Deep Yellow Limited · ASX:DYL
Deep Yellow — Investor Presentation (May 2017)
27 slides from Deep Yellow's investor presentation, May 15, 2017
Slide 1: ASX cover letter: Investor Presentation
For personal use only 15 May 2017 ASX Market Announcements Australian Securities Exchange 20 Bridge Street SYDNEY NSW 2000 Dear Sir/Madam, Investor Presentation Please find attached updated investor presentation which also includes reference to recently announced positive drilling results from Deep
Slide 2: Investor Presentation Update
For personal use only Investor Presentation Update John Borshoff Managing Director / CEO May 2017
Slide 3: Disclaimer and Competent Person Statement
Disclaimer and Competent Person Statement For personal use only This document has been prepared by Deep Yellow Limited (Deep Yellow, DYL or the Company) in connection with providing an overview to interested analysts and investors. This presentation is being provided for the sole purpose of providin
Slide 4: Overview
Overview For personal use only New management & core team in place • Revitalised investor base with greater international interest • Key alliance with the Sprott Group to support the Deep Yellow’s growth Strategic review completed and A$15M capital raising initiated • Rights issue to raise $15M on a
Slide 5: Corporate Overview
Corporate Overview Board Capital Structure – as at 5 May 2017 For personal use only Rudolf Brunovs Interim Chairman Shares on Issue 129.6M*** John Borshoff * Managing Director / CEO Market Cap (@ A$0.275 / share) ~A$35M*** Gillian Swaby * Director Net Cash @ 31 Mar 17 ~ A$1.4M*** Christophe Urtel Di
Slide 6: Capital Raising and Sprott Alliance
Capital Raising and Sprott Alliance For personal use only Non-Renounceable Entitlement Offer* to support new strategy • Capital raising to raise up to A$15 million to support new growth strategy • Eligible shareholders able to subscribe for new shares priced at A$0.25 per share on the basis of 7 sha
Slide 7: Presentation Outline
Presentation Outline For personal use only Uranium and Nuclear – Beyond Statistics Growth Opportunity & Strategy – The Right Platform Deep Yellow – Status and Objectives Annexure – Additional Data 6
Slide 8: Uranium Market Snapshot
Uranium Market Snapshot For personal use only 160 500 Globally, 10 new reactors entered 347 reactors 140 (391.3GWe) 450 commercial operation in 2015 400 120 447 reactors 350 Planned / proposed reactor forecasts 100 (391.4GWe) continue to rise No. of Reactors 300 GWe 80 250 China: 2002 (4.5GWe) – pla
Slide 9: Opportunity – Supply Deficit Consensus
Opportunity – Supply Deficit Consensus For personal use only Supply and Demand (Mlbs U308 / Year) 350 Total Demand 325 Spot Spotprice price 14May Mar1717– –US$21.5/lb US$24/lb 300 Historic lowFeb Historic low Feb1717 – US$17.5/lb – US$17.5/lb 275 250 Supply Gap 225 200 175 New Mines Secondary Suppli
Slide 10: Growth Opportunity & Strategy – The Right Platform
For personal use only Uranium and Nuclear – Beyond Statistics Growth Opportunity & Strategy – The Right Platform Deep Yellow – Status and Objectives Annexure – Additional Data 9
Slide 11: Value Creation Strategy
Value Creation Strategy For personal use only Imagine the scene in 2020: • The global nuclear fleet continues to grow • Reality of severe uranium shortage comes to fruition • Once shortage sets in, prices will move significantly higher than the base incentive price • Supply sector serviced by a dimi
Slide 12: Vision for Growth
Vision for Growth For personal use only Deep Yellow has a clear, dual strategy running in parallel • Focus on increasing the value of existing exploration projects in Namibia • Build a future multi-project global uranium platform through accretive acquisitions Extract full value from the potential t
Slide 13: What Differentiates the New Deep Yellow?
What Differentiates the New Deep Yellow? For personal use only The typical emerging uranium player – single project, promoter driven, unproven management and “struck in the groove” • Generally, years away from production possibilities • History tells us any new, large, high-grade Canadian discoverie
Slide 14: World Class Team
World Class Team For personal use only New Management team led by Managing Director, John Borshoff • Advanced Paladin Energy from a small explorer into the only independent, multi-mine producer in the last uranium cycle • Possesses the necessary leadership and capability to succeed in an increasingl
Slide 15: Deep Yellow – Status and Objectives
For personal use only Uranium and Nuclear – Beyond Statistics Growth Opportunity & Strategy – The Right Platform Deep Yellow – Status and Objectives Annexure – Additional Data 14
Slide 16: Deep Yellow – Namibian Projects
Deep Yellow – Namibian Projects Situated within the proven, exceptionally prospective Namibian Uranium Province contains For personal use only Resources of 1.5Blb* (Measured & Indicated) plus 350Mlb* (Inferred) U3O8 all within a 50km radius. Additionally, to date the region has produced 320Mlb* U3O8
Slide 17: Nova JV – Landmark Japanese Earn-In
Nova JV – Landmark Japanese Earn-In For personal use only Current JV equity: Deep Yellow 65% (Manager), Toro Energy 25%, Sixzone Investments 10% • EPLs 3669/70 recently renewed to Nov 2019 New strategic farm-in agreement with leading Japanese partner JOGMEC • JOGMEC investment of A$4.5M over four ye
Slide 18: Reptile – Palaeochannel Targets
Reptile – Palaeochannel Targets Targeting Langer Heinrich style palaeochannel uranium deposits For personal use only An exploration target of approximately 120 – 150Mt to provide between 80 – 100Mlb U3O8 in 300 to 500 ppm U3O8 range is considered statistically and geologically possible* The process
Slide 19: Reptile Palaeochannels – New Uranium Discovery
Reptile Palaeochannels – New Uranium Discovery Target delineation work has defined three new priority exploration For personal use only targets – Tumas 3, S Bend and S Bend East Exciting new discovery at start of 10,000m drill program at Tumas 3: • Extensive new zone of mineralisation intersected in
Slide 20: Reptile Basement Targets
Reptile Basement Targets For personal use only Current basement resource (alaskite and skarn type) 45Mlb U3O8 at 420ppm within the Alaskite Alley corridor Testing in 2017 of geophysical methods to identify targets beneath cover Targets are contiguous to known mineralised zones EPLs 3496/97 19
Slide 21: Objectives Framework for Expansion
Objectives Framework for Expansion For personal use only Short term: corporate reorganisation completed providing a strong foundation for future activities • Positioning Deep Yellow as a leading global uranium investment vehicle • Capital raising of up to A$15 million launched to initiate growth obj
Slide 22: In Summary
In Summary For personal use only New focus and positioning for the next uranium cycle • Strategy now clearly defined under new management • Strategic Alliance with the Sprott Group in place and investor base regenerated • Preparatory corporate restructure completed • Launch of capital raising to sup
Slide 23: Annexure – Additional Data
For personal use only Uranium and Nuclear – Beyond Statistics Growth Opportunity & Strategy – The Right Platform Deep Yellow – Status and Objectives Annexure – Additional Data 22
Slide 24: Opportunity – Electricity Demand Growth
Opportunity – Electricity Demand Growth For personal use only 40.0 Global Electricity Consumption 35.0 30.0 25.0 (Trillion KWh) 20.0 15.0 10.0 5.0 0.0 2012 2020 2025 2030 2035 2040 NON-OECD OECD Source: EIA Energy Outlook 2016 No slowdown in consumption anticipated – clean generation essential 23
Slide 25: Supply Gap and Production Capacity
Supply Gap and Production Capacity For personal use only Uranium supply in the mid to longer term is highly uncertain Uncertainties and nervousness exist amongst utilities: • When is supply shortage going to set in – by 2020, 2022 or sooner? • Certainty of uranium supply is a matter of great concern
Slide 26: JORC Resources Status
JORC Resources Status Cut-off Tonnes U3O8 U3O8 U3O8 Resource Categories (Mlb U3O8) For personal use only Deposit Category (ppm U3O8) (M) (ppm) (t) (Mlb) Measured Indicated Inferred BASEMENT MINERALISATION Omahola Project - JORC 2004 INCA Deposit ♦ Indicated 250 7.0 470 3,300 7.2 - 7.2 - INCA Deposit
Slide 27: Contact Details
Contact Details For personal use only John Borshoff Managing Director / CEO Deep Yellow Limited Unit 1, Spectrum Building, 100 Railway Rd Subiaco, Western Australia 6008 T +61 8 9286 6999 F +61 8 9286 6969 Email: john.borshoff@deepyellow.com.au Email: info@deepyellow.com.au Website: www.deepyellow.c