Make Kitco Your Homepage

Deep Yellow Turns Deeply Contrarian

Kitco News

Editor's Note: Get caught up in minutes with our speedy summary of today's must-read news stories and expert opinions that moved the precious metals and financial markets. Sign up here!

(Kitco News) - The uranium downturn is an "exciting" time for Deep Yellow and its shareholders, said managing director and CEO, John Borshoff.

Deep Yellow raised $6.26 million to expand its Namibian project and explore some sector consolidation. The company plans to become a "...multi-project, globally diversified uranium platform."

"A variety of expansion opportunities exist in this period of uranium downturn. In this context, the company is currently engaged in discussions with multiple parties and further work is required to determine the most optimal avenue to maximise shareholder return," said Borshoff in a news release prior to the fundraise.

With the funds, the company said it will capitalise on emerging opportunities in a "contrarian manner."

"The support has been most heartening, strengthening the Company's share register for its next stage of growth as we build on our stated objectives. These are exciting times for the company and our shareholders," said Borshoff.

Uranium has been suffering under a multi-year slump. Industry giant, Cameco, reported an adjusted loss of US$24.8 million in its most recent quarterly report with an average realized price 25% below the prior year. It has shuttered some operations while waiting for prices to recover.

Creative Commons image of nuclear fuel pellets courtesy of Nuclear Regulatory Commission.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.