Deep Yellow Limited · ASX:DYL
Deep Yellow — Sprott Conference Vancouver 2019
28 slides from Deep Yellow's conference presentation, July 2019
Slide 1: Deep Yellow – Building for the Future: The Situation with Uranium
Deep Yellow Limited Deep Yellow – Building for the Future The Situation with Uranium Corporate Update (offering the perfect opportunity for large-scale sector consolidation and exceptional value creation) John Borshoff - Managing Director/CEO John Borshoff - Managing Director/CEO July 2019 4 January
Slide 2: Uranium Outlook Today
Uranium Outlook Today Unresponsive but vital signs very good 2
Slide 3: Uranium Demand Increase Not in Question
Uranium Demand Increase Not in Question Increasing demand for uranium is assured, dominated by the Chinese with its aggressive nuclear reactor construction programmes. • Achieved massive growth in 15 years from fledgling of 3 reactors to operating 45 reactors today. • Further aggressive growth assur
Slide 4: BP Annual Energy Review Report 2018 Findings
BP Annual Energy Review Report 2018 Findings Nuclear power increased 2.4% in 2018 (fastest growth since 2010). China contributed 75% of this global growth. Growing divergence between demands for action on climate change and actual pace of progression of reducing carbon emissions is emerging despite
Slide 5: Uncertainty Supply will Meet Demand Post 2023
Uncertainty Supply will Meet Demand Post 2023 Sufficient uranium supply growth is uncertain in the mid to long-term. • Major suppliers mothballing mines – production cutbacks of ~40Mlb pa. • Rio exiting sector. • Production unsustainable with majority “under water” at current spot price. • No new mi
Slide 6: Looming Demand Strong but Price Anomaly Persists
Looming Demand Strong but Price Anomaly Persists NUCLEAR DEMAND STRONG – URANIUM PRICE LAG CLEAR Date/Event Operable Under Planned Proposed U308 Prevailing Reactors Construction Required U308 Price Feb 2011 443 62 156 322 80kt $73/lb (pre-Fukushima) Strong Disconnect July 2019 447 55 111 328 77kt $2
Slide 7: Uranium Outlook
Uranium Outlook Uranium in the doldrums. • US $23/lb in July ‘18; closing $24.5/lb end June ‘19. Uranium price stagnated even though Trump rejects s232. • Trump now institutes powerful Nuclear Fuel Working Group to review fuel production and report in 90 days, maintaining a high level of uncertainty
Slide 8: Supply Sector Also Facing Other Problems
Supply Sector Also Facing Other Problems Project Quality • Of the 18 potential projects inked for development, 15 in the sub 1,500ppm grade range – most <500ppm. • Excluding ISR, operations will need to work at the very high end of difficulty scale. Incredible Erosion of Supply Industry Expertise •
Slide 9: General State of Uranium Equities Today
General State of Uranium Equities Today Suffering and in despair 9
Slide 10: Uranium Sector Overview – consequence of Fukushima
Uranium Sector Overview – consequence of Fukushima Massive attrition post 2011 ~ 420 companies in 2006-2010 period Today 64 companies world-wide: • 10 government associated or multi-national uranium producers. • 7 listed uranium producers (Cameco, ERA* included). 11% Listed *ERA phasing out. Produce
Slide 11: Market Cap - 20 Largest U Companies: 2010-2019
Market Cap - 20 Largest U Companies: 2010-2019 Excluding Kazatomprom 11
Slide 12: Ideal Time to Apply a Counter Cyclical Strategy
Ideal Time to Apply a Counter Cyclical Strategy KEY INGREDIENTS STILL REMAIN IN PLACE: A commodity in extended downturn and an industry under financial pressure. Fundamental Supply/Demand disconnect. Majors poised to divest assets or exit sector rather than invest. General investor disinterest, uran
Slide 13: Two–Pronged Strategy for Growth
Two–Pronged Strategy for Growth Enhance the Namibian cornerstone projects via exploration. • Tumas palaeochannel discoveries strongly demonstrating potential exists for new discoveries and significant resource expansion within current Namibian tenements. Establish a multi-project, global uranium pla
Slide 14: Deep Yellow
Deep Yellow gk Deep Yellow Limited 14
Slide 15: Corporate Overview
Corporate Overview Board Capital Structure – 22 July 2019 Rudolf Brunovs Chairman Shares on Issue 237.7M John Borshoff * MD / CEO Market Cap (@ A$0.37/share) A$88M Gillian Swaby * Director Net Cash ~ A$17M Christophe Urtel Director Major Shareholders Mervyn Greene Director Sprott Group Affiliate 12.
Slide 16: Key Achievements Over 12 Months
Key Achievements Over 12 Months Page 1 of 2 The Reptile project continues to increase its resource base. JOGMEC (Japanese Agency) continuing to complete their earn-in obligation on the Nova JV project. Sector evaluation has opened doors of opportunity and possibility to be capitalised upon. A very s
Slide 17: A Revitalised and Differentiated Company
A Revitalised and Differentiated Company A re-energised, well-funded and advanced uranium explorer. • Future funding support in place. World class management with a proven track record in uranium. Dual focus on resource expansion and sector consolidation aligned with uranium cycle. • In Namibia doub
Slide 18: Namibian Projects
Namibian Projects gk Deep Yellow Limited 18
Slide 19: Namibia - A Highly Favourable Destination
Namibia - A Highly Favourable Destination A large, proven prospective uranium province with exceptional prospectivity. Province contains 1.5Blb U3O8 Measured and Indicated Resources. • With additional 350Mlb U3O8 Inferred resources. To date, the region has produced 320Mlb U3O8 since 1974. Capable of
Slide 20: Palaeochannels Producing Positive Results
Palaeochannels Producing Positive Results New highly prospective palaeochannels identified • 125km of uranium rich channels delineated. Two additional deposits discovered. • 60km of channels remaining to be tested. Very high potential for further discoveries. 20
Slide 21: Namibian Projects
Namibian Projects Overall Namibian resources 149.3Mlb U308 grading 323ppm Projects prospective for two target types. Reptile Projects – 991km2 (100%) • Palaeochannel/calcrete targets (Langer Heinrich style) – 104.2Mlb U308/295ppm. • Basement/alaskite targets (Rössing/Husab style) – 45.1Mlb U308/420p
Slide 22: Namibia Uranium Resource Growth on Target
Namibia Uranium Resource Growth on Target Deep Yellow Limited Uranium Resource Growth 2017 - 2019 Status FY18 FY19 Calcrete Deposits Oct’ 2016 Sept’ 2017 Current Status Resources 50.2Mlb 73.6Mlb 104.2Mlb* Grade U308 247ppm 278ppm 295ppm Calcrete Resources Growth 47% Increase 42% Increase Calcrete +
Slide 23: Resource Growth History vs Expenditure
Resource Growth History vs Expenditure 23
Slide 24: Conclusions
Conclusions gk Deep Yellow Limited 24
Slide 25: Key Takeaways
Key Takeaways Strategy is Delivering Results Positioning for the inevitable uranium upturn • Clear strategy for growth and delivering on stated objectives. • Recently upgraded to OTCQX trading platform expanding shareholder footprint. • Funding support. Growth strategy • Establish a global uranium p
Slide 26: Annexures
Annexures gk Deep Yellow Limited 26
Slide 27: Mineral Resources – Palaeochannel and Basement Related
Mineral Resources – Palaeochannel and Basement Related Notes: Figures have been rounded and totals may reflect small rounding errors. XRF chemical analysis unless annotated otherwise. eU3O8 – equivalent uranium grade as determined by downhole gamma logging. # Combined XRF Fusion Chemical Assays an
Slide 28: 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