$DYLLF : Deep Yellow Ltd. — PFS Highlights

Long-Term Price Case$65/lb. U308
Flagship ProjectTumas
Shares Outstanding317,018,803
Market Cap$206,062,222
Average Annual Production2.5 M lbs.
Recovery93.8%
LoM11.5 Years
Payable Product29.1 M lbs.
C1 Cost (U3O8 basis with V2O5 by-product)$27.28/lb.
AISC (U3O8 basis with V2O5 by-product)$30.69/lb.
EBITDA$1,034,000,000
Total Initial, Pre-Production, Sustaining & Closure Capital($357,400,000)
Undiscounted Cashflow After Tax$447,400,000
Net Profit Margin43%
Absolute Cost Structure (ACS)47%
MTQ Score (Higher is Better)0.9
True Value$1.41/sh.

On the back of the PFS, Deep Yellow has a fundamental value of U.S. $446,996,512, which implies a current discount of 57% at U.S. $0.60/sh.

Once produced, a DFS will materially impact Deep Yellow’s current fundamental value. I’m of the opinion that it will closely resemble the following:

Long-Term Price Case$65/lb. U308
Flagship ProjectTumas
Shares Outstanding317,018,803
Market Cap$206,062,222
Average Annual Production3 M lbs.
Recovery93.8%
LoM20 Years
Payable Product63.4 M lbs.
C1 Cost (U3O8 basis with V2O5 by-product)$27.28/lb.
AISC (U3O8 basis with V2O5 by-product)$30.69/lb.
EBITDA$4,121,000,000
Total Initial, Pre-Production, Sustaining & Closure Capital($779,132,000)
Undiscounted Cashflow After Tax$1,772,030,000
Net Profit Margin43%
Absolute Cost Structure (ACS)47%
MTQ Score (Higher is Better)0.9
True Value$5.59/sh.

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