Deep Yellow shares jump on contract awards in Namibia
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More news: Shares in Deep Yellow jumped in morning trade after the uranium producer awarded two Namibian construction and civil contracts valued at $34 million for the development of its Tumas Project.
Shares rose 6.1% to $1.30 at 11:30am AEST.
Deep Yellow boosts Tumas Project with $34m contract awards
The news: Deep Yellow has awarded a combined $34 million contract for the Namibia-based Tumas Project, with mobilisation expected to commence in August.
The context: The first contract, valued at $18.5 million, has been awarded to Namibia Construction for the design and construction of precast concrete elements across the processing plant and the run-of-mine stockpile retaining structures.
The second contract, valued at $15.5 million, was awarded to Nexus Building and Civils Contractors for civil and concrete construction associated with the processing plant.
Deep Yellow stated that these contracts will not alter the planned 24-month construction schedule following its anticipated final investment decision in the fourth quarter. However, the awards provide greater execution flexibility and improved confidence in successful project delivery.
What they said: “We are equally pleased that both contracts have been awarded to highly capable Namibian companies,” CEO Greg Field said.
“Developing Tumas in partnership with local industry is central to our strategy and reflects our commitment to delivering long-term value for Namibia alongside our shareholders,” he added.
The source: ASX
