Deep Yellow Limited · ASX:DYL
Deep Yellow — Arlington Predaba Investor Conference 2020
34 slides from Deep Yellow's conference presentation, Jan 31, 2020
Slide 1: ASX Announcement: Corporate Update Presentation
ASX Announcement ASX & NSX: DYL / OTCQX: DYLLF 31 January 2020 For personal use only CORPORATE UPDATE PRESENTATION Attached is the Corporate Update Presentation to be presented by John Borshoff, Managing Director/CEO at the Arlington Predaba Investor Conference held in Cape Town, South Africa from 3
Slide 2: Building a Tier-One Uranium Producer
For personal use only Building a Tier-One Uranium Producer CORPORATE UPDATE 31 January 2020 John Borshoff Managing Director/CEO ASX / NSX : DYL OCTQX : DYLLF 1
Slide 3: Ready for Growth
Ready for Growth For personal use only Executing a unique and differentiated dual-pillar growth strategy Strong balance sheet, with continued support from equity markets Ongoing exploration has tripled the Reptile Project resource base in just 3 years At an extremely low discovery cost of $0.10/lb (
Slide 4: A Standout Uranium Team
A Standout Uranium Team For personal use only A highly-credentialed team (majority ex-Paladin Energy) with proven success in the uranium sector, highlighted by: Strong project development, operational and corporate capabilities Highly experienced team who have successfully worked together in the pas
Slide 5: Corporate Overview
Corporate Overview For personal use only Board Capital Structure – Dec 2019 Rudolf Brunovs Chairman Shares on Issue 246.6M John Borshoff * MD/CEO Market Cap (@ A$0.27/share) A$66M Gillian Swaby * Exec Director Net Cash ~ A$14.1M Christophe Urtel Non-Exec Director Major Shareholders Mervyn Greene Non
Slide 6: The Growing Demand for Nuclear Energy
For personal use only The Growing Demand for Nuclear Energy 5
Slide 7: Growing Importance of Nuclear Energy
Growing Importance of Nuclear Energy For personal use only Global emissions reached a record high 33Gt in 2018 Electricity production generated 14Gt of global emissions in 2018 2.2Bt of global emissions were saved in 2018 through nuclear power Nuclear power usage increased 2.4% in 2018 – fastest gro
Slide 8: Significant Growth in Nuclear Demand Expected
Significant Growth in Nuclear Demand Expected For personal use only 20 new reactors globally scheduled to be connected by 2020 Increasing demand supported by aggressive reactor construction in China Considerable growth in 15 years from 3 operating reactors to 45 today Aggressive growth to continue w
Slide 9: Affordable and Safe Clean Energy
Affordable and Safe Clean Energy For personal use only Nuclear energy is the cheapest source of long-term baseload energy In France, nuclear power generates 75% of electricity Reducing electricity costs by 15% in comparison to EU average One fifth of electricity produced in the US is from nuclear en
Slide 10: Differentiated with a Unique Strategy
For personal use only Differentiated with a Unique Strategy 9
Slide 11: A Bold & Unique Strategy
A Bold & Unique Strategy For personal use only Dual-Pillar Growth Strategy Well-Positioned to Deliver Organic and Inorganic Growth Strategy focused on establishing Deep Yellow as a low cost, tier-one uranium producer o Development of the Namibian Project Effective strategy execution requires a leade
Slide 12: Execution of a Counter-Cyclical Strategy
Execution of a Counter-Cyclical Strategy For personal use only Key Achievements Over Past 12 Months ✓ Successful exploration at the Reptile project ✓ PFS commenced on positive Scoping Study completion at Reptile ✓ JOGMEC (Japanese Government Agency) continues to earn-in at the Nova JV project ($4.5M
Slide 13: Deteriorating Fundamentals of the Uranium Sector
For personal use only Deteriorating Fundamentals of the Uranium Sector 12
Slide 14: Severe Recalibration of the Uranium Sector
Severe Recalibration of the Uranium Sector For personal use only Massive industry attrition post Fukushima In 2011 ~420 uranium companies Explorers Today 62 companies world-wide: 11% 10 government associated or multi-national uranium producers 16% Potential Developers 46% 7 listed uranium producers
Slide 15: Uranium Price Primed for Recovery
Uranium Price Primed for Recovery For personal use only NUCLEAR DEMAND STRONG CLEAR URANIUM PRICE LAG Operable Under U308 Prevailing Date/Event Planned Proposed Reactors Construction Required U308 Price Strong Disconnect Feb 2011 (pre- 443 62 156 322 80kt $73/lb Fukushima) January 2020 442 54 109 33
Slide 16: Expected Supply Shortage by 2023
Expected Supply Shortage by 2023 For personal use only NUCLEAR UTILITY COMPLACENCY ON LOOMING SUPPLY SUFFICIENT URANIUM SUPPLY UNCERTAIN SHORTAGE OUTLOOK CONTINUES Major suppliers mothballing mines or exiting the sector Uranium price still languishing at sub US$30/lb (currently US$24.45/lb) despite
Slide 17: Advancing the Development of the Namibian Project Portfolio
For personal use only Advancing the Development of the Namibian Project Portfolio 16
Slide 18: Namibia: A Standout Uranium Destination
Namibia: A Standout Uranium Destination For personal use only Large, proven uranium province with exceptional prospectivity Province contains 1.5Blb U3O8 Measured and Indicated Resources With additional 350Mlb U3O8 Inferred resources Large capacity, long-life mining operations Rössing – 11Mlb/pa des
Slide 19: Namibian Project Portfolio
Namibian Project Portfolio For personal use only Overall Namibian Resources = 156.6Mlb U308 grading 320ppm Reptile Projects – 896km2 (100%) Palaeochannel/calcrete targets (Langer Heinrich style) – 110.5Mlb U308/290ppm Basement/alaskite targets (Rössing/Husab style) – 45.1Mlb U308/420ppm Nova Joint V
Slide 20: Reptile Project: 896km2 (100% DYL)
Reptile Project: 896km2 (100% DYL) For personal use only Mineral Resource in palaeochannel/calcrete targets (Langer Heinrich style) of 92.5Mlb U3O8/303ppm Basement/alaskite targets (Rössing/Husab style) of 45.1Mlb U3O8/420ppm Highly prospective Tumas palaeochannel identified 125km of uranium-rich ch
Slide 21: Low-Cost Value Creation at Reptile
Low-Cost Value Creation at Reptile For personal use only ● Over the past 3 years management has developed the Reptile Project at extremely low costs ● ~$6M spent (discovery cost of $0.10/lb) 20
Slide 22: Namibia Uranium Resource Growth on Target
Namibia Uranium Resource Growth on Target For personal use only Deep Yellow Limited Uranium Resource Growth 2017 - 2020 Status FY18 FY19 Mid FY20 Calcrete Deposits Oct’ 2016 Sept’ 2017 Resources 50.2Mlb 73.6Mlb 104.2Mlb 110.5Mlb* Grade U308 247ppm 278ppm 295ppm 290ppm Calcrete Resources Growth 47% I
Slide 23: Positive Scoping Study Completed at Reptile
Positive Scoping Study Completed at Reptile For personal use only Accelerated studies underway to evaluate project economics Positive Scoping Study completed on Tumas palaeochannel calcrete-hosted deposits Pre-Feasibility Study commenced Budget for FY2020 increased by 30% to $2.75M to support: Econo
Slide 24: Pre-Feasibility Study Objectives
Pre-Feasibility Study Objectives For personal use only Key Company Benchmarks LOM: > 20 years OPEX: low cash cost < US$30/lb Minimum Annual Production: 2 to 3Mlb CAPEX: US$115M – US$130M per 1Mlb/annum plant design IRR: minimum 20% PFS Accuracy: circa 30% for CAPEX PFS Completion: December 2020 quar
Slide 25: Sustainability
Sustainability For personal use only SHER Safety prioritised with target of zero incidences of injury and illness 65,000 working hours incident free in FY2019 Full compliance with regulations and adherence to Radiation Management Plan Environmental management integral to Company operations Winner of
Slide 26: Establishing a Multi-Project Global Uranium Platform
For personal use only Establishing a Multi-Project Global Uranium Platform 25
Slide 27: Well-Funded for Inorganic Growth
Well-Funded for Inorganic Growth For personal use only Ongoing evaluation of M&A throughout 2019/20 The opportunity to act is now due to the depressed nature of the sector Focused on acquiring 2-3 projects to establish a pipeline for development from 2023 – 2030 Currently assessing 6-8 targeted proj
Slide 28: Unique Strategy, Right Time, Standout Team, Well-Funded
For personal use only Unique Strategy, Right Time, Standout Team, Well-Funded 27
Slide 29: Key Milestones
Key Milestones For personal use only Calendar Year Project Activities 2H19 1H20 2H20 2021 Reptile Resource Upgrade Drilling Ongoing Palaeochannel Testing Scoping Study Reserve Statements Pre-Feasibility Study Optimisation Studies M&A Targeting 2 to 3 Projects Expected Completion 28
Slide 30: A Differentiated Uranium Opportunity
A Differentiated Uranium Opportunity For personal use only Proven and experienced management team with an exceptional track record of success Executing the strategy to deliver a 5-10Mlb low cost, multi-platform global uranium portfolio Reptile Resource has tripled in 3 years at a discovery cost of $
Slide 31: For further information
For personal use only For further information: T: +61 8 9286 6999 E: info@deepyellow.com.au W: www.deepyellow.com.au : @deepyellowltd : deep-yellow-limited 30
Slide 32: Appendix
For personal use only Appendix 31
Slide 33: Mineral Resources: Palaeochannel, Basement Related
Mineral Resources: Palaeochannel, For personal use only 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
Slide 34: Disclaimer and Competent Person Statement
Disclaimer and Competent Person Statement For personal use only This document has been prepared by Deep Yellow Limited Any statements, estimates, forecasts or projections with This presentation and its contents have been made available (Deep Yellow, DYL or the Company) in connection with respect to
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