Deep Yellow has extended the Tumas project’s construction schedule from 18 to 24 months.
The company has also extended the commissioning ramp-up period from 6 to 15 months.
This schedule estimates wet commissioning will be completed within 24 months after the final investment decision, with ore processing and production ramp-up commencing thereafter.
The first product into drums is anticipated approximately two months after ore processing.
The latest optimisation work generated robust results at a uranium price of US$82.50/lb U3O8, further endorsing the project’s economics and standing as a Tier-1, long-life uranium operation.
The initial capital expenditure is US$474 million while operating expenditure for the first 20 years is US$24.52/t ore treated, US$35.02/lb U3O8.
According to Deep Yellow’s quarterly activities report for the period ending March 31, 2025, this is due to the lower average grade and the increased operating cost per lb U3O8 from US$34.35/lb U3O8 to US$38.60/lb U3O8.
The company says this has negatively impacted NPV and IRR, which are expected to be refined through further optimisation.
The company will reassess the mining schedule in the next phase to reduce this impact on the average head grade and cost per lb U3O8 produced.
Deep Yellow managing director John Borshoff says the long-term uranium market is broken due to more than a decade of sector inactivity, persistently depressed uranium prices, and utility offtake contracting practices, which are yet to support the development of greenfields uranium production.
Borshoff says although the Tumas Project is economic at current long-term uranium prices, these prices do not reflect or support the enormous amount of production needed online to meet expected demand.
“Deep Yellow is in an enviable position, having one of the world’s most rigorously evaluated greenfield projects, and it is ready to hit the “go” button.
“The extended detailed engineering and associated studies that have been completed provide even greater confidence in what can be delivered and how.
“Water and power supply agreements have been completed as we push ahead with the off-site infrastructure needs, and project financing is proceeding well,” Borshoff says.
He further says a healthy prevailing uranium market is a key prerequisite.
“Therefore, the final project approval will be delayed until uranium prices fully reflect a sustainable incentivisation environment essential to encourage the development of new projects for much-needed additional production,” Borshoff says.
According to Borshoff, the uranium demand outlook is undeniable, driven by decarbonisation efforts, forecasts of continued enormous energy demand growth, the prevailing structural supply shortages, and having to deal with the added, newly emerging requirements from the developers of energy-hungry datacentres, giving clear upside for the supply sector.
“The reality is there are limited greenfield uranium deposits available for start-up globally over the next 10 years to satisfy projected demand, and new uranium supply will be virtually impossible to achieve in the current price environment.
“It is against this backdrop that we are comfortable with our decision to carefully progress areas of the project such as early works infrastructure and detailed engineering but not commit the capital to construct the process plant until uranium prices improve,” he says.
