Australian uranium developer Deep Yellow will mobilise two Namibian civil and concrete contractors to its Tumas uranium project in August, following the completion of bulk earthworks, marking another milestone as the company progresses towards a final investment decision (FID) anticipated in the fourth quarter of 2026, subject to market conditions.
The contractor mobilisation follows the award, after the end of the June quarter, of two major civil and concrete construction contracts to experienced Namibian contractors.
Deep Yellow said the contracts will establish multiple construction fronts, improve schedule flexibility, and further reduce execution risk, while strengthening construction readiness ahead of the anticipated FID.
The latest quarterly activities report shows that the Tumas project continues to advance across engineering, procurement, mine planning, infrastructure, and financing, as the company works to ensure the project is technically optimised, commercially robust, and execution-ready.
The project execution schedule, capital estimate, mining schedule and financial model are also being updated as improved data becomes available in preparation for the anticipated investment decision, with previous capital and operating cost estimates being revised from 2024 real terms to reflect current market conditions.
Engineering continued to progress during the quarter, with detailed engineering reaching 79% completion and the integrated three-dimensional engineering model advancing to 81% by the end of June.
Procurement also gathered momentum, with 76% of all major process plant equipment tendered and most long-lead equipment packages conditionally awarded, subject to the company issuing notices to proceed.
Deep Yellow said the continued advancement of engineering and procurement is providing increasing confidence in project execution, schedule certainty and capital cost definition.
The company said awarding the civil and concrete contracts to two Namibian firms reinforces its commitment to local content and in-country job creation while allowing work to proceed simultaneously across several construction fronts once mobilisation begins in August.
Deep Yellow Managing Director and Chief Executive Officer Greg Field said the June quarter represented another period of disciplined execution as the company continued reducing project risk while building momentum towards the anticipated investment decision.
“The June Quarter marked another period of disciplined execution as we continued to systematically de-risk the Tumas Project and build momentum ahead of our anticipated FID in Q4 2026.
“Since Quarter-end, we have awarded two significant civil and concrete construction contracts to experienced Namibian contractors — an important milestone that strengthens construction readiness and reflects the quality of execution across the project,” Field said.
Mine planning also continued throughout the quarter, with further evaluation of the mineral resource and ore reserve models, mining methods, pit shell configurations and production scheduling.
According to the company, the work forms part of a programme aimed at improving project economics by bringing forward cash flows over the life of mine while maintaining operational flexibility.
Detailed design advanced on the planned 220 kV grid connection in collaboration with NamPower, while negotiations with NamWater on long-term water supply and associated infrastructure agreements are approaching completion.
Deep Yellow said the delivery strategy for the water pipeline has been established and tenders for pipeline materials were issued during the quarter.
On financing, the company continued working with its mandated lead arranger, Nedbank Limited, to advance the Tumas funding strategy.
Completion of the Independent Technical Expert review satisfied the lenders’ initial due diligence requirements, while Nedbank is awaiting confirmation from Deep Yellow on the size of the required debt facility, which will be determined as part of the optimal funding structure closer to the anticipated FID.
Ground radiometric surveys commenced at the S-Bend Prospect during the quarter to define priority drill targets ahead of the next phase of drilling, while the geological understanding gained from recent drilling at the Tinkas Prospect will be applied at the Aussinanis Project as the company seeks to identify additional uranium mineralisation and expand its future development pipeline in Namibia.
Deep Yellow ended the quarter with A$160.0 million in cash and cash equivalents, which it said provides a strong balance sheet to continue advancing the Tumas project and its wider Namibian portfolio.
