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