Tumas project delay to weigh on costs for Australia's Deep Yellow, Jefferies says

DEEP YELLOW

21/01/2025 22:49

** Jefferies says delay in final investment decision (FID)
consideration for Tumas project increases capital expenditure
and slows first production for uranium miner Deep Yellow
 DYL.AX  
    ** Deep Yellow said FID consideration for its Tumas project
is deferred until March 2025 due to delayed costings and quotes
for equipment and construction, among other factors
    ** Brokerage retains "underperform" rating and stock PT of
A$1
    ** Jefferies expects first production from Tumas at risk of
slipping from the current 2026 timeline due to the FID delay
    ** Brokerage adds the company's cash position of A$238.4 mln
($149.36 mln) at end of December quarter is in line with its
expectations, down from A$247 mln in the last quarter
    ** Deep Yellow up 18.7% so far this year, as of the last
close

($1 = 1.5962 Australian dollars)

 (Reporting by Nikita Maria Jino in Bengaluru)
 ((Nikita.Jino@thomsonreuters.com;))