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DYL - Deep Yellow

Sean K

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Under the cover of darkness, DYL made a sneaky offer to VMY for a 'merger of equals' with a script offer valuing VMY at a measly 15% ish premium to it's last price, except DYL were going to be the owners and managers with hardly a Vimy director in sight. LOL.

Even though Vimy has tripled in the past 3 months, 3c to 30c the past 2 years, and probably fully priced for an explorer, it's no deal!

On the surface of it, might have been a great merger with fantastic deposits in Australia and Namibia. Would have been quite a significant player. Come on JB, could have done better than that!
 

Sean K

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DYL behaving like most other uranium juniors, heading into support levels and expect a bump here.

MC back down to $370m which is more realistic for this stage of development and POU still under $50. I think once POU gets back over $50 and looks more certain to head back into the re-start price for mothballed assets that they'll all be more significantly re-rated. Just a matter of time, unless, Fukushima 2.

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Sean K

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DYL is one of the few explorers who may get into production during the next next cycle due mainly to management experience. I'm not sure if many other explorers will get there as there's a number of closed mines getting ready to go and others can ramp up production. Unless there's another nuclear accident that stops Japan re-starting and China changes their energy mix trajectory.

This DFS update looks pretty positive, with LOM, Margin and NPV doubled.

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Sean K

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DYL obviously haven't given up on their M&A goals of taking over one or more of the other juniors, claiming they are the right crew to sail a much larger ship. From their latest preso out today. Committed a whole page to it.

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Sean K

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@Sean K do Deep yellow actually produce anything, they have been around forever?

Nope, but Tumas is well advanced and DFS should be done this year. This management group built Langer Heinrich and Kayelekera in pretty short time during the last uranium bull. One of the only teams to go from exploration to production during that period. It's the major reason I'm on it.

I'm more confident in the past producers who are re-starting their mines - BOE and LOT.

I doubt junior explorers jumping on the bandwagon at this stage will ever get to mining. The other mines starting up should cover the supply demand gap in the mid term I think, depending on how many new reactors actually get built.

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I'm going to follow you into these if there's a general crash @Sean K. At a superficial level I agree with your take - I know from the first uranium bull how uranium explorers can vaporise when it comes to development. I was in AGS. Deep Yellow is the most attractive one but haven't bothered about LOT yet. I don't like their ticker code, lol. I know the story on BOE.
 

Sean K

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I'm going to follow you into these if there's a general crash @Sean K. At a superficial level I agree with your take - I know from the first uranium bull how uranium explorers can vaporise when it comes to development. I was in AGS. Deep Yellow is the most attractive one but haven't bothered about LOT yet. I don't like their ticker code, lol. I know the story on BOE.

I think the only risks are Kazatomprom miscalculating by bringing on too much additional supply (but that's not in their long term interest), another nuclear accident, or thorium suddenly being able to replace uranium. I was in just about every junior uranium company in the naughties and the only thing I got left without a chair with was BMN during the GFC. Ouch.
 
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Volatility opportunities this last year for sharp traders I guess but for investors its gone nowhere.
Picking it up in March of the WuFlu offered a 13 bagger opportunity over a year and a half!
I'll try to remember that if there's a general crash.

Not Held
 

Sean K

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First presentation out on the merged DYL/VMY outfit. Pretty happy with the outcome but I'm a bit overweight DYL now. Interesting that they think there's more M&A to come out of the U sector. Perhaps they should now aim to pick something up that's nearer to production, like a re-start, or an operating mine. Maybe BOE or LOT would fit the bill.

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