson rank highly too my friend

[@darren2351]

@@hillbillydeluxe5534 Have fun STAYING poor hiLlbiLlY

[@MathiasKarlsson-my8mc]

The story continues to build, the big uranium storys in Africa will be worth a fortune 🍀

[@darren2351]

THIS.

[@paulthomson4200]

THANKS FOR WELL DONE MEANINGFUL UPDATES FROM JOHN AND MATT.

[@robertharle6377]

Good Luck John

[@RapidF6]

Thanks for getting JB on.

[@bluntz122]

is it just me or was the sound quality on this horrible?

[@apothe6]

Proud Deep Yellow shareholder

[@kiraa_]

Nice interview!

[@marklammertink1]

The man himself. You better listen when he talks.

[@greggmcnabb5870]

I wish he could have been pressed on numbers and dates, but JB will deliver. I do worry about his health. Stay healthy, sir!

[@deancasagrande5561]

“They are shitting in their own nest….” - Uranium quote of the year.

[@madmattu308]

Fuck I love this guy

[@johns4412]

The uranium sector is gonna rip. Just got to be patient

[@b4bmm]

2070, how about we get to 2027 first, bloody hell

[@canthitashot3309]

Hey Elon musk, show us the money

[@davidfield4432]

Thanks Matt. 👍👍🫵
Timely interview with JB. I believe in this man. 👍👍