What’s with the Deep Yellow (ASX:DYL) share price today?

The Deep Yellow Limited (ASX: DYL) share price is trading lower today after the company’s latest presentation to investors.
The post What’s with the Deep Yellow (ASX:DYL) share price today? appeared first on The Motley Fool Australia. –

energy asx share price flat represented by worker in hi vis gear shrugging

The Deep Yellow Limited (ASX: DYL) share price is back where it started today after the company’s latest presentation to investors.

At the time of writing, shares in the uranium miner are trading at 68 cents each, the same price at yesterday’s close of trade. By comparison, the S&P/ASX All Ordinaries Index (ASX: XAO) is 0.93% higher.

Let’s take a closer look.

‘Well-positioned for growth’

In today’s presentation to investors, Deep Yellow outlined some of the reasons why it believes it is on a strong path to growth. They include:

  • A dual-pillar growth strategy consisting of organic and inorganic growth;
  • A “standout” uranium team, and;
  • Key achievements over the last 12 months.

Organic and inorganic growth

To put us all on the same page, a company achieves organic growth by increasing sales and operations. Inorganic growth comes through strategic mergers and acquisitions.

On the organic growth front, Deep Yellow is forecasting a squeeze in the supply of uranium in 2023/24. A decrease in supply will increase the price of its product, as per the laws of supply and demand

Regarding inorganic growth, the uranium explorer has identified “2 or 3” projects it wishes to acquire. It believes doing so will lead to tangible benefits from 2024 and beyond.

Team spirit

Deep Yellow also believes it has the management and technical teams to identify better opportunities for purchase than its competitors.

The company says its team is better than others because it has “experience across all disciplines”, a “proven track record”, vision and leadership, growth strategy, and funding support.

Key projects

Deep Yellow currently has two major projects, the Premier Uranium Mining site and Tumas Mining site in Namibia. The Premier site contains at least 1.5 billion pounds of uranium with the potential for another 350,000 pounds. Deep Yellow says 6% of all the world’s uranium comes from this one site.

The company acquired the latter site in 2017. It believes Tumas is “highly prospective” and is similar to the Heinrich mine located at the Premier Uranium site. Only 50% of the 125km area has been tested so far. Deep Yellow also says it can extract uranium at a cost of only 11.5 cents per pound.

Uranium commodity price

The price of uranium has been on an upswing since August last year when Joe Biden announced a plan for green infrastructure if he were to become the US president.

At the time of writing, uranium is trading for US$31.05 per pound. It’s up 12.1% over the last month and 1.14% in the year-to-date. Yet, the element’s price has fallen since hitting a 5-year high of around US$34 a pound in May last year, due to oversupply and underwhelming demand.

Deep Yellow share price snapshot

The Deep Yellow share price has increased 159.62% over the last 12 months. However, since hitting a 5-year record in February this year, shares in the miner have fallen 23.73%.

Deep Yellow has a market capitalisation of $217.9 million.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

The post What’s with the Deep Yellow (ASX:DYL) share price today? appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!