Deep Yellow has delayed its final investment decision for its Tumas uranium project in Namibia to March 2024. The company cited delays in obtaining key costings and a lackluster uranium price environment as reasons for the postponement. Despite the delay, Deep Yellow remains on track to begin production by late 2026. While awaiting cost estimates, the company will continue optimizing its Tumas plans.
Deep Yellow has also paused offtake discussions until uranium prices justify developing a new project. The company recently increased its Tumas reserves by 18% to 79.3 million pounds grading 298 parts per million, extending the potential mine life by eight years to three decades. Managing Director John Borshoff emphasized that Deep Yellow's work continues to support Tumas as an exceptional opportunity to meet future uranium demand, which could double by 2040. Borshoff noted that the current long-term uranium price does not reflect Deep Yellow's view of a significant emerging supply shortage. A new, detailed and costed engineering report is expected in February 2025, with the company aiming to make an investment decision the following month. Borshoff stated that with A$247 million in the bank and strong interest in debt financing, Deep Yellow is well-positioned to proceed only if it makes financial sense. Early work on non-process infrastructure is underway, making Tumas one of the most advanced uranium pre-development assets globally, with resources of 118.2 million pounds at 255ppm