Deep Yellow (DYL) 2025 Conference Transcript

Summary of Deep Yellow's Conference Call Company Overview - Company: Deep Yellow - Industry: Uranium Development - Key Personnel: - Andrew Mirko, Head of Business Development - Daryl Butcher, Head of Project Development - John Borschoff, CEO with 50 years of uranium industry experience - Chris Salisbury, Chairman with senior roles at Rossing and Ranger uranium mines - Market Capitalization: $1.6 billion as of late last week [5] Core Projects - Chumas Project: Located in Namibia, a Kalkrete hosted deposit - Malga Rock Project: Located in Western Australia, one of the largest undeveloped uranium mines in Australia with a resource of 105 million pounds [7] - Alligator River Project: Located in Northern Territory, an unconformity related deposit with significant land holdings [8] Development Strategy - Production Target: Aim to produce over 10 million pounds of uranium per annum within the next decade [4] - Project Development Sequence: Sequentially develop Tumus, then Malga Rock, followed by the next project [4] - DFS (Definitive Feasibility Study): Completed for Tumus, showing robust economics with an IRR of 19% and NPV of USD $577 million [8] Market Dynamics - Uranium Price Trends: - Price increased to $106 per pound in early 2024, followed by a decline due to uncertainties [12] - Recent price increases attributed to U.S. executive orders and recognition of production challenges [13] - Global Nuclear Power Shift: Strong governmental support for nuclear energy as a carbon-free baseload source, with commitments to increase reactor fleets significantly by 2050 [15][16] Supply and Demand Outlook - Future Demand: Projected global uranium requirements by 2030 estimated at 185 million pounds, with existing production at 137 million pounds [17] - Supply Challenges: Existing supply is expected to decline, and new projects face economic and regulatory hurdles [19][20] - Investment Bank Projections: Consensus estimates for uranium requirements range from 185 million to 248 million pounds by 2030 [18] Project Innovations - Tumaz Project: Revised DFS indicates a production target of 3.6 million pounds per annum over a 30-year mine life [8] - Malga Rock Project: - Significant resource upgrades, including a 25% increase in uranium resources and substantial base and rare earth metals identified [25] - Innovative processing techniques to reduce costs and environmental impact, aiming for low quartile production costs [27][32] Conclusion - Deep Yellow is positioned to capitalize on the growing demand for uranium driven by a global pivot towards nuclear energy. The company’s experienced team and innovative projects, particularly in the Malga Rock and Tumus projects, are expected to enhance its production capabilities and market position in the coming years.