Deep Yellow dives as it appoints South Africa's Nedbank as finance partner
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The news: Deep Yellow was one of the worst performing stocks across the ASX 200 this morning, after the uranium explorer appointed South African financial services group Nedbank to coordinate the financing of its flagship Tumas project in Namibia.
The numbers: Shares in Deep Yellow tumbled 3.8% to $1.28 by 11:40am AEST. But over the past 12 months its shares have rocketed 75.6%.
The context: Deep Yellow said that Nedbank has an extensive track record in financing mining projects across Africa, including uranium, and previously worked with the current Deep Yellow management team in leading project financings for a uranium project in Namibia and a second African project.
The Perth-based company noted the appointment represents a "key milestone" in its development plan for the Tumas project, with the proposed financing expected to deliver a competitively priced cost of funding.
Deep Yellow said it would work with Nedbank to implement the "optimal level" of offtake commitments required to access debt funding, whilst ensuring "maximum upside" uranium price exposure, it said.
What they said: Deep Yellow managing director and CEO John Borschoff said: "We are very pleased to be initiating the project financing process for the Tumas development, particularly to be working with Nedbank again".
"The project finance process will run parallel to the detailed engineering currently underway and we aim to be in a position to announce FID [final investment decision] in Q4 CY2024 and it is pleasing that our schedule is holding for production start-up during Q3 CY2026," he said.
The source: ASX announcement
