Deep Yellow Limited (ASX:DYL) is a uranium development and exploration company with advanced projects in Namibia and Australia. Its main focus during 2026 has been moving the Tumas Project closer to construction readiness while retaining flexibility over the timing of a final Investment decision. By 30 June, detailed engineering was 79% complete, bulk earthworks had been completed and most major process-plant equipment packages had progressed through tendering. The company is targeting a final investment decision in the fourth quarter of 2026, subject to market conditions.

Tumas is approaching construction readiness

Tumas is Deep Yellow's most advanced uranium development asset.

The project is located in Namibia and is currently owned 100% by Deep Yellow, although its local partner has the right to acquire a 5% interest after a positive final investment decision.

Tumas has an Ore Reserve of approximately 79.5 million pounds of U3O8 at an average grade of 298 parts per million.

The development plan is based on production capacity of approximately 3.6 million pounds of uranium a year and a mine life extending beyond 30 years.

These figures represent project estimates rather than operating results because Tumas has not yet entered commercial production.

The next major step is therefore the decision on whether to move from staged early works into full mine and processing-plant construction.

Detailed engineering reaches 79%

Engineering advanced materially during FY26.

At 30 June 2026, detailed engineering was 79% complete.

Deep Yellow had also tendered approximately 76% of major process-plant equipment, while the majority of long-lead packages had been conditionally awarded.

Conditional awards allow the company to continue preparing for development without committing to the full construction expenditure before the final investment decision.

This approach is intended to shorten the transition from FID to construction if the board decides conditions are appropriate.

The company is also continuing optimisation work across the project design, Mining schedule and financial model.

Bulk earthworks are complete

Physical work at the Tumas site also progressed during 2026.

Bulk earthworks for the processing-plant area were completed during the financial year.

The work involved preparing the site for later construction, including excavation, backfilling, terracing, laydown areas, access routes and associated infrastructure.

Completing this work before FID reduces the amount of preparation required if full construction proceeds.

Deep Yellow subsequently awarded major civil and concrete construction contracts, with mobilisation and further construction activity beginning after the end of FY26.

The staged approach means Tumas is moving beyond a study-only project even though the board has not yet committed to full development.

Financing remains a major workstream

Funding is one of the principal issues to be resolved before Tumas moves into full construction.

The current project study estimates initial Capital Expenditure at approximately US$474 million.

Deep Yellow ended FY26 with A$160 million of cash and cash equivalents and remained Debt free.

That cash position provides funding for engineering, early works, exploration and other development activities, but the full Tumas construction program would require a broader financing package.

The company is evaluating several potential funding sources, including project debt, equity, strategic capital, government-related support, bonds and convertible instruments.

The final mix has not yet been determined.

Deep Yellow has said it is considering factors including funding certainty, cost of capital, flexibility, risk and potential dilution when assessing the eventual package.

Debt preparations have already advanced

Deep Yellow has also progressed work required for project debt financing.

An Independent Technical Expert review of Tumas has been completed without identifying material technical issues.

Such reviews are commonly required by lenders before project-finance documentation can advance.

The completion of this process does not mean Debt Financing has been secured.

It does, however, allow discussions to move further into funding structure and documentation.

The size of any eventual debt component will depend on project economics, uranium market conditions, lender requirements and the broader funding strategy adopted by the board.

Uranium market conditions remain central to FID

Deep Yellow has repeatedly linked the timing of Tumas construction to uranium market conditions.

The company is seeking market conditions that it considers sufficient to support the Economics and risk profile of a new greenfield uranium operation.

This means the board is looking beyond short-term movements in the spot uranium price.

Long-term contracting conditions are particularly relevant because a mine expected to operate for more than 30 years requires Revenue visibility that extends well beyond current spot prices.

Customer contracting, long-term uranium prices and the level of available Demand will therefore influence the FID alongside construction costs and financing.

The final decision will not depend on a single uranium-price threshold disclosed publicly.

Study economics use US$82.50 per pound

Deep Yellow's current Tumas project economics are presented using a uranium price assumption of US$82.50 per pound.

At that price, the project study estimates a post-tax net present value of approximately US$577 million and a post-tax internal rate of return of 19%.

The estimated life-of-mine All-In Sustaining Cost is approximately US$45 per pound of U3O8 after accounting for vanadium by-product credits.

These figures are modelled estimates rather than realised outcomes.

Actual economics would depend on uranium sale prices, construction costs, operating performance, exchange rates, financing and production levels after development.

For this reason, the company continues reviewing the project model ahead of FID.

Infrastructure work reduces development uncertainty

Power and water are essential to the Tumas development because the project is located in an arid region.

Deep Yellow has progressed arrangements for the required infrastructure as part of its staged development approach.

Its power Supply agreement has been executed, while water infrastructure arrangements have continued to progress.

The company has also completed or advanced supporting infrastructure around the project site.

These workstreams are significant because a processing plant cannot operate independently of reliable electricity, water, roads and supporting services.

Resolving infrastructure requirements before the main construction decision reduces another source of uncertainty in the development schedule.

A$160 million cash provides flexibility, not full funding

Deep Yellow's A$160 million cash balance gives the company flexibility as it approaches the Tumas investment decision.

However, that figure should be considered alongside the approximately US$474 million initial capital estimate for the project.

The available cash must also support activities elsewhere in the portfolio.

Deep Yellow is advancing exploration in Namibia and Australia while continuing technical work at its other uranium assets.

The company therefore needs to balance Tumas development spending against exploration, corporate costs and future funding requirements.

This is why the structure of the external funding package will be an important component of the final investment decision.

Mulga Rock remains the second major development project

Deep Yellow is also progressing work at the Mulga Rock Project in Western Australia.

During 2026, technical work has focused on optimisation and revisions to the project configuration.

The company is assessing how uranium and associated critical minerals could be incorporated into an updated development strategy.

Mulga Rock provides Deep Yellow with a second advanced uranium asset, but Tumas remains the more immediate development priority.

Capital requirements across two large projects mean development sequencing will remain important.

Deep Yellow is therefore unlikely to assess Tumas in isolation from the wider funding needs of the group.

Exploration continues in the Northern Territory

Deep Yellow also expanded its exploration activities in Australia's Northern Territory during 2026.

The company established the King River Camp at the Alligator River Project in preparation for drilling.

It also entered into a binding agreement to acquire the remaining 50% interest held by Energy Resources of Australia in the Cooper Creek Joint Venture.

These activities broaden the company's exploration pipeline beyond its two advanced development projects.

However, exploration spending also competes for capital.

The allocation of funds between Tumas construction readiness, Mulga Rock optimisation and exploration therefore forms part of the wider capital-management challenge.

What must happen before FID?

The remaining work is broader than simply finishing engineering.

Deep Yellow needs to complete further project optimisation and establish a funding package that the board considers appropriate.

The board must also assess uranium contracting conditions, project economics, current capital and operating cost estimates, customer offtake arrangements and overall construction readiness.

Detailed engineering and procurement can continue to reduce execution risk, but they cannot remove commodity-price and financing risk.

The fact that bulk earthworks are complete and engineering is approaching completion means the project is increasingly prepared from a physical and technical perspective.

The commercial decision remains separate.

Q4 2026 is the current decision window

Deep Yellow is targeting the fourth quarter of 2026 for a final investment decision, subject to prevailing uranium market conditions.

That timing should therefore be treated as a target rather than a guaranteed construction date.

A positive FID would allow the company to issue notices to proceed on major equipment and construction packages that are currently conditional.

A further delay would leave the staged development strategy in place while Deep Yellow waits for conditions it considers sufficient to commit the full project capital.

The central issue for the remainder of 2026 is consequently not whether Tumas is technically advanced. Much of that preparation is already well progressed.

The decision will instead depend on whether financing, uranium contracting and project economics collectively provide the board with sufficient confidence to move from preparation into full-scale construction.