Deep Yellow head of business development Andrew Mirco says the company wants to produce 10 million pounds of uranium annually within the next decade.
The Australian company is targeting bringing the Tumas project in Namibia into production in 2026 and Mulga Rock in Australia by 2028.
Mirco told the Diggers and Dealers conference in Kalgoorlie last week that constructing the Tumas project and the Mulga Rock is a critical development.
The Diggers & Dealers is Australia’s leading mining forum, combining 66 corporate presentations by listed mining and exploration companies and a large exhibition area housing over 159 exhibitors. Delegates worldwide include miners, explorers, brokers, bankers, investors, financiers, and mining service industries.
According to Mirco, the two long-life assets would be producing well into the 2050s and 2060s in a market with limited greenfield production.
Following a successful capital raise in March, Deep Yellow is strong, boasting A$ 257 million in cash, no debt, and a market cap of A$ 1.2 billion.
This stability places the company in a solid position to advance its projects and pursue growth organically through exploration and inorganically via mergers and acquisitions. The company recently merged with Vimy Resources.
Mirco emphasised Deep Yellow’s experienced team, led by John Borshoff, who had nearly 50 years in the uranium industry and a track record of building world-class mines. The team also included seasoned professionals such as chairperson Chris Salisbury, Darryl Butcher, and Dustin Garrow, all bringing extensive expertise in uranium mining, marketing, and finance.
Mirco noted the shift in global inventories and demand since the post-Fukushima era. He pointed out that the inventory overhang had mainly disappeared and that the secondary material supply in the market had reduced. At the same time, there had been a global pivot towards nuclear power for energy security and clean baseload power.
The market is in a race to restart production on the supply front, with limited greenfield projects expected before 2030, resulting in a price rally. Uranium has recently traded at 17-year highs.
Mirco expressed confidence that uranium prices would remain high for an extended period.
“It took ten-plus years of underinvestment to create this structural deficit; it will take ten-plus years and a lot of investment to fix it,” he said.
The price rally was also unlikely to unleash a plethora of new deposits being discovered and a wave of new supply.
Mirco pointed out that today’s uranium deposits were found in the 1970s and early 1980s after the oil shock when corporations and governments spent billions scouring the earth looking for new deposits.
Despite the billions spent over the last few decades, the only two material uranium deposits discovered are those of NexGen and Fission Uranium in North America.
“I don’t believe there will be a flood of new deposits being discovered,” said Mirco.
He also noted that developing new uranium mines today is more challenging than a decade ago due to stricter regulatory regimes, funding difficulties, and a reduced pool of experienced personnel.
Concluding his speech, Mirco highlighted the unique nature of uranium compared to other commodities. Uranium makes up only 5% to 7% of the cost to produce electricity from a nuclear power plant, compared to much higher percentages for coal and gas. This means that even significant increases in uranium prices would have a minimal impact on electricity costs, ensuring sustained demand.
Source: Mining Weekly
