After a strong 2023, when the uranium market was booming, 2024 produced mixed results. With prices topping in January 2024, some potential growth companies are best suited for long term holding.
Deep Yellow Limited (ASX: DYL)
Deep Yellow Limited (ASX: DYL) provided an update on December 19, 2024, highlighting key progress and adjustments related to its flagship Tumas Project. The Final Investment Decision (FID) for the project has been deferred to early March 2025 due to delays in equipment and construction costings and ongoing project optimization. While early works on non-process infrastructure continue, the commencement of full-scale plant construction remains contingent on achieving sufficient price incentivization to support a greenfield project start-up. Notably, firm water and power supply agreements with NamWater and NamPower have been secured, with contracts nearing execution. Deep Yellow remains well-funded, with A$247 million in cash as of September 30, 2024, to advance project development. The updated Ore Reserve Estimate for the Tumas Project reflects an 18% increase to 79.3 Mlb U3O8 at 298 ppm using a 100 ppm cut-off grade, extending the Life of Mine (LOM) to 30 years. This includes Proved Reserves of 28.4 Mlb at 287 ppm U3O8 and Probable Reserves of 50.9 Mlb at 305 ppm U3O8. The reserve upgrade aligns with the increased throughput outlined in the DFS (February 2023), targeting a production rate of 3.6 Mlb U3O8 per annum. Additional LOM extensions are possible through the conversion of Inferred Mineral Resources, with 30% of the Tumas Palaeochannel system remaining underexplored.
In 2024, Deep Yellow achieved major milestones, including securing a mining license for Tumas, appointing Ausenco Services as project engineers, and engaging Nedbank as lead financier. A successful equity raise in May 2024 generated A$250 million, adding new institutional investors and strengthening the Company’s financial position. These advancements, coupled with rising uranium prices, drove a 20% year-to-date increase in Deep Yellow's share price by October 2024, despite market volatility. The supportive macro environment, marked by growing nuclear energy adoption and a widening uranium supply gap, reinforces Deep Yellow’s position as a key player in the uranium market. The Company is on track to transition into the construction phase of Tumas, setting the stage for transformational growth and solidifying its role as a diversified uranium supplier to the global nuclear industry.
Bannerman Energy Limited (ASX: BMN)
Bannerman Energy Limited (ASX: BMN) made significant progress on its Etango Uranium Project during the September 2024 quarter, advancing towards a Final Investment Decision (FID). Bannerman Energy, one of the growing companies to invest in, followed its phased "greenlight" construction strategy, completing the first phase of early works—such as building an access road and establishing water supply—safely and within budget. This success enabled the company to transition smoothly to the next phase, which includes key contract awards and long-lead equipment orders. Notable milestones included the awarding of 24-month contracts for bulk earthworks and construction power, as well as placing an order for the High-Pressure Grinding Rolls (HPGR) tertiary crusher. The company also advanced negotiations for permanent water and power supply, with detailed design work on the process plant continuing.
Bannerman’s strong liquidity position is another key highlight from the quarter, with the company ending September 2024 with a cash balance of A$95.7 million and no debt. This robust financial standing provides the flexibility to move forward with the Etango project and manage ongoing operational costs. The total exploration and development expenditure for the quarter amounted to A$7.6 million, including funds for FEED and early-stage works. With no convertible instruments or debt, Bannerman is well-positioned to proceed with the next stages of the project, ensuring that it remains on track.
The uranium market continued to show positive signs in the quarter, with the long-term contract price reaching a 15-year high of US$82 per pound of U3O8, driven by supply constraints and rising global demand for nuclear energy. Geopolitical tensions, particularly logistical challenges faced by Kazakhstan’s state-owned producer Kazatomprom and potential restrictions on Russian uranium exports, further amplified concerns over supply security. In response, utilities are increasingly securing long-term supply agreements. Additionally, the growing demand for nuclear power, especially from data centers and industries reliant on continuous energy, further underscores uranium’s critical role in meeting future energy needs.
Source: Company’s Report
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