ASX-listed Deep Yellow continues to make “solid progress” across all key areas of project development at its flagship Tumas project, in Namibia, including engineering, procurement, site preparation, operational readiness and financing, while its strategic decision to defer final investment decision (FID) for the project has been “vindicated” by the recent strengthening of the uranium market, MD and CEO John Borshoff says.

The company decided in April to delay the FID on Tumas owing to its fundamental belief that the uranium price did not, at that time, reflect reasonable value to shareholders and was not at a level that incentivised greenfield project development.

The subsequent rise in market prices has vindicated that decision and strategy, it highlights.

“We made the best decision for the company and our shareholders, positioning ourselves to fully capitalise on Tumas in a stronger market,” Borshoff avers.

Notwithstanding the delay to the FID, Deep Yellow says it continues to prepare Tumas for construction execution and operations, until such time as market conditions do reflect what the company considers a reasonable return and allows it to fully capitalise on the project’s upside potential.

This approach ensures that the company is well prepared to move decisively when the time is right and fully unlock the value of the Tumas project, Borshoff points out.

Detailed engineering, procurement and operational planning is continuing as planned, with procurement of key packages representing 92% of direct capital well-advanced, and certified vendor data for long lead items and critical associated packages ordered.

Contracts are at an advanced stage for key power and water utility services and associated infrastructure.

An early works programme preparing the site for the start of major onsite works is largely completed.

An operational readiness plan is being detailed to prepare for pre-production mining, process plant commissioning and operation ramp-up to full production.

Project financing continues to be advanced.