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Deep Yellow Limited has reported significant advancements in its uranium portfolio during the June 2026 quarter, with detailed engineering for its flagship Tumas Project in Namibia reaching 79% completion. The company also awarded two major civil and concrete construction contracts to experienced Namibian contractors. Supported by a robust cash balance of A$160.0 million, Deep Yellow is on track for a Final Investment Decision expected in Q4 2026. This quarterly update highlights systematic risk reduction and enhanced construction readiness ahead of this pivotal milestone.
Key Points
- Deep Yellow Limited (ASX:DYL) is an Australian uranium developer with key assets in Namibia, Western Australia, and the Northern Territory.
- Detailed engineering for the Tumas Project advanced to 79% completion, with bulk earthworks finalized during the quarter.
- Post-quarter, two major civil and concrete construction contracts were awarded to Namibian contractors, with mobilisation planned for August 2026.
- As of 30 June 2026, Deep Yellow holds A$160.0 million in cash and equivalents, enabling continued progress toward the Q4 2026 Final Investment Decision.
- Exploration momentum is rising across Namibia, with ground radiometric surveys initiated at the S-Bend Prospect and drilling scheduled for next quarter.
- A binding agreement was signed to acquire Energy Resources of Australia Limited's 50% stake in the Cooper Creek Joint Venture, enhancing Deep Yellow's strategic position in the Alligator River Uranium Province.
Tumas Project Engineering Nears Completion as Deep Yellow Targets Q4 2026 Final Investment Decision
During the June 2026 quarter, Deep Yellow's Tumas Project in Namibia reached 79% completion in detailed engineering. The integrated 3D engineering model was 81% complete by quarter-end, providing detailed technical foundations essential for advancing the project. This progress marks a key milestone in the company’s phased development strategy, improving cost certainty and execution confidence ahead of the anticipated Final Investment Decision in Q4 2026, subject to market conditions.
Procurement efforts also advanced, with 76% of major process plant equipment tendered by the end of the quarter. Most long-lead equipment packages have been conditionally awarded, pending Deep Yellow’s notice to proceed. The coordinated progress in engineering and procurement strengthens the company’s ability to confirm execution timelines and capital cost estimates, systematically building the technical and commercial basis for a credible investment decision in late 2026.
Bulk Earthworks Completed and Major Construction Contracts Awarded to Support Tumas Execution
Deep Yellow completed bulk earthworks at the Tumas Project during the quarter, eliminating a significant execution risk ahead of full-scale development. After quarter-end, two major civil and concrete construction contracts were awarded to reputable Namibian contractors, establishing multiple construction fronts and enhancing schedule flexibility. Contractor mobilisation is scheduled for August 2026, marking the transition from early works to full construction phases.
By awarding contracts to respected local firms, Deep Yellow reinforces its commitment to local content and job creation. Multiple construction fronts are expected to reduce execution risk and increase schedule adaptability as the project advances toward full development. These contract awards represent a concrete step in construction readiness, strengthening the company’s position to meet the anticipated Final Investment Decision in Q4 2026 and support the move into the construction phase.
Ongoing Tumas Project Optimisation Enhances Economics and Cash Flow
Deep Yellow continues a comprehensive optimisation program across multiple technical areas at the Tumas Project. Mining schedule work progressed throughout the quarter, focusing on refining the mine plan through updated Mineral Resource and Ore Reserve models, mining methods, pit shell configurations, and production scheduling. The goal is to improve project economics by advancing cash flows during the mine life while maintaining operational flexibility and ensuring technical and commercial robustness.
Project execution schedules, capital estimates, mining plans, and financial models are regularly updated as new data emerges. Capital and operating cost estimates, last provided in 2024 real terms, are being revised to reflect current market conditions. This iterative optimisation ensures that the Final Investment Decision will be made with high confidence in the project’s economics, execution strategy, and long-term shareholder value creation.
Strategic Location and Infrastructure Make Tumas a Leading Permitted Greenfield Uranium Project
The Tumas Project is Deep Yellow’s flagship asset and ranks among the world’s largest fully permitted greenfield uranium developments. Situated about 80 kilometres from Swakopmund and the Port of Walvis Bay in Namibia, it benefits from established infrastructure and logistics to support long-life uranium production. Access via the sealed C28 road ensures reliable transport links to major population centres and port facilities.
Proximity to key port infrastructure and regional logistics provides significant advantages for a greenfield uranium project. Deep Yellow’s strategic site selection minimizes infrastructure development costs and operational complexity, enhancing the project’s competitiveness once operational and supporting the company’s goal of establishing a globally significant uranium operation.
Exploration Activity Accelerates Across Namibian Portfolio with S-Bend Prospect Surveys Initiated
Exploration momentum is building across Deep Yellow’s Namibian uranium assets beyond the Tumas Project. Ground radiometric surveys began at the S-Bend Prospect during the quarter, with drilling planned for the next quarter. This activity underscores the company’s commitment to expanding its mineralisation potential and enhancing its broader development and exploration portfolio.
The progression of exploration at S-Bend reflects a systematic approach to portfolio growth, pursuing multiple value creation avenues. Combined with advances at Tumas, Deep Yellow is positioning itself to capitalize on favorable uranium market fundamentals across several development timelines.
Mulga Rock Project Optimization Advances Feasibility Study Preparations in Western Australia
During the June 2026 quarter, Deep Yellow continued value optimisation at the Mulga Rock Project in Western Australia. Processing trade-off studies were completed to simplify the flowsheet and improve project economics in preparation for a revised feasibility study. Development of a revised geometallurgical model has also commenced to strengthen the technical foundation for future development decisions.
Mulga Rock remains a key development opportunity within Deep Yellow’s uranium portfolio. The company is applying operational insights from Tumas to optimize this alternative development path. The trade-off studies and geometallurgical model advancement demonstrate methodical improvements to the project’s technical and economic base, supporting future investment decisions and feasibility study updates.
Strategic Expansion in Alligator River Through Cooper Creek Joint Venture Acquisition
Deep Yellow has enhanced its strategic footprint in the Alligator River Uranium Province in Australia’s Northern Territory by signing a binding agreement to acquire Energy Resources of Australia Limited’s 50% interest in the Cooper Creek Joint Venture. This acquisition significantly expands the company’s land position in a uranium-rich region and represents a major corporate development during the quarter.
The Cooper Creek acquisition complements ongoing exploration activities in the Alligator River region, where Deep Yellow has established King River Camp ahead of a drilling campaign starting in August 2026. These initiatives illustrate the company’s systematic effort to build its presence in Northern Territory uranium exploration, providing additional opportunities to identify and develop uranium resources within its Australian portfolio.
Robust A$160 Million Cash Position Supports Development and Exploration Programs
As of 30 June 2026, Deep Yellow held A$160.0 million in cash and cash equivalents, underpinning its ability to advance development and exploration initiatives. This strong financial position enables funding of detailed engineering, procurement, early works construction, and exploration across the Tumas Project in Namibia, Mulga Rock in Western Australia, and the Alligator River program in the Northern Territory.
The company update emphasizes Deep Yellow’s financial strength, allowing disciplined execution across multiple work streams without external capital pressures. Managing Director and CEO Greg Field highlighted the company’s focus on technical optimisation, commercial robustness, and execution readiness, with the cash balance providing flexibility to progress toward the Final Investment Decision in Q4 2026 and beyond.
Favourable Uranium Market Fundamentals Bolster Strategic Outlook Ahead of Investment Decision
Since deferring the Tumas Final Investment Decision in April 2025, Deep Yellow’s capital discipline and project optimisation have been supported by strengthening uranium market fundamentals. Both term and spot uranium prices have risen significantly, validating the company’s decision to extend detailed engineering and value enhancement efforts. These market trends indicate evolving supply-demand dynamics favorable to new uranium production projects.
Deep Yellow assesses that structural uranium market fundamentals remain strong and are further strengthening, driven by increasing demand for reliable, carbon-free baseload power and constrained new supply. The company views the uranium market outlook as supportive of new production capacity, providing strategic confidence in the long-term economics of Tumas and other portfolio opportunities. This combination of improved technical readiness and positive market conditions informs the company’s planning for the Q4 2026 Final Investment Decision.
