A scientist looks at the elemental information for Uranium on a tablet. Source: Adobe Stock
The Market Online - At The Bell

Join our daily newsletter At The Bell to receive exclusive market insights

While prices for uranium on the NYMEX may have fallen below their recent US$100/lb+ peaks, investor enthusiasm for the thematic has been evidenced today by Deep Yellow (ASX:DYL).

The long-time ASX-listed uranium stalwart’s most recent share purchase plan – intended to raise $30M – closed with an oversubscription, netting the company $45M instead.

Deep Yellow most recently raised $220M in a placement, and a share purchase plan (SPP) for an extra $30M – to which the company’s oversubscription announcement on Thursday relates – was to bring the total to $250M.

DYL offered a maximum of 24.48M shares in its SPP but instead received application for a total of 36.8M shares.

“In accordance with the terms of the SPP, the Company will conduct a pro-rata scale-back of applications, with the number of Shares rounded down to reflect a whole number of Shares,” the company resolved on Thursday.

By next Monday, the company will inform the market on the final number of shares to be issued.

DYL opened on Thursday at $1.40/sh while the SPP valued shares at $1.225ea.

The very fact DYL is forced to juggle a dilutive funding round is evidence of a strong interest in the uranium thematic held by ASX investors, both retail and uptown.

Uranium prices have consolidated under US$100/lb – perhaps driven by Cameco’s announcement earlier this year it would boost production by millions of pounds.

This announcement offset bullish trading psychology borne from Kazatomprom’s production problems in Kazakhstan announced early in early 2024 – but prices remain some ~30% higher than last year’s average, according to TradingEconomics.

DYL shares opened at $1.40.

DYL by the numbers
More From The Market Online
The Market Online Video

ASX Market Close: Bourse finishes week on a high as Wisetech pummeled | November 22, 2024

The ASX200 closed up 0.85% at 8,393 points. Economists increasingly expect interest rates in Australia won’t…
The Market Online Video

HotCopper Highlights: Your most watched stocks for Week 47, 2024

In this segment we’ll look at the top stocks HotCopper users have been watching, and discussing,…
Canadian flag

History-making uranium sample grades and an imminent drill run. Infini Resources is poised to transform in 2025

Samples among the highest-ever-graded uranium soil samples recorded in mineral exploration history, and an imminent drill…
The Market Online Video

This biotech stock raised $11M in a risk-off environment. Its Alzheimer’s drug could change the game 

Today, one small pill holds the potential to transform cognitive medicine by addressing conditions like depression…