AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Highlights
- Tumas mine development put on hold
- Awaiting recovery in uranium prices
- Early works and engineering to continue
Deep Yellow (ASX:DYL) has opted to delay the full-scale development of its flagship Tumas uranium project in Namibia, citing the currently underwhelming state of the uranium market as a key factor in the decision.
In a company announcement, Deep Yellow stated that while global uranium demand remains high, the prevailing market prices are not yet aligned with the levels required to support new, large-scale production investments. The company emphasized that its strategy has always hinged on a favourable pricing environment to move forward with a final investment decision (FID).
“The key element to delivering a final investment decision was always going to be the prevailing uranium market conditions,” the company noted. Although uranium demand has shown structural strength, price movements have yet to catch up to support long-term investments in high-capacity projects like Tumas.
Despite postponing major development, Deep Yellow will maintain progress on early infrastructure activities and detailed engineering work. This measured approach allows the company to stay prepared while conserving capital, positioning itself to ramp up operations once the uranium price environment becomes more supportive.
The latest analysis of the Tumas project, based on a uranium oxide price of $US82.50 per pound, has produced what the company describes as “robust” outcomes. This reinforces the project’s potential viability once market dynamics shift.
Industry-wide, there’s growing consensus that the uranium market may eventually tighten due to increased interest in nuclear energy and a gradual rebound in global supply chains. Deep Yellow's decision reflects a broader trend in the resource sector, where companies are adopting a cautious stance until pricing fundamentals justify large-scale capital deployment.
The Tumas project is considered one of the most advanced uranium development assets in Namibia. Its strategic location, combined with strong project economics at moderate price points, makes it a standout in the sector.
While the delay may seem like a setback in the short term, Deep Yellow remains optimistic about the long-term outlook for uranium. The company is keeping its operational readiness intact, ensuring it can swiftly pivot to development when conditions improve.
This approach underlines a prudent response to market realities, aimed at preserving shareholder value while staying aligned with the broader energy transition narrative that increasingly includes nuclear power.
