CHAMWE KAIRA
Deep Yellow is evaluating a range of funding options for its Tumas uranium project in the Erongo Region as it works towards a final investment decision (FID) expected in the fourth quarter of this year.
The company said it is considering government support, convertible bonds, strategic debt and equity as part of a broad funding package for the project.
Deep Yellow said the funding process is being driven by a focus on flexibility, certainty, the cost of capital, minimising shareholder dilution and managing risk, with the overall objective of maximising shareholder value.
The funding package is among the key remaining requirements before FID, alongside the finalisation of project optimisation.
Significant progress has already been made at Tumas, with earthworks completed and engineering and procurement substantially advanced.
As at 30 June 2026, detailed engineering was 79% complete, while 76% of major process plant equipment had been tendered.
The majority of long-lead equipment packages had also been conditionally awarded, subject to Deep Yellow issuing notices to proceed.
The company said earthworks had reached 100% completion, including work associated with the processing plant, power infrastructure and contractor site establishment.
Other site activities include construction of run-of-mine roadways and development of the site office area and related infrastructure.
Deep Yellow said it remains focused on optimising Tumas for value across mining, processing, infrastructure, capital expenditure and operating costs.
The company has identified five critical workstreams covering mining value optimisation, operational readiness, operating and capital cost reviews and contractor onboarding.
Tumas is also expected to generate significant employment. Deep Yellow is targeting a 98% Namibian construction and operations workforce, with about 1 200 construction personnel expected during the development phase and approximately 600 employees during operations.
The company is also assessing further uranium growth opportunities in Namibia, including Tinkas, Aussinanis, S-Bend, Nova and Omahola.
Deep Yellow said the uranium market is approaching an inflection point, citing growing global nuclear power ambitions, increasing electricity demand from data centres and artificial intelligence, and constraints on new uranium supply.
The company said global long-term uranium contracting remained below replacement rates, with 37 million pounds contracted year-to-date in 2026 compared with forecast annual demand of between 196 million and 223 million pounds.
It also estimated that 66% of uranium requirements through to 2045 remained uncovered, representing about 3.2 billion pounds.
The long-term uranium contract price stood at US$97 per pound in July 2026, compared with a spot price of US$87 per pound, according to the company’s presentation.
Deep Yellow expects to make the Tumas FID in the fourth quarter of 2026, subject to market conditions, with securing the funding package and completing project optimisation among the key steps remaining.
