ASX 200 Energy Shares Shine: Deep Yellow and Yancoal Surge Following Positive Announcements

3 min read | January 21, 2025 12:15 PM AEDT | By Team Kalkine Media

ASX 200 Energy Shares Shine: Deep Yellow and Yancoal Surge Following Positive Announcements — Image source: Shutterstock

Deep Yellow's Optimism on Uranium Demand

Deep Yellow saw its share price rise by 2% after the uranium developer released its quarterly update. The update revealed that the company ended December with a strong cash position of $238.4 million, leaving it well-positioned to further develop its assets, particularly in the face of a positive outlook for uranium demand.

Management noted that the global nuclear outlook continues to strengthen, with governments and big tech companies increasingly pushing for clean, reliable power. John Borshoff, CEO of Deep Yellow, expressed confidence in the company’s Tumas uranium project, one of the most advanced greenfield uranium development projects globally. Although the final investment decision (FID) for Tumas has been deferred to March, the company remains optimistic about its potential.

Borshoff also stated that ongoing work continues to reinforce Tumas as a robust project, adding significant value to both the company and its stakeholders. The company is also focused on the Mulga Rock project, which is on track with its production timelines.

Yancoal's Strong Production and Cash Flow

Yancoal, a major coal miner, saw its share price surge by 6% to $6.32 following the release of its FY 2024 quarterly and full-year update. Investors are reacting positively to the company's solid performance, which met production guidance and resulted in a significant increase in cash reserves.

For the year, Yancoal reported an average realised coal price of AU$176 per tonne, helping to drive a $480 million increase in its cash balance, bringing it to $2.46 billion by the end of December. The coal miner also announced that it produced 36.9 million tonnes of attributable saleable coal from nearly 63 million tonnes of run-of-mine coal, meeting its expected production profile.

Acting CEO Ning Yue emphasized that the company’s strong operational performance is a result of the efforts of Yancoal’s operations and logistics teams. The company expects its cash operating costs to fall within guidance when it reports its 2024 Financial Results in February.

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