By: African Mining Market

Deep Yellow Limited says its flagship Tumas Uranium Project in Namibia is technically ready for development, with resource and reserve work, engineering, and infrastructure groundwork largely complete.

Still, it will only take a Final Investment Decision (FID) when long-term uranium prices justify construction.

In its March 2026 corporate update, the company reported that Tumas now hosts a total uranium resource of 118.2 million pounds of U₃O₈ and ore reserves of 79.5 million pounds.

The project is designed for a multi-decade mine life, with staged production capacity targeted at approximately 3.6 million pounds of U₃O₈ per annum in its initial phase.

Deep Yellow said that detailed engineering work is more than 65 per cent complete and that key project contracts, including major process plant equipment, have been tendered or awarded.

Bulk earthworks and site preparation are in progress. To support operations, the company has executed a Transmission Power Supply Agreement with NamPower for a dedicated 22 km, 220 kV grid connection capable of up to 4 MVA.

It continues detailed planning for water supply and other infrastructure.

The financial and technical readiness is evident in the company’s balance sheet, which showed a cash position of A$187 million at 31 December 2025 and a market capitalisation in the A$2.5 billion range, giving Deep Yellow flexibility to continue advancing projects without immediate equity raising.

Deep Yellow’s modelling indicates that at a long-term uranium contract price of US$82.50 per pound U₃O₈, Tumas would generate a post-tax net present value (NPV₈) of about US$577 million and an internal rate of return (IRR) of around 19 per cent, with initial capital expenditure (capex) estimated at US$474 million and all-in sustaining costs near US$45 per pound of U₃O₈ extracted.

The company reiterated that the timing for FID remains price contingent.

Deep Yellow confirmed it will sanction construction only when long-term contracts and pricing support project economics, rather than relying on short-term spot price strength.

This reflects a disciplined approach that delayed 2025 FID considerations in favour of strengthening contract certainty and price stability.