Chamwe Kaira
Uranium prices strengthened through 2025 as supply remained tight and expectations for global nuclear power growth increased, improving the outlook for new uranium projects.
The uranium spot price rose by almost 13% during the year to US$81.40 per pound at 31 December 2025. Term prices for newly negotiated long-term contracts increased to between US$86 and US$87 per pound, according to market data.
Despite higher contracting activity, global utility term contracts remained below annual uranium consumption. This points to an ongoing supply shortfall. Analysts link rising demand to reactor restarts, nuclear expansion in countries such as India and Japan, growing interest from large data centre operators, and possible further restrictions on Russian nuclear fuel exports.
Against this background, uranium developer Deep Yellow Limited reported progress across its development and exploration portfolio in its quarterly report for the period ending 31 December 2025.
The company said staged development of its Tumas Project in the Erongo Region continued during the quarter. Detailed engineering is more than 60% complete, while bulk earthworks reached 24%.
Deep Yellow also executed a transmission power supply agreement with Namibia Power Corporation, subject to a final investment decision.
An independent technical expert completed due diligence for project debt financing during the period. Deep Yellow said this marked a key step toward securing funding.
The company said the independent review, carried out on behalf of Nedbank as mandated lead arranger, found no material flaws. This cleared the way for the documentation phase of project financing.
Deep Yellow continues to update capital cost estimates, mining schedules and financial models ahead of a final investment decision, which will depend on market conditions.
Exploration work near the Tumas Project also delivered positive results. Reverse circulation drilling at the Tinkas prospect intersected shallow uranium mineralisation, with thicknesses of up to 11 metres from the surface.
The mineralisation is hosted within calcretized paleochannel sediments. The company reported average mineralised thicknesses of 2.9 metres and grades averaging 260 parts per million equivalent uranium oxide.
On the corporate side, Deep Yellow reported a group cash balance of A$187.1 million at 31 December 2025.
The company confirmed the appointment of Greg Field as managing director and chief executive officer, effective 2 February 2026. He replaces John Borshoff, who stepped down in October.
Deep Yellow said it remains positioned to advance its projects as uranium market conditions continue to improve, particularly for new large-scale developments.
Caption
The uranium spot price rose nearly 13% over the year to US$81.40 per pound at 31 December 2025.
- Photo: Contributed
