The Deep Yellow Limited (ASX: DYL) share price is in reverse today despite announcing a positive update. We take a closer look at what the company announced.
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At the time of writing, the uranium miner’s shares are trading at 84 cents, down 4.5%.
Deep Yellow sets eyes for next phase of growth
Investors are selling Deep Yellow shares following the company’s change on its board.
According to its release, Deep Yellow advised that it has selected Mr Chris Salisbury as the new chair of the board. This will see Mr Rudolf Brunovs depart, but retain his title as non-executive director and chair of the Audit Committee.
Mr Salisbury brings a wealth of knowledge to the company, having served more than 30 years in the mining industry. His experience spans over strategy and operations, particularly in the uranium sector.
Having worked in both Australia and Namibia, Mr Salisbury held several senior roles for Rio Tinto Limited (ASX: RIO). This included managing director and head of country for Rio Tinto’s Rossing Mine, located in Namibia.
However, his most important role was chief executive iron ore for Rio Tinto from 2016 to 2020. During this period, Mr Salisbury led the strategy for developing and implementing a climate change program and improving operational performance. His team consisted of roughly 20,000 employees and contractors across 16 mines, 4 ports and a railway system.
The reshaping of the board comes as the company begins embarking on the next phase of its growth strategy. Deep Yellow plans to establish a multi-platform, low-cost, tier 1 uranium producer.
Deep Yellow managing director and CEO, John Borshoff welcomed the inclusion of Mr Salisbury, saying:
The strengthening of our Board through the appointment of Chris as Chairman is an excellent outcome for Deep Yellow, as we continue to advance our dual-pillar growth strategy to establish the Company as a tier-one, multi- platform uranium producer.
To attract someone of Chris’ calibre is a strong reflection of where we are heading as a Company and the progress of our strategy over the past 12 months.
Deep Yellow is in its strongest position ever as a Company, underpinned by an exciting and advanced project portfolio and a strong cash balance. We see Chris playing an important role assisting the management team in executing our growth strategy, moving towards production and advancing key M&A objectives.
About the Deep Yellow share price
Over the last 12 months, Deep Yellow shares have surged more than 220%, with year-to-date gains of close to 80%. It’s worth noting, the company’s shares reached a multi-year high of 9.7 cents on Monday.
Based on today’s prices, Deep Yellow commands a market capitalisation of roughly $269 million, with 325 million shares on issue.
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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.