Australia-based uranium exploration company Deep Yellow has announced the deferral of the final investment decision (FID) for its Tumas project in Namibia, citing the need to wait for improved uranium market conditions to maximise shareholder value.
The company has confirmed Tumas as a robust, long-life project through recent engineering and optimisation work, but the FID will be postponed to capitalise on the project’s upside potential.
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Deep Yellow has announced a three-phase approach to de-risk the project’s full development.
The company’s Board has approved continued detailed engineering, early works infrastructure development and schedule optimisation.
Approval for full-scale process plant construction and significant capital expenditure will only be granted when uranium prices improve.
The construction schedule has been extended to 24 months, with a conservative production ramp-up of 15 months.
Deep Yellow managing director John Borshoff said: “The Tumas project is ready to take the next step but, as we have consistently stated, a healthy prevailing uranium market is a key prerequisite. The final project approval will therefore be delayed until uranium prices fully reflect a sustainable incentivisation environment essential to encourage development of new projects for much needed additional production.”
Deep Yellow is working with Nedbank to arrange project financing and is assisting the independent technical expert with due diligence.
The company aims to secure lenders for the funding package upon completion of this process, further de-risking the project.
Deep Yellow remains financially robust with a cash balance of A$227m ($136.3m) as of 31 March 2025. A balance of A$170m–180m if forecast by 31 December 2025 after spending on early works and engineering.
The updated ore reserve estimation (ORE) for Tumas, announced in December last year, reveals an increase in proved and probable ore reserves, supporting a 30-year life-of-mine (LOM).
Cube Consulting was engaged to update the ORE, which now stands at 79.3 million pounds of triuranium octoxide at 298 parts per million, using a $100/lb uranium price assumption.
Deep Yellow is preparing an updated 2025 definitive feasibility study that incorporates results from infill drilling, detailed engineering and optimisation work, providing current project information crucial for FID consideration.
Borshoff added: “The reality is there are limited greenfield uranium deposits available for start-up globally over the next ten years to satisfy projected demand, and new uranium supply will be virtually impossible to achieve in the current price environment.
“Nuclear utilities cannot ignore the fact that unless uranium prices increase to appropriate levels and large amounts of capital become available to the supply sector, those greenfields projects will remain undeveloped.”
Besides the Tumas project, Deep Yellow’s portfolio includes Mulga Rock in Western Australia. Both are situated in top-tier uranium jurisdictions.
In March 2024, Deep Yellow secured binding commitments to raise A$220m through a placement to develop the Tumas project.
