Deep Yellow Adds Exploration Value

John Robertson


Deep Yellow (DYL:AU) exploration results (ASX 16 July 2015) are pointing to a more extensive Namibian uranium resource position than had previously been disclosed. The PortfolioDirect rating for the company had already characterised it as having a prospect quality toward the upper end of the range of possible outcomes with a relatively low risk profile. Investment returns remain overwhelmingly driven by influences outside the control of the company with potential buyers of uranium ironically reluctant to underwrite mine developments despite forecasts of potential shortages. The market value of Deep Yellow has declined 38% since the beginning of June as sector sentiment has deteriorated further. The chart shows how Deep Yellow (green line) has tracked against the Global X uranium ETF (white line) since the start of 2014. Deep Yellow is a possible portfolio holding for an investor wishing to gain exposure to an eventual sector recovery with the possibility of an additional value contribution from an extension of its resource base.

1 topic

John Robertson
John Robertson

John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business...


No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.


Sign In or Join Free to comment