Deep Yellow Limited · ASX:DYL
Deep Yellow — Investor Presentation (July 2023)
30 slides from Deep Yellow's investor presentation, Jul 18, 2023
Slide 1: Building a Global Uranium Company - Corporate Presentation
Building a Global Uranium Company Corporate Presentation John Borshoff - MD/CEO 18 July 2023 DYL: ASX / NSX (Namibia) DYLLF: OTCQX www.deepyellow.com.au
Slide 2: Disclaimer
Disclaimer Past performance and readers should not place undue reliance on such forward-looking information. The Company disclaim any intent or obligations to finalise, check, update or revise any forward-looking statements whether as a result of new This presentation has been prepared by Deep Yello
Slide 3: Deep Yellow - Building on Five Guiding Principles
Deep Yellow - Building on Five Guiding Principles ● Decarbonisation ● Uranium Supply Shortage ● Nuclear Demand Outstripping Supply ● Capturing Growth ● ESG Focus 3
Slide 4: Investment Case
Investment Case Nuclear Power will be key to achieving global carbon emission targets Growing number of Governments pivot energy strategy towards nuclear – energy security/independence, clean baseload power Demand Outstripping Supply – Existing producers and proposed new mines unable to respond in t
Slide 5: Best Positioned Uranium Junior Globally
Best Positioned Uranium Junior Globally Deep Yellow has the global diversity seen as a necessity by off-takers – located in two Tier-1 mining jurisdictions Significant production capability - once in production, Deep Yellow will be the largest pure-play uranium producer on the ASX - production capac
Slide 6: Balanced & Optimised Team
Balanced & Optimised Team Steady deliberate program upgrading board with appropriate Board experience and skill levels to ensure operational, financial and governance excellence Proven leadership understanding what needs to be developed for Leadership uranium supply in the post-Fukushima reconstruct
Slide 7: Capital Structure - Performance FY23
Capital Structure - Performance FY23 1.60 FY23 70 1.40 Market Cap Range $450M - $910M 60 1.20 50 1.00 A$/Share1 40 0.80 30 0.60 20 0.40 Merger Completion Tumas DFS Completion August 2022 Feb 2023 10 0.20 Share Price U3O8 Price 0 0 01 Jun 20 01 Dec 20 01 Jun 21 01 Dec 21 01 Jun 22 01 Dec 22 01 Jun 23
Slide 8: Uranium is Critical for a Clean Energy Future
01 Uranium is Critical for a Clean Energy Future www.deepyellow.com.au
Slide 9: Zero Emission Targets Cannot be Met Without Abundant Nuclear
Zero Emission Targets Cannot be Met Without Abundant Nuclear Total Global Energy Equation - still 85% fossil fuelled! 175,000 TWh (2021) World Electricity Production by Source1 Coal (36%) 20% ELECTRICITY (65% Fossil Fuel) Gas (23%) Hydropower (15%) 35% TRANSPORT Nuclear (10%) (~100% Fossil Fuel) Win
Slide 10: Nuclear Essential
Nuclear Essential Nuclear becoming the clear winner and the uranium supply industry is well-placed for significant growth and value uplift in global energy transition Rapid demand uplift -most major economies in alignment demanding more nuclear. This hasn’t happened on such a broad scale since the o
Slide 11: Land Footprint & Productivity of Nuclear, Solar & Wind
Land Footprint & Productivity of Nuclear, Solar & Wind Capacity Factors by Energy Source One x 1GW Nuclear Reactor equivalent To generate ● 2.5 Coal fired plants (each of 1GW) same Nuclear 93% ● 3 Wind farms (each of 1GW) electrical power as a ● 4 Solar farms (each of 1GW) 1GW nuclear Natural Gas 56
Slide 12: World Nuclear Power Reactor Growth Status May 2023
World Nuclear Power Reactor Growth Status May 20231 Nuclear Reactors Globally US (94); France (56); China (55) Proposed Reactors 323 436 Russia (37); Japan (33); Korea (25); Other (136) Reactors Planned Reactors Under 100 Construction China (45); Russia (25); 59 India (12); Others (18) China (23); I
Slide 13: Demand - Governments Pivot Towards Nuclear
Demand - Governments Pivot Towards Nuclear ● Sweden changes policy from “100% renewable electricity production” to “100% Fossil Free” Increasing global concern for Energy ● Belgium reverses decision to shut down reactors in 2025, now Security, extends to 2036 Inability for ● Bulgaria announces plans
Slide 14: Supply – Must be key Focus for a Growing Nuclear Demand
Supply – Must be key Focus for a Growing Nuclear Demand ● Large, long-life operations have ceased production Degradation of ● No new production without significant uranium price uranium supply incentivisation (US$65/lb+) industry over time, ● Global mining houses (Rio Tinto) have exited the industry
Slide 15: Nuclear Fuel Cycle Under Pressure
Nuclear Fuel Cycle Under Pressure Fabrication o Increasing demand for conversion and enrichment o SWU trading at a services causing 10 year high – US$134/SWU extraordinary price increases o Inevitable pricing pressure will ~300% move to uranium price as high increase Enrichment Reactor demand works
Slide 16: Project Pipeline Positioned for Growth and Value
02 Project Pipeline Positioned for Growth and Value www.deepyellow.com.au
Slide 17: Globally Diversified & Sizeable Portfolio with Two Flagship Projects
Globally Diversified & Sizeable Portfolio with Two Flagship Projects • Project portfolio provides diversity by asset, stage of Advanced-stage development and geographic location Early-stage to continue organic pipeline • Largest uranium resource base of any Omahola Alligator River ASX-listed company
Slide 18: Tumas Project, Namibia - Overview
Tumas Project, Namibia - Overview ● Uranium and mining friendly jurisdiction Page 1 of 2 ● Exploration since early 2017 increased the Mineral Resource fourfold ● Ore Reserves of 67.3Mlb increased by 120% in CY2021 o 22.5-year LOM achieved ● DFS completed January 2023 ● Further 10+ years to LOM o Inf
Slide 19: Project Analysis (US$)
Project Analysis (US$) Commentary Project Financials (Ungeared): Real Unit 65/lb 77/lb1 85/lb Project operating life Years 22 22 22 Head grade is U3O8 Produced 340ppm U3O8 (av) Mlb 64 64 64 Gross revenue: total $M 4,272 5,166 5,548 Operating margin (EBITDA) $M 1,790 2,654 3,024 Annual production
Slide 20: Mulga Rock Project – 100%
Mulga Rock Project – 100% ● Located in the Tier-1 mining jurisdiction of Western Page 1 of 2 Australia ● Globally significant Mineral Resource of 71.2Mt @ 570ppm for 90.1Mlb U3O8, positioning Mulga Rock as one of the largest undeveloped uranium projects in Australia ● Only uranium project in WA to r
Slide 21: Mulga Rock Project FY23 Activities
Mulga Rock Project FY23 Activities ● Test work on 63 deep geo-metallurgical holes Page 1 of 2 completed end CY2022, to drive revised process Princess inputs in revised DFS ● Resource/reserve upgrade and ore variability drilling : (~600 holes /approx. 37,000m), commenced April 2023 – completion Augus
Slide 22: Exceptional Exploration Upside
Exceptional Exploration Upside ALLIGATOR RIVER PROJECT, NORTHERN TERRITORY - 100% OMAHOLA BASEMENT PROJECT, NAMIBIA - 100% Page 1 of 2 ● Located in the world class uranium province of Alligator ● Measured, Indicated and Inferred Resource base of 125Mlb River, which hosts some of the highest-grade ur
Slide 23: Looking Ahead - a Differentiated Company
03 Looking Ahead - a Differentiated Company www.deepyellow.com.au
Slide 24: Two Substantial, Advanced Uranium Projects to Produce +7Mlb
Two Substantial, Advanced Uranium Projects to Produce +7Mlb Page 1 of 2 Initial Investment Production Mulga Rock Project Tumas Project 1 3.5 3.5 2.0 3.0 3.6 3.6 3.6 1.5 Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Tumas − 22.25YR LOM Mulga Rock −
Slide 25: Opportunities Through Consolidation
Opportunities Through Consolidation ● Nuclear demand expected to increase dramatically 2030-2060 ● Outside the 2 majors (Cameco, Kazatomprom) the supply industry fragmented and largely dysfunctional ● Supply sector needs massive re- shaping to meet identified growth challenges ● Deep Yellow well-pos
Slide 26: Key Workstreams for next 12 Months
Key Workstreams for next 12 Months Page 1 of 2 TUMAS PROJECT MULGA ROCK ALLIGATOR RIVER M&A • Q3 2023 - Further focused test • Q3 2023 – 600 air core drill • H2 2023 - Desk top • Ongoing - Continued focus work continuing to optimise program for variability testing prospectivity appraisal to on accre
Slide 27: Best Pure Play Uranium Investment
Best Pure Play Uranium Investment Page 1 of 2 Deep Yellow is successfully establishing the right platform Uranium market backdrop creates exceptional opportunities Strong board, proven leadership, executive and technical team producing robust technical, financial and governance considerations to gui
Slide 28: For further information
For further information: T: +61 8 9286 6999 E: info@deepyellow.com.au W: www.deepyellow.com.au : @deepyellowltd : deep-yellow-limited
Slide 29: Appendix Mineral Resources
Cut-off Tonnes U3O8 U3O8 U3O8 Resource Categories (Mlb U3O8) Appendix Deposit Category (ppm U3O8) (M) (ppm) (t) (Mlb) Measured Indicated Inferred Mineral Resources BASEMENT MINERALISATION Omahola Project - JORC 2012 1 INCA Deposit ♦ Indicated 100 21.4 260 5,600 12.3 - 12.3 - INCA Deposit ♦ Inferred
Slide 30: Appendix Mineral Resources
Cut-off Tonnes U3O8 U3O8 U3O8 Resource Categories (Mlb U3O8) Appendix Deposit Category Mineral Resources (ppm U3O8) (M) (ppm) (t) (Mlb) Measured Indicated Inferred Northern Territory Angularli Project - JORC 2012 1 Angularli Indicated 1,500 1.37 10,900 14,917 32.9 - - 32.9 Angularli Project Sub-Tota