Previously high-flying uranium miner Deep Yellow (DYL) was hit -18.8% on Monday after John Borshoff stepped down as CEO and MD immediately. The market assumed there’s no smoke without fire, which given the lack of detail in the announcement, seemed to be a fair conclusion.
Borshoff will remain as an adviser until the end of November – certainly not a long stint, and despite the company’s best efforts to allay market concerns that a global search for a replacement MD and CEO is at an advanced stage, we think this has been a rushed move, though we’re not across the underlying reason, other than age (Borshoff is 79).
- He holds about 18.8 million shares worth roughly A$22 million, which doesn’t create a meaningful overhang.
Deep Yellow is aiming to start uranium production at its flagship Tumas Project in Namibia in the second half of 2026. Once operational, they expect Tumas to produce roughly 3.6 million lbs of uranium per year over a 30-plus-year mine life – exciting numbers for a $1.8bn business with uranium trading above $US80/lb, but there is still a lot of work to do to make this reality.
- DYL has been the outperformer amongst local uranium peers, and now there is some uncertainty under the hood.
MM has no interest in DYL until more clarity emerges
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