Jefferies cuts PT for Australia's Deep Yellow

DEEP YELLOW

08/04/2025 21:19

** Jefferies cuts PT for uranium explorer Deep Yellow DYL.AX to A$0.75 from A$0.8, reiterates "underperform" rating

** Brokerage expected company's deferral of final investment decision for Tumas uranium project in Namibia for more favourable market conditions

** Macro uncertainties have contributed to utility hesitancy in offtake, leading to uranium market softness - brokerage

** Jefferies says that to support Tumas development, financing package of about A$519 mln ($309.32 mln) is required, which could be a combination of offtake agreements (including financing), debt, equity and potential project-level selldown

** Stock down 24.4% YTD

($1 = 1.6779 Australian dollars)

(Reporting by Sneha Kumar in Bengaluru)

((Sneha.kumar@thomsonreuters.com;))