Deep Yellow Ends Quarter with $203.5M Cash, $10.6M Operating Outflow
Deep Yellow Limited reported a $10.6 million operating cash outflow for the September quarter but maintains a robust cash position with over $203 million on hand, supporting an estimated 14 quarters of funding.
- Operating cash outflow of AUD 10.6 million for the quarter
- Investing cash outflow of AUD 4.0 million focused on exploration and evaluation
- Cash and equivalents total AUD 203.5 million at quarter-end
- Estimated funding runway of 14 quarters based on current expenditure
- Payments of AUD 890k made to related parties including key executives
Quarterly Cash Flow Overview
Deep Yellow Limited has released its quarterly cash flow report for the period ending 30 September 2025, revealing a net cash outflow from operating activities of AUD 10.556 million. This outflow reflects ongoing investment in the company’s uranium exploration and evaluation activities, underscoring Deep Yellow’s commitment to advancing its project pipeline despite the challenging market environment.
Investing activities also accounted for a significant cash outflow of AUD 4.011 million, primarily directed towards exploration and evaluation expenditures. These figures highlight the company’s strategic focus on resource development, which remains capital intensive but essential for future growth prospects.
Strong Cash Position and Funding Runway
Despite the cash burn, Deep Yellow ended the quarter with a substantial cash balance of AUD 203.519 million. This strong liquidity position provides the company with an estimated 14 quarters of funding based on current expenditure levels, offering a comfortable buffer to sustain operations and exploration activities well into the future.
The company also anticipates additional inflows of approximately AUD 8 million during the 2026 financial year from research and development refunds, VAT refunds, and loan repayments, which will further bolster its financial flexibility.
Related Party Payments and Governance
Payments to related parties totaled AUD 890,000 during the quarter, including 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. These payments are disclosed transparently, reflecting standard governance practices within the company.
Outlook and Market Implications
While Deep Yellow’s cash outflows reflect the capital-intensive nature of mineral exploration, the company’s robust cash reserves and extended funding runway mitigate immediate financial risks. Investors will be watching closely for updates on exploration results and any shifts in expenditure patterns that could influence the company’s path to production and profitability.
Bottom Line?
Deep Yellow’s strong cash reserves provide a solid foundation, but sustained exploration spending will test its financial discipline in coming quarters.
Questions in the middle?
- How will ongoing exploration results impact Deep Yellow’s cash flow and funding needs?
- Are there plans to optimize or reduce related party payments to improve cost efficiency?
- What milestones or developments could trigger a shift from exploration to production funding?
