Investor Presentation
Perth, May 15, 2017 AEST (ABN Newswire) - Deep Yellow Limited (
ASX:DYL) (DYLLF:OTCMKTS) is pleased to provide the Company's latest Investor Presentation which also includes reference to recently announced positive drilling results from Deep Yellow's 100% owned Namibian Project.
Overview
New management & core team in place
- Revitalised investor base with greater international interest
- Key alliance with the Sprott Group to support the Deep Yellow's growth
Strategic review completed and A$15M capital raising initiated
- Rights issue to raise $15M on a 7 for 15 basis with free attached option
- Conditions right to deliver shareholder growth through contrarian acquisitions
New direction and impetus for existing Namibian projects
- Targeting a major discovery of a Rossing or Langer Heinrich style deposit
- Highly significant new JV agreement with Japanese partner JOGMEC
Deep Yellow differentiated from all other mid-sized U companies
- Unrivalled "A to Z" uranium knowledge and proven sector experience
- Strong support from JV partners and investors for accretive growth strategy
A unique and successful track record of building and developing a multimine uranium producer from the beginnings as a small explorer
Value Creation Strategy
Imagine the scene in 2020:
- The global nuclear fleet continues to grow
- Reality of severe uranium shortage comes to fruition
- Once shortage sets in, prices will move significantly higher than the base incentive price
- Supply sector serviced by a diminished producer base - note difficulties experienced by majors at Husab, Imouraren, Mkuju, Rossing and Ranger
- Post-Fukushima, all uranium players have been forced into survival mode, causing structural limitations to the sector and stifling the possibility of a timely supply response
- Single project companies have not developed any significant new projects - there is a lack of shovel ready assets and teams with the proven expertise to develop new projects
In this context:
- A company that anticipates the current situation starting to position itself during 2017
- Perfect opportunity to create exceptional shareholder value by consolidating assets under a vehicle run by a high quality management team when prices are at cyclical lows
- Significant value can also be created through exploration and drilling by making new discoveries to build an organic resource base
- There is a limited window of opportunity in which to act
Vision for Growth
Deep Yellow has a clear, dual strategy running in parallel
- Focus on increasing the value of existing exploration projects in Namibia
- Build a future multi-project global uranium platform through accretive acquisitions
Extract full value from the potential that exists in Namibia
- Multiple opportunities for discoveries and resource upside within existing tenements
- Premier uranium mining jurisdiction with transparent regulatory framework
Develop a global pipeline with growth and optionality
- Current assets span early stage discovery and resource expansion opportunities
- Objective is to develop a project pipeline with multiple, phased development options
Create a genuine independent alternative supplier for utilities
- Maintain a register of supportive, long-term investors that share our vision
- Partner with high calibre organisations where value can be created for both sides
- A core team that has "been there, done that" across the uranium project life cycle
- Give utilities confidence in the ability to be a dependable uranium supplier of choice
What Differentiates the New Deep Yellow?
- The typical emerging uranium player - single project, promoter driven, unproven management and "struck in the groove"
o Generally, years away from production possibilities
o History tells us any new, large, high-grade Canadian discoveries will potentially suffer 10-15+ year delays due to severe permitting/regulatory constraints
- Deep Yellow is looking beyond this narrow band approach
o To create a sizeable uranium platform to support annual production 5 - 10Mlb
o Establish diversification across attractive geographies on projects with low technical risk - conventional open pit and ISR potential
- Unique prerequisites to execute on its consolidation strategy
o Once-in-a-cycle opportunity and Deep Yellow can be a partner of preference
o Low spot prices, capital shortage and availability of good assets
- Quality management team able to execute plan
o Credibility of a core team that launched two new mines in the last 15 years
o Ability to use advanced technologies to exploit low grade deposits and turn these into first quartile cash cost operations
To view the full presentation, please visit:
http://abnnewswire.net/lnk/11SUI3ZM
About Deep Yellow Limited
Deep Yellow Limited (ASX:DYL) (OTCMKTS:DYLLF) is successfully progressing a dual-pillar growth strategy to establish a globally diversified, Tier-1 uranium company to produce 10+Mlb p.a.
The Company's portfolio contains the largest uranium resource base of any ASX-listed company and its projects provide geographic and development diversity. Deep Yellow is the only ASX company with two advanced projects - flagship Tumas, Namibia (Final Investment Decision expected in 1H/CY24) and MRP, Western Australia (advancing through revised DFS), both located in Tier-1 uranium jurisdictions.
Deep Yellow is well-positioned for further growth through development of its highly prospective exploration portfolio - ARP, Northern Territory and Omahola, Namibia with ongoing M&A focused on high-quality assets should opportunities arise that best fit the Company's strategy.
Led by a best-in-class team, who are proven uranium mine builders and operators, the Company is advancing its growth strategy at a time when the need for nuclear energy is becoming the only viable option in the mid-to-long term to provide baseload power supply and achieve zero emission targets.
Importantly, Deep Yellow is on track to becoming a reliable and long-term uranium producer, able to provide production optionality, security of supply and geographic diversity.
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