Deep Yellow delays Tumas investment decision

CHAMWE KAIRA

Australian-listed uranium developer Deep Yellow Limited has delayed its planned final investment decision (FID) on Namibia’s Tumas uranium project, saying current equity market conditions do not support proceeding with the decision in the fourth quarter of 2026.

The company said it remains committed to developing the project but will continue approved work while pursuing financing arrangements needed to move into full construction.

Managing director and chief executive Greg Field said the decision to defer the investment decision reflected the company’s approach to investment timing and funding.

He said the company would continue approved work at Tumas while pursuing the financing arrangements required to proceed with full construction.

“We have determined that current equity market conditions do not support a FID for Tumas in Q4 2026, which was a target set by us,” Field said.

He added that engineering progress and the start of civil and concrete works were strengthening construction readiness and progressively reducing execution risks.

In its activities report for the quarter ended 30 September 2026, Deep Yellow said detailed engineering for Tumas had reached 85% completion, while development of the project’s 3D model was approximately 88% complete.

Civil and concrete construction works also commenced during the quarter after the company awarded two major contracts to Namibian contractors.

The contractors have mobilised to the site, with the works expected to establish multiple construction fronts, improve scheduling flexibility and reduce execution risks ahead of a final investment decision.

Deep Yellow said more than 85% of major process plant equipment had been tendered, while contracts for long-lead equipment packages were being executed or conditionally awarded, subject to the company issuing notices to proceed.

The C28 road intersection serving the project had reached 90% completion by the end of the quarter.

The company is also advancing infrastructure required to supply water and electricity to the project. Detailed design work continued on the 220-kilovolt grid connection, while negotiations on the development agreement with NamPowerremained ongoing.

Discussions with NamWater, Erongo RED and the roads authority also continued on the design of water supply infrastructure.

A tender for the supply of water pipeline pipes had been concluded and was under evaluation. Deep Yellow expects to award the supply contract before the end of 2026 and issue a tender for pipeline installation in the first quarter of 2027.

The company is working with Nedbank Limited, its mandated lead arranger, to advance debt financing for Tumas.

Discussions are progressing towards the necessary credit approvals, with financial close subject to customary conditions, including the completion of definitive financing documentation.

Deep Yellow is also updating the project’s execution and mining schedules, capital and operating cost estimates, and financial model. It said a comprehensive project update would be released once the work is complete.

Tumas is located approximately 80 kilometres from Swakopmund and the Port of Walvis Bay. Deep Yellow describes it as one of the largest fully permitted greenfield uranium projects globally.

Beyond Tumas, Deep Yellow continued exploration across its Namibian portfolio during the quarter, focusing on identifying additional uranium mineralisation to support future resource growth.