SX-listed Deep Yellow has delayed a final investment decision (FID) on the Tumas uranium project, in Namibia, given continued weak equity market conditions.
The company was due to announce an FID during the fourth quarter, but maintains full confidence in the quality of the asset as a next-generation, secure and reliable supplier of uranium.
Civil works such as concrete preparation, reinforcing steel installation and off-site pre-casting continue in the meantime. The expenditure for the current civil and concrete works is fully funded with the company’s current cash reserves.
Deep Yellow is also working on an optimisation and an updated value case, which will be released as a comprehensive project update once finalised.
“Despite the compelling global uranium market fundamentals, challenging equity market conditions continue to constrain funding options for uranium developers. Against this backdrop, we believe it is prudent to defer FID beyond the fourth quarter this year while maintaining construction momentum and progressing our funding strategy to ensure Tumas is well positioned to advance when market conditions improve,” says Deep Yellow MD and CEO Greg Field.
Source: Deep Yellow