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.