Deep Yellow Limited · ASX:DYL
Deep Yellow — Africa Down Under Conference 2017
20 slides from Deep Yellow's conference presentation, Sep 6, 2017
Slide 1: Building for the Future: Creating Opportunity In A Uranium Downturn
Building for the Future Creating Opportunity In A Uranium Downturn African Down Under Conference, Perth 6 – 8 Sept, 2017 John Borshoff - Managing Director / CEO ASX : DYL OCT : DYLLF
Slide 2: Deep Yellow
Deep Yellow A re-energised, well-funded and advanced uranium explorer Differentiated from other mid-sized uranium companies New management & core team installed • Unique experience and skillset from the formation and growth of Paladin Energy Dual strategy for growth with expansion and consolidation
Slide 3: Corporate Overview
Corporate Overview Board Capital Structure – 17 July 2017 Rudolf Brunovs Chairman Shares on Issue 190 John Borshoff * Managing Director / CEO Market Cap (@ A$0.25 / share) A$47.5M Gillian Swaby * Director Net Cash ~ A$14.5M Christophe Urtel Director Major Shareholders Mervyn Greene Director Sprott G
Slide 4: Presentation Outline
Presentation Outline Uranium in Downturn (but with a fantastic future) Growth Opportunity – Perfect for a Contrarian Play Project Status Conclusions 4
Slide 5: Supply Deficit Consensus but Price Anomaly Persists
Supply Deficit Consensus but Price Anomaly Persists 350 Supply and Demand (Mlbs U308 / Year) 325 Spot Spotprice price 14Aug Mar‘1717 –– US$20/lb US$24/lb Total Demand 300 Historic lowFeb Historic low Feb 17 ‘17 – US$17.5/lb – US$17.5/lb 275 250 Supply Gap 225 200 175 New Mines Secondary Supplies 150
Slide 6: 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 7: Presentation Outline
Presentation Outline Uranium in downturn (but with a fantastic future) Growth Opportunity – Perfect for a Contrarian Play Project Status Conclusions 7
Slide 8: Ingredients for a Successful Contrarian Play
Ingredients for a Successful Contrarian Play A commodity in serious downturn at an extreme condition Investors hate the commodity Few believe the story Need a team and leadership with high credibility and extensive knowledge Need hard-to-get financial backer to support a contrarian play 8
Slide 9: During the last uranium cycle 2003-2011 Some Enjoyed Truly Exceptional Gains
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 10: Vision for Growth – Key Objectives
Vision for Growth – Key Objectives Gain value through contrarian investment Adopt a dual strategy for growth • Build the in-ground inventory from existing, prospective Namibian projects • Build a multi-project global uranium platform through accretive acquisitions Enhance the Namibian cornerstone pr
Slide 11: Presentation Outline
Presentation Outline Uranium in downturn (but with a fantastic future) Growth Opportunity – Perfect for a Contrarian Play Project Status Conclusions 11
Slide 12: 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 13: Palaeochannels Highly Prospective
Palaeochannels Highly Prospective Re-interpretation and target delineation work in past 10 months: • Defined Tumas 3, S Bend and S Bend East as priority exploration areas • Confirmed 100km of highly prospective palaeochannels inadequately tested New uranium discovery at Tumas 3 with March/June drill
Slide 14: Tumas 3 Uranium Discovery
Tumas 3 Uranium Discovery Uranium intersected in 284 of 400 holes drilled 100m x 100m Mineralisation over 4.4km - open E and W Maiden resource estimate expected in late September 2017 14
Slide 15: Tumas – Key Drilling Results
Tumas 3 – Key Drilling Results Significant Intersections Thickness Grade Depth (m) (eU3O8) from (m) 4 1,360ppm 17.1 12 1,239ppm 5.1 12 1,163ppm 6.1 3 1,044ppm 8.1 14 999ppm 6.1 6 710ppm 9.1 12 704ppm 7.1 13 664ppm 7.1 5 651ppm 13.1 7 635ppm 9.1 5 565ppm 13.1 9 559ppm 10.1 15
Slide 16: Tumas – Drillhole Cross Section
Tumas 3 – Drillhole Cross Section Mineralised zone 200m - 900m wide in channel sediments Flat lying/near surface 1m - 21m deep 16
Slide 17: Presentation Outline
Presentation Outline Uranium in downturn (but with a fantastic future) Growth Opportunity – Perfect for a Contrarian Play Project Status Conclusions 17
Slide 18: 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 19: THANK YOU
THANK YOU Contact Details Deep Yellow Limited John Borshoff Unit 17, Level 2 Managing Director/CEO Spectrum Building, 100 Railway Rd Email: Subiaco, Western Australia 6008 john.borshoff@deepyellow.com.au T +61 8 9286 6999 Website: www.deepyellow.com.au ASX - DYL Email: info@deepyellow.com.au OTC - D
Slide 20: 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