Slide 1: Building For The Future: The Situation with Uranium Corporate Update
Deep Yellow Limited Corporatewith The Situation Update Uranium Building (offering the perfect For The Future opportunity for large-scale sector consolidation and exceptional value creation) John Borshoff - Managing Director/CEO John Borshoff - Managing Director/CEO March 2019 4 January 2019 ASX / NS
Slide 2: Presentation Outline
Presentation Outline 1. Company Overview 2. Uranium in Downturn – excellent outlook 3. Growth Opportunity – perfect for a contrarian play 4. Project Status – enhancing existing resource base 5. Conclusions 2
Slide 3: Major Reset over Past 24 Months
Major Reset over Past 24 Months 1. World class leadership with proven track record in uranium 2. Strategic alliance with Sprott Group established 3. Capital structure consolidated 4. Raised A$15M June 2017 – current cash $8.4M 5. Appropriate strategic direction set and being implemented 6. On Namibi
Slide 4: Revitalised Company Status
Revitalised Company Status 1. A re-energised, well-funded and advanced uranium explorer 2. Differentiated from other mid-sized uranium companies 3. Focus on resource expansion and consolidation 4. Strong support for accretive, long-term growth strategy 5. Share price performance in top quartile (ASX
Slide 5: Corporate Overview
Corporate Overview Board Capital Structure – 14 March 2019 Rudolf Brunovs Chairman Shares on Issue 201.3M John Borshoff * Managing Director / CEO Market Cap (@ A$0.44/share) A$88.6M Gillian Swaby * Director Net Cash ~ A$8.4M Christophe Urtel Director Major Shareholders Mervyn Greene Director Sprott
Slide 6: Deep Yellow Performance Comparison
Deep Yellow Performance Comparison Outperforming Peers DYL 120% 100% 80% 60% 40% 20% 0% ‐20% ‐40% ‐60% Jan‐18 Feb‐18 Mar‐18 Apr‐18 May‐18 Jun‐18 Jul‐18 Aug‐18 Sep‐18 Oct‐18 Nov‐18 Dec‐18 Jan‐19 Feb‐19 DYL Uranium Participation Corp. Fission Uranium GoviEx Global X Funds NexGen Denison Global Atomic
Slide 7: Uranium in Downturn – excellent outlook
Uranium in Downturn – excellent outlook 7
Slide 8: Supply Shortfall Looming but Price Anomaly Persists
Supply Shortfall Looming 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) Feb 2019 445 57 126 383 77kt $28/lb Source: W
Slide 9: Uncertainty for Supply to Meet Demand Post 2023
Uncertainty for Supply to Meet Demand Post 2023 1. Uranium supply growth is uncertain in the mid to long-term • Major suppliers mothballing mines – Cameco, Kazatomprom, Paladin. • Rio – Ranger (ERA) and Rössing (now Chinese owned) in severe downturn. • Production unsustainable with majority of produ
Slide 10: Current State of Uranium Outlook
Current State of Uranium Outlook 1. Uranium price reacting slower than thought • Mainly producers in spot market e.g. Cameco. • ETFs soaking up some physical uranium. 2. Utilities remain complacent • Will be slow coming into market as believe future supply not an issue. • Utilities will finally be t
Slide 11: Market Cap - 20 Largest U Companies: 2010-2018
Market Cap - 20 Largest U Companies: 2010-2018 30 US$73/lb 25 Fukushima Effect MASSIVE VALUE DESTRUCTION US$ 20 Billion 15 US$61/lb US$43/lb US$34/lb US$35/lb 10 US$34/lb US$22/lb US$28/lb US$20/lb 5 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 Total Total Market Value Marino Pieterse, Metal Commo
Slide 12: Growth Opportunity – perfect for a contrarian play
Growth Opportunity – perfect for a contrarian play 12
Slide 13: Vision for Growth
Vision for Growth Two–Part Strategy for Growth 1. Enhancing the Namibian cornerstone projects • Tumas palaeochannel discoveries strongly demonstrating potential exists for new discoveries and significant resource expansion within current Namibian tenements. 2. Establish a multi-project, global urani
Slide 14: A Counter Cyclical Strategy – ideal time to start
A Counter Cyclical Strategy – ideal time to start 1. Key requirement - a commodity in a deep, extended downturn and an industry under severe financial pressure 2. Fundamental Supply/Demand disconnect 3. Majors poised to divest assets or exit sector rather than invest 4. General investor disinterest,
Slide 15: The Opportunity Base – U Sector Overview
The Opportunity Base – U Sector Overview • 67 companies world-wide – producers, developers, explorers • High attrition 2008 – 2018 (~ 420 companies 2006-08). 10% Listed Producers • 10 government associated or multi-national uranium producers. 15% Government & Multinationals 48% • 7 listed uranium pr
Slide 16: Market Capitalisation of Uranium Sector (July vs Feb 2019)
Market Capitalisation of Uranium Sector (July vs Feb 2019) EXCLUDING GOVERNMENT ENTITIES AND MULTI-NATIONALS 1. Total Market Cap of 57 Listed Uranium Companies - $7.3Bn vs $7.5Bn (3%) 2. Market Cap of 7 Listed Uranium Producers $5.37Bn vs $5.5Bn (3%) • 73% of sector market cap. Top 20 Listed Uranium
Slide 17: Supply Sector Facing Fundamental Problems
Supply Sector Facing Fundamental Problems 1. Project Quality • Of the 18 potential projects inked for development, 15 in the sub 1,500ppm grade range – most <500ppm. • Project development and operations need to work at the very high end of difficulty scale. 2. Incredible Erosion of Supply Industry E
Slide 18: Project Status – enhancing existing resource base
Project Status – enhancing existing resource base 18
Slide 19: Namibia - A Highly Favourable Destination
Namibia - A Highly Favourable Destination 1. A large, proven prospective uranium province with exceptional prospectivity 2. Province contains 1.5Blb U3O8, Measured and Indicated Resources • With additional 350Mlb U3O8 Inferred resources. 3. To date, the region has produced 320Mlb U3O8 since 1974 4.
Slide 20: Deep Yellow – Namibian Projects
Deep Yellow – Namibian Projects Overall Namibian resources 126.4Mlb U308 grading 321ppm 1. Projects prospective for two target types 2. Reptile: (EPLs 3496/97) – 991km2 (100%) • Palaeochannel/calcrete targets (Langer Heinrich style) - 63.3Mlb U308/301ppm. • Basement/alaskite targets (Rössing/Husab s
Slide 21: Palaeochannels Producing Positive Results
Palaeochannels Producing Positive Results 1. New highly prospective zones identified to expand resources growing • Currently 4 deposits identified. • 120km of prospective channels delineated for testing. 2. Immediate high priority resource upgrade targets • 50km zone from Tubas Red Sand to Tumas 3.
Slide 22: Conclusions
Conclusions gk Deep Yellow Limited 22
Slide 23: Conclusions
Conclusions New focus bringing success 1. Positioning for the inevitable uranium upturn • Clear strategy for growth and delivering on stated targets. • Recently upgraded to OTCQX trading platform expanding shareholder footprint. • Strategic Alliance with Sprott in place and investor base regenerated
Slide 24: Contact Details
Contact Details John Borshoff Managing Director/CEO Deep Yellow Limited Unit 17, Spectrum Building, 100 Railway Rd Subiaco, Western Australia 6008 T +61 8 9286 6999 M +61 419 912 571 F +61 8 9286 6969 Email: john.borshoff@deepyellow.com.au Email: info@deepyellow.com.au Website: www.deepyellow.com.au
Slide 25: Annexures
Annexures gk Deep Yellow Limited 25
Slide 26: 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 27: Market Valuation of Listed Uranium Producers 2010-2018
Market Valuation of Listed Uranium Producers 2010-2018 18000 Marino Pieterse, Metal Commodities 16000 14000 Fukushima Effect 12000 USD (Million) 10000 8000 6000 4000 2000 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 Cameco Energy Fuels Uranium Energy Ur‐Energy Peninsula Energy ERA Paladin Energy 2
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