Deep Yellow Ends Q2 with $187M Cash and $15.8M Operating Outflow
Deep Yellow Limited reported a $15.8 million net cash outflow from operations in Q2 2025, yet maintains a robust cash position with enough funding to cover operations for nine quarters.
- Net operating cash outflow of AUD 15.79 million for the quarter
- Investing activities consumed AUD 4.13 million
- Financing activities contributed AUD 2.78 million
- Cash and equivalents stand at AUD 187.15 million
- Payments to related parties total AUD 1.14 million including separation and director fees
Quarterly Cash Flow Overview
Deep Yellow Limited, a uranium exploration company listed on the ASX, released its cash flow report for the quarter ending 31 December 2025. The company recorded a net cash outflow from operating activities of AUD 15.79 million, reflecting ongoing investment in exploration and evaluation. Investing activities further drained AUD 4.13 million, while financing activities provided a modest inflow of AUD 2.78 million.
Despite the significant cash burn, Deep Yellow ended the quarter with a strong cash and cash equivalents balance of AUD 187.15 million. This sizeable cash reserve underpins an estimated funding runway of approximately nine quarters, providing the company with a comfortable buffer to continue its operations without immediate need for additional capital.
Related Party Payments and Governance
The report disclosed payments totaling AUD 1.144 million to related parties and their associates. This includes a separation payment to Managing Director John Borshoff, fees to Executive Director Gillian Swaby, non-executive director fees, and payments for technical and geological services rendered by Scomac Management Services Pty Ltd. Such disclosures are critical for transparency and investor confidence, especially given the size of the separation payment within the total related party transactions.
Financial Position and Outlook
Notably, Deep Yellow did not draw on any new financing facilities during the quarter, indicating a preference to rely on its existing cash reserves. The company also expects to receive approximately AUD 4 million in outstanding VAT refunds during the remainder of the fiscal year, which will further bolster liquidity.
While the cash burn reflects the capital-intensive nature of exploration activities, the strong cash position and extended funding runway suggest that Deep Yellow is well-positioned to advance its projects without immediate financial pressure. However, investors will be watching closely for updates on exploration progress and any potential capital raising initiatives as the company moves forward.
Bottom Line?
Deep Yellow’s solid cash reserves provide a runway for growth, but sustained cash burn keeps investor focus on future funding and project milestones.
Questions in the middle?
- What are the company’s plans to reduce cash burn or accelerate revenue generation?
- How will the separation payment to the Managing Director impact leadership stability and future costs?
- Are there any upcoming capital raising plans or strategic partnerships on the horizon?
