Can Deep Yellow Sustain Operations Amid Ongoing Cash Outflows?
Deep Yellow Limited reported a quarterly operating cash outflow of A$6.3 million but ended June 2025 with a strong cash position of A$217 million, providing a runway of 24 quarters at current spending levels.
- Quarterly operating cash outflow of A$6.278 million
- Investing activities used A$3.269 million in cash
- Cash and cash equivalents total A$217.369 million at quarter-end
- Estimated funding runway of 24 quarters based on current outgoings
- Payments of A$685k made to related parties including executives and directors
Quarterly Cash Flow Overview
Deep Yellow Limited has released its cash flow report for the quarter ending 30 June 2025, revealing a net cash outflow from operating activities of A$6.278 million. This reflects ongoing expenditure primarily related to exploration and evaluation activities, staff costs, and corporate administration. Investing activities further consumed A$3.269 million, underscoring the company's continued commitment to advancing its uranium exploration projects.
Strong Cash Position and Funding Longevity
Despite the cash outflows, Deep Yellow closed the quarter with a robust cash and cash equivalents balance of A$217.369 million. This substantial liquidity position translates into an estimated 24 quarters of funding available based on current expenditure levels, providing the company with a comfortable buffer to pursue its strategic objectives without immediate financing concerns.
Related Party Payments Disclosed
The report also details payments totaling A$685,000 to related parties and their associates during the quarter. These include fees for services rendered by key executives such as Managing Director John Borshoff and Executive Director Gillian Swaby, as well as non-executive director fees and payments for technical and geological services. The transparency around these transactions aligns with regulatory expectations and corporate governance standards.
No New Financing Facilities Drawn
Notably, Deep Yellow did not draw on any financing facilities during the quarter, indicating a reliance on existing cash reserves to fund operations. The company also anticipates receiving approximately A$9.5 million in the 2026 financial year from research and development refunds, VAT refunds, and loan repayments, which should further bolster its cash position.
Outlook and Strategic Implications
With a strong cash buffer and a clear runway extending over multiple years, Deep Yellow appears well-positioned to continue its exploration activities and advance its projects without immediate capital raising. However, investors will be watching closely for updates on the timing and receipt of expected refunds and repayments, as well as any shifts in operating expenditure that could impact the company’s funding horizon.
Bottom Line?
Deep Yellow’s solid cash reserves provide a strong foundation, but upcoming refunds and operational spending will be key to watch.
Questions in the middle?
- When exactly does Deep Yellow expect to receive the anticipated A$9.5 million in refunds and repayments?
- Will operating costs remain stable, or could increased exploration activity accelerate cash burn?
- Are there plans to initiate new financing or capital raising if market conditions change?
