85% engineering complete as Deep Yellow defers Tumas FID

Tumas FID Deferred as Construction Readiness Improves

Deep Yellow Limited (ASX:DYL) has abandoned its targeted fourth-quarter 2026 Final Investment Decision for Tumas, saying current equity market conditions do not support proceeding on that timetable. The company has not provided a replacement date, leaving the timing of its flagship uranium project’s transition into full construction unresolved.

The decision is notable because the project itself continues to move forward. Detailed engineering reached 85% completion during the September quarter, the 3D model advanced to about 88%, and civil and concrete works began on site. The C28 road intersection was 90% complete, while two major civil and concrete contracts were mobilised to create multiple construction fronts.

The timing decision follows the previously reported Tumas FID deferral, but this quarterly report adds detail on the physical work continuing beneath the funding uncertainty. More than 85% of major process plant equipment has been tendered, while long-lead packages are being executed or conditionally awarded subject to Deep Yellow issuing notices to proceed.

Funding Progress Meets a Lower Cash Balance

Deep Yellow ended the quarter with A$144.7 million in cash and cash equivalents, down from A$160.0 million at the end of June. It spent A$7.6 million on development activities, primarily at Tumas, and a further A$4.6 million across exploration and evaluation programs in Namibia and Australia.

The company is working with Nedbank on debt financing for Tumas, with credit approvals and definitive documentation still to be completed. Financial close remains subject to customary conditions precedent. Meanwhile, agreements with NamPower and NamWater are advancing the project’s power and water infrastructure, although development agreements with both parties remain under negotiation.

That combination gives the quarter a mixed complexion: project execution is becoming more tangible, but the capital decision required to fund full construction has moved beyond the company’s stated target. Deep Yellow said it is updating the execution schedule, mining schedule, capital and operating cost estimates and financial model before releasing a comprehensive project update.

Mulga Rock and Exploration Portfolio Keep Moving

At Mulga Rock in Western Australia, work on a revised Feasibility Study continued, including metallurgical testing for uranium products and a saleable rare earths product. The company is also rebuilding its geometallurgical model to incorporate updated geological and metallurgical information, including the potential contribution of base metals and rare earths.

Exploration added activity across the wider portfolio. Ground radiometric surveys continued at Namibia’s S-Bend Prospect, with drilling scheduled to begin in October, while the Alligator River team established King River Camp and commenced drilling early in the new month after wet-season delays. Deep Yellow also completed its acquisition of Energy Resources of Australia’s 50% interest in the Cooper Creek Joint Venture, taking its total Alligator Rivers Uranium Province and prospective tenure to 4,820 square kilometres.

Uranium Prices Strengthen While Equity Conditions Lag

Deep Yellow reported an average long-term uranium price of US$96.50 per pound of U₃O₈ at 30 September, up 16% over the year, while the average spot price rose 5% during the quarter to US$89.63 per pound. The company also pointed to projected declines in utility contract coverage in the United States and Europe as evidence of future supply requirements.

Yet stronger uranium pricing has not translated into equity market conditions Deep Yellow considers supportive of a Tumas FID. The company’s next material test is therefore not simply whether engineering reaches completion, but whether the updated project economics and financing arrangements can support a revised construction timetable without putting undue pressure on its balance sheet.