Slide 1: Building for the Future
Building for the Future Corporate Presentation ASX : DYL OTC : DYLLF August 2017
Slide 2: Disclaimer and Competent Person Statement
Disclaimer and Competent Person Statement 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 providing information to enabl
Slide 3: Presentation Outline
Presentation Outline Introduction Uranium and Nuclear – Beyond Statistics Growth Opportunity & Strategy – The Right Platform Deep Yellow – Project Status Conclusions Annexure – Additional Data 3
Slide 4: Deep Yellow Strategy
Deep Yellow Strategy A re-energised, well-funded and advanced uranium explorer New management & core team installed in October 2016 • Implementing a new growth strategy and delivering tangible early results • Revitalised investor base with greater international interest New direction and impetus for
Slide 5: Experienced Leadership
Experienced Leadership New Management Team led by John Borshoff • From 1993 – 2015 advanced Paladin Energy from a small explorer into the only independent, multi-mine producer, with a multi-billion dollar market cap • Possesses the necessary leadership to succeed in an increasingly complex technical
Slide 6: Capital Raising and Sprott Alliance
Capital Raising and Sprott Alliance Strong funding support for new growth strategy • Raised A$15.1 million in June 2017 for organic and inorganic growth • Sprott (North America/Europe) & CPS Capital (Australia/Asia) co-managers Strategic Alliance with the Sprott Group • Toronto-based investment grou
Slide 7: Corporate Overview
Corporate Overview Capital Structure – 17 July 2017 Shares on Issue 190 Market Cap (@ A$0.28 / share) A$53M Net Cash ~ A$14.5M Major Shareholders Sprott Group Affiliate 15.9% Collines Investments 10.3% Directors & Management 6.3% * Ex-Paladin Executive team 7
Slide 8: Presentation Outline
Presentation Outline Introduction Uranium and Nuclear – Beyond Statistics Growth Opportunity & Strategy – The Right Platform Deep Yellow – Project Status Conclusions Annexure – Additional Data 8
Slide 9: Opportunity – Electricity Demand Growth
Opportunity – Electricity Demand Growth 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 Electricity consumption growing – reliable, baseload generation essential 9
Slide 10: Uranium Market Snapshot
Uranium Market Snapshot Globally, 8-10 new reactors will enter commercial operation every year from 2017 Planned / proposed reactor forecasts continue to rise No. of Reactors GWe China: 2002 (4.5GWe) – planned 2020 capacity 58GWe increasing to 150 – 200GWe by 2030 Japan – 5 reactors operating. 24 re
Slide 11: Supply Deficit Consensus but Price Anomaly Persists
Supply Deficit Consensus but Price Anomaly Persists 350 Supply and Demand (Mlbs U308 / Year) Total Demand 325 Spot Spotprice price 14July Mar‘1717––US$20/lb US$24/lb 300 Historic low Feb ‘17 – US$17.5/lb Historic low Feb 17 – US$17.5/lb 275 250 Supply Gap 225 200 175 New Mines Secondary Supplies 150
Slide 12: Supply Gap and New Production Capability
Supply Gap and New Production Capability Uranium supply growth in the mid to longer term is highly uncertain Some nervousness amongst nuclear utilities: • Supply shortage is inevitable – whether that occurs in 2020 or 2022 is irrelevant • Certainty of future uranium supply is the core concern for ut
Slide 13: Presentation Outline
Presentation Outline Introduction Uranium and Nuclear – Beyond Statistics Growth Opportunity & Strategy – The Right Platform Deep Yellow – Project Status Conclusions Annexure – Additional Data 13
Slide 14: Value Creation Strategy – Play the scenarios
Value Creation Strategy – Play the scenarios Imagine the uranium scene in 2020: • The global nuclear fleet continues to grow • Reality of predicted severe uranium shortage comes to fruition • Once shortage sets in, prices will move significantly higher than the base incentive price • Supply sector s
Slide 15: Value Creation Strategy – Make the alignment
Value Creation Strategy – Make the alignment In this context, imagine a company acting counter cyclically • Commences to position itself from 2017 with funding support • Perfect opportunity to create exceptional shareholder value when prices are at cyclical lows focussing on sector consolidation bac
Slide 16: Vision for Growth – Our Key Objectives
Vision for Growth – Our Key Objectives To grow value through contrarian investment and adopting a dual strategy for growth • Build the in-ground inventory of prospective existing Namibian projects • Build a multi-project global uranium platform through accretive acquisitions Extract full value from
Slide 17: World Class Team
World Class Team New management team led by John Borshoff • From 1993 – 2015 advanced Paladin Energy from a small explorer into the only independent, multi-mine producer, with a multi-billion dollar market cap • Possesses the necessary leadership to succeed in an increasingly complex technical envir
Slide 18: Deep Yellow – Namibian Projects
Deep Yellow – Namibian Projects Situated within the proven, exceptionally prospective Namibian Uranium Province contains Resources of 1.5Blb* (Measured & Indicated) plus 350Mlb* (Inferred) U3O8 all within a 50km radius. Additionally, to date the region has produced 320Mlb* U3O8. *Source: WNA (March
Slide 19: Palaeochannel Targets & Exploration Objectives
Palaeochannel Targets & Exploration Objectives Uranium resources previously defined in numerous small deposits: • 50.1Mlb U3O8 @ 245ppm (palaeochannel-related, Langer Heinrich style) • 45.1 Mlb U3O8 @ 420ppm (alaskite-related, Rössing/Husab style) Main Exploration Target: Langer Heinrich style palae
Slide 20: Reptile Palaeochannels – New Discovery
Reptile Palaeochannels – New Discovery Target delineation work has defined Tumas 3, S Bend and S Bend East as priority exploration areas – first drill program conducted at Tumas 3 Drilling made new discovery at Tumas 3: • Results shows similar characteristics to mineralisation at the Langer Heinrich
Slide 21: Tumas 3 Uranium Discovery
Tumas 3 Uranium Discovery Mineralisation defined by 284 positive holes out of 400 drilled on 100mx100m Mineralisation 4.4km long and open to the west and east Maiden resource expected in the September 2017 21
Slide 22: Reptile Basement Targets
Reptile Basement Targets 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 EPLs 3496/97 mineralised zones 22
Slide 23: Nova JV – Landmark Japanese Earn-In
Nova JV – Landmark Japanese Earn-In New strategic farm-in agreement with leading Japanese partner JOGMEC • A$4.5M over four years to earn a 39.5% interest • Deep Yellow (65%) remains manager and may dilute to 39.5% Tenements considered prospective for Langer Heinrich and Rössing / Husab style target
Slide 24: Objectives & Framework for Expansion
Objectives & Framework for Expansion Short term: position Deep Yellow as a leading global uranium investment vehicle • A$15.1M raised provides a strong foundation for future activities Short / medium term: resource enhancement on Namibian projects and execute on sector consolidation strategy • Lever
Slide 25: Key Takeaways
Key Takeaways New focus and positioning for the next uranium cycle • Strategy now clearly defined under new management • Strategic Alliance with Sprott in place and investor base regenerated • Well funded with ~$14.5M cash post June capital raising Building the premier global uranium consolidation v
Slide 26: Contact Details
Contact Details John Borshoff Managing Director / CEO Deep Yellow Limited Unit 17, Level 2 Spectrum Building, 100 Railway Rd Subiaco, Western Australia 6008 T +61 8 9286 6999 Email: john.borshoff@deepyellow.com.au Email: info@deepyellow.com.au Website: www.deepyellow.com.au ASX - DYL OTC - DYLLF NSX
Slide 27: Analysis by Independent Researcher – SmithWeekly International
ANALAYSIS BY INDEPENDENT RESEARCHER – SMITHWEEKLY INTERNATIONAL During the last 8 year uranium cycle: 2003-2011 Some Enjoyed Truly Exceptional Gains • Uranium “bluechip” Cameco Corp: +1233% • Explorer Energy Fuels: +4130% • Explorer Mega Uranium: +3152% • Explorer Uranium Resources: +10172% Then, an
Slide 28: JORC Resources Status
JORC Resources Status Cut-off Tonnes U3O8 U3O8 U3O8 Resource Categories (Mlb U3O8) 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 ♦ Inferred 250 5.4 52